1-2

Profile3

Consolidated Financial
Highlights

4

To Our Stakeholders

5 - 10First Medium-termManagement Plan

11-12

Business Strategy

13-15

Research andDevelopment

16 -21

Corporate Governance22

Business Risks

23-24

Business Report (Consolidated)
for Fiscal 2009

25-65

Financial Section

66-68

IT Holdings Group
Corporate Data

ANNUAL R EPORT 2 0 0 9

CONTENTS

IT Holdings Corporation

Year Ended March 31, 2009

Profile
Profilecompany by TIS Inc. and INTEC Holdings, Ltd., through management integration.
Shared access to the management resources and technological expertise of the two
corporate groups now under the holding company umbrella will underpin higher

To Our Stakeholders

IT Holdings Corporation was established on April 1, 2008, as a joint holding

Consolidated Financial
Highlights

Great Leap Forward
corporate value for both groups, promote synergies built on reciprocal strengths, andinformation technology (IT) requirements of clients.

Through the development of the IT services industry, we will contribute to a better

First Medium-termManagement Plan

enhance the accuracy of responses to the increasingly complex, high-level

information society.
Business Strategy
Research andDevelopment
Corporate Governance

IT Holdings Corporation

INTEC Holdings, Ltd.

Business Risks

TIS Inc.

Business Report (Consolidated)
for Fiscal 2009+1

Financial Section

Performance estimates and other forward-looking statements in these materials are based on information available to management and certain reasonableassumptions at the time of publication. Various factors may cause actual figures to differ considerably from estimates.

IT Holdings Group
Corporate Data

Cautionary note regarding forward-looking statements

2ProfileProfileConsolidated Financial
Highlights

The IT Holdings Group seeks to be a corporate citizen whose activities, which hinge on the provision ofFirst Medium-termManagement Plan

Management Philosophy

To Our Stakeholders

IT Holdings Groupvarious services utilizing IT, match its status as a leading corporate group. Moreover, the Group will strive toshareholders as well as employees and their families.

Business Strategy

raise corporate value, supported in this effort by the high regard of all its stakeholders, including clients andWe will cultivate a vibrant corporate culture that encourages companies andchallenges, and thereby ensure corporate growth.

Research andDevelopment

individuals under the Group umbrella to work toward higher goals and embrace new

We will always provide the very best to clients, through excellent quality andWe will uphold high corporate morals and fulfill our social obligations.

Corporate Governancetechnology built on the composite strengths of the Group.

Business Risks
Business Report (Consolidated)
for Fiscal 2009
Financial Section
IT Holdings Group
Corporate Data

3

Consolidated Financial Highlights (Year ended March 31, 2009)
Profile2009
Millions of yen

295,327

3,006,485

146,216
34,311
35,105

1,488,511
349,296357,373¥110.74
110.72
1,541.17
32.00

$1.13
1.13
15.69
0.33

Net cash provided by operating activities
Cash and cash equivalents at end of year
Per share of common stock (¥):
Net income, basic
Net income, diluted
Net assets
Cash dividends
Key ratios (%):
Return on equity
Equity ratio

7.4%
44.4%

Outsourcing services¥125 billion (37.1%)

Corporate Governance

Other ¥7 billion (2.2%)

Net Sales by Client Sector (Year ended March 31, 2009)
Others 2.7%
Public institutions 8.6%

Business Risks

Solution services¥29 billion (8.7%)

Credit card
21.2%
Services 16.3%
Banking 7.9%

Distribution 7.9%

Insurance 6.5%

Processing-based
manufacturing 9.7%

Other finance 5.9%

Financial Section

Assembly-based
manufacturing 13.3%

Business Report (Consolidated)
for Fiscal 2009

Net sales¥338 billion(100.0%)Software development¥176 billion (52.0%)

Research andDevelopment

Notes: 1. U.S. dollar amounts in this annual report are translated from Japanese yen, for convenience only, at the rate of ¥98.23 = US$1, the approximate rate prevailing on
March 31, 2009.
2. Return on equity = [Net income/Equity] x 100
3. Equity ratio= [Equity/Total assets] x 100
4. Equity = Net assets – [Subscription rights + Minority interests] = ¥131,054 million for the year ended March 31, 2009.

Net Sales by Business Segment (Year ended March 31, 2009)

Business Strategy$3,443,979
242,159
95,761First Medium-termManagement Plan

¥338,302
23,787
9,407

To Our Stakeholders

For year ended March 31:
Net sales
Operating income
Net income
At year-end:
Total assets
Total net assets

2009
Thousands of U.S. dollars

Consolidated Financial
Highlights

IT Holdings Corporation and Consolidated Subsidiaries

IT Holdings Group
Corporate Data

4

To Our Stakeholders
Profilewould like to take this opportunity to extend our sincere appreciation to you, our stake­holders, for your invaluable support.
The Group has closed its books on business activities for fiscal 2009, the year ended
March 31, 2009, and it is time to tell you the results.

deepening financial crisis spread rapidly around the world. This was the backdrop for the
first year of business at IT Holdings following management integration on April 1, 2008.

First Medium-termManagement Plan

The economic climate remained challenging in fiscal 2009, as the repercussions of a

To Our Stakeholders

Seeking further progress on the IT frontier, weembarked on IT Evolution 2011, our first
medium-term management plan.

Consolidated Financial
Highlights

On behalf of senior management and employees throughout the IT Holdings Group, we

As a group, our goal was to accurately pinpoint client needs and provide total systemsystem planning and configuration. These efforts earned us high marks for reliability.
In April 2009, we embarked on our first medium-term management plan—IT
Evolution 2011—designed to secure a position at the forefront of the IT services industry

Business Strategy

integration services, from outsourcing and system operation from our data centers to IT

and, as the title implies, promote improvement in the technologies we utilize and theseven goals under five priority topics—business activities, management resources, financial
position, personnel and corporate culture. The associated goals are described on pages

Research andDevelopment

services we offer. The process will be guided by a management direction that highlights

6–10.

process will be underpinned by a all-for-one, one-for-all attitude that unites everyone
under the Group umbrella in spirit and actions.
We ask shareholders and investors to support us on this journey. Your encouragement

Corporate Governance

Steadily, we will achieve these goals and our business activities will expand. Theof our efforts will be instrumental to our success.
Business Risks

June 2009

Business Report (Consolidated)
for Fiscal 2009
Financial Section

Tetsuo Nakao
Chairman

Susumu Okamoto
President
IT Holdings Group
Corporate Data

5First Medium-term Management Plan (April 1, 2009 - March 31, 2012)
ProfileIT Evolution 2011

Performance Targets by March 31, 2012

Operating Income

Business Strategy¥400 billion¥35 billion

Net SalesFirst Medium-termManagement Plan

IT Evolution 2011 describes the corporate image that will define the Group by March 2012, lays out
a management direction charting across seven goals in five priority topics, and sets the tone for a unitedeffort among all Group companies to develop business activities in line with stated objectives.

To Our Stakeholders

The “IT” in IT Evolution 2011 represents many concepts:
Innovative Technology
Promoting original techniques.
Increasing Trust
Deepening bonds of trust with clients.
IT Holdings Group
Developing the unique capabilities of companies under the Groupumbrella while demonstrating the composite strength of a groupstructure.

Consolidated Financial
Highlights

In April 2009, the IT Holdings Group embarked on IT Evolution 2011, its first medium-term management
plan. This three-year plan will guide the Group to a solid position at the forefront of the IT services
industry.

Pursue business activities underpinned byclient trust.

Actively reform the production
platform and capitalize on new
business opportunities.

Business
activities

Management
resources

Corporate
cultureIT Holdings Group
Corporate Data

Promote measures that will fuelcorporate growth and motivate
employees.

Strengthen financial positionof the Group.

Financial Section

Personnel

Financial
position

Business Report (Consolidated)
for Fiscal 2009

Cultivate a corporate culturethat unites the whole group.

We seek to be a constantly evolving IT
business group that promotes the uniquequalities of each company under its
umbrella while demonstrating thecomposite strength that a group structure
provides to maintain a sharply
competitive edge in terms of quality,
reliability, technologies and pricing.

Business Risks

Desired Group Image

Corporate GovernanceEncourage greater
management efficiency as aGroup.

Research andDevelopment

Foster individuality of Group companies while
demonstrating the comprehensive strengths
afforded by a group structure, and expand thescope of business activities.

6

First Medium-term Management Plan (April 1, 2009 - March 31, 2012)
ProfilePursue business activities underpinned by client trust.

Research andDevelopment
Corporate GovernanceBusiness Risks

We will share production and outsourcing platforms and standardize the development methodologies
applied within the Group. We will continue to embrace innovation, incorporating into our operations newtechnologies, especially those that automate, virtualize, and reduce consumption of electricity. We will also
form solid alliances with prominent system development providers regardless of location, be it at home orabroad, to ensure continuous progress on development projects and cut costs from a global perspective.
On the research and development front, activities will be linked to business pursuits, transforming newtechniques into promising businesses and carving out new markets.

Business Strategy

Actively reform the production platform and capitalize on
new business opportunities.

First Medium-termManagement Plan

We will thoroughly enhance Group capabilities to secure top-of-the-industry status in our fields of expertise.
In the outsourcing and network business, we will quickly develop next-generation data center formats,
encapsulated by such words as green, global, cloud, virtualized, automated and BCP (business continuity
plans). This emphasis will make us the top IT services group in Japan.
Meanwhile, in the software development business, we will sharpen our competitive edge in industries
and service segments where we have accumulated particular expertise.

To Our Stakeholders

Foster individuality of Group companies while demonstrating
the comprehensive strengths afforded by a group structure,and expand the scope of business activities.

Consolidated Financial
Highlights

We seek to be a value-creating partner, contributing directly to the business success of each clientcompany. We will accomplish this by participating closely in the design of management and operating
strategies and by supporting the implementation of associated measures, as they relate to IT. Moreover,
we will strive to maintain the relationship of trust that we have built over the typically long duration ofa project, so that clients readily look to IT Holdings and the Group not only for system development but
for all their IT needs, including system operation and maintenance as well as wider system planning.

Business Report (Consolidated)
for Fiscal 2009

Business
activities

Financial Section

DesiredGroup Image

IT Holdings Group
Corporate Data

Financial
position

7First Medium-term Management Plan (April 1, 2009 - March 31, 2012)
ProfileDesired Group Image

Business Strategy
Research andDevelopment

We will make personnel structures consistent within the Group, whiledeveloping skills and motivating employees to work toward higher goals.
Our personnel strategy encompasses six points: 1) enhance the personnel
structure; 2) define the image of a talented employee and what is required
to realize this status; 3) cultivate a competent workforce; 4) recruit skilledindividuals and assign them to positions that make the most of their abilities;5) enable employees to maintain a good work–life balance; and 6) reinforce
awareness of compliance and corporate social responsibility.

First Medium-termManagement Plan

Promote measures that will fuel corporate
growth and motivate employees.

Strategic investment in facilities, particularly data centers,
as well as R&D is integral to the success of IT Evolution
2011. Merger and acquisition (M&A) opportunities arealso important, and we will prudently consider candidates
and select those that will best augment existing Groupcapabilities.
To ensure a stable source of funds for the necessary
investments, we will establish financial indicators thateach member of the Group must work toward. This will
strengthen the overall financial position of the Group andfacilitate business growth.

To Our Stakeholders

Personnel

Strengthen financial positionof the Group.

Consolidated Financial
Highlights

Financial
position

Corporate GovernanceBusiness Risks
Business Report (Consolidated)
for Fiscal 2009
Financial Section
IT Holdings Group
Corporate Data

8First Medium-term Management Plan (April 1, 2009 - March 31, 2012)
ProfileConsolidated Financial
Highlights
To Our Stakeholders
First Medium-termManagement Plan
Business Strategy

Encourage greater management efficiency as a Group.

DesiredGroup
Image
Corporate
cultureBusiness Report (Consolidated)
for Fiscal 2009

In our business pursuits, we will always consider the client’s perspective and strive to be a corporationin which all the companies under the Group umbrella work together to meet clients’ requirements andsolve IT-related matters of concern to them.
Each Group company is characterized by its own corporate culture, based on respective businesstraditions and corporate history. We will preserve these qualities, while cultivating a Group-definedcorporate culture that encourages every employee and every company within the Group to work
together in providing the very best to all clients.

Business Risks

Cultivate a corporate culture that unites the whole group.

Corporate GovernanceManagement
resources

Research andDevelopment

We will optimize administrative processes throughout the Group and promote centralized purchasing, sharedservices for back-office operations, effective use of Group assets through shared use, and standardized
information systems. These measures will lead to lower indirect operating costs on a groupwide basis.

Financial Section
IT Holdings Group
Corporate Data

9First Medium-term Management Plan (April 1, 2009 - March 31, 2012)
ProfileThe Drivers of IT Evolution 2011 Business Expansion
Consolidated Financial
Highlights

Business Portfolio Targets

New, promising andNew,overseas
promising
pursuits
and overseas pursuits

Outsourcing

Outsourcing

Solutions

Solutions

Other new businessesOther new businesses

Softwaredevelopment

Softwaredevelopment

Solutions

SolutionsOperating income ratio
Operating income ratio

Operating income ratio
Operating income ratio
Fiscal 2009

Fiscal 2016

Fiscal 2016

Entrenching Core Business and Creating New Services

Next-Generation Data Centers

Expanding IT Platform Services

Financial Section

To address IT platform issues, we will apply various solutions,
including virtualization technology, server integration and thinclients. We will help clients control information system costs with
one-stop access to reliable, high-availability IT platforms as well as
services covering everything from platform configuration tooperation.

Business Report (Consolidated)
for Fiscal 2009

Gotenyama gDC alone will give IT Holdings the distinction of having the largest data center in Japan. We will
utilize this data center as a hub from which to expand our business activities.

Business Risks

Data centers, particularly those that support disaster recovery and global outsourcing, will be attracting greater
corporate attention. Environmental considerations, such as heat generation and rising electricity consumption at
facilities, will also be of growing concern to companies as the integration density of servers increases.
The IT Holdings Group is developing sophisticated next-generation data centers that will ameliorate suchconcerns. At these facilities, we will apply environmentally conscious green IT initiatives and introduce leadingedge technologies to automate and standardize operations.
By March 2012, when IT Evolution 2011 draws to a close, floor space at our next-generation data centers,
including the Gotenyama gDC (green Data Center), will have increased by more than 20,000 m2, to 126,000m2.

Corporate GovernanceOutsourcing Services — High-Tech Responses to Social Demands

Research andDevelopment• Quantitatively expand outsourcing, software development and solution services and boost profitability.
• Anticipate market changes and respond with improved service content and a higher value-added quality.
• Develop business activities globally, paralleling the movement of clients, and pursue business opportunities in overseas
markets.
• Pursue new businesses, with a focus on business platform services.
• Offer an extensive range of consulting services, including advice to assist clients achieve business reforms utilizing IT.
• Create new services that utilize IT to support positive social change, and turn these services into operating pillars.

Business Strategy

Fiscal 2009

Businessplatform
services
New businesses
New businesses

First Medium-termManagement Plan

Softwaredevelopment

Businessplatform
services
Outsourcing

Core businesses Core businesses
Softwaredevelopment

Consulting

To Our Stakeholders

Outsourcing

Growth rate

Growth rate

Growth rate

Growth rate

Core businesses Core businesses

Consulting
Overseasbusinesses

Overseasbusinesses

IT Holdings Group
Corporate Data

Concept drawing of Gotenyama gDC

10First Medium-term Management Plan (April 1, 2009 - March 31, 2012)
ProfileWe will apply internal and external resources, including groupwide client bases and alliances, to the developmentof new services that will support positive social change through IT over the medium to long term.

The business platform services under consideration should be comprehensive, from network-facilitatedsystem resources, such as hardware, storage and operating systems, to shared functions, such asadministrative applications and recognition/security capabilities. Through these services, clients can use,
at a reasonable cost, whatever functions they require for their respective information systems.
We expect these functions to integrate seamlessly into an existing information system.

Business Report (Consolidated)
for Fiscal 2009

The companies under the Group umbrella have consultants who provide guidance on system planning,systemization requirements and other IT topics that might arise during the planning of an information
system or the introduction of packaged software.
Information systems are indispensable to any corporate operating strategy. Therefore, under IT
Evolution 2011, we will emphasize training for employees and expand the scope of available consulting
services to underscore our position as a strategic partner—a value-creating partner—that helps clientsachieve their business goals.

Business Risks

Consulting businessCorporate GovernanceBusiness platform services

Research andDevelopment

New Businesses — Addressing Social Change from a Medium- to Long-term Perspective

Business Strategy

Alliances with international companies engaged in IT outsourcing enables the IT Holdings Group to address the IT
service needs of Japanese companies developing a presence abroad.
Also, in association with the newly constructed Tianjin Data Center and local companies under the Groupumbrella, we will expand data center and IT system configuration services to support the business pursuits ofcompanies in China, both Chinese-owned operations and those established through Japanese, European and
U.S. investment.

First Medium-termManagement Plan

Overseas Business — Responding to Globalization of ClientsTo Our Stakeholders

The IT Holdings Group boasts the largest software development capacity of any IT services group in
Japan. We will draw on this strength, sharing accumulated know-how and development benchmarks
within the Group, standardizing this information, and extending our offshore capabilities to improve
software development quality and productivity.
We aim to establish proprietary solutions, particularly F3 (”F-Cube”), an information solution for
financial institutions, CreditCube, a next-generation system for credit card companies, and Yuito and
Sokuto, identity management products, as de facto industry standards. We will also promote Group
products to a wider corporate audience to raise our profile and foster corporate growth.

Consolidated Financial
Highlights

Software Development Services — Shared Know-How and Offshore Capabilities

Joint product development with alliance partners
Financial Section

Medium- to long-term strategic alliances with prominent companies will grant us access to the expertisefor which our respective partners are known. Jointly, we will combine our partners’ know-how with ourown industry- and service-specific competence and extensive background in system development andoperations to plan and develop products that we can promote under the IT Holdings brand.

IT Holdings Group
Corporate Data

11

Business Strategy
ProfileIntegrating Subsidiaries to Maximize Group Synergies

Offer high-value-added solutions
Expand client baseTo Our Stakeholders

Neoaxis Co., Ltd.

TIS Solution
Business Co., Ltd.

Business Strategy

Systems Engineering
Laboratory Co., Ltd.

First Medium-termManagement Plan

In accordance with the Group’s medium- to long-term
strategies, IT Holdings integrated two subsidiaries, Systems
Engineering Laboratory Co., Ltd. (SEL), and TIS Solution
Business Co., Ltd (TSB), on July 1, 2009, to form Neoaxis Co.,Ltd.
The forte fields of both companies are very similar. SEL
concentrated on sales and system development activities, witha focus on LANSA, a packaged software for IBM Japan’s iSeriesbusiness server for midsized growth companies. Meanwhile,business activities at TSB hinged on access to groupware,particularly Lotus Notes/Domino, as well as softwaredevelopment and sales of system products. Management
integration will maximize respective strengths and raise thehigh-value-added quality of solutions from Neoaxis.
Neoaxis will also demonstrate synergy derived throughcomplementary client groups. SEL addressed the needs ofgrowth companies and TSB catered to major corporations, andtogether, they bring to Neoaxis an expanded client base withno duplication.

Consolidated Financial
Highlights

Debut of Neoaxis

Research andDevelopment

Name:
Head office:Representatives:

Business Risks
Business Report (Consolidated)
for Fiscal 2009

Neoaxis Co., Ltd.
17-12, Kiba 2-chome, Koto-ku, Tokyo
Masayuki Takahashi, President
Kazunori Kawasaki, Vice President
Date of establishment: July 1, 2009
Paid-in capital:¥616.8 million
Shareholder:
IT Holdings (100%)
Number of employees: Approximately 270 (at time of management integration)
Business content:
Computer software development, sales and maintenanceSale of computers and peripheral equipment

Corporate Governance

Company Profile

Financial Section
IT Holdings Group
Corporate Data

12

Business Strategy
ProfilePromoting Shared Back-Office Operations

Accounting
Accounts andsettlement

A priority for IT Holdings in its first year of business was to promoteshared back-office operations. This effort culminated in theestablishment of IT Service Force Inc. (ITSF), on April 1, 2009.

Labor Services

General Affairs

Salaries, benefits

Payments, shipping

To Our Stakeholders

ITSF will be the driving force of enhanced efficiency in common
back-office operations throughout the Group, and will contribute tolower costs and higher service quality. The move to shared services
for various administrative tasks should lead to a ¥1 billion decreasein groupwide costs.
Procurement/
Purchasing

Order management

Receiving, invoicing

Corporate GovernanceTo Achieve Further Business Expansion

Acquired Shares in Nexway
Company Profile

Business Report (Consolidated)
for Fiscal 2009

Name:
Nexway Co., Ltd.
Head office:13-1, Katsudoki 1-chome, Chuo-ku, Tokyo
Representative:
Jun Fukami, President
Date of establishment: October 1, 2004
Paid-in capital:¥300 million
Shareholder:
INTEC Inc. (100%)
Number of employees: 96 (as of April 1, 2009)
Business content:	Services to distribute information

Business Risks
Financial Section

INTEC Inc., a Group company, acquired all shares in
Nexway Co., Ltd., effective July 11, 2008.
Nexway started out in July 1988 as the fax
broadcasting service division of Recruit Co., Ltd. In
October 2004, the division was split off into anincorporated company and has grown through thedevelopment of such services as simultaneous fax
distribution.
Through the equity connection, INTEC and
Nexway can integrate their technological andoperational capabilities to further the provision ofhigh-quality, highly reliable fax-related services.
Together, they can also target a wider client base forbusiness platform services, which distribute not only
facsimiles but also documents and other information.

Research andDevelopment

Business content:	Entrusted with administrative tasks related to generalaffairs, labor services, accounting and procurement/purchasing

Business Strategy

IT Service Force Inc.
11-38, Toyo 4-chome, Koto-ku, Tokyo
Kiyoshi Nakagawa, President
April 1, 2009
¥8 million
IT Holdings (100%)
85* (at time of establishment) *includes temporary staff

First Medium-termManagement Plan

Order Management

Company Profile
Name:
Head office:Representative:
Date of establishment:
Paid-in capital:
Shareholder:
Number of employees:

Consolidated Financial
Highlights

Established IT Service Force

IT Holdings Group
Corporate Data

13

Research and Development
ProfileTIS, INTEC, Intec Systems Institute and Intec NetCore form the core of the Group’s leading-edge R&D pursuits in thedomains described below. In some domains, where members of the TIS Group and the INTEC Group are working(1) Software development technology

Business Strategy
Research andDevelopment
Corporate GovernancePlatform technology R&D enables the Group to anticipate the market changes that accompany technologicalinnovation and underpins the development of new products and new services.
Recent activities in this area have emphasized R&D on real-time, high-quality distribution systems compatible
with networks, especially next-generation networks, as well as verification tests on platforms to support the
anticipated programming creation needs of cable television providers.
Of note, Intec Systems Institute and Intec NetCore teamed up with NTT Corporation to write two solutions that
address problems in the basic specifications of IPv6 (Internet Protocol version six). The Internet Engineering Task Force
officially issued a request for comments on the proposed requirements for address-selection mechanisms in July2008.
In addition to the development of demo solutions for data centers using the IPv6 platform, engineers involvedin platform technology R&D have delved into local WiMAX (worldwide interoperability for microwave access)technology, which offers the portability of Wi-Fi (wireless fidelity) but with broader coverage, to support the WiMAX
project set up jointly by INTEC and the Keio Research Institute at the Shonan-Fujisawa Campus of Keio University.
They also studied various WiMAX techniques and considered related business models.

First Medium-termManagement Plan

(2) Service platform technology

To Our Stakeholders

Production technology R&D is approached from two angles: high quality and high productivity. The results areindispensable components of a corporate structure resilient to business downturns. Therefore, production technology
is an R&D theme that the entire Group actively addresses.
In fiscal 2009, INTEC, Intec Systems Institute and TIS were jointly involved in the design and configuration of avirtual project room—a type of Platform as a Service, or PaaS—for software developers.
On its own, INTEC reviewed modeling techniques for service-oriented architecture, or SOA, ran verification tests
on Business Process Execution Language—more commonly, BPEL—engines for workflow processing, considered
possible improvements to enhance global software development practices, and investigated trends in agile softwaredevelopment techniques.
Meanwhile, TIS tackled the creation of better development methodologies for upstream processes, such as
requirement definitions and process modeling, and better performance prediction and verification environments,
implemented operations frameworks, and developed and further augmented static testing tools. In addition, thecompany launched full-scale in-house configuration management support and maintained conditions conducive to
reduced project load and higher quality of delivered product.

Consolidated Financial
Highlights

together, the benefits of management integration are already evident.

Business Risks
Business Report (Consolidated)
for Fiscal 2009
Financial Section
IT Holdings Group
Corporate Data

14

Research and Development
Profile(3) Next-generation IT constituent technology (industry-specific emphasis)

First Medium-termManagement Plan
Business Strategy
Research andDevelopment
Corporate GovernanceBusiness Risks
Business Report (Consolidated)
for Fiscal 2009Engineers also conduct R&D on next-generation IT constituent technology at the industry’s leading edge.
Intec Systems Institute pursued the development of a website security information analysis function with blog
analysis technology for LogRevi, an INTEC product, as well as a system to link posted information. The company also
marketed the telepathology system it developed in fiscal 2008 for remote diagnosis as well as a newly developed
prototype for an automated asbestos measurement system.
Meanwhile, Intec NetCore turned several years of R&D into a multiprotocol label switching network
management system and has already delivered the system to three major communication carriers in Japan. In July
2008, the company created a business entity to market the system and plans to promote the system overseas. In
addition, with the pool of unallocated IPv4 addresses drying up and the issue finally prompting real action, Intec
NetCore will bolster its consulting and transfer support businesses to help clients in their transition from IPv4 to IPv6
technology.
Multihoming is a technique essential to the realization of highly reliable communication networks, whereby
several IP addresses are used to connect a host to the Internet. This imparts resilience against malfunction of links,
hardware and protocols within the system. Intec NetCore developed a measurement technique that pinpoints thequality of each Internet connection in the IP network and began analyzing and storing Internet measurement quality
data from Japan and overseas. The company is now working to commercialize services featuring multihoming andconnectivity quality measurement techniques and fine-tuning methods to optimize network resources.
TIS verified deployment of jBPM—a platform for executable process languages, from business process
management (BPM) over workflow to service orchestration—as a process-oriented development technique. The
company also verified a virtualization technique using open-source software to achieve stable operation at high load.

To Our Stakeholders(4) Next-generation IT constituent technology (advanced constituent technology)

Consolidated Financial
Highlights

In the area of next-generation IT constituent technology, engineers take an industry-specific approach, narrowing
their research focus to technology specifically of use to client sectors and pursuing related R&D.
A recent success was the creation of an SOA-based reference model that enables business platforms connecting
the manufacturing, wholesaling and retailing operations of multiple companies to be provided as a Software as aService, or SaaS, solution. This model was applied to the development and evaluation of a prototype featuring opensource products, including an enterprise service bus, BPEL engine and portal server.
Efforts were also directed toward pinpointing trends among members of the distribution sector regarding theiruse of supply chain management.
The Group operates an netizen site—an e-learning environment for ordinary citizens to promote lifelong study—
and is pursuing other activities, including a joint effort with the University of Toyama to explore overseas examples of
e-portfolios—web-based information management systems utilizing electronic media and services to build acollection of learning materials and completed work—and design a trial system for use in Japan. WHO is also
involved in the local information platform verification project promoted by the Ministry of Internal Affairs andCommunications.
Another area of interest is the emergence of new health care service segments. To reinforce the Group’s ability
to meet evolving demand associated with these new segments, assigned personnel carefully track the national policy
on online access to medical information, the status of verification tests on an application platform for healthinformation, and health care guidelines.

Financial Section
IT Holdings Group
Corporate Data

15

Research and Development
Profile(5) Bioinformatics-related systems
Consolidated Financial
Highlights
To Our Stakeholders
First Medium-termManagement Plan
Business Strategy

Intec Systems Institute redrafted its bio-business vision to further clarify its direction and objectives in the area of
bioinformatics technology. In the new vision, the ultimate goal is to be a bio/health industry innovator, going beyond
simple IT-based business support for biotechnology and health and medical services sectors to play a pivotal role intransforming the industry itself.
Toward this goal, the IT Holdings Group, as a whole, is emphasizing system R&D that maximizes years ofexperience developing medical information systems and utilizes in-house knowledge of bioinformatics technology tomeet evolving demand for new health and medical services. This trend has emerged not only because of the heavier
cost burden that the nation now bears but also because people, in general, are increasingly keen to do whatever
they can to maintain and promote good health and prevent lifestyle-induced diseases, typified by metabolic
syndrome.
In research with non-Group partners, the results of a collaborative effort between Intec Web and Genome
Informatics Corporation and Japan's Institute of Physical and Chemical Research, known as RIKEN, on abioinformation analyzer, analysis method and analysis program were patented. The challenge was to determine thegenetic switch responsible for life phenomena, and the structural principle that controls the circadian clock inmammals was successfully identified. The next challenge will be to create a technique that cracks the biomechanismsof diseases and drug side effects at the genetic level for application in innovative drug development.
Intec Web and Genome Informatics is also participating in the Functional RNA Project—a five-year, strategic R&D
effort launched by the Ministry of Economy, Trade and Industry in 2005—as a member of the Japan Biological
Informatics Consortium. The company is responsible for bioinformatic R&D aimed at finding and analyzing functional
RNA. A highlight of the results achieved to date is the expanded scope of a patent for a microRNA analyzer, analysis
method and analysis program overseas. The company will now focus on research to get practical results out of thetechnique, such as discovering new biomarkers.

(6) Other R&D pursuits
Research andDevelopment
Corporate GovernanceBusiness Risks

Intec Systems Institute applied for four new patents in fiscal 2009. For R&D in progress, the company provides
updates through scientific papers, outside lectures and articles in the INTEC Technical Journal.
The company also takes an active position in cultivating the skills of tomorrow’s software and system engineers.
Efforts include support for training programs, such as the one at the University of Toyama that emphasizes practicalconcepts in product development, and special lectures at Toyama Prefectural University.
In the Internet realm, industry experts reckon the pool of unallocated IPv4 addresses in Japan will dry up
sometime between 2010 and 2011. Intec NetCore has assumed a leadership role, substantiated by a seat on theboard of Task Force on IPv4 Address Exhaustion, Japan, to ensure the industry responds seamlessly to IPv6 transition
issues and to encourage a wider embrace of IPv6.
TIS is tackling the challenge of raising the skill set of IT architects. The company tested out a new process infiscal 2009.
Total R&D expenses in fiscal 2009 reached ¥946 million.

Business Report (Consolidated)
for Fiscal 2009
Financial Section
IT Holdings Group
Corporate Data

16

Corporate Governance
ProfileTo maintain the trust of all stakeholders, including clients and shareholders, and to be a corporate citizen that meetsthe expectations of society, the Company will strive to reinforce corporate governance, not only by raising thetransparency and soundness of management practices but also by paying constant attention to the actions taken in the
pursuit of business. These efforts will ensure suitable levels of corporate ethics and legal compliance.

(1) Basic Outline of Corporate Bodies

Research andDevelopment

	The Company maintains a corporate auditor system. The Board of Corporate Auditors comprises four auditors,
three of whom are outside auditors. Corporate auditors attend Board of Directors’ meetings, examine important
documents, perform audits of subsidiaries and, when necessary, seek the opinion of others, including theCompany’s accounting firm, the Group Compliance Office and other units involved in internal audits. They also
keep close watch over the execution of duties by directors regarding business and operating activities.
		
The Group Internal Audit Office, comprising two members, is an internal auditing unit under theCompliance Division. This office exchanges information, as necessary, with units involved in internal audits at
Group companies and strives to ensure effective, high-caliber internal audits on a groupwide basis.

Business Strategy(2)	Cooperation between Corporate Auditors and the Accounting Firm, Group
Compliance Office and Other Units Involved in Internal AuditsFirst Medium-termManagement Plan	The Company’s Board of Directors shall comprise no more than 15 members, as set forth in the Articles ofIncorporation. The Board meets monthly, but will also convene whenever necessary to discuss and finalize
decisions regarding important business activities and legal matters pertaining to the execution of operations.
		
A groupwide executive officer system and an executive committee support and expedite decision-making
efforts relating to the execution of duties by representative directors.

To Our Stakeholders

1. Organizational Structure and Status of Internal Control System

Consolidated Financial
Highlights

I. Basic Policy

Corporate GovernanceBusiness Risks
Business Report (Consolidated)
for Fiscal 2009
Financial Section
IT Holdings Group
Corporate Data

17

Corporate Governance
Profile(3) Status of Internal Audits and Auditors’ Audits

Appointment, Dismissal

Board of Directors
Reports

Business Strategy

AdviceRisk Management
Council

Appointment

First Medium-termManagement Plan

Appointment, Dismissal

To Our Stakeholders

General Meeting of Shareholders

Consolidated Financial
Highlights

	To reinforce the stewardship function of the Board of Directors, two of the eight directors have come fromoutside the Company. The responsibilities of individual directors are clearly defined and the term of office islimited to one year to create a flexible structure primed for responses geared to changes in the operating
environment.
		The Executive Committee meets as situations require to monitor progress of the business and affairs of theGroup. This committee also discusses important issues related to the execution of operations, shares informationand generally underpins enhanced governance of the Group.
		Compliance Regulations have been prepared to ensure a standard level of compliance throughout theGroup. Internal audits are conducted on all activities, including compliance efforts, and compliance workshops
are held to raise awareness of pertinent issues.

Reports

Board of Discussion
Corporate Auditors
Discussion

Research andDevelopment

Appointment,
Administration

Group ComplianceCouncilGroup
Compliance
OfficeAuditsReports

Direction

Units involved ininternal audits

Accounting
AuditorReports

Business Risks

Group Risk
Management
Committee

Executive
Committee

Business Report (Consolidated)
for Fiscal 2009

Group Compliance
Committee

Group Security
Committee

Corporate GovernancePresidentGroup companies

Financial Section

IT Holdings

IT Holdings Group
Corporate Data

18

Corporate Governance
Profile(4) Accounting Audits

Osamu Oyama (one year of auditing IT Holdings)

Certified public accountant 		Yoshiyuki Matsumoto (one year of auditing IT Holdings)

Certified public accountant 		

Masato Saito (one year of auditing IT Holdings)
Certified public accountants 5
Other assistants
11(5) Approval Criteria for Election of Directors

Business Strategy	In its Articles of Incorporation, the Company sets forth a clause stating that the appointment of a candidate to
the Board of Directors must be approved by a majority vote of shareholders in attendance whose combined
shareholdings represent more than one-third of total voting rights held by shareholders with the ability to
exercise such rights. The Articles of Incorporation include a clause preventing cumulative voting in obtaining
approval of appointment for director candidates.

First Medium-termManagement Plan

Number of assistants involved in accounting operations
					

To Our Stakeholders

Certified public accountant 		

Consolidated Financial
Highlights

	The Company has engaged Ernst & Young ShinNihon LLC as independent auditor responsible for accounting
audits.
		
The certified public accountants who conduct audits of the Company’s books are as follows.

(6) Approval Criteria for Special Resolutions at the General Meeting of Shareholders

	In accordance with Article 427, Paragraph 1 of the Company Law, the Company enters into agreements with its
outside directors and outside corporate auditors that limit their liability for compensation under Article 423,
Paragraph 1 of the Company Law. The amount of liability pursuant to such agreements shall be limited to theminimum stated in Article 425, Paragraph 1 of the Company Law.

	The Company has two outside directors and three outside corporate auditors, none of whom maintains any
business relationships with the Company.

Financial Section(9)	Relationship with Outside Directors and Outside Corporate Auditors

Business Report (Consolidated)
for Fiscal 2009(8)	Limited Liability Agreements with Outside Directors and Outside Corporate
Auditors

Business Risks(i) Seeking to achieve a flexible capital policy geared to the operating environment, the Company provides in its
Articles of Incorporation a clause allowing the Board of Directors to approve the purchase of treasury stockfrom the market, in accordance with Article 165, Paragraph 2 of the Company Law.
(ii) The Company’s Articles of Incorporation include a clause that grants the Board of Directors the authority toapprove the distribution of retained earnings to registered shareholders as of September 30 each year, as
described in Article 454, Paragraph 5 of the Company Law, to promote the flexible return of profits toshareholders.

Corporate Governance(7)	General Meeting of Shareholders’ Agenda Items that Can Be Resolved by the
Board of Directors

Research andDevelopment	Special resolutions described under Article 309, Paragraph 2 of the Company Law that are put before thegeneral meeting of shareholders must, in accordance with a clause provided by the Company in its Articles ofIncorporation, be passed with a number of votes corresponding to more than two-thirds of voting rights held byshareholders in attendance whose combined shareholdings represent no less than one-third of total voting
rights held by shareholders with the power to exercise such rights. Management believes that this reduced
quorum for special resolutions facilitates the execution of the general meeting of shareholders.

IT Holdings Group
Corporate Data

19

Corporate Governance
Profile2. Compliance and Risk Management

	The Company established the Group Compliance Department to maintain a companywide compliance structure
and actively strives to pinpoint problem areas. These efforts are supported by the Group Compliance Committee,
chaired by the president, where important issues related to compliance are discussed. The results of suchdiscussions are presented to the Board of Directors in a report format.

Research andDevelopment(3) Executive Compensation

Business Strategy	In the execution of its business activities, the Company is always aware of the various risks that accompany suchactivities. The risks of greatest weight for the Company, as an organization that handles information, are natural
disasters, such as earthquakes, which could damage data centers, and information leaks, particularly
unauthorized disclosure of personal information.
		
Risk management is practiced at all Group companies, and the Risk Management Committee plays a keyrole in overseeing risk management activities throughout the Group. In addition, the Company is ready to act
quickly with various response teams, if a vulnerability is discovered. This is part of an internal structure tominimize the impact of a risk situation on operations by ensuring sufficient communication within the Group.
		
The Company created the Group Compliance Committee as a component of its risk management strategy
to reinforce compliance practices and thereby enhance risk management.
		
These groupwide structures will be reviewed as necessary to keep responses current to the changing risks
that mirror the evolution of the Group’s business activities and market conditions.

First Medium-termManagement Plan(2)	Status of Risk Management System

To Our Stakeholders(1) Group Compliance Department and Group Compliance Committee

Consolidated Financial
Highlights

The Company created a corporate social responsibility code of conduct, and the president continually reinforces thespirit of this code to executives to ensure that the corporate activities overseen by executives are undertaken incompliance with the law and underpinned by respect for social principles. To reinforce compliance and risk
management practices, the Company has established the following structures.

Total annual compensation for directors:¥202 million, including ¥12 million for outside directors.

	As set forth in the Company’s Articles of Incorporation, the number of directors of the Company shall be 15 or
less.

Business Report (Consolidated)
for Fiscal 2009(4)	Fixed Number of Directors

Business Risks

Notes: 1. The employee salary portion of employees concurrently holding positions as directors is not included in the total of directors’ salaries.
2. Total compensation paid to directors and corporate auditors in the fiscal year under review—the year ended March 31, 2009—was within¥25 million per month for directors and within ¥7 million for corporate auditors, in accordance with Article 3 of supplementary provisions
in the Company’s Articles of Incorporation.
3. As of March 31, 2009, the Company had eight directors, two of whom were outside directors, and four corporate auditors, three of whomwere outside corporate auditors. The number of directors differs from that presented above, because two directors did not receive
compensation.
4. The Company has not introduced a retirement benefits system nor does it pay out bonuses.

Corporate GovernanceTotal annual compensation for corporate auditors:¥51 million, including ¥30 million for outside corporate auditors

Financial Section
IT Holdings Group
Corporate Data

20

Corporate Governance
ProfileConsolidated Financial
Highlights

II. 	Auditors’ Compensation
1. Compensation to Certified Public Accountants(Millions of yen)Compensation foraudit certification

The filing company

Compensation otherthan for audit
certification

Year ended March 31, 2009
Compensation foraudit certification

Compensation otherthan for audit
certification

¥—

¥ 35

¥ 14

Consolidated subsidiaries

—

—

223

88

Total

—

—

258

103

2. Other Major Compensation

First Medium-termManagement Plan¥—

To Our Stakeholders

Year ended March 31, 2008

None.

4. Policy regarding Compensation for Audits

Corporate Governance	The Company has not established a policy regarding compensation for audits executed by certified public
accountants. The Company maintains an appropriate amount in line with the audit plan formed by certified
public accountants and determines compensation for audits with the approval of the Board of Corporate
Directors.

Research andDevelopment

	The Company pays the accounting audit company to provide the following services, in addition to the services
covered in Article 2, Paragraph 1 of the Certified Public Accountants Law.
		To verify the implementation and utilization status of the internal control system, based on AuditingStandards Committee Report No. 18 issued by the Japanese Institute of Certified Public Accountants.

Business Strategy

3. N on-Auditing Services Provided by the Accounting Audit Company to theCompany

Business Risks
Business Report (Consolidated)
for Fiscal 2009
Financial Section
IT Holdings Group
Corporate Data

21

Corporate Governance
ProfileBasic Direction on CSR
The management philosophy that permeates the IT Holdings Group stresses theConsolidated Financial
Highlights

IT Holdings Group

Group’s development into a corporate citizen whose activities, hinging on thegroup. This philosophy also underpins the Group’s efforts to raise corporate value,
supported in this effort by the high regard of all its stakeholders, including clientsand shareholders as well as employees and their families.

To Our Stakeholders

provision of various services utilizing IT, match its status as a leading corporate

The Group’s stand on corporate social responsibility is evident in its commitment tounder the Group umbrella to work toward higher goals and embrace newchallenges, to be honest and fair in business pursuits based on respect of the law, ofcourse, as well as high moral standards, and to fulfill social obligations.

First Medium-termManagement Plan

cultivate a vibrant corporate culture that encourages the companies and individualsThis is the Group’s basic direction on CSR.

Maintain high corporate morals, obey the law and upholdparameters of socially acceptable conduct.
Have absolutely nothing to do with antisocial forces.

Maintain fair business practices

Ensure an appropriate perspective on business transactions,based on fair and open competition.

Protect the environment

Recognize that environmental problems warrant universal
attention and promote efforts to save resources and energy inthe execution of corporate activities. Also, through IT services,support clients’ efforts to enhance operating efficiency andreduce energy consumption, thereby contributing to lower
environmental impact.

Contribute to society

Actively participate in community events as a corporate citizen
whose social standing matches its leading industry status.

Be a part of theinternational community

Naturally, obey internationally recognized rules and local laws in
the execution of cross-border projects, but also contribute tosocial and economic development in the countries where theGroup maintains a presence by recognizing local culture andcustoms.

Financial Section

Respect the law

Business Report (Consolidated)
for Fiscal 2009

Develop talent

Cultivate an environment in which employees always look ahead,
striving to achieve higher goals and embracing new challenges.
Provide opportunities to grow and realize personal goals, create asafe and productive work environment, and give everyone thefreedom to reach their potential.

Business Risks

Always provide the very best to clients and strive to raisecustomer satisfaction levels through excellent quality andtechnology built on the composite strengths of the Group.

Corporate Governance

Provide optimum services

Research andDevelopment

Acknowledge responsibilities as a leading corporate group in the
IT services industry and undertake sound corporate activities
with integrity and clarity of purpose. In addition, be sincere andfair in dealings with all stakeholders.

Business Strategy

Ensure sound, transparent
management practices

IT Holdings Group
Corporate Data

22

Business Risks
ProfileAs the Group pursues the strategies outlined in the medium-term management plan, risks specific to each businesssegment may arise. In software development, for example, projects could turn unprofitable, while in outsourcing,such risks.
Management recognizes that natural disasters or major changes in the operating environment having a similarly
destructive force could also adversely effect the Group and its activities. Measures have been drawn up as athat operations will not be critically disrupted.
Two scenarios that could significantly influence the decisions of investors are presented below. Please note thatthese scenarios are possible—not certain—events that may take place in the future and are based on management’s

To Our Stakeholders

precaution to minimize damage to or loss of business assets in the event a serious situation develops and to ensure

Consolidated Financial
Highlights

system malfunctions could interrupt services. The Group applies various measures to prevent the manifestation ofassumptions as of June 26, 2009.

the event of a pandemic, and will draft measures, such as enhanced hygiene standards at all business locations,
including data centers, and self-imposed restrictions on the transfer of business to infected regions, geared to the
spread and severity of the sickness.

Corporate GovernancePeople—that is, employees—form the cornerstone of the services provided by the Group. The business activities of
the Group could be significantly disrupted if a pandemic, such as H1N1—the new influenza strain that appeared inspring 2009—were to strike in areas where the Group or its alliance partners operate, preventing employees fromworking and partner companies from maintaining production schedules.
Management will carefully track the actions of the Japanese government and the World Health Organization in

Research andDevelopment(2) Pandemics

Business Strategy

Outsourcing services continue around the clock every day of the year at data centers in metropolitan Tokyo andOsaka as well as locations in Tochigi Prefecture, Toyama Prefecture and Aichi Prefecture. Every conceivable safeguard
has been taken to establish a secure environment. The structures were designed to withstand earthquakes andfeature on-site generators that kick in to run equipment in the event of a power failure as well as systems that thwart
unauthorized entry.
However, if situations, particularly large-scale natural disasters, international disputes, terrorism and serious
criminal activity, manifest with repercussions more pervasive than expected, the operating efficiency of data centers
might deteriorate. The inability to provide uninterrupted services could influence the fiscal performance and financial
standing of Group companies involved in outsourcing services and by extension the Company as well.

First Medium-termManagement Plan

(1) Large-scale natural disasters

Business Risks
Business Report (Consolidated)
for Fiscal 2009
Financial Section
IT Holdings Group
Corporate Data

23

Business Report (Consolidated) for Fiscal 2009 (Year ended March 31, 2009)
ProfileSummary
deepening financial crisis—triggered by the U.S. subprime mortgage problem in the summer of 2007—caused
economic conditions to deteriorate rapidly on a global scale and prompted dramatic swings in stock prices andexchange rates. These factors, in turn, led to significant declines in corporate earnings in Japan and exacerbated analready worrisome unemployment situation. How the situation will play out is still an open question, since prevailing
The IT services industry also encountered challenges, characterized by an obvious trend toward reduced
investment by companies hurt by shrinking profits and the economic downturn. In its December 2008 tankan (Shortterm Economic Survey of Enterprises in Japan), the Bank of Japan predicted a year-on-year decline in software
investment for the fiscal year ending March 31, 2009. The March 2009 tankan revealed an even bleaker situation.

the system development phase of large-scale projects that had stretched over several fiscal years and welcomed
successful system startups beginning in November 2008.

First Medium-termManagement Plan

Against this backdrop, the IT Holdings Group performed well overall, buoyed by subsidiaries that were favorably
rewarded for being able to accurately identify the IT investment needs of major clients. Of note, TIS Inc. completed

To Our Stakeholders

circumstances remain too uncertain to permit even a best-guess scenario.

Consolidated Financial
Highlights

During the period under review, the domestic economy entered a steep recession, as repercussions from the

All told, on a consolidated basis, net sales reached ¥338,302 million, operating income came to ¥23,787 million,
and recurring profit settled at ¥23,604 million. Net income was held to ¥9,407 million, owing to the booking of

A breakdown of performance according to business segment is provided below.

Business Strategy¥2,199 million in valuation loss investments in securities.

Outsourcing and Network
The outsourcing and network segment utilizes data centers to provide outsourcing and various services inherent
in system operation and network configuration. In fiscal 2009, outsourcing and network services generated
consolidated net sales of ¥125,721 million, supported by favorable sales to major clients and the inclusion of
results by Nexway, which became a subsidiary in July 2008.

Research andDevelopment

Software Development

Corporate Governance

The software development segment offers comprehensive system integration services, from the planning of
information systems through configuration. In fiscal 2009, software development services delivered consolidated
net sales of ¥175,847 million, largely due to the booking of sales on large-scale projects as well as new projects.

Solution Services
The solution services segment focuses on the sale of software and hardware. In fiscal 2009, solution services
faced an uphill battle for sales, reflecting a lull in replacement demand among high-volume clients as well as
retreating interest in hardware due to deteriorating economic conditions. Consolidated net sales amounted to¥29,409 million.

Business Risks

Other BusinessBusiness Report (Consolidated)
for Fiscal 2009

The other business segment covers leasing operations and ancillary services associated with the provision of
information systems.

Financial Section
IT Holdings Group
Corporate Data

24

Business Report (Consolidated) for Fiscal 2009 (Year ended March 31, 2009)
Profile(Millions of yen)
Principal Group Companies
Fiscal 2009
actualConsolidated

338,30237.2%

Softwaredevelopment

52.0%

Solution
services

8.7%

Other
business

2.2%

Operatingincome7.0%

Recurring profit

111,74130.4%

125,72133,966

175,847

23,787

6,001
6.3%

23,604
2.8%

7,010
1.9%

9,407

6,171
5.8%

5,604
3.2%

2,174

−

5,993

−

1,728

1,023

715
6.7%

1,746
5.0%

344

−
6.8%

9.0%

1.3%

2,720

4,674

−

1,041

5,050

8,021

8.9%

3.8%

6.0%

3,134

22

4,960

5,890
44.2%

31.0%

3.9%

11.2%

5,348

11,372−
11.0%

10,565
55.8%

41.4%

0.1%

2,486

−
6.4%

15,352

18,126

AJS

19,363
27.6%

42.5%

5.5%

8,545

−
5.4%

24,62857,288

Qualica

26,748
57.4%

40.1%

8.8%

11,765

7,325

45,24030,78566,00929,409Agrex
Consolidated

54.4%

59.3%

10.5%

UFIT
Consolidated

96,618
31.9%

59.1%

7.0%

INTEC

706
5.9%

971

619

seeks to maintain stable dividends while taking into account performance trends, financial status, and the need toBusiness Risks

IT Holdings has made the long-term, comprehensive return of profits to shareholders a management priority, andCorporate Governance

Dividends

Research andDevelopment

IT Holdings was established on April 1, 2008, as a joint holding company by TIS and INTEC Holdings
through management integration. Fiscal 2009, the Company’s first business year, was designated as a time tolay a solid foundation for growth, and management diligently addressed several priorities, including drafting theGroup’s first medium-term management plan, which outlines measures to spur growth over the medium andlong term. Concerted efforts were also directed toward deriving synergies among Group companies, promoting
shared back-office operations, and redefining the Group structure.
A system for enhancing communication among Group companies went smoothly into place and is alreadyshowing positive results, namely, joint projects, realized through more opportunities to discuss businessprospects that benefit from the participation of more than one Group company.

Business Strategy

Net income(loss)

Nonconsolidated

First Medium-termManagement Plan

Outsourcing
and network

TIS

To Our Stakeholders

Net sales

IT Holdings

Consolidated Financial
Highlights

Fiscal 2009 Performance Summary:
Breakdown of Net Sales by Principal Group Companies

enrich retained earnings to support business growth.

¥27, as planned, and a ¥5 bonus to commemorate the management integration that created IT Holdings.
For fiscal 2010, management is prepared to pay an annual dividend of ¥32 per share, as the ¥5 bonus in thefiscal 2009 dividend becomes part of the regular dividend. The interim dividend is set for ¥12 per share.

Business Report (Consolidated)
for Fiscal 2009

In fiscal 2009, no interim dividend was paid, because the books for the Company’s first fiscal year had not beenclosed. However, management intends to pay a year-end dividend of ¥32 per share, comprising a regular dividend of

Financial Section
IT Holdings Group
Corporate Data