Information Meeting Materials
for the First Quarter of the Fiscal Year Ending March 31, 2013

July 31, 2012

Copyright © 2012 IT Holdings Corporation

Fiscal 2013 First Quarter Financial Highlights
Fiscal 2013 Full-Year Performance Forecasts
Reference Materials

Copyright © 2012 IT Holdings Corporation1

Fiscal 2013 First Quarter Financial Highlights
 Uncertainty obscured the economic path ahead for Japan, especially in the finance industry, largely due to concerns over the impact that
the European debt crisis might have in the future.
 In the IT services industry
industry, clientsclients’ IT investment trends were patchy overall but some clients showed renewed interest in investment.
investment
The ITHD Group accurately addressed the needs of these clients, leading to favorable order activity.
 The Company marked higher sales and higher income, on a consolidated basis, and welcomed a return to operating income status.
Net sales: Buoyed by demand for industrial IT services, up 7.0% year-on-year.
O
Operatingi income:iSupportedSd byb hihigher
h salesl startingi point,
i hugehincrease,imainlyi l thanks
h k to successful
f l structurall reformsfandd efforts
fftocurtail unprofitable projects. Returned to the black.
((Millions of yyen))

Net sales

Operating income (loss)

Net loss

YOY change:+¥4,729 million (+7.0%)

YOY change: +¥2,292 million

YOY change : +¥ 907 million

67,891(Actual)72,620256(Actual)(Actual)First Quarter of
Fiscal 2013

First Quarter of
Fiscal 2012

First
Quarter of
2012年3月期
Fiscal 2012

First
Quarter of
2013年3月期
Fiscal 2013

(Actual)(Actual)

第1四半期

第1四半期

(453)

(Actual)First
Quarter of
2012年3月期
Fiscal 2012
第1四半期

2013年3月期
FirstQuarter of
Fiscal 2013
第1四半期

Copyright © 2012 IT Holdings Corporation(2 036)(2,036)(1 360)(1,360)2

Fiscal 2013 First Quarter :Net Sales and Operating Income Analysis
Net Sales
72.62(Billions of yen)

67 89
67.89
IT Infrastructure Financial IT
+0.25
+0.36

Industrial IT+3.31

Other+0.49

First Quarter of
Fiscal 2012

Inter-segment+0.32

First Quarter of
Fiscal 2013

Operating Income (Loss)(Billions of yen)

Other+0 06+0.06

First Quarter of
Fiscal 2012
Industrial IT+0.76
Financial IT+0.55(2.03)IT Infrastructure+0 88+0.88

Copyright © 2012 IT Holdings Corporation

0.25

3Inter-segment
First Quarter of+0 03+0.03
Fiscal 2013

Fiscal 2013 First Quarter : Sales and Income for Key Segments
IT Infrastructure Services

Financial IT Services(Millions of yen)

Industrial IT Services

Net Sales

Net Sales

Net SalesUp ¥368 million, or 1.4%, year-on-year
Sales buoyed by increased demand for services fromnext-generation data center, starting with GDC
Gotenyama.

Up ¥258 million, or 1.9%, year-on-year
Slight increase reflects a trend among some credit
card companies to resume IT investment.

Up ¥3,312 million, or 11.6%, year-on-year
Solid increase, primarily due to large development
projects for major clients in manufacturing and atrend toward early testing and review for someprojects.
31,90926,611

26,98013,36013,618(A(Actual)l)(A(Actual)l)(Actual)(Actual)First
Quarter of
2012年3月期
Fiscal
2012
第1四半期

First
Quarter of
2013年3月期
Fiscal
2013
第1四半期

First
Quarter of
2012年3月期
Fiscal 2012
第1四半期

First
Quarter of
2013年3月期
Fiscal 2013
第1四半期

28,597(Actual)(Actual)First
Quarter of
2012年3月期
Fiscal
2012
第1四半期

First
Quarter of
2013年3月期
Fiscal
2013
第1四半期

O
Operatingti IncomeIO
Operatingti Loss
LOOperating
ti Loss
LUp ¥889 million, or 109.8%, year-on-year
Significant increase, mainly due to lower costs
achieved through greater operating efficiency.

Shrank ¥551 million year-on-year
Profitability improved, largely because of successful
structural reforms.

Shrank ¥769 million year-on-year
Profitability improved, largely due to higher sales
starting point and efforts to prevent projects fromturning unprofitable.

1 700
1,700

2012年3月期
First
Quarter of
Fiscal2012
第1四半期

2013年3月期
First
Quarter of
Fiscal 2013
第1四半期

(Actual)811(Actual)(Actual)

(202)

First
Quarter of
2012年3月期
Fiscal 2012第1四半期

2012年3月期
First
Quarter of
第1四半期
Fiscal2012

2013年3月期
First
Quarter of
第1四半期
Fiscal 2013

(Actual)First
Quarter of
2013年3月期
Fiscal 2013
第1四半期

(Actual)(Actual)(753)(2 193)(2,193)

Segment net sales include intersegment sales.
Copyright © 2012 IT Holdings Corporation

4(1,424)

Fiscal 2013 First Quarter: Order Status
Built up number of small and mid-sized projects for industrial-sector clients and saw downtrend in the financial sector bottom out,
which combined to drive up order volume and backlog.

First Q
Quarter of Fiscal 2013
(Millions of yen)First Quarter of Fiscal 2012
(Millions of yen)
Net sales
Orders received for the term
during the term
31,05544,918Net sales
Orders received for the term
34,304,duringdug tthee teterm
49,466

Order backlog
gOrder backlog
at the end
at the beginning of the termof the term
61,83047,967

Order backlog
gat the beginningof the term
57,778Order backlog
at the endof the term
72,940Orders received during the term

Order backlog at the end of the term(Millions of yen)

(Millions of yen)

44 91844,91849,466,28,55933,10716,359

16,358+¥ 4,548 million (+10.1%)【Composition】
・Financial IT services- ¥ 1million (- 0.0%)
・ Industrial IT services+¥ 4,458,million ((+15.9%))

2013年3月期
First Quarter ofFi l 2013
Fiscal
第1四半期

61 83061,83044,04339,092

22,738Financial IT

2012年3月期
FirstQuarter ofFi l 2012
Fiscal
第1四半期

72,940Industrial IT

First
Quarterof
2012年3月期
0Q
年3月期
Fiscal2012
第1四半期* Order volume and backlog at end of fiscal year and net sales apply to Software Development only.
Copyright © 2012 IT Holdings Corporation

528,896FirstQuarterof
2013年3月期
0Q
3年3月期
Fiscal2013
第1四半期+¥11,110 million (+18.0%)【Composition】
・Financial IT services+¥ 6,158 million (+ 27.1%)
・ Industrial IT services+¥ 4,951,million ((+ 12.7%))

Quarterly Order Status
Orders received during the term(Millions of yen)

38,51925,37640,03339,00426,934,23,79644,73044,91825,48328,55944 27044,27041,082

25,66532,47244 41044,41024,86849,466

33,107

Industrial IT
13,143First
第1四半期
Quarter

13,09915,208

ThirdSecond
第2四半期
第3四半期
Quarter
Quarter
2011年3月期

19,247

16,359Fourth
第4四半期
QuarterFirsts
第1四半期
Quarter

Fiscal 201115,417

11,798

Third
Second
Secod
第2四半期
第3四半期
Quarter
Quarter
2012年3月期

19,543

16,358Fourth
第4四半期
Quarter

First
第1四半期
Quarter

Fiscal 2012

Financial IT
Second
Third
第2四半期
第3四半期
Quarter
Quarter
2013年3月期

Fourth
第4四半期
Quarter

Fiscal 2013

Order backlogg at the end of the term(Millions of yen)

57,02851,57131,80632,017

61,83057,89872,94067,27060,58957,77847 96747,96744 04344,04339,09235,95043,804

39,66533,32529,738

Fiscal 2011

FirstFourth
Quarter-End Quarter-End

Fiscal 2012

Quarterly order volume, end-of-quarter backlog and quarterly net sales apply to Software Development only.
Copyright © 2012 IT Holdings Corporation

6

SecondThird
Quarter-End Quarter-End

Fiscal 2013Third
Quarter-End

第4四半期末

第2四半期末Third
Quarter-End

Financial IT
第3四半期末SecondQuarter-End

FourthFirst
Third
Quarter-End Quarter-End Quarter-End

24,453

第2四半期末23,466

第1四半期末20,925

第4四半期末22,738

第3四半期末18,229第1四半期末SecondQuarter-End

21,948

第4四半期末First
Quarter-End

19,553

第2四半期末

第1四半期末25,222

第3四半期末Industrial IT
28 89628,896

FourthQuarter-EndFiscal 2013 First Quarter Financial Highlights
Fiscal 2013 Full-Year Performance Forecasts
Reference Materials

Copyright © 2012 IT Holdings Corporation7

Fiscal 2013: Performance Forecasts
Currently, progress toward targets is generally on track, and there are no plans to change earlier performance forecasts.
Net Sales: We anticipate more large development projects for big clients in the manufacturing industry as well as
continued demand from clients in the industrial sector. The backlog on year-end orders will provide a stablesource of activity and related sales.
Operating Income: Despite the success of structural reforms implemented in fiscal 2012, income will probably remain
fl owing
flat
i to theh impacti
off suchh expenses as upfront
finvestmentiandd higher
hi h electricity
l i i rates.
(Millions of yen)

Net sales

Operating income

Net income (loss)

YOY change:+¥ 12,583 million(+ 3.8%)Full yyear
Full year
340,000
327,417

YOY change:+¥ 1,879 million(+ 12.0%)
Full year

YOY change:+¥ 3,865 million(+ 181.0%)
Full year(Plan)(Actual)

Full year
15,621

17,5006,000(Plan)(Plan)(Actual)

1st half
154,682

1st half
162,000(Actual)(Plan)

1st half
4 683
4,683

1st half
5 000
5,000(Actual)(Plan)

Full year
2,135

1st half
2,000(Actual)(Plan)

1st half(1,469)Fiscal 2012
(Actual)2012年3月期
Fiscal 20122013年3月期
Fiscal 2013

Copyright © 2012 IT Holdings Corporation

2012年3月期
Fiscal 20122013年3月期
Fiscal 2013

8

Fiscal 2013

No changes to fiscal 2013 consolidated performance forecasts.

Fiscal 2013: Anticipated Key Segment Performances
Net Sales(Billions of yen)

340.00
Other-0.43

327.41IT Infrastructure+2 25+2.25

Financial IT+0.91

Inter-segment+1.94(Pl )(Plan)

Industrial IT+7.94

Fiscal 2013

Fiscal 2012

Operatingpg Income ((Loss))(Billions of yen)

17.50
15.62
IT Infrastructure Financial IT- 0.84+0.57

Industrial IT+2.05

Inter-segment+0.49(Plan)

Fiscal 2013

Fiscal 2012
Copyright © 2012 IT Holdings Corporation

Other- 0.37

9

No changes to fiscal 2013 consolidated performance forecasts.

Fiscal 2013 First Quarter: Update on Key(Millions of yen)

IT Infrastructure Services

Financial IT Services

Industrial IT Services

Net SalesUp ¥2,242 million, or 2.0%, year-on-year
Heightened demand for BCP services and disasterrecovery responses, in particular, should boost
service-utilization rate at GDC Gotenyama, which
will buoy revenues.

Net Sales
Up ¥901 million, or 1.3%, year-on-year
Revenues should grow
grow, thanks to rallying demand
from credit card companies.

Net Sales
Up ¥7,934 million, or 5.3%, year-on-year
Revenues should increase,increase reflecting an increase inlarge projects for principal clients as well as further
expansion in demand from industrial sectors.

Full year
111 358
111,358

Full year
113,600(Plan)(Actual)

Full year
70 09970,099Full year
71 00071,000(Plan)

Full year
149 466
149,466

Full year
157 400
157,400

1st half
55,180

1st half
55,000(Actual)
1st half
32,233

1st half
32,800

1st half
69,184

1st half
75,600(Actual)(Plan)(A t l)(Actual)(Pl )(Plan)(A t l)(Actual)(Plan)

2012年3月期
Fiscal 20122013年3月期
Fiscal 20132012年3月期
Fiscal 20122013年3月期
Fiscal 20132012年3月期
Fiscal 20122013年3月期
Fiscal 2013

O
Operatingti Income
IDown ¥849 million, or 10.5%, year-on-year
Operating income will benefit from improved
service-utilization rate at GDC Gotenyama, but
impact of higher electricity rates will probably leadto a dropdiin income
iforf theh year.

Full year
8,049(Actual)
1st half
3,640(Actual)Fiscali 年 2012期
2012年3月期

Full year
7,200

O
Operatingti Income
IUp ¥566 million, or 12.5%, year-on-year
Operating income should rise, owing to positive
impact of rallying demand from credit cardcompanies on service-utilization rate.

(Plan)

1stt half
1h lf (Plan)
3,100

1st half
1,219

1st half
1,500(Plan)(Actual)(Plan)

2012年3月期
Fiscal 20122013年3月期
Fiscal 2013

Segment net sales include intersegment sales.
Copyright © 2012 IT Holdings Corporation

10(Plan)OOperatingti IncomeIUp ¥2,042 million, or 76.8%, year-on-year
Expect operating income to soar, mainly because ofhigher revenues.

Full year
5,100

Full year
4,534(Actual)Fi 年l 2013期
Fiscal2013年3月期(Actual)

Full year
4,700
Full year
2,658
1st half (Actual)(378)(Actual)2012年3月期
Fiscal 2012

(Plan)
11stt half
h lf700(Plan)

2013年3月期
Fiscal 2013

Fiscal 2013 First Quarter Financial Highlights
Fiscal 2013 Full-Year Performance Forecasts
Reference Materials

Copyright © 2012 IT Holdings Corporation11Fiscal 2013 First Quarter: Update on Key
Second Medium-termManagement Plan
Basic Concepts

ITHD Group Management Direction for Fiscal 2013
Make this fiscal year the time for a full-fledged V-shaped recovery and strive to expand
net sales.

Top-Line
TopE h iEmphasis• Promote new Group formation (lay solid financial foundation to facilitate upfront investment
activity )⇒ Decided IUK would shift from ITHD direct subsidiary to INTEC subsidiary (July 2012)• Redefine client base, reinforce approaches to growth companies/growth fields.
• Revamp marketing activities.

C lti t a stronger
Cultivatetsense off unity
it tto optimize
ti i GGroup capabilities.
bilitias OneO CompanyCEnterprisingpg andBold• Streamline and integrate corporate functions.
• Lay solid financial foundation to facilitate upfront investment activity.
⇒Initiate pprojectsjto consider consolidated tax and unified cash management
gsystemy((June 2012).
)• Reinforce product brands and corporate image.
⇒Set up brand committee (July 2012)• Establish next-generation business management system.
• Establish ITHD College.
⇒Decision on holding groupwide training (July 2012)

Execute business transformation. Take steps to turn business activities into marketableservices and take those services worldwide.
• Enhance marketing capabilities to expand market-launching services.
• Accelerate globalization, with focus on ASEAN region.
• Establish investment committee.

Copyright © 2012 IT Holdings Corporation

12

Fiscal 2013 First Quarter: ITHD Group Topics

Established TIS Enterprise Architecture Laboratory(May 2012) Launched Japan’s first extended virtual cloud service EINSWAVE (June 2012).

Supports creation
i off effective
ff i IT strategies
i thath contribute
ib tocorporate business activities, based on proof of concept (PoC) for
IT systems, including applications and hardware.
⇒In the inaugural effort, offered test environment to support
creationti off effective
ff ti IT strategy
t t
using
i Oracle’s
O l ’ engineered
idsystems.

Connects datad centers ini threeh regions
iini Japan—metropolitanliTokyo, Hokuriku (economic region covering Toyama, Ishikawa,Fukui and Niigata prefectures) and Kansai (centered on Osaka)—and provides the cloud services for each data center’s tenants as asingle,
i l virtuali t l cloudl d with
ith nationalti l coverage, utilizing
tili i duplicatedd li t doperation and control systems. This is the first practicalapplication of extended virtual cloud computing services to golive in Japan.

■Providing Value for Clients through EA Lab
ProductImplementation
Cycle
Practice test/PoC

Review

Benefits to Clients<Overall
EINS WAVE Concept>
Hokuriku region

Allows measurement of return on investment
before actually purchasing hardware andsoftware licenses.

Operating center
Outside cloud computing services

Shorter review pperiod,, thanks to better
presentation accuracy.
Client’ssystem

Implementation

Enjoy performance as expected.

Maintenance andsupport

Stable system operation thanks to more finet d maintenance.
tunedi t

MetropolitanTokyo

Kansairegion

Operating center(Photo, left)
O i ceremonyOpening(Photo, right)
Next-generation data
center GDC Gotenyama,featuring a test room

EINS WAVE：Extended INfrastructure Service Wide Area Virtual cloud Environment

Copyright © 2012 IT Holdings Corporation13

Cautionary Statements•In these materials, ITHD is abbreviated ITHD.
• All statements described in these materials are based on information available to management regarding theITHD Group—that is, ITHD and the subsidiaries under its umbrella—as of the presentation date and certain
assumptionsassu
pt o s dee
deemeded reasonableeaso ab e at tthiss ttime.
e. No intent
te t iss impliedp ed oof ppromiseo se by tthee CoCompany
pa y to achieve
ac eve suchsucforward-looking statements. Indeed, various factors may cause future results to be substantially different fromthe assumptions presented in these materials.