IInformationfti M
Meetingti M
Materials
t i l for
f the
th Fi
Firstt Two
T QuartersQtof the Fiscal Year ending March 31, 2009

• Two-quarterTt performancefsummary• Full-year forecast• Progress on the design of a new
medium term management plan
medium-term

November 12, 2008

Two-Quarter Performance Summary1

Two-Quarter Performance Summary● Revenue,
Revenue higher profit than expected(Millions of yen)

IT Holdings

First Two Quarters of
Fiscal 2009

N salesNetl

163 426
163,426

160 000
160,000

3 426
3,426

2 1%
2.1%

Operating income

9,400

8,000

1,400

17.5%

Recurring profit

9,479

8,300

1,179

14.2%

Net income

4 491
4,491

3 900
3,900

591

15 2%
15.2%

Original Estimate

Comparison:
Actual Results to Targets● Status by business segment
Outsourcing and network:

Favorable shift,
shift supported primarily by higher sales to key clients and contribution by
NEXWAY.

Software development:

Slight improvement, underpinned by such factors as the booking of sales on large-scale
projects and the inclusion of projects for new clients.

Solution services:

Encountered difficulties, largely owing to a lull in demand for upgrades by high-volume
clients.

● Groupp status• Solid performances, especially by TIS, UFIT and Qualica, buoyed overall Group results and offset the impact of reserve
write-offs by INTEC in the first quarter and sluggish performances by other subsidiaries, including Agrex.
• NEXWAY contributed to consolidated performance, following its transition into a consolidated subsidiary in July 2008.
• Ongoing large-scalelarge scale projects undertaken by TIS proceeded as planned,
planned with respective systems going online in November.
November
copyright © 2008 IT Holdings Corporation2

Summary of First Two Quarters of Fiscal 2009:
IT Holdings
Six months ended
S
Sept.
30
30, 2007

Six months ended
S
Sept.
30
30, 2008

YOY Changes

Original Estimate

AmountAmountYen

AmountIT H
Holdings
ldi
Net sales

Composition

Composition

Percent

Composition(Millions of yen)Compared with earlier
forecast
Yen

Percent

152,278

100.0%

163,426

100.0%

11,1487.3%

160,000

100.0%

3,426

2.1%

Outsourcing andnetwork――

60,793

37.2%

―

―

58,500

36.6%

2,293

3.9%

Softwaredevelopment――

82,001

50.2%

―

―

81,500

50.9%

501

0.6%

Solution services――

14,913

9.1%――

16,50010.3%（1,587）（9.6）%

Other business*

―

―

5,717

3.5%

―

―

3,500

2.2%

2,217

63.3%

Operating income
Recurring profit
Net income

2,553
2,563
1,198

1.7%
1.7%
0.8%

9,400
9,479
4,491

5.8%
5.8%
2.7%

6,847
6,916
3,293

268.2%
269.8%
274.9%

8,000
8,300
3,900

5.0%
5.2%
2.4%

1,400
1,179
591

17.5%
14.2%
15.2%

z Figures for the six months ended September 30, 2007, are simple totals of respective consolidated amounts for TIS and for INTEC Holdings and have been used to calculate year-on-year comparisons.
z The consolidated groups headed by TIS and INTEC Holdings still provided services under respective business segments during the six months ended September 30, 2007.
Consequently, a breakdown of sales by segment for these two quarters is not presented in the table above.
z Business results posted by newly consolidated NEXWAY for the July-to-September quarter are included in Group results for the six months ended September 30, 2008.
NEXWAY contributed ¥2,240¥2 240 million to net sales
sales, ¥496 million to operating income,income ¥458 million to recurring profit,
profit and ¥466 million to net income for the period under review.
review
Amortization of goodwill amounted to ¥144 million.
Note: Revenues from leasing operations, which are included under other business, in the six months ended September 30, 2008, were booked according to prevailing accounting standards for leasing
operations, wherein leasing transactions for which ownership has been transferred is written off on a gross basis.

Net Sales byy Client Sector(Millions of yen)Sept. 30,
2008

Credit card

Banking

copyright © 2008 IT Holdings Corporation

Insurance

Other finance

Assembly-based
Manufacturing

Processing-based
Manufacturing

Commerce,
Distribution

Services

Public corporations,
government

Others3

Summary of First Two Quarters of Fiscal 2009:
Old TIS GroupOld TIS GGroup
Net sales

Six months ended
S
Sept
. 30
30, 200
2007

Six months ended
S
Sept.
30
30, 2008

YOY Changes

Original Estimate

AmountAmountYen

AmountComposition

Composition

Percent(Millions of yen)Compared with earlier
forecast

Composition

Yen

Percent

95,592100.0%

106,555

100.0%

10,963

11.5%

102,000

100.0%

4,555

4.5%

Outsourcing andnetwork

39,921

41.8%

42,124

39.5%

2,203

5.5%

41,000

40.2%

1,124

2.7%

Softwaredevelopment

42,43244.4%

52,814

49.6%

10,38224.5%

49,000

48.0%

3,814

7.8%

Solution services

11,296

11.8%

10,1239.5%(1,173)(10.4)%

10,500

10.3%

(377)

(3.6)%

Other business

1,942

2.0%

1,493

1.4%

(448)

(23.1)%

1,500

1.5%

(7)

(0.5)%(1,077)(1.1)%

6,273

5.9%

7,350

―

4,300

4.2%

1,973

45.9%

(640)
(1,300)(0.7)%(1.4)%

6,759
3,466

6.3%
3.3%

7,399
4,766

―
―

5,000
2,100

4.9%
2.1%

1,759
1,366

35.2%
65.0%

Operating income(loss)
Recurring profit (loss)
Net income (loss)* Sales by Registration Network are included in outsourcing and network, which was transferred from other business, for the six months ended September 30, 2008.
If the revenue had been included in the other business, sales of outsourcing and network and other business would have amounted to ¥41,576 million and ¥2,041 million, respectively.

Net Sales by Client Sector(Millions of yen)Sept. 30,2007
Sept. 30,
2008
Credit card

Banking

copyright © 2008 IT Holdings Corporation

Insurance

Other finance

Assembly-based
Manufacturing

Processing-based
Manufacturing

Commerce,
Distribution

Services

Public corporations,
government

Others4

Summary of First Two Quarters of Fiscal 2009:TIS
TIS
Net sales

Six months ended
S
Sept.
30
30, 2007

Six months ended
S
Sept.
30
30, 2008

YOY Changes

Original Estimate

AmountAmountYen

AmountComposition

Composition

Percent(Millions of yen)Compared with earlier
forecast

Composition

Yen

Percent

45,954100.0%

54,744100.0%

8,790

19.1%

51,000100.0%

3,744

7.3%

Outsourcing andnetwork

15,42833.6%

17,021

31.1%

1,593

10.3%

16,500

32.4%

521

3.2%

Softwaredevelopment

23,521

51.2%

31,872

58.2%

8,351

35.5%

28,000

54.9%

3,872

13.8%

Solution services

7,005

15.2%

5,850

10.7%

(1,155)(16.5)%

6,500

12.7%

(650)

(10.0)%(4,330)(9.4)%

1,434

2.6%

5,764

―

1,000

2.0%

434

43.4%

(3,927)(2,404)(8.5)%(5.2)%

2,231
1,589

4.1%
2.9%

6,158
3,992

―
―

1,600
1,000

3.1%
2.0%

631
589

39.4%
58.9%

Operating income(loss)
Recurring profit (loss)
Net income (loss)

Net Sales by Client Sector(Millions of yen)Sept. 30,2007
Sept. 30
Sept
30,
2008

Credit card

Banking

copyright © 2008 IT Holdings Corporation

Insurance

Other finance

Assembly-basedyManufacturing

Processing-basedgManufacturing

Commerce,
Distribution

Services

Public corporations,pgovernment

Others5

Summary of First Two Quarters of Fiscal 2009:
INTEC Holdings
Six months ended
S
Sept.
30
30, 200
2007

Six months ended
S
Sept.
30
30, 2008

YOY Changes

AmountAmountYen

INTEC H
Holdings
ldi
Net sales

Composition

Composition(Millions of yen)Compared with earlier
forecast

Initial Targets
AmountPercent

Composition

Yen

Percent

56,686100.0%

57,277100.0%

591

1.0%

58,000100.0%(723)(1.2)%

Outsourcing andnetwork――

18,848

32.9%

―

―

17,500

30.2%

1,348

7.7%

Software development――

29,340

51.2%

―

―

32,50056.0%(3,160)(9.7)%

Solution services

―

―

4,789

8.4%

―

―

6,000

10.3%

(1,211)(20.2)%

Other business*

―

―

4,298

7.5%

―

―

2,000

3.4%

2,298

114.9%

Operating income
Recurring profit
Net income

3,630
3,203
2,498

6.4%
5.7%
4.4%

3,426
3,072
1,274

6.0%
5.5%
2.3%

(204)
(131)
(1,224)(5.6)%(4.1)%(49.0)%

3,700
3,300
1,800

6.4%
5.7%
3.1%

(274)
(228)
(526)

(7.4)%(6.9)%(29.2)%• Segment categories were changed, effective April 1, 2008. Consequently, a breakdown of sales by business segment is not presented for the six months ended September 30, 2007.
• Business results posted by newly consolidated NEXWAY for the July-to-September quarter are included in INTEC Holding’s results for the six months ended September 30, 2008.
NEXWAY contributed ¥2,240 million to net sales, ¥496 million to operating income, ¥458 million to recurring profit, and ¥466 million to net income for the period under review.
Amortization of goodwill amounted to ¥144 million.
Note: Revenues from leasing operations, which are included under other business, in the six months ended September 30, 2008, were booked according to prevailing accounting standards for leasing operations,in accordance with IT Holdings on consolidated basis. However, from the current fiscal year, Intec Holdings applied new accounting standards for leasing operations, wherein leasing transactions for which
ownership has been transferred are written off on a net basis. If the new standards had been applied to the current first two quarters, other business revenue would have been ¥1,448 million less, at ¥2,851
million, bringing total net sales to ¥55,829 million, and operating income would have been ¥3 million plus, at ¥3,429 million.

Net Sales by Client Sector(Millions of yen)Sept. 30,
2008

Credit card

Banking

copyright © 2008 IT Holdings Corporation

Insurance

Other finance

Assembly-based
Manufacturing

Processing-based
Manufacturing

Commerce,
Distribution

Services

Public corporations,
government

Others6

Summary of First Two Quarters of Fiscal 2009:
INTEC
INTEC

Six months ended
S
Sept.
30
30, 200
2007

Six months ended
S
Sept.
30
30, 2008

YOY Changes

AmountAmountYen

Net sales

Composition

Composition(Millions of yen)Compared with earlier
forecast

Original Estimate

Percent

AmountComposition

Yen

Percent

44,662100.0%

45,034100.0%

372

0.8%

47,000100.0%(1,966)(4.2)%

Outsourcing andnetwork

15,51734.7%

15,496

34.4%

(21)

(0.1)%

15,000

31.9%

496

3.3%

Softwaredevelopment

24,85555.7%

25,442

56.5%

587

2.4%

27,50058.5%(2,058)(7.5)%

Solution services

4,290

9.6%

4,096

9.1%

(194)

(4.5)%

4,500

9.6%

(404)

(9.0)%

Operating income
Recurring profit
Net income (loss)

2,804
2,350
(1,039)6.3%
5.3%(2.3)%

2,544
2,176
859

5.7%
4.8%
1.9%

(260)
(174)
1,899

(9.2)%(7.4)%
―

3,100
2,550
1,290

6.6%
5.4%
2.7%

(556)
(374)
(431)

(17.9)%(14.7)%(33.4)%Net Sales byy Client Sector(Millions of yen)Sept. 30,2007
Sept. 30,
2008

Credit card

Banking

Insurance

copyright © 2008 IT Holdings Corporation

Other finance

Assembly-based
Manufacturing

Processing-based
Manufacturing

Commerce,
Distribution

Services

Public corporations,
government

Others7

Operating Income Analysis for First Two Quartersof Fiscal 2009: IT Holdings(100 millions of yen)

TIS

57.6

Subsidiaries ofold TIS Group

INTEC
Holdings(excluding
INTEC)

15 9
15.9

06
0.6
(2.6)
INTEC

94.0
(3.0)
Other

25.5

Operating income for six months
ended September 30, 2007
(Simple total of respective
consolidated amounts for TIS andfor INTEC Holdings.

copyright © 2008 IT Holdings Corporation

Operating income for six months
ended September 30, 20088

Balance of Software Development Orders Received during
First Two Quarters of Fiscal 2009: IT Holdings(Millions of yen)Six months ended September 30, 2008
(IT Holdings)

Six months ended September 30, 2008 (Old TIS Group)
OrderO
d volumelreceived during
stated term
39,774

Order volume
received
during statedterm,
73,894

Net sales
during statedterm
82,001

Balance of orders received at
end of previous term: 53,870

Nett salesNlduring statedterm
52,814

Excluding large-scale projects:
40,089Balance of orders received at
end of stated term: 40,830

Large-scale projects: 13,781

Large-scale projects: 6,033

Excluding large-scale projects:
34,797Six months ended September 30, 2008 (INTEC Holdings)

Balance oforders received
at end ofprevious term
72 27072,270

Balance oforders received
at end of statedterm
64 16364,163*A simple total of the figures on the right do not add up to that offigures on the left because internal transactions have been excluded.
excluded

copyright © 2008 IT Holdings Corporation

Order volume
received
during statedterm,
34,197
Balance of orders received
at the end of previous term
18,476

Net sales
during statedterm
29,340
Balance of orders received
at end of stated term
23,333

9

Software Development Orders Received
during First Two Quarters of Fiscal 2009
Old TIS GroupSix months ended September 30, 2007
Order volume
received during statedterm
48,251
Balance of orders received at
end of previous term
36,909Balance of orders received
at end of stated term: 42,728
Excluding large-scale projects:
37,211
Large-scale projects:5,517

Six months ended September 30, 2008
Order volume
received during
stated term
39,774

Excluding large-scale projects:
40,089(Millions of yen)

Net sales during
stated term
42,432

Excluding large-scale projects:
30,889Large-scale projects: 6,021

Balance of orders received
at end of previous term
53,870INTEC Holdings(Millions of yen)

Net sales during
stated term
52,814

Balance of orders received at
end of previous term:
40,830Excluding large-scale projects:34,797

Large-scale projects: 13,781

Large-scale projects: 6,033

Six months ended September 30, 2007
(Before segment restructuring)(Millions of yen)Order volume received
during stated term
25,175Net sales
duringdi stated
t t d
term
21,726

Balance of orders received
at end of previous term
13,018

Balance of orders
received at end ofstated term
16,467Six months ended September 30, 2008
(After segment restructuring)
Order volume received
during stated term
34,197（25,936）

Balance of orders received
at end of previous term
18,476（12,997）(Millions of yen)
Net sales during
stated term
29,340（22,621）

Balance of orders
received at end ofstated term
23,333（16,312）*The content of businessb siness segments was
as changed
changed, effecti
effectivee April 1,
12008. Figures in parentheses are values prior to segment restructuring.
copyright © 2008 IT Holdings Corporation10

Two-Quarter Status of Principal Subsidiaries: Part 1
UFIT Co., Ltd.

Agrex Inc.

TIS holds 70.4% equity. Particularly strong in services for credit cardand consumer finance companies. Focuses on outsourcing services.

TIS holds 50.6% equity. Leader in Japan’s business process outsourcing(BPO) business. Listed on Tokyo Stock Exchange First Section.

■ Two-Quarter Results■ Two-Quarter Results•

S
Successfully
f ll securedd new projects
jfromfclientsli
ini the
h financefiindustry. Also marked solid demand from members of otherindustries as well as the public service sector. As a result, sales
surpassed expectations.
• Achieved steady progress on software development projects and cut
costs on outsourcing services, which pushed operating income muchhigher than expected.

• N
Net salesl grew year-on-year, largelyll becauseb
off a positivei i shift
hif inidemand for finance-related system development and outsourcingrelated system integration and the inclusion of sales by Registration
Network, which became an Agrex subsidiary in March 2008.
• Profits declined year-on-year, primarily due to delays in the start of
new BPO projects and a stronger trend among companies to postpone
IT spending, especially package introduction and system investment.
An emphasis on capital spending designed to take the company to thenext stage of growth and rising expenses associated with personnel
development also impacted profitability, albeit temporarily.

■ Full-Year Forecast■ Full-Year Forecast• Demand may weaken among banks for system operation andmaintenance following system integration. However, this drop in
demand may be replaced by wider interest among credit card–relatedcompanies, particularly for system integration and development
projects and software development to address revised laws andordinances.

• BPO hit a temporary lull in first half of fiscal 2009 but demand should
return in the second half, supported by the gradual start of large-scale
projects already on order and progress toward the final phase ofnegotiations on several other large-scale projects.
• Profits should improve, as the factors that prompted short-term costs
during the first two quarters of fiscal 2009 are eliminated and efforts
to enhance project profitability yield results.

Consolidated At Sept 2007
Net sales
20,150Operating
1,150
incomeRecurring
1,220
profitpo t
Net income
700(Millions of yen)

At Mar 2008
40,900

At Sept 2008
21,010At Mar 2009
36,730

3,740

2,670

2,800

3,850

2,720

2,890

2,300

1,580

1,660
(Estimate)

copyright © 2008 IT Holdings Corporation

Consolidated At Sept 2007 At Mar 2008 At Sept 2008
Net sales
12,47425,55812,893Operating
929
2,079
367
incomeRecurring
898
2,123
329
profit
Net income
458
998
31
(Millions of yen)

At Mar 2009
28,00029,000
1,150

2,300

1,100

2,310

400
(Revised)

1,170(Original)
11

Two-Quarter Status of Principal Subsidiaries: Part 2
Qualica Inc.

AJS Inc.

TIS holds 80% equity and Komatsu Ltd., 20%. Maintains a high profile
with services for the manufacturing, distribution and service industries.

TIS holds 51% equity and Asahi Kasei Corp., 49%. Focuses on systems
for the manufacturing and medical services industries.

■ Two-Quarter Results■ Two-Quarter Results• C
Capitalized
i li d on sustained
i d IT investmentitrendsd among constructioniequipment makers to boost revenue and income.
• Income reached an all-time high.

• F
Favorable
bl ddemandd ffor system operationi andd maintenancei
servicesifrom the Asahi Kasei Group. Acquired orders for large-scale projects
on new company system configuration.
• Currently developing new products in the medical systems business.
y , but operatingpg income• Net sales were upp about 5% yyear-on-year,
dropped about 22%, owing to investment directed toward new
products in the medical systems business. Net income soared about
218%, thanks to a reduction in extraordinary losses.

■ Full-Year Forecast■ Full-Year Forecast• Software development and system operation services for major• Continue to emphasize key projects associated with services for the
Asahi Kasei Group.
• Strive to develop new products and secure new orders in the medical
systems business.
• Expect net sales to climb 8%. Operating income may retreat 45%,
due to investment directed at new products for the medical systems
business, but potential for higher profits will be better than before.

construction equipment makers will continue to drive growth.
• Expect greater interest in system development and more orders forlarge-scale
large
scale projects from leaders in the beverage and automobile
industries.

At Sept 2007
N t salesNetlOperatingincomeRecurringprofit
Net income(Millions of yen)

At Mar 2008

At Sept 2008

At Mar 2009

8 771
8,771

17 973
17,97310 155
10,15520 00020,000

590

1,355

869

1,360

598

1,356

878

1,360

333

716

432

730

copyright © 2008 IT Holdings Corporation(Estimate)

At Sept 2007
N t salesNetlOperatingincomeRecurringprofit
Net income(Millions of yen)

At Mar 2008

At Sept 2008

At Mar 2009

4 740
4,740

9 930
9,930

4 970
4,970

10 80010,800

360

910

280

500

350

900

270

470

110

540

240

470
(Estimate)12

Two-Quarter Status of Principal Subsidiaries: Part 3
Systems Engineering Laboratory Co., Ltd.
TIS holds 51% equity, and TDK Corp., 11.8%. Has experience building
IBM i-series systems. Listed on Nippon New Market Hercules, a startuporiented section of the Osaka Securities Exchange.
■ Two-Quarter
Q
Results• Net sales were generally in line with the target level. Profits,
however, came in below expectations, primarily because of anincrease in unit costs, paralleling efforts to enhance the internal
control response capabilities of Pliant 2, a proprietary accounting
package.
k■ Full-Year Forecast• Order activity is steady. Second-half results should reach initial
targets through efforts to expand the package business and accelerate
new business activities.

Consolidated At Sept 2007 At Mar 2008 At Sept 2008
Net sales
1,305
3,279
1,490
Operating
56
169
(24)
income (loss)
Recurring
56
166
(21)
profit (loss)
Net income
24
94
(18)
(loss)(Millions of yen)copyright © 2008 IT Holdings Corporation

At Mar 2009

3,300

3,300

90

160

90

160

39

65

(Revised)(Original)

13

Full-Year Forecast for Fiscal 2009

copyright © 2008 IT Holdings Corporation

14

Operating Environment Highlights

St t off JJapan’s
Status’ IInformationfti SServicesi
IIndustryd t
Finance Industry
Large-scale projects, especially for megabank integration, will ease up in
2008, curbing growth in the IT services market. New investment needs will
emerge, as membersb off theth financefi
industryi d t tackle
t kl heightenedh i ht d competition
titi aswell as structural revisions and tougher internal control requirements. But
lackluster economic conditions and losses triggered by instability in capital
markets will undoubtedly restrict the freedom to allocate funds for IT
investment, which will prompt more companies to take a more moderate
approachh tto new developmentd lt spending.
diManufacturing Industry

Japan’s IT S ervices Industry Growth Forecast(Millions of yen)

15,000,000

9.0%
12,000,000

9,000,000

Industry Realignment Caused by Heightened Competition

3,000,000,,

ASP and Saas, a service-style architecture, can deliver effective results for
up-and-coming mid-sized businesses, and while the architecture is still rather
exclusive, it should attract wider interest. Demand should also expand forjointly executed outsourcing services typical of shared regional bank centers.
centers

copyright © 2008 IT Holdings Corporation

5.5%

6.0%

4.6% 4.5%
4.3%
6,000,000

Diversification in Methods of Providing Services

8.0%
7.0%

Profit-eroding factors are increasing, a situation exemplified by theskyrocketing cost of materials and sluggish consumer spending due todeteriorating economic prospects. While essential IT investment will be needto keep existing systems running, additional investment and projects withlow priority will certainly be tapped for review and possible exclusion fromthe IT budget.
Development of financial accounting systems will peak in 2008, after which
demand for IT services and related engineering expertise is likely todeteriorate, pushing prices down even further. Industry realignment is likely
as companies search for ways to cope with challenges.

10.0%

5.0%

3.9%

3 5%
3.5%

4.0%
3.0%
2.0%
%
1.0%

0

0.0%

2007

2008

Aggregate sales

2009

2010

2011

2012

Rate of growth (YOY)

Note: Compiled by IT Holdings from Gartner’s 2008 first-half IT
service industry projections.
15Client Trends by Industry Sector: Part 1 ~ FinanceIndustry
Sector

General Industry Trends

Impact on IT Holdings Group

Banking• Large-scale projects, especially for megabank integration, will ease up in
2008, curbing growth in the IT services market.
• Banks will have to invest in IT, particularly in systems that ensurecompliance to structural revisions and tougher internal control requirements.
But this need juxtaposes a widening trend among banks to take a more
moderate approach to new spending on IT.

Investment by major clients to upgrade platform systems
remains at a high level but is likely to taper off. However,
the many investment topics that exist will continue to keep
the Group’s services in high demand.

• Operating environment is changing, following revision of the Money-Lending
Law.
•
Legislative
revisions increasingly require fine-tuned system response, but
Credit Cardsystemt investmentitt budgets
b d t are beingb i squeezedd byb deterioratingd t i ti profitability.
fit bilit• Next-generation system upgrades matched to new services and system
integration, following industry realignment, will remain an urgent priority.

• Projects to upgrade the platform systems of major credit
card companies are up and running.
• Some existing clients are holding off on system upgrades,b t thebutth needd tot investit ini thisthi area remains
i strongtandd willillsustain solid demand for engineering expertise.

Insurance• Market concerned that falling stock prices will erode business conditions.
• Seeing higher demand for system configuration in line with implementationof government guidance and tougher rules.
• Interest is up for BPO and system configuration to deal with problem of
unpaid premiums.
• Non-life insurers worry that sales of car insurance will decelerate, parallelinglackluster sales of automobiles.

• IT investment by big clients remains at a high level.
• Efforts to cultivate consulting skills and enter such fields as
solution development have been successful and are
beginning to contribute nicely to overall performance.
• An economic downturn could adversely impact foreignowned and mid-sized insurers from fiscal 2009 onward.

Leasing• The business environment is likely to remain very challenging against a
backdrop of cooling corporate interest in capital investment activity andincreasingly rigorous credit screening for some leasing company clients.
• A change in the application of accounting standards related to leasing,effective
ff ti fromftheth fiscal
fi l year ending
di March
M h 2009,
2009 isi a major
j negative
ti factor.
f tGiven performance projections, some clients are no longer
keen to pursue IT investment.

Financial instability and falling stock prices are eroding business conditions.

Concern over deteriorating performances has promptedclients to hold off or scale back investment in new projects.
Trends such as this muddy the outlook for the Group.

Securities

Notes: 1. The information in this slide applies to the IT investment trends of our clients, grouped by industry sector, and may differ from general conditions.
2. References: Nihon Keizai Shimbun and Gartner.
copyright © 2008 IT Holdings Corporation

16

Client Trends by Industry Sector: Part 2 ~ Other Industry
Sector

General Industry Trends

Impact on IT Holdings Group

Assembly-based • Slowdown in sales stretching from developed countries to newly
Manufacturing
emerging markets.
(Construction • Even in China, where conditions had been robust, signs of sluggish
equipment)
demand have appeared, especially the south.

IT investment should be good in fiscal 2009, but from fiscal
2010, a substantial proportion of investment will depend on
the economic environment in newly emerging markets.

• Yen appreciation and low stock prices have cooled consumer spending.
Assembly-based • The high price of raw materials, such as steel and resin, for making white
Manufacturing
goods—refrigerators, washing machines and other typically white(Electriccolored household appliances—is squeezing manufacturer profitability.
appliances)• Manufacturers
M f t
are lik
likelyl tot facef
an uphill
hill battle
b ttl even during
d i theth typicallyt i llhigh sales-generating year-end gift-giving season.

No major change will be made to fiscal 2009 sales
predictions, but a sense of uncertainty clouds our view for
the future, from fiscal 2010 and beyond.

• Domestic demand is sluggish, paralleling lackluster economic conditions
Processingin the home market.
b d
based
• A rush to build petrochemical plants in China has spawned a sense of
Manufacturing
product oversupply in the market, prompting buyers to hold off while
they adjust inventory levels.

• Development on projects ordered previous to fiscal 2009
continue at a full-scale pace.
• A sense of uncertainty clouds our order predictions forfiscal 2010 and beyond.

Commerce,
Distribution(Retailing)• Consumers’ preference for low prices is becoming firmly entrenched,forcing businesses to restructure their business models.
• Business are finding it hard to attract consumers to high-priced items.
• At supermarkets, sales of clothing remain sluggish. Customers are evenholding back on purchasing certain food items.

Given corporate performances these days, retailers areturning a much more critical eye toward investment vs.
effect in their IT investment activities.

PublicCorporations• Although the central government–led IT strategy entered a new phase,public corporation budgets tend to be too tight for major IT investment.
• Municipal mergers have caused a convergence of IT investment inregional offices, so total IT spending should remain stable overall.

IT investment by regional governments is being geared
toward enhanced services for citizens, a move that will
underpin stable demand.

Notes: 1. The information in this slide applies to the IT investment trends of our clients, grouped by industry sector, and may differ from general conditions.
2. References: Nihon Keizai Shimbun and Gartner.
copyright © 2008 IT Holdings Corporation

17

Fiscal 2009 Full-Year Forecast: IT Holdings(Millions of yen)
IT Holdings
Net sales

100.0%

100.0%

100.0%

Outsourcing andnetwork―――

Softwaredevelopment

―

―

―

Solution services

―

―

―

Other business*

―

―

―

2,553

,
17,420

1.7%

10.2%

2,563
1.7%

Operating income
Recurring profit
Net income••

Fiscal year ending Mar 2009
Fiscal year ended Mar 2008
Full
Full
Q1/Q2
Q3/Q4
Q1/Q2
Q3/Q4
Year
Year
152,278 170,133 322,412 163,426 176,574 340,000
100.0%

100.0%

100.0%

60 79360,79359 20759,207120 000
120,000

37.2%

33.5%

35.3%

82,001

96,499178,500

50.2%

54.7%

52.5%

14 913
14,91319 587
19,58734 50034,500

9.1%

11.1%

10.1%

5,717

1,283

7,000

3.5%

0.7%

2.1%

19,973,9,400

12,60022,000

6.2%

5.8%

7.1%

6.5%

17,384

19,947

9,479

12,521

22,000

10.2%

6.2%

5.8%

7.1%

6.5%

1,198

7,476

8,673

4,491

6,509

11,000

0.8%

4.4%

2.7%

2.7%

3.7%

3.2%

YOY Comparison
Full
Year

Q1/Q2

ChangeQ3/Q4

ChangeChange11,148

7.3%

6,441

3.8%

17,588

5.5%

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

6 847
6,847

268 2%
268.2%(4 820)(4,820)(27 7)%(27.7)%

2 027
2,027

10 1%
10.1%

6,916

269.8%(4,863)(28.0)%

2,053

10.3%

3,293

274.9%(967)(12.9)%

2,327

26.8%

(Estimate) (Estimate)
Figures for the fiscal year ended March 31, 2008, are simple totals of respective consolidated amounts for TIS and for INTEC Holdings and have been usedin calculating year-on-year comparisons.
The consolidated groups headed by TIS and INTEC Holdings still provided services under respective business segments during the fiscal year ended March
31, 2008. Consequently,qy a breakdown of sales byy segmentgfor the fiscal periodp
is not ppresented in the table above.

•

Full year forecast of fiscal 2009 is not revised from the beginning of the term.
Q3/Q4 estimate =Full year estimate minus Q1/Q2 results

Note: From the fourth quarter of fiscal 2009, ending March 31, 2009, IT Holdings will record revenues associated with leasing operations, which areincluded under other business, according to new accounting standards. Therefore, while revenues from leasing operations in the first two quarters offiscal 2009 were booked according
g to pprevious accounting
g standards,, the full-year
y forecast is a figuregbased on the new accountingg standards. If the newstandards had been applied to leasing revenues in the first two quarters, other business revenues would have been ¥1,448 million less, at ¥4,269 million.
Also, based on this assumption, the Company estimates leasing revenues of ¥2,731 million for the remaining two quarters.
copyright © 2008 IT Holdings Corporation

18

Fiscal 2009 Full-Year Forecast: Old TIS Group(Millions of yen)
Old TIS GroupNet sales

Fiscal year ending Mar 2009
Fiscal year ended Mar 2008
Full
Full
Q1/Q2
Q3/Q4
Q1/Q2
Q3/Q4
Year
Year
95,592 103,669 199,261 106,555 106,445 213,000
100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Outsourcing andnetwork

39 921
39,92140 92240,92280 84480,84442 124
42,12439 87639,87682 00082,000

41.8%

39.5%

40.6%

39.5%

37.5%

38.5%

Softwaredevelopment

42,43250,22392,65552,81454,186

107,000

44.4%

48.4%

46.5%

49.6%

50.9%

50.2%

11 296
11,296

10 73010,730

22 02622,02610 123
10,12310 877
10,87721 00021,000

11.8%

10.4%

11.1%

9.5%

10.2%

9.9%

1,942

1,793

3,735

1,493

1,507

3,000

2.0%

1.7%

1.9%

1.4%

1.4%

1.4%

(1,077)

11,50910,432

6,273

5,727

12,000(1.1)%

11.1%

5.2%

5.9%

5.4%

5.6%

Solution services
Other business
Operatingpg income(loss)
Recurring profit (loss)
Net income (loss)(640)

11,81011,170

6,759

5,841

12,600(0.7)%

11.4%

5.6%

6.3%

5.5%

5.9%

(1,300)

5,454

4,153

3,466

2,534

6,000

(1.4)%

5.3%

2.1%

3.3%

2.4%

2.8%

YOY Comparison
Full
Year

ChangeQ1/Q2

ChangeQ3/Q4

Change10,963

11.5%

2,776

2.7%

13,739

6.9%

2,203

5.5%

(1,046)(2.6)%

1,156

1.4%

10,382

24.5%

3,963

7.9%

14,34515.5%(1,173)(10.4)%

147

1.4%(1,026)(4.7)%(448)(23.1)%(286)(16.0)%(735)(19.7)%

7 350
7,350

―

(5 782)(5,782)(50 2)%(50.2)%

1 568
1,568

15 0%
15.0%

7,399

―

(5,969)(50.5)%

1,430

12.8%

4,766

―

(2,920)(53.5)%

1,847

44.5%

(Estimate) (Estimate)
Full year forecast of fiscal 2009 is not revised from the beginning of the term.
Q3/Q4 estimate =Full year estimate minus Q1/Q2 results
gof the Group,
p TIS’ scopep of consolidation changed.
g As of October 1, 2008, subsidiaries UFIT, Agrex,gQ
Qualica, AJS, Systemy• Followingg realignment
Engineering Laboratory, TIS Total Service, TIS Leasing, BM Consultants and TIS Solution Business fall directly under the IT Holdings umbrella.
Estimates for the last two quarters of fiscal 2009 and for the full year are based on TIS’ current scope of consolidation, which includes the aforementioned
nine subsidiaries, and are easily calculated, provisional values.
Sales by Registration Network, ¥547 million, are included in outsourcing and network, which was transferred from other business, for the six months endedp30, 2008. If the revenue had been included in the other business, sales of outsourcingg and network and other business would have amounted to
September¥41,576 million and ¥2,041 million, respectively.

zz

copyright © 2008 IT Holdings Corporation

19

Fiscal 2009 Full-Year Forecast: TIS(Millions of yen)
TIS
Net sales

Fiscal year ending Mar 2009
Fiscal year ended Mar 2008
Full
Full
Q1/Q2
Q3/Q4
Q1/Q2
Q3/Q4
Year
Year
45,95454,74456,256 111,000
51,45897,412100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Outsourcing andnetwork

15 42815,42816 06016,06031 48731,48717 021
17,021

15 97915,97933 00033,000

33.6%

31.2%

32.3%

31.1%

28.4%

29.7%

Softwaredevelopment

23,521

28,50252,02331,872

33,12865,000

51.2%

55.4%

53.4%

58.2%

58.9%

58.6%

7 005
7,005

6 895
6,895

13 90013,900

5 850
5,850

7 150
7,150

13 00013,000

15.2%

13.4%

14.3%

10.7%

12.7%

11.7%

(4,330)

5,944

1,614

1,434

3,066

4,500

(9.4)%

11.6%

1.7%

2.6%

5.5%

4.1%

(3,927)

5,893

1,966

2,231

2,769

5,000

(8.5)%

11.5%

2.0%

4.1%

4.9%

4.5%

(2,403)

2,875

471

1,589

1,411

3,000

(5.2)%

5.6%

0.5%

2.9%

2.5%

2.7%

Solution services
Operating income(loss)
Recurring profit (loss)
Net income (loss)

YOY Comparison
Full
Year

Change9.3%

13,588

13.9%

(81)

(0.5)%

1,511

4.8%

35.5%

4,626

16.2%

12,97724.9%(1,155)(16.5)%

255

3.7%

(900)

(6.5)%

5,764―(2,878)(48.4)%

2,886

178.8%

6 158
6,158

―

(3 124)(3,124)(53 0)%(53.0)%

3 034
3,034

154 3%
154.3%

3,992―(1,464)(50.9)%

2,529

536.9%

Q1/Q2

ChangeQ3/Q4

Change

8,790

19.1%

4,798

1,593

10.3%

8,351

(Estimate) (Estimate)* Full year forecast of fiscal 2009 is not revised from the beginning of the term.
Q3/Q4 estimate=Full year estimate minus Q1/Q2 results.

copyright © 2008 IT Holdings Corporation

20

Fiscal 2009 Full-Year Forecast: INTEC Holdings(Millions of yen)
INTEC Holdings
Net sales

Fiscal year ended Mar 2008
Q1/Q2
Q3/Q4 Full Year
56,686
66,465 123,151
100.0%

100.0%

100.0%

Outsourcing andnetworkk――

Softwaredevelopment―

Solution services
Other business*
Operating income
Recurring profit
Net income

Fiscal year ending Mar 2009
Q1/Q2
Q3/Q4 Full Year57,27769,723 127,000
100.0%

100.0%

100.0%―

18,84819,15238,000

32 9%
32.9%

27 5%
27.5%

29 9%
29.9%

―

―

29,34042,16071,500

51.2%

60.5%

56.3%

―

―

―

4,789

8,711

13,500

8.4%

12.5%

10.6%

―

―

―

4,298

(298)

4,000

7.5%

(0.4)%

3.1%

3,630

5,911

9,541

3,426

6,574

10,000

6 4%
6.4%

8 9%
8.9%

7 7%
7.7%

6 0%
6.0%

9 4%
9.4%

7 9%
7.9%

3,203

5,574

8,777

3,072

6,328

9,400

5.7%

8.4%

7.1%

5.5%

8.9%

7.4%

2,498

2,022

4,520

1,274

3,726

5,000

4.4%

3.0%

3.7%

2.3%

5.2%

3.9%

YOY Comparison
Q3/Q4
ChangeQ1/Q2

ChangeFull Year

Change

591

1.0%

3,258

4.9%

3,849

3.1%

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

―

(204)

(5.6)%

663

11.2%

459

4.8%

(131)

(4.1)%

754

13.5%

623

7.1%

(1,224)(49.0)%

1,704

84.3%

480

10.6%

(E i
(Estimate)) (Estimate)(E i)• Business segments have changed, effective April 1, 2008. As a result, net sales by segment are not presented for fiscal 2008 in the table above.
• Full year forecast of fiscal 2009 is not revised from the beginning of the term.
Q3/Q4 estimate=Full year estimate minus Q1/Q2 results.
Note: From fiscal 20092009, Intec Holdings applied new accounting standards for leasing operations,operations wherein leasing transactions for which ownership has beentransferred are written off on a net basis. However, IT Holdings will record revenue associated with leasing operations, which are included under otherbusiness, reflect the new accounting standard, from the fourth quarter of fiscal 2009. Therefore, Intec Holdings results in the first two quarters of fiscal 2009were booked according to previous accounting standards, while the full-year forecast is a figure based on the new accounting standards. If the new standards
had been applied to the first two quarters, other business revenue would have been ¥1,448 million less, at ¥2,851 million, bringing total net sales to ¥55,829
million and operating income would have been ¥3 million plus,
million,plus at ¥3,429¥3 429 million.
million Also,
Also based on this assumption,
assumption Intec Holdings estimates other businessrevenues of ¥1,150 million, total net sales of ¥71,171 million, and operating income of ¥6,571 million, for the remaining two quarters.
copyright © 2008 IT Holdings Corporation

21

Fiscal 2009 Full-Year Forecast: INTEC(Millions of yen)
INTEC
Net sales

Fiscal year ending Mar 2009
Fiscal year ended Mar 2008
Full
Full
Q1/Q2
Q3/Q4
Q1/Q2
Q3/Q4
Year
Year
44,66245,03458,966 104,000
53,834
98,496100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Outsourcing andnetwork

15 517
15,51715 81915,81931 336
31,33615 496
15,49617 00417,00432 50032,500

34.7%

29.4%

31.8%

34.4%

28.8%

31.3%

Softwaredevelopment

24,85532,69357,54825,442

36,05861,500

55.7%

60.7%

58.4%

56.5%

61.2%

59.1%

4 290
4,290

5 322
5,322

9 612
9,612

4 096
4,096

5 904
5,904

10 00010,000

9.6%

9.9%

9.8%

9.1%

10.0%

9.6%

2,804

4,906

7,709

2,544

5,956

8,500

6.3%

9.1%

7.8%

5.7%

10.1%

8.2%

2,350

4,554

6,904

2,176

5,424

7,600

5 3%
5.3%

8 5%
8.5%

7 0%
7.0%

4 8%
4.8%

9 2%
9.2%

7 3%
7.3%

(1,039)

2,769

1,730

859

3,141

4,000

(2.3)%

5.1%

1.8%

1.9%

5.3%

3.8%

Solution services
Operating income
g profitp
Recurring
Net income (loss)

YOY Comparison
Full
Year

ChangeQ1/Q2

ChangeQ3/Q4

Change

372

0.8%

5,132

9.5%

5,504

5.6%

(21)

(0.1)%

1,185

7.5%

1,164

3.7%

587

2.4%

3,365

10.3%

3,952

6.9%

(194)

(4.5)%

582

10.9%

388

4.0%

(260)

(9.2)%

1,050

21.4%

790

10.2%

((174))((7.4)%
)

870

19.1%

696

10.1%

1,899

―

372

13.4%

2,269

131.2%(Estimate) (Estimate)* Full year forecast of fiscal 2009 is not revised from the beginning of the term.
Q3/Q4 estimate=Full year estimate minus Q1/Q2 results.

copyright © 2008 IT Holdings Corporation

22

Progress on the Design of a New Medium-termManagement Plan

copyright © 2008 IT Holdings Corporation

23

IT Holdings Medium-term Management Plan
(Roadmap)
April 2008

April 2009

April 2010

April 2011

Management
integration
Formulate management
philosophy
Create Group vision

IIT Holdin
ngs established

Design first medium-term management
plan

Launch medium-term management plan

Promote business synergies within the Group
Promote sharing of back office operations

Integrate information systems

Redefine the Group structure

copyright © 2008 IT Holdings Corporation

24

Focus of Medium-term Management Plan Creation
IT Holdings Management
Philosophy(Drafted in May 2008)
The IT Holdings Group seeks to be a
corporate citizen whose activities,
namely, the provision of various services
utilizing IT, match its status as a leading
corporate group, and will strive to raise
corporate value, supported in this effort
b the
by
h hi
high
h regard
d off allll iits stakeholders,k h ldincluding clients and shareholders aswell as employees and their families.
We will cultivate a vibrant corporate
culturelthath encourages companies
i anddindividuals under the Group umbrella towork toward higher goals and embrace
new challenges, and thereby ensurecorporate growth.
We will always provide our clients with
our very best, through excellent quality
and technology built on the composite
strengths of the Group.
We will uphold high corporate morals
and fulfill our social obligations.

copyright © 2008 IT Holdings Corporation

Corporate scale,market position
Business
structure,business portfoliopSocialreputation

Corporate
culture, identity

IT HoldingsGroup
Vision for
2015

Personnel andhuman resources
systemProgressive
management
styleyClientconnection
Production
platforms, leadingedge technicalcapabilities

First Medium-termManagement Plan
(April 1, 2009 to March
31, 2011)

25

Promoting Business Synergies within the Group: Part 1

Domains

Strategies

Account-centeredsynergies

Flagship accounts• Identified targets for the IT Holdings Group• Drafted joint account plans

Cross-selling model• Organized the Group Solutions Forum, attracting
more than 400 participants• Implemented joint promotions (10 projects)• Conducted joint ordering (10 projects generating
more than ¥1.5 billion)

New solutions• Promoted next-generation data center concept• PinpointedPi
i t d geographicalhi l areas andd themesthaimed
i d att
becoming No. 1 provider and laid out project
proposals

Solution-centeredsynergies

Region-centeredisynergies

copyright © 2008 IT Holdings Corporation

Results

26

Promoting Business Synergies within the Group: Part 2
Major
j Groupwide
pPromotional Activities
Q1/Q2 Results
AprilJune
JulySeptember■ Internal: IT Holdings Group Solution Forum■ National Thin-Client Private Seminar Series (Sapporo, Tokyo, Toyama, Nagoya, Osaka, Fukuoka)■ Private seminar series in the Chubu region (central Japan)■ Private seminar series in the Tokyo metropolitan area

Q3/Q4 Plans
OctoberDecember■ Participate in FIT 2008, an exhibition highlighting IT solutions for financial institutions■ Private seminar series in the Hokuriku region (northern Japan)■ Private seminar on electronic purchasing solutions for manufacturers

JanuaryMarch■ Private seminar on outsourcing solutions■ Participate in Retailtech 2009, a specialized
trade show
on information
systems
for theNote: Activities
from November
2008 onward
are planned
but retailnot confirmed.
industry

TIS/INTEC booth at FIT 2008
copyright © 2008 IT Holdings Corporation

First IT Holdings Group Solutions Forum
27

Promoting Business Synergies within the Group: Part 3

Expandingpg the Group’s
p Production Platforms
Q1/Q2 Results■ Pinpointed current status at Group companies and shared theresults.
■ Defined a structure to promote the Group’s production
platforms.

Q3/Q4 Plans■ Start on high-priority themes.
■ Incorporate new technologies ahead of the competition.
■ Put the structure to promote the Group’s production platforms

in place.

→Working groups highlighted strengths and weaknesses at Group
companies and concerns common throughout the Group in aneffort
ff t tot identify
id tif activities
ti iti with
ith hihighh synergy potential.
t ti l→Raise groupwide production platform level through lateraldevelopment of activities at frontrunner operating companies ineachhbbusinessisegment.
t

Key objectives:• Improved project management capabilities.
• Enhanced development productivity and product quality.
• Fostered
F t d greatert iinformationfti exchangehwithinithi theth Group.
G

Key objectives:• Define project management direction applicable to the wholeGroup.
• FormulateFl t clearlroadmapdforf developmentd lt technology
t h l
att
Group companies.
• Promote information-sharing through Group SNS.
→Consider concrete measures for medium- to long-termt h ltechnology
strategiest t i forf theth wholeh l Group.
G• Consider Group R&D to create new businesses.
• Introduce training program to boost the Group’s technologicalcapabilities.

→Set up the Group Production Platform Promotion Committee.
Goals:• Raised the overall standard by developing activities atfrontrunner operating companies.
• Emphasized cooperation among Group companies to findsolutions to common concerns.
copyright © 2008 IT Holdings Corporation→Give the Group Production Platform Promotion Committee aregular meeting schedule.

28Promote Shared Back-Office Operations

IT Holdings
Sharedbusiness
promotion andsupervisory
functionsIntegration and concentration of operations
will cut costs by about ¥1 billion
Operating companies under IT
Holdings umbrella

Peripheral-functione p e a u ct o

• AccountingAi
Support
Shared service company• Essential personnel staffing• Employee welfare• Purchasing• Source of key administrative
personnel• Legal business• General affairs• Order management• Collection and delivery,transport• Facilities management• Insurance agency• Advertising agency

Roadmap
Q1/Q2 Results

Q3/Q4 Plans

Fiscal 2010 Onward

Proposals

Preliminary Measures

Measures(directions and draft agreements)(service shift)(gradual shift and business improvement)■ Determined current status at Group
companies■ Identified key companies and services■ Effectively utilized assets and office space■ Pursued alliance to facilitate centralizedpurchasing

copyright © 2008 IT Holdings Corporation■ Prepare for establishment of shared■ Establish new company, with 50-80 staff

service company■ Build project teams to promote a service
shift at all operating companies■ Start centralized purchasing■ Plan shared launch of accounting andlabor services■ Identify key services and companies for
expansion■ Enhance service quality and efficiency

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Integrate Information Systems

Build an Information System Platform
Q1/Q2 Results

Q3/Q4 Plans■ Build infrastructure platform■ Planned information system structure
Build group-wide infrastructure platform→Start measures from 2009
→Implementp e e measurese su es foro ssmootheroo ecommunication• Promote scrap and build approach for
redundant facilities.
• Ensured network compatibility among• Promote group development of anGroup companies
infrastructure platform structure
su ed internalephone
p o e network
e wo• Ensuredcompatibility• Ensured e-mail and teleconferencing
compatibility• Considered use of groupware amongGroupG
oup companies
co pa es
• Considered use of integrated ID
management and address books• Considered operation of communication
meeting for Group business■ Determined current status at all Group
companies for building management
information systems

copyright © 2008 IT Holdings Corporation

Fiscal 2010 Onward■ Utilize the infrastructure platform••

Started operation of communication
p businessmeetingg for Group
Started use of integrated ID management
and address books for all of group
employees■ Build infrastructure platforms(continual measures)• Standardize operation system ofgroupware• Standardize e-mail system■ Create a management information system
structure

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Redefining the Group Structure
Goal: Maximize Group synergies
As of October 1, 2008, TIS subsidiaries UFIT, Agrex, Qualica, AJS, System Engineering Laboratory, TIS Solution Business, BM
Consultants, TIS Total Service, and TIS Leasing fall directly under the IT Holdings umbrella.
Old Structure

New Structure

IT Holdings
H ldi

INTEC Holdings

TIS

TIS System Service Inc.

UFIT Co., Ltd.

TISI (Shanghai) Co., Ltd.

Agrex Inc.

TianJin TIS Xiang Tai
Information System Service
Co., Ltd.
TIS R&D Center, Inc.

Qualica Inc.
AJS Inc.
Systems Engineering
Laboratory Co., Ltd.
TIS Solution Business Co.,Ltd.

INTEC Inc
INTEC Systems Institute, Inc.
IUK Inc.
INTEC Solution Power Inc.
KOUSHI INTEC Inc.

INTEC Holdings

WITH INTEC Inc.
Keyport Solutions, Inc.
Chuo System Corporation
FLEX Inc.
MITEC Inc.

TIS, Inc.

Keyport Solutions, Inc.

IUK Inc.

Chuo System Corporation

INTEC Solution Power Inc.

FLEX Inc.

AJS Inc.

Hokkoku INTEC Service Inc.

Cloud Scope Technologies,
Inc.

TIS Solution Business Co.,
Ltd.

Other Group Companies

INTEC Systems Institute, Inc.

Qualica Inc.

INTEC IT Capital,p , Inc.

TIS Total Service Co.,
Co Ltd.
Ltd

WITH INTEC Inc.

Agrex Inc
Inc.

Intec NetCore,
NetCore IncInc.

TIS Leasing Co., Ltd.

INTEC IncUFIT Co., Ltd.

Systems Engineering
Laboratory Co., Ltd.

BM Consultants Inc.

IT Holdings

KOUSHI INTEC Inc.

MITEC Inc.

Intec NetCore
NetCore, IncInc.

INTEC IT Capital,p , Inc.

Hokkoku INTEC Service Inc.

Cloud Scope Technologies,
Inc.

BM Consultants Inc.
TIS Leasing Co., Ltd.
TIS Total Service Co., Ltd.

Other Group Companies, including NEXWAY
Aggregate number of IT Holding Group Companies:
51 excluding IT Holdings (As of October 2008)

copyright © 2008 IT Holdings Corporation31

Toward New Business Creation

NEXWAY CO., LTD. : M&A(INTEC subsidiary)Company Introduction■ Split off from fax distribution service division at Recruit into separate entity.
■ Started with simultaneous fax distribution service, then expanded into services, such as sending vouchers and business
forms, that facilitate business communication.
■ MaintainM i t i aboutb t 25,000
25 000 contracts
t t forf a client
li t baseb
off approximately
i t l 8,000
8 000 companies.
i■ Will develop scale of business by working with the fax-related operations of INTEC and by integrating system andmarketing structures.
Benefits derived as a member of the Groupp■ Reinforce existing fax-related businesses undertaken by Group companies.
■ Apply existing simultaneous fax distribution service know-how to new businesses, such as web EDI.

Cloud Scope Technologies, Inc. (new company)
Companyp y Introduction■ Began business with a focus on Path Manager, a next-generation surveillance system developed by INTEC NetCore, Inc.
Benefits derived as a member of the Group■ Strengthengcompetitivepedge
g in next-generationg
network (NGN)() managementgsystems;ywill be the NGN core of the Group.
p

copyright © 2008 IT Holdings Corporation

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Cautionary Note

All content described in these materials is based on information available to management
regarding the IT Holdings Group—that is, IT Holdings and the subsidiaries under its
umbrella—as of the presentation date and reflect somewhat objective assumptions deemed
reasonable at this time. Please be advised that various factors may cause future results to be
substantially different from expectations.

copyright © 2008 IT Holdings Corporation

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