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

October 31, 2012

Copyright © 2012 IT Holdings Corporation

Highlights for the First Two Quarters of Fiscal 2013

Fiscal 2013 Full-Year Performance Forecast

Progress on Key Strategies for Medium-term Growth

Copyright © 2012 IT Holdings Corporation1

Highlights for the First Two Quarters of Fiscal 2013
 The domestic economy showed signs of gradual recovery, buoyed mainly by reconstruction demand in the areas hit by the March 2011 earthquake andtsunami, but the impact of events, particularly economic slowdowns overseas, notably in China and Europe, obscured the path ahead.
 In the IT services industry, demand was patchy but favorable overall despite the potential for worsening business conditions in some industries to erode
demand for IT services, thanks to positive developments, such as a growing trend among companies to resume IT investment activity.
 ITHD posted higher sales and higher income, on a consolidated basis, over the corresponding period a year ago, and exceeded performance targets for the firsttwo quarters of fiscal 2013.
Net sales: Up 5.1% year-on-year, buoyed by demand for industrial IT services as well as a gradual improvement in requests for financial IT services.
Operating income: Huge year-on-year improvement (54.8%), reflecting higher net sales starting point as well as the effects of office relocation andcentralizationli i undertakendk in
i fiscalfi l 2012,2012 benefits
b fi realized
li d throughhh measures parallelingll li merger activity
i i among subsidiaries,
b idi i andd successful
f lefforts to improve unprofitable projects.
(Millions of yen)

＜Net sales＞＜Operating income＞＜Net income＞

YOY change : + ¥7,841 million (+5.1%)
Differences from original estimates:+ 523 million (+ 0.3%)

YOY change : + ¥2,568 million (+ 54.8%)
Differences from original estimates:+ 2,251 million (+ 45.0%)

YOY change : + ¥ 4,488 million
Differences from original estimates:+ 1,019 million (+ 51.0％）

154,682(Actual)

162 523 162,000
162,523
162 000

7 251
7,251

3 019
3,019

(Actual) (Plan)(Actual)(Actual)

2,000

5,000

4,683

((Plan)a )(Plan)(Actual)First Two Quartersof Fiscal 20122012年3月期
First
Two Quarters
第2四半期（累計）of Fiscal 20122013年3月期
First
Two Quarters
第2四半期（累計）of Fiscal 2013

Copyright © 2012 IT Holdings Corporation

2012年3月期
First
Two Quarters
第2四半期（累計）of Fiscal 20122013年3月期
First
Two Quarters
第2四半期（累計）of Fiscal 2013

2

(Actual)(1 469)(1,469)First Two Quartersof Fiscal 2013

Fiscal 2013 First Two Quarters : Net Sales and Operating Income Analysis
Net Sales
1,62.52(Billions of yen)

154.68IT Infrastructure Financial IT
＋1.06
－0.09
（55.18→55.09）（32.23→33.29）

Industrial IT
＋5.50

Other
＋0.68
（7.72→8.40）＋7.84（＋5 1％）（＋5.1％）

Inter-segment＋0.69（－9.63→－8.94）（69.18→74.68）

First Two Quarters of
Fiscal 2012

First Two Quarters of
Fiscal 2013

Operating Income(Billions of yen)

4.68
IT Infrastructure Financial IT
－0.27
＋0.86
（3 64→3 37）（3.64→3.37）

Other
－0.03

Inter-segment－0.11（1 09 1 06）（1.09→1.06）（ 0 88（－0.88→－1.00）
1 00）

＋2.56
（＋54 8％）（＋54.8％）Industrial IT＋2.12（－0.37→1.75）（1 21→2 07）（1.21→2.07）

Fi t TwoFirst
T Quarters
Q t
off
Fiscal 2012
Copyright © 2012 IT Holdings Corporation

7.25

Fi t TwoFirst
T Quarters
Q t
off
Fiscal 2013
3

Fiscal 2013 First Two Quarters : Sales and Income for Key Segments(Millions of yen)

IT Infrastructure Services

Financial IT Services

Industrial IT Services

Net Sales
Down ¥89 million, or 0.2%, year-on year, but ¥91
million or 0.2%,
million,
0 2% better than initially expected.
expected
Sales generally stable, thanks to steady demand forservices provided by next-generation data centers,such as GDC Gotenyama.

Net SalesUp ¥1,062 million, or 3.3%, year-on-year, and ¥495
million or 1.5%,
million,
1 5% better than initially expected.
expected
Increase fueled by the resumption of IT investment
at some credit card companies.

Net Sales
Up ¥5,499 million, or 7.9%, year-on-year, but camein ¥917 million,
million or 1.2%
1 2% below initial target.
targetSignificant increase supported by large development
projects for major clients in manufacturing industry.

55,180,55,091 55,000(Actual)(Actual) (Plan)

2012年3月期
First
Two Quartersof Fiscal 2012
第2四半期（累計）2013年3月期
First
Two Quartersof Fiscal 2013
第2四半期（累計）Operating Income
Slipped ¥268 million, or 7.3%, year-on-year, but was¥272 million, or 8.8%, better than initially expected.
Year-on-year decrease largely due to upfront
investment activities and higher electricity rates.

3,640(Actual)32 23332,23333 295 32,800
33,29532 80069 184
69,184(Actual)(Actual) (Plan)(Actual)2013年3月期
First
Two Quartersof Fiscal 2013
第2四半期（累計）2012年3月期
First
Two Quartersof Fiscal 2012
第2四半期（累計）2012年3月期
First
Two Quartersof Fiscal 2012
第2四半期（累計）Operating Income
Soared ¥851 million, or 69.8%, year-on-year, andcame in ¥570 million, or 38.0%, better than initially
expected.
Significant increase primarily a reflection of higher
net sales starting point
point.

3,372 3,100(Actual) (Plan)

2,070

2012年3月期
First
Two Quartersof Fiscal 2012
第2四半期（累計）2013年3月期
First
Two Quartersof Fiscal 2013
第2四半期（累計）2013年3月期
First
Two QuartersofFiscal 2013
第2四半期（累計）Segment net sales include intersegment sales.
Copyright © 2012 IT Holdings Corporation(Actual)

700
(378)

2012年3月期
First
Two QuartersofFiscal 2012
第2四半期（累計）42013年3月期
First
Two Quartersof Fiscal 2013
第2四半期（累計）1,750((Plan)a )(Actual)(Actual) (Plan)

Operating Income
Rebounded ¥2,128 million into the black from loss
position a year ago. Soared ¥1,050 million, or
150.0%, over initial target.
Profitability improved, mainly because of higher
sales starting point and efforts to prevent projects
from turning unprofitable.

(Actual) 1,500

1,219

74,683 75,600(Actual)First
Two Quarters
2012年3月期
of Fiscal 2012
第2四半期（累計）(Plan)First
Two Quarters
2013年3月期
of Fiscal 2013
第2四半期（累計）Fiscal 2013 First Two Quarters: 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 todrive up order volume and backlog over the corresponding period a year ago.

First Two Quarters of Fiscal 2012

First Two Quarters of Fiscal 2013

(Milli(Millions
off yen))(Milli(Millions
off yen))

OrdersOdreceivedi dduring the term

76,565

94,233OrderOd backlogb kl
at the endof the termOrderOd backlogb kl
at the beginningof the term

60,59057,77889,188Order backlog
at the beginningof the term

47,967

Net sales
for the term

Orders received
d i thduringthe tterm

Net sales
for the term

82,626

Order backlog
at the endof the term

69,385

Orders received during the term

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

(Millions of yen)

94,233+¥ 5,045 million (+ 5.7%)

60,58961,03062,169【Composition】
・ Industrial IT services+¥ 1,139 million (+ 1.9%)
・Financial IT services+¥ 3,906 million (+ 13.9%)

28,15732,063

Industrial IT
Financial IT

20,92489,188First
Two QuartersFirst
Two Quarters
2012年3月期
2013年3月期
ofFiscal2012
ofFiscal 2013
第2四半期累計 第2四半期累計

39,664

41,996+¥ 8,796 million (+ 14.5%)【Composition】
p
・ Industrial IT services+¥ 2,332 million (+ 5.9%)
・Financial IT services+¥ 6,465 million (+ 30.9%)

27,389First
Two QuartersFirst
Two Quarters
2012年3月期
2013年3月期
ofFiscal2012
ofFiscal 2013
第2四半期末
第2四半期末Order volume and backlog at end of fiscal year and net sales apply to Software Development only.
Copyright © 2012 IT Holdings Corporation

69,3855

Industrial IT
Financial IT

Quarterly Order Status
Orders received during the term

YOY change :+¥ 497 million (+1.1%)(Millions of yen)

38,51925,37613,143
第1四半期
First
Quarter

40,03326,934,

13,09944,73044,91825,48328,55939,00423,796

15,208

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

19,247

16,359第4四半期
FourthQuarter

第1四半期
First
Quarter

Fiscal 2011

44,27041,082
25,66532,472

15,417

11,798

第2四半期
第3四半期
SecondThird
Quarter
Quarter
2012年3月期

44,41024,86849 46649,466

33,107

19,543

16,358

第4四半期
FourthQuarter

第1四半期
First
Quarter

Fiscal 2012

29,062【Composition】
・ Industrial IT services-¥ 3,411million (-10.5%)
・Financial IT services+¥ 3,907million (+33.1%)

15,705

Industrial IT
Financial IT

44,767

第2四半期
第3四半期
SecondThird
Quarter
Quarter
2013年3月期

Fiscal 2013

Order backlog at the end of the term

YOY change :+¥ 8,796
8 796 million
illi (+14.5%)(+14 5%)(Millions of yen)

57,02831,80625,222

51,57132,017

19,553

61,83057,89860,58972,94067,27035,95069,38557,77847 96747,96739,09243,804

39,664

第4四半期
FourthQuarter

44,043

41,99628 89628,89627,38933,325【Composition】
・ Industrial IT services+2,332million (+5.9%)
・Financial IT services+6,465million (+30.9%)

29,73821,94818,22922,73823,46620,92424,453

Industrial IT
Financial IT

第1四半期末 第2四半期末 第3四半期末 第4四半期末 第1四半期末 第2四半期末 第3四半期末 第4四半期末 第1四半期末 第2四半期末 第3四半期末 第4四半期末
First
SecondThird
FourthFirst
SecondThird
FourthFirst
SecondThird
Fourth2011年3月期
2012年3月期
2013年3月期
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter
Quarter

Fiscal 2011

Fiscal 2012

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

6

Fiscal 2013

Fiscal 2013 First Two Quarters: Balance Sheet and Cash Flow Status
Balance Sheet (Millions of yen)
＜As of September 30, 2012＞＜As of March 31, 2012＞
Liabilities
159,038

Liabilities
145,754

Total Assets
310,003Total
Tt l Assets
A t
298,143

Net Assets
150,965

Net Assets
152 388
152,388

Interest-bearing Debt (Millions of yen)
77,45476,51547.7%
36,72925.7%

March
31, 2011
2011年3月末

46 3%
46.3%

Equity ratio

Net assets： Change +1,423 million
Equity ratio：48.6% ( Change +2.3%)
Interest-bearing debt：70,855 million (Change -5,660 million)* Change: change from March 31, 2012

9,985

11,90048.6%
486%
42,31641,365

24.7%

Interest-bearing
g debtLiabilities： Change -13,284 million
・Current liabilities：-10,339 million ( short-term borrowings,
accounts payable, etc. )・FixedFixed liabilities：-2,945
liabilities 2,945 million ( long
long-term
term debt, etc. )Cash Flows (Millions of yen)

70,855March
31, 2012
2012年3月末

Total assets：Change*-11,860 million
・Current assets：-7,183 million ( accounts receivable, etc.)
・Fixed assets：-4,676 million ( guarantee deposits, etc. )23.8%

Cash flows frominvesting activities
Cash flows frompg activities
operating

September
30, 2012
2012年9月末

Cash flows fromfinancing activities(2 988)(2,988)Fi TwoFirst
T QuartersQ
off Fiscal
Fi l 2012

7

235
Free cash flows(9,750)Cash and depositspInterest-bearing debt ratio

Copyright © 2012 IT Holdings Corporation

8,912(5,868)(8,133)
Fi TwoFirst
T QuartersQ
off Fiscal
Fi l 2013

Highlights for the First Two Quarters of Fiscal 2013

Fiscal 2013 Full-Year Performance Forecast

Progress of Key Strategies for Medium-term Growth

Copyright © 2012 IT Holdings Corporation

8

Understanding the External Environment
Corporate IT investment trends indicate sustained positive growth overall but at a gradual pace.
IT Infrastructure Services• Brisk inquiry activity for data center access, as corporate management realizes the advantages affordedby the use of such facilities in business continuity plans and disaster recovery responses.
• Sales are increasing with capture of overseas communication-based demand.

Financial IT Services• IT investment by credit card companies continues to rise, thanks to a recovery in business results.
Forward-looking attitude on IT investment to enhance credit card services, such as settlement solutions.
Some companies need to make existing systems more efficient, spurring demand.
• Overall demand is solid, underpinned by full-scale expansion in IT investment activities throughi t
integrationti off systemst
usedd byb megabanks
b k andd insurers.
iIndustrial IT Services• A sense of uncertainty is growing, influenced by slowing economic activity worldwide, particularly in
China, with interest in IT investment waning in the manufacturing industry as well as the service anddistribution industries.
• Investment in communication networks and systemsyfor smartphonesp
is favorable and benefitingg thesegment as a whole.
• IT investment by national and local governments could increase with approval of a draft bill on acommon number program—the “My Number” program—to simplify social security and tax services.
* These trends may differ from general industry trends since management’s assumptions also take into consideration the status of IT investment by clients of the ITHD Group.
Copyright © 2012 IT Holdings Corporation

9

Fiscal 2013: Performance Forecasts
 Business results for the first two quarters of fiscal 2013 were favorable, surpassing initial targets. But with business trends on an uncertain path, mainly
because of tensions between Japan and China, no changes to full-year forecasts will be made at the present time.
Net Sales: Trends indicate an increase in orders from major clients in the manufacturing industry for large software development services and an uptick indemand from credit card companies for IT-related services. However, uncertain business conditions in the industrial sector, especially the
manufacturing industry, could adversely impact demand and thus curb sales growth.
Operating Income: The higher net sales starting point, along with the positive effects gained through the office relocation and centralization implemented infiscal 2012 and successful strategies paralleling subsidiary mergers, will boost operating income, but the improvement will be tempered
by upfront investment and electricity rate increases.
 Dividend
Di id d planslare unchanged.
hd ManagementMt intends
i t d tot raisei theth dividend
di id d ¥3,¥3 tot ¥21 per share
h for
f the
th year, comprising
i i a ¥7 interimi t i dividend
di id d andd a ¥14
year-end dividend, for a payout ratio of 30.7%.

(Millions of yen)

＜Net sales＞＜Operating income＞＜Net income＞

YOY change : + ¥ 12,583 million(+ 3.8%)YOY change : + ¥ 1,879 million(+ 12.0%)

YOY change : + ¥ 3,865 million(+ 181.0%)

327,417(Actual)

340,000(Plan)

15,621

17,5006,000(Plan)(Plan)(Actual)2,135(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 201310

2012年3月期
Fiscal 20122013年3月期
Fiscal 2013

No changes to fiscal 2013 consolidated performance forecasts.

Fiscal 2013: Net Sales and Operating Income Analysis (Forecasts)
Net Sales(Billions of yen)

340.00327.41IT Infrastructure Financial IT
＋0.91
＋2.25
（111.35→113.60）（70.09→71.00）

Industrial IT＋7.94（149.46→157.40）

Other
Oth
－0.43

Inter-segment＋1.94(Plan)＋12.58（＋7 0％）（＋7.0％）（16.23→15.80） （－19.74→－17.80）

Fiscal 2012

Fiscal 2013
Operating Income(Billions of yen)

17.50
15.62
IT Infrastructure Financial IT
－0.84
＋0.57
（8.04→7.20）（4.53→5.10）

Industrial IT＋2.05

Inter-segment＋0.49（2.27→1.90）（－1.89→－1.40）（2.65→4.70）

Fiscal 2012
Copyright © 2012 IT Holdings Corporation

Other
－0.37

(Plan)

Fiscal 2013
11

＋1.87
（＋12.0％）No changes to fiscal 2013 consolidated performance forecasts.

Fiscal 2013: Anticipated Key Segment Performances(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 services to support business
continuity plans and disaster recovery responses, inparticular, 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 SalesUp ¥ 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.

111,358

113,600,(Actual)(Plan)

Fiscal 20122012年3月期

Fiscal 20132013年3月期

O
Operatingti IncomeI
Down ¥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
i
for
f the
h year.

8,049(Actual)70 09970,09971 00071,000149 466
149,466(Actual)(Plan)(Actual)Fiscal 20122012年3月期

Fiscal 20132013年3月期

Fiscal 20122012年3月期

O
Operatingti IncomeI
Up ¥566 million, or 12.5%, year-on-year
Operating income should rise, owing to positive
impact of rallying demand from credit cardcompanies on operating rates.

7,200

4,534

(Plan)(Actual)(Plan)

Fiscal 20132013年3月期

O
Operatingti IncomeI
Up ¥2,042 million, 76.8% year-on-year
Expect operating income to soar, mainly because ofhigher revenues.

4,700

5,100
(Plan)

157,400(Plan)

2,658(Actual)Fiscal 20122012年3月期

Fiscal 20132013年3月期

Fiscal 20122012年3月期

Fiscal 20132013年3月期

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

12

Fiscal 20122012年3月期

Fiscal 20132013年3月期

Highlights for the First Two Quarters of Fiscal 2013

Fiscal 2013 Full-Year Performance Forecast

Progress on Key Strategies for Medium-term Growth

Copyright © 2012 IT Holdings Corporation

13

Fiscal 2013 First Two Quarters: Status of Key Strategies
 Basic Concepts in Second Medium-term Management Plan, ITHD Group Management Direction for Fiscal 2013,
Business Domains in the Spotlight
Basic Concepts in
Second Medium-termManagement Plan

ITHD Group Management Direction for Fiscal 2013

Make
M
k thi
this fiscal
fi l year theth timeti
forf a full-fledgedf ll fl d d V
Vshaped recovery and strive to expand net sales.

Top-Line
EmphasisEnterprising and
BoldMarket creation throughdifferentiated services• Took Group formation to a new stage with implementation of
structure that facilitates emphasis on core businesses and growthfi ld
fields.
• Rebuilt the client base and reinforced approaches to better
serve growth companies and growth fields.
• Revamped marketing activities.

CultivateC
lti t a strongertsense off unity
it tot optimize
ti i GroupGcapabilities.

as One Company

Business Domains in the Spotlight• Streamlined and consolidated corporate functions.
• Created robust financial base to facilitate upfront investment.
• Reinforced prod
product
ct brands and corporate image.
image• Established next-stage Group business management systems• Opened ITHD Group College.

Execute reforms on the business front.
Take steps to turnt rn businessb siness activities
acti ities into marketable
services and take those services worldwide.
•Enhanced marketing capabilities to expand reach of available
services.
• Accelerated globalization
globalization, with focus on ASEAN region
region.
•Established investment committee.

Copyright © 2012 IT Holdings Corporation

14

S i
Services

Secure independent
position in overseas
markets

Overseas
Business

Existing SI
Business
Pull through difficult
times on existing
businesses

Fiscal 2013 First Two Quarters: Status of Progress on New Group Formation
Basic Concepts in Second
Medium-term Management Plan

Top-Line Emphasis

as One Company

Enterprising and Bold

Promote establishment of growth-oriented
growth oriented structure( Focus on core businesses and Integrate into each business model )At the end of March 2010：55 companies → At the end of September 2012: 44 companies (decrease of 11 companies)

ITHD

INTEC

Focus on core businesses

TIS

Integrate into each business model

SORUN and UFIT merged
into TIS in April 2011g
on-site services
Transfer/integrate• Development-related services(October 2012)• Operation-related services(October 2011)
TIS
Solution Link

Scheduled to become
TIS subsidiaries tostrengthen ties
(January 2013)
BM Consultants(willIntegrate into each business
model

AJS

Two subsidiaries
merged into INTEC in
April 2011
Became INTEC subsidiaryto strengthen ties
(October 2012)
IUKchange name to TIS
B iBusiness
Consultants)
Clt t )INTEC
Sky INTEC
Amenity
Merging to enhance
management efficiency(J(January
2013)

TIS System
Service
Merged with System
Support (April 2012)QUALICA

AGREX

Subsidiaries merged into
AJS (October 2011)

Copyright © 2012 IT Holdings Corporation

15

Other corporate groups
Liquidated Career Service (January 2012)SORUN HOKURIKU stock transfer (April 2012)
TIS Total Service and SORUN ESTATE merged (April 2012)

Fiscal 2013 First Two Quarters: ITHD Group Topics
Basic Concepts in Second
Medium-term Management Plan
Services

Top-Line Emphasis

as One Company

Enterprising and Bold

International-brandInternational brand debit card processing service
Developed through the application of nearly 40 years of know-how amassed by TIS in settlement system
configuration and operation for consumer finance companies and other credit providers. Reinforced shift
from credit card systems to a broader interpretation of settlement systems.
• Revolutionary service facilitating one-stop access to the environment needed to issue and administer debit card
processing, including back-office operations and application processing critical to card-issuing. Service launchedin October 2012. Supports quick and low-cost approach for financial institutions to initiate debit card services
using their own brand.
Internationalbrand debit cards!

Customers
Card-issuing

Card applications

Acquirer

I
Issuer(b(bank)
k)
Shopping

ATMs

International credit
settlement network
Acquirer’s
A
i ’
bank

TIS
Debit
processingpgservices

International
ATM network

Cash withdrawals
in local currency

Copyright © 2012 IT Holdings Corporation

Outsourced processing

16

Printing
p ycompany
Card production
and mailing

Incoming callcenterMember’s-onlywebsiteAll types of questions and inquiries

Affiliatedmerchants

Fiscal 2013 First Two Quarters: ITHD Group Topics
Basic Concepts in Second
Medium-term Management Plan

Services

Top-Line Emphasis

as One Company

Enterprising and Bold

 Preventative
support system CareQube
i maintenancei
C Q
Developed system utilizing know-how and technologies acquired through transactions withprincipal clients. Marks industry’s first cloud response. Demonstrates wider businesspresence, going beyond manufacturing domain to after-market domain.
• SystemSvisualizes
i li
operatingi status off equipmentito promote preventative
i maintenance.
i
Q li
Qualicabegan offering the system in May 2011.

LAN
PLC

FailureOperatinginformation
data

Serialport

Carrier
communicat
ion network

Contact
input

Visualization

Location

See replacement See anomalies
affectingtime forconsumables equipment in real
time

Information Failure
prediction

Alarm

Copyright © 2012 IT Holdings Corporation

Terminal Collection
Information (Example)
Operating Data
(regularly transmitted)
Failure Notification(instantly transmitted)

CAN

See operating
status ofequipment

CareQube probe
terminal(external image)

CareQube probe
terminal

End User (Machine User)

Status of equipmentq poperationp

17

Failure notification

System connection

Product (Equipment) Maker

・Status of equipment
operation・Status of equipment
maintenance and inspection
・Status of notification/error
incidenceEnterprise system

Fiscal 2013 First Two Quarters: ITHD Group Topics
Basic Concepts in Second
Medium-term Management Plan

Top-Line Emphasis

as One Company

Enterprising and Bold Asia-oriented
Asia oriented multiplatformm ltiplatform services
ser ices
Overseas
Business

Connecting clients’ headquarters in Japan with offices in Asia and meet increasing needs for IT support
overseas with one-stop solutions.
Services provide one-stop infrastructure solutions vital for business development in Asia and minimize the tedious,
complicated details of starting up a business.
business Designed to help companies expedite the business development process
in Asia. TIS began services in October 2012, through offices in Japan, China and Singapore.

 Joint efforts with Softbank Group on data center services
Response tto h
Rheightenedi ht d ddemandd ffrom a client-oriented
li t i t d risk-diversificationi k diifi tiperspective to establish and operate international disaster recovery/backup
recovery systems with data center services at a level of quality comparable
to that available in Japan.
Some of TIS’TIS disaster recovery/backup recovery services were launched in
October 2012 through the Pusan Data Center of the Softbank Telecom Group.

 Enhanced data center operationspin Osaka area
Addressing rising demand and reinforcing service capabilities in the
Kansai region• In a joint effort with Kanden System Solutions, Co., Inc., INTEC opened
Osaka Data Center No.2 in October 2012. Improve wide-area virtual cloudservice EINSWAVE.
• TIS plans decided to establish a new data center, Shinsaibashi gDC-EX.
Scheduled to open in May 2013.

Copyright © 2012 IT Holdings Corporation

18

Fiscal 2013 First Two Quarters: ITHD Group Topics
Basic Concepts in Second
Medium-term Management Plan

Top-Line Emphasis

as One Company

Enterprising and Bold

ITHD Group Overseas Network at a Glance (As of September 2012)
China
Beijing: TIS Beijing representative office, Beijing Sorun Computer Co.,Ltd.
Tianjin: Tianjin TIS Hi-tech Information System Service Co., Ltd., Tianjin
Large Information Technology Co. Ltd., Tianjin Sorun Digital
Software Corporation
Dalian: INTEC Information Technology (Dalian) Co., Ltd.
Shanghai: TISI (Shanghai) Co., Ltd., INTEC Information Technology(Shanghai) Co., Ltd., Qualica (Shanghai) Inc
Xian:

Beijing Sorun Computer Co., Ltd. (Xian Branch)

Wuhan: INTEC Information Technology (Wuhan) Co., Ltd.

VietnamHo Chi Minh representative office, Oartech Vietnam Co., Ltd.

Thailand
INTEC Systems Bangkok Co., Ltd.

Singapore
TISI (Singapore) Pte. Ltd.
TKSOFT Singapore Pte. Ltd.
Copyright © 2012 IT Holdings Corporation

19

Fiscal 2013 First Two Quarters: ITHD Group Topics
Basic Concepts in Second
Medium-term Management Plan

Top-Line Emphasis

as One Company

Enterprising and Bold

Group Management Basic Strategies and Business Themes
1. Promote new Group formation• Build structure that spotlights core businesses and growth fields.
→ Gradual realignment and consideration of possible realignment to redefine the Group

2. Cultivate shared groupwide spirit• Establish ITHD College→ Opened IT Holdings Group College, a program to foster unity under the concept “as One Company”

3 L
3.
Lay solid
lid financialfi
i l ffoundationd i to ffacilitateili
upfrontf
investmenti
activityi i• Consolidated tax structure→ Initiated project to look into adoption of consolidated tax structure; interim report submitted in September 2012
• Unified cash management system→InitiatedInitiated project to look into adoption of unified
nified cash management system;s stem; still being considered• International tax system→Promoting active groupwide information sharing efforts aimed at lowering overseas tax risks

4. Streamline and centralize corporate functions• ExpandEd theh range andd iimprove theh quality
li off sharedh d operationsi→Promoting service and system centralization to integrate various systems, paralleling Group realignment, alongwith ordinary transfer of services→Drafted Group business continuity plan; implementing approaches such as joint procurement of reserves for use intimes of disaster

5. Reinforce product brands and corporate image• Make the names of services consistent→Selected experts from within the Group and from outside; using interviews to determine current status and path foriimprovement,t fromf
OctoberO t b 2012.
2012
Copyright © 2012 IT Holdings Corporation

20

Cautionary Statements•In these materials, ITHD is abbreviated ITHD.
• Forward-looking statements, including performance forecasts, described in these materials are based on information
available to management regarding the ITHD Group—that is, ITHD and the subsidiaries under its umbrella—as of thepresentation date and certain assumptions deemed reasonable at this time. No intent is implied of promise by the Company
to achievehisuchh forward-lookingfd l ki statements. Indeed,I d d variousifactorsf
may cause futurefresults
l to beb substantiallybi ll different
difffrom the assumptions presented in these materials.