August 8, 2013

Summary of Consolidated Financial Results for the First Quarter of the Year Ending March 31, 2014
SRA Holdings, Inc.
(URL: http://www.sra-hd.co.jp/)
Stock listing:Tokyo Stock Exchange
Code number:
3817
President:
Toru Kashima
For inquiries, please contact:
Makoto Kitai, General Manager, Finance Department, Administrative HeadquartersTel:(03)-5979-2666
Scheduled date of submission of quarterly securities report:
August 9, 2011―
Scheduled commencement of dividend payment:
Quarterly Results Supplemental Materials
Yes
Quarterly Results Presentation Meeting
No
Company name:

1. Consolidated results for the first quarter of the fiscal year ending March 2014 (from April 1, 2013 to June30, 2013)(1) Consolidated Operating Results (cumulative total)
Net SalesFirst quarter of fiscal
2014
First quarter of fiscal
2013(All amounts rounded down, % change YoY)
Ordinary Profit

Operating Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

7,628

4.8

246

(26.4)

434

15.3

(572)

-

7,282

(3.3)

334

5.8

376

3.7

189

(22.7)

Note：Comprehensive Income
First quarter of fiscal 2014 (¥6) million(-%)
First quarter of fiscal 2013 (¥190)million((31.1)%)

First quarter of fiscal
2014
First quarter of fiscal
2013

Net Income

Net Income

per Shareper Share after Dilution

Yen

Yen

(43.60)

－

14.43

－

(2) Consolidated Financial Position

First quarter of fiscal
2014
Fiscal 2013

Shareholders’ Equity Ratio

Total Assets

Net Assets

Millions of yen

Millions of yen%

28,127

16,762

59.5

28,133

17,35961.6

Reference: Shareholders’ equity
First quarter of fiscal 2014: ¥16,721 million
Fiscal 2013: ¥17,319 million

2. Dividends
Dividend per Share

Fiscal 2013
Fiscal 2014

End of First QuarterEnd of Second QuarterEnd of Third Quarter

Yen

Yen

Yen

Yen

Yen

―
―

―

―

45.00

45.00

―

―

40.00

40.00

Fiscal 2014(forecast)
Note: Revision of dividend forecast in this quarter:No
1Year-end

For the Year

3. Consolidated Earnings Forecast for Fiscal 2011 (from April 1, 2013 to March 31, 2014)(% of change from FY2011 First Half or FY2011）
Net Income
Net Sales

Operating Income

Ordinary Profit

Net Income
per Share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

FY2014 First Half
(for the six months ending
September 30, 2013)

16,450

8.5

1,070

19.0

1,120

16.9

695

35.9

52.90

FY201434,900

8.5

2,900

19.0

3,000

4.0

1,860

10.6

141.57

Note: Revision of consolidated results forecast in this quarter:No

4. Others(1) Changes to significant subsidiaries during the current period :No(2) Application of simplified accounting and application of special accounting :(3) Changes in accounting principles and procedures, presentation, etc.
1. Changes caused by revision of accounting standards, etc. :2. Changes other than 1. above:
No

No

No

(4) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
First quarter of fiscal 2014:15,240,000 sharesFiscal 2013:15,240,000 shares
2. Number of treasury stock
First quarter of fiscal 2014:
2,101,709 sharesFiscal 2013:
2,101,709 shares
3. Average number of shares over period (consolidated total for quarter)
First quarter of fiscal 2014:
13,138,291 sharesFirst quarter of fiscal 2013:13,138,359 shares*Indication of quarterly review procedure implementation status
This earnings release is not subject to the quarterly review process as required by the Financial Instruments and Exchange Act of Japan.
As of the date when this earning release was issued, the review process on quarterly financial statements as required by the Financial
Instruments and Exchange Act had been finished.

*Explanation relating to the appropriate use of results forecasts, and other noteworthy items
Forward-looking statements in this earnings release, such as forecasts of results of operations, are based on the information currently
available and the certain assumptions that we regard as reasonable and therefore actual results may differ materially from those containedin or suggested by any forward-looking statements.

2

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

1. Qualitative Information Concerning First-Quarter Consolidated Business Results(1) Explanation Concerning Business Results
During the first quarter of the fiscal year (April 1, 2013 to June 30, 2013), the Japanese economy recovered steadily,reflecting such factors as a pickup in personal consumption and production as well as an improvement in corporate
earnings, mainly in manufacturing industries.
In the information services industry, IT investments are expected to remain on a recovery track thanks to demand
for systems integration at megabanks and demand in the securities industry for program-related projects (Nippon
Individual Savings Account (NISA) program for tax-free small-amount accounts). Nevertheless, the current
environment for orders is expected to become increasingly severe due to continued intensifying competition.
Amid this business environment, in the third year of its Medium-Term Management Plan, the SRA Holdings Group
implemented the following specific measures in line with efforts to “increase and strengthen profitability byundertaking structural reforms in existing businesses” as well as “secure growth potential by fully promoting our own
IP products business and undertaking new business overseas,” which is our medium- and long-term growth strategy.
■Increase and strengthen profitability by undertaking structural reforms in existing businesses
As measures to expand orders and sales by strengthening business capabilities, we created new projects throughproposal-based sales and strengthened our order management structure. As a result of these efforts, Advanced
Integration Technology, Inc. (AIT), SRA America, Inc. and Software Science Inc. recorded increases in sales over thesame period of the previous fiscal year.
Meanwhile, to build a high-profit production structure we continued to promote initiatives for realizing anappropriate level of production overhead costs.
■Secure growth potential by fully promoting our own IP products business and undertaking new businessoverseas (“own IP products business” x “overseas business”)
In working to further promote our “own IP products business” x “overseas business,” we made additional business
investments in Proxim Wireless Corporation and in Kingnet.
Moreover, we strived to expand our own IP products business such as our comprehensive education solutions“UniVision” and our mail archive “MailDepot” and also launched our own new IP product BELEGA*.
* BELEGA: a digital content management, delivery and sales service platform.

Due to the above initiatives, our consolidated business results for the first quarter of the fiscal year were as follows.
In terms of net sales, although sales of the Systems Development business remained flat, sales of the System
Operations and Infrastructure Development business increased slightly and sales of the Product Sales business rose
sharply. As a result, consolidated net sales amounted to ¥7,628 million, a 4.8% increase from the same period of theprevious fiscal year.
At the profit and loss level, a decline in gross profit resulted in a 26.4% year-on-year decrease in operating income
to ¥246 million. However, ordinary profit rose 15.3% from the same period of the previous fiscal year to ¥434 million
due a foreign exchange gain.
Because we recorded a loss on valuation of investment securities as an extraordinary loss, we posted a first quarter
net loss of ¥572 million.
3

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

The Company applied the reversal method for the impairment of investment securities during the quarter.
Therefore, depending on the market value of securities during the fiscal year ending March 2014 or at the end of thisfiscal year, there is a possibility the amount of the first quarter extraordinary loss could change or that no
extraordinary loss will be recorded.
A summary of consolidated business results for the first quarter by business segment is shown below.
1) Systems Development
Despite a decline in sales to electric power industries, the Systems Development business recorded increases in sales
to banks, securities companies and non-life insurance companies. As a result, net sales edged up 0.2% from the same
period of the previous fiscal year to ¥3,731 million.
2) System Operations and Infrastructure Development
Although there was a slight decrease in university-related orders, there was an increase in orders from companies. As
a result, net sales of the System Operations and Infrastructure Development business increased 2.4% from the same
period of the previous fiscal year to ¥831 million.
3) Product Sales
AIT recorded favorable sales, mainly in the financial sector. As a result, net sales of the Product Sales businessincreased 11.6% from the same period of the previous fiscal year to ¥3,065 million.
(2) Explanation Concerning Financial Condition
With regard to financial condition for the first quarter, total assets amounted to ¥28,127 million, a decrease of 0.0%
from the end of the previous fiscal year. Total liabilities increased 5.5% from the end of the previous fiscal year to¥11,364 million and net assets decreased 3.4% to ¥16,762 million from the end of the previous fiscal year. Details of
the principal increases and decreases from the end of the previous fiscal year are as follows.
(Total Assets)
Work in process rose ¥579 million to ¥1,591 million due to such factors as an increase in contracted development
projects. On the other hand, due to the redemption of securities, short-term investment securities declined ¥346
million to ¥656 million and investment securities declined ¥540 million to ¥6,597 million.
(Total Liabilities)
Provision for bonuses increased ¥328 million to ¥922 million. On the other hand, income taxes payable decreased¥234 million to ¥289 million.
(Total Net Assets)
Due to the payment of dividends amounting to ¥591 million and a first quarter net loss of ¥572 million, retained
earnings amounted to ¥11,625 million.
(3) Explanation Concerning Consolidated Results Forecast and Other Future Projections
No revision has been made to forecasts in Summary of Consolidated Financial Results for the Year Ended March 31,
2013 released on May 9, 2013.
4

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

2. Summary Information (Notes)(1) Significant changes involving subsidiaries during the period: None
(2) Application of simplified accounting methods and accounting methods specific to the preparation of the quarterly
consolidated financial statements: None

(3) Changes in accounting principles, changes in accounting estimates and restatements: None

5

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

3. Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of Yen)
End of first quarter of

Fiscal 2013(as of March 31, 2013)

fiscal 2014(as of June 30, 2013)ASSETS
Current assets:
Cash and deposits

7,197

8,381

Notes and accounts receivable—trade

6,299

4,870

Short-term investment securities

1,002

656

Merchandise and finished goods

242

299

Work in process

1,011

1,591

Deferred tax assets

531

734

Other

1,222

1,720

Allowance for doubtful accounts

(35)

(31)

17,473

18,222

349

346

(253)

(253)

96

93

569

556

(522)

(511)

46

45

119

120

Accumulated depreciation

(77)

(80)

Other, net

42

40

184

178

Other

894

848

Total intangible assets

894

848

Investment securities

7,137

6,597

Deferred tax assets

1,049

809

Guarantee deposits

402

401

Other

1,093

1,180

Allowance for doubtful accounts

(14)

(15)

Allowance for investment loss

(87)

(95)

Total investments and other assets

9,580

8,878

Total current assets
Noncurrent assets:
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Other

Total property, plant and equipment
Intangible assets

Investments and other assets

6

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

Total noncurrent assets
Total assets

7

10,6609,905

28,13328,127

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

(Millions of Yen)
End of first quarter of

Fiscal 2013

fiscal 2014(as of March 31, 2013)(as of June 30, 2013)

LIABILITIESCurrent liabilities:
Accounts payable—trade

2,447

2,552

Short-term loans payable

1,229

1,239

Accrued expenses

590

712

Income taxes payable

523

289

Accrued consumption taxes

241

144

Provision for bonuses

594

922

Provision for directors’ bonuses

500Provision for loss on construction contracts

181

308

Asset retirement obligations

17

15

Other

807

1,096

6,683

7,282

Long-term loans payable

300

300

Deferred tax liabilities

3

5

3,620

3,615

165

143

0

17

4,090

4,082

10,774

11,364

Capital stock

1,000

1,000

Capital surplus

4,483

4,483

Retained earnings

12,789

11,625

Treasury stock(1,393)(1,393)

Total shareholders’ equity

16,87915,715

Valuation difference on available-for-sale securities

588

1,002

Foreign currency translation adjustments

(148)

3

Total accumulated other comprehensive income

439

1,006

39

40

Total net assets

17,35916,762

Total liabilities and net assets

28,13328,127

Total current liabilities
Noncurrent liabilities:

Provision for retirement benefits
Provision for directors’ retirement benefits
OthersTotal noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity

Accumulated other comprehensive income

Subscription rights to shares

8

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Cumulative Total for First Quarter)(Millions of Yen)
Consolidated

Consolidated

cumulative total for

cumulative total forfirst quarter of fiscal

first quarter of fiscal

2013 (from April 1,2014 (from April 1,2012 to June 30, 2012)2013 to June 30, 2013)

Net sales

7,282

7,628

Cost of sales

6,071

6,451

Gross profit

1,211

1,177

Selling, general and administrative expenses

876

930

Operating income

334

246

Interest received

41

46

Dividends received

19

31

Foreign exchange gains

－

72

Other

19

49

Total non-operating income

81

199

Interest expenses

7

6

Transfer agent processing fee

－

4

Other

32

0

Total non-operating expenses

39

11

376

434

Gain on sales of investment securities

11

4

Other

–

0

Total extraordinary income

11

4Loss on retirement of noncurrent assets

00Loss on valuation of investment securities

0

778

Other

0

10

Total extraordinary loss

0789

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary loss

9

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

388

(349)

Income taxes-current

346

411

Income taxes-deferred

(147)

(189)

Total income taxes

198

222

Income (loss) before minority interests

189

(572)

Net income (loss)

189

(572)

Income (loss) before minority interests

189

(572)

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments

(33)

414

34

152

1

566

190

(6)

190

(6)

－

－

Income (loss) before income taxes and minority
interests(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Cumulative Total for First Quarter)

Total other comprehensive income
Comprehensive income(breakdown)Comprehensive income attributable to parent
company shareholders
Comprehensive income attributable to minority
shareholders

10

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

(3) Notes Concerning Consolidated Financial Statements for the First Quarter(Notes Concerning Premise of Going Concern)
None(Notes on Significant Changes in Shareholders’ Equity)
None(Segment Information)(Segment Information)
I. Consolidated cumulative total for first quarter of fiscal 2013 (from April 1, 2012 to June 30, 2012)
1. Information Concerning Net Sales and Income or Losses for each Reporting Segment(Millions of Yen)
AmountSystemrecordedOperations

Systems
Development

Product

andInfrastructure

Adjustment

Total

Sales

amount*1

onthe quarterly
consolidated
statements ofDevelopment

income*2

Sales(1) Sales to
Customers

3,723

811

2,746

7,282

－

7,282

6

80

135

222

(222)

－

3,729

892

2,882

7,504

(222)

7,282

338

142

160

641

(306)

334

(2) Intersegment
sales ortransfers
Total sales
Operating income

Notes:
1. The segment income adjustment of minus ¥306 million is a company-wide expense not apportioned to any reporting segment.
Company-wide expenses are general and administrative expenses and R&D expenses not attributed to any reporting segment.
2. Segment operating income is adjusted in operating income on the quarterly consolidated statements of income.

2. Information concerning impairment loss on fixed assets or goodwill for each reporting segment
None
II. Consolidated cumulative total for first quarter of fiscal 2014 (from April 1, 2013 to June 30, 2013)
1. Information Concerning Net Sales and Income or Losses for each Reporting Segment(Millions of Yen)
AmountSystemSystems
Development

Operations
andInfrastructure

Product
Sales

Total

Adjustment
amount*1

recordedon

the quarterly
consolidated
statements ofDevelopment
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SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2014*2

incomeSales(3) Sales to
Customers(4) Intersegment
sales ortransfers
Total sales
Operating income

3,731

831

3,065

7,628

－

7,628

8

68

117

194

(194)

－

3,740

900

3,182

7,823

(194)

7,628

236

174

145

556

(309)

246

Notes:
1. The segment income adjustment of minus ¥309 million is a company-wide expense not apportioned to any reporting segment.
Company-wide expenses are general and administrative expenses and R&D expenses not attributed to any reporting segment.
2. Segment operating income is adjusted in operating income on the quarterly consolidated statements of income.

2. Information concerning impairment loss on fixed assets or goodwill for each reporting segment
None(Significant subsequent events)
None

12

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

4. Other Information
1. Status of Production, Orders and Sales(1) Production amounts
Production by segment in the first quarter of the fiscal year ending March 31, 2014 is as follows.
Consolidated cumulative total for
Segment information by type of businessfirst quarter of fiscal 2014 (from% change YoY

April 1, 2013 to June 30, 2013)
Systems Development (Millions of Yen)
System Operations and Infrastructure
Development (Millions of Yen)
Total (Millions of Yen)

4,286

102.6

847

100.8

5,134

102.3

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

(2) Purchase amounts
Purchases by segment in the first quarter of the fiscal year ending March 31, 2014 are as follows.
Consolidated cumulative total for
Segment information by type of businessfirst quarter of fiscal 2014 (from% change YoY

April 1, 2013 to June 30, 2013)
Product Sales (Millions of Yen)

2,144

115.8

Total (Millions of Yen)

2,144

115.8

Notes:
1. Amounts are based on purchase price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

(3) Status of orders
Status of orders by segment in the first quarter of the fiscal year ending March 31, 2014 is as follows.
OrdersSegment information by type of business

Order backlog

received% change YoY(Millions of

System Operations and Infrastructure
Development% change YoY

Yen)

Yen)
Systems Development(Millions of

4,942

115.8

5,469

124.1

650

99.4

1,282

103.0

13

SRA Holdings, Inc. (3817) Summary of First-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

Product Sales

3,189

119.1

3,330

95.6

Total

8,782

115.5

10,082110.4

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

(4) Sales amounts
Sales by segment in the first quarter of the fiscal year ending March 31, 2014 are as follows.
Consolidated cumulative total for
Segment information by type of businessfirst quarter of fiscal 2014 (from% change YoY

April 1, 2013 to June 30, 2013)
Systems Development (Millions of Yen)

3,731

100.2

831

102.4

Product Sales (Millions of Yen)

3,065

111.6

Total (Millions of Yen)

7,628

104.8

System Operations and Infrastructure
Development (Millions of Yen)

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

14