November 10, 2011

Summary of Consolidated Financial Results for the Second Quarter of the Year Ending March 31, 2012
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:
November 11, 2011―
Scheduled commencement of dividend payment:
Quarterly Results Supplemental Materials
Yes
Quarterly Results Presentation Meeting
Yes（for institutional investors and analysts）
Company name:

1. Consolidated results for the second quarter of the fiscal year ending March 2012
(from April 1, 2011 to September30, 2011)(1) Consolidated Operating Results (cumulative total)
Net Sales

Second quarter of fiscal
2012
Second quarter of fiscal
2011(All amounts rounded down, % change YoY)
Ordinary Profit

Operating Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

15,895

(2.5)

813

1.7

886

3.7

607

53.2

16,297

2.1

799

16.3

854

20.6

396

11.6

Note：Comprehensive Income
Second quarter of fiscal 2012: ¥506 million
Second quarter of fiscal 2011: ¥122million

Second quarter of fiscal
2012
Second quarter of fiscal
2011

Net Income

Net Income

per Shareper Share after Dilution

Yen

Yen

43.90

－

28.65

－

(2) Consolidated Financial Position

Second quarter of fiscal
2012
Fiscal 2011

Shareholders’ Equity Ratio

Total Assets

Net Assets

Millions of yen

Millions of yen%

25,806

15,45359.8

26,451

15,522

58.5

Reference: Shareholders’ equity
Second quarter of fiscal 2012: ¥15,435 million
Fiscal 2011: ¥15,482 million

2. Dividends
Dividend per Share

Fiscal 2011
Fiscal 2012

End of First QuarterEnd of Second QuarterEnd of Third Quarter

Yen

Yen

Yen

Yen

Yen

―
―

―
―

―

40.00

40.00

―

40.00

40.00

Fiscal 2012(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, 2011 to March 31, 2012)(% of change from FY2011 First Half or FY2011）
Net Income
Net Sales

Operating Income

Ordinary Profit

Net Income
per Share

FY2012Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

33,500

1.0

2,300

2.7

2,300

（3.1）

1,355

3.1

97.91

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

4. Others(1) Changes to significant subsidiaries during the current period :No

Note: Changes in specified subsidiaries during the current period that caused changes in the scope of consolidation(2) Application of simplified accounting and application of special accounting :No

Note: Application of simplified and special accounting for quarterly consolidated financial statements(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

Note: Changes in significant accounting policies and procedures, presentation which are stated in “change in important matters in
preparing quarterly consolidated financial statements”(4) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
Second quarter of fiscal 2012:15,240,000 sharesFiscal 2011:15,240,000 shares
2. Number of treasury stock
Second quarter of fiscal 2012:
1,400,230 sharesFiscal 2011:
1,400,230 shares
3. Average number of shares over period (consolidated total for quarter)
Second quarter of fiscal 2012:
13,839,770 shares
Second quarter of fiscal 2011:
13,839,771 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 Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

1. Qualitative Information Concerning Second-Quarter Consolidated Business Results(1) Qualitative Information Concerning Consolidated Business Results
During the second quarter of the fiscal year (April 1, 2011 to September 30, 2011), although the Japanese economy
continued to face severe circumstances due to the impact of the Great East Japan Earthquake, signs of a pickup in
production, exports and personal consumption became visible from the latter half of the term.
Nevertheless, the outlook remains uncertain due to the risk of an economic downturn owing to recessions inoverseas economies, the strong yen and declining stock prices in addition to the impact of the nuclear power plant
disaster.
In the information services industry, the software investment plans of companies are showing signs of recovery,
mainly in manufacturing industries. However, companies are still maintaining a cautious stance toward implementing
these plans, and the harsh business environment has persisted. On the other hand, there are expectations for new
movements toward cloud computing services and data centers as disaster countermeasures as well as for increased IT
investments for recovery and reconstruction following the Great East Japan Earthquake.
Amid this business environment, the SRA Group focused on the management strategies of its Medium-Term
Management Plan, namely, “undertaking structural reforms in existing businesses” and “fully promoting our own IP
products business* and undertaking new business overseas” to realize the Group’s medium- and long-term growth.
*Own IP products business: Business for our extremely high-profit (gross profit margins) own-brand products
covered by intellectual property rights.
Specifically, in terms of “undertaking structural reforms in existing businesses,” we aim to raise profitability bystrengthening the foundation of the Systems Development and Systems Operations and Infrastructure Development
businesses. In doing so, we made efforts to expand orders by strengthening our business capabilities, build ahigh-profit production structure and transform to a cost structure appropriate for our business scale. In Product Sales,
to secure growth potential by expanding business, we worked to make inroads into new fields (manufacturing,securities, municipalities, others).
Regarding “fully promoting our own IP products business and undertaking new businesses overseas,” we madespecific considerations for building a business scheme for undertaking these businesses as a single unit. This willencompass the provision of our own IP products in such growth fields as cloud computing and wireless data
communications as well as the development of our business not only in Europe and the United States, where we haveachieved business results over long years, but also in the growth markets of China, India and ASEAN. As part of ourefforts to promote business in China, we established a new company in Shanghai to carry out such business as
systems development and the building of servers. This newly established company has already commenced business
operations.
Regarding our consolidated business results for the second quarter of the fiscal year, revenues declined and profits
increased as described below. Looking at sales, although sales increased in the Product Sales business, sales declined
the Systems Development business and the System Operations and Infrastructure Development business. As a result,consolidated net sales declined 2.5% from the same period of the previous fiscal year to ¥15,895 million.

3

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

At the profit level, despite the impact of a decline in net sales, gross profit remained virtually level owing to a risein the gross profit margin, while operating income rose 1.7% from the same quarter of the previous fiscal year to¥813 million and ordinary profit increased 3.7% to ¥886 million. We recorded extraordinary income that included
insurance benefits received from an insurance policy for a director and extraordinary losses that included company
funeral expenses. As a result, net income for the quarter increased 53.2 % over the same period of the previous fiscal
year to ¥607 million.
As detailed in the above explanation of consolidated results, revenues declined and profits increased from thecorresponding quarter in the previous fiscal year. Net sales and ordinary profit were virtually at the same levels as in
our forecast of consolidated results for the second quarter and are progressing in line with our assumptions for the
full-year results forecast.
Consolidated business results for the second quarter by business segment are shown below.
1) Systems Development
Despite an increase in sales to the non-life insurance industry, the Systems Development business recorded a decline
in sales to manufacturing industries as well as a decrease in sales to electric power industries due to the impact of theGreat East Japan Earthquake. As a result, net sales declined 14.4% from the same period of the previous fiscal year to¥7,601 million.
2) System Operations and Infrastructure Development
System Operations and Infrastructure Development posted declines in network operations and infrastructuredevelopment as well as in system operations. By sector, university-related orders declined slightly while incorporate-related business there was a particular decrease in orders for system operations due to the trend toward
internal production and the continuing decrease in order unit prices. Therefore, net sales of the System Operations
and Infrastructure Development business declined 12.9% from the same period of the previous fiscal year to ¥1,664
million.
3) Product Sales
Although Software Research Associates, Inc. (SRA) posted a decline in sales of devices, Advanced Integration
Technology, Inc. (AIT) maintained favorable results and recorded a particularly notable increase in sales of devices inthe distribution industry. As a result, net sales of the Product Sales business increased 20.4% from the same period of
the previous fiscal year to ¥6,629 million.
(2) Qualitative Information Concerning Consolidated Financial Condition[1] Assets, Liabilities and Net Assets
Regarding financial condition for the second quarter, current assets at the end of the second quarter decreased ¥882
million from the end of the previous fiscal year to ¥17,376 million. Within current assets, short-term investment
securities increased ¥1,161 million because of a transfer from investment securities to securities redeemable within
one year, while work in progress rose ¥416 million. On the other hand, cash and deposits declined ¥1,938 million due
to the payment of bonuses and payments for the purchases of investment securities, while notes and accounts
receivable—trade declined ¥1,044 million due to the collection of receivables. Noncurrent assets increased ¥237
million to ¥8,429 million due to such factors as a rise in intangible assets. As a result, total assets decreased ¥645
million to ¥25,806 million.
On the liabilities side, total liabilities decreased ¥576 million to ¥10,352 million due to a ¥303 million decrease in
4

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012provision for directors’ retirement benefits due to the payment of benefits to directors and a ¥300 million decrease in
the current portion of bonds due to redemption. Total net assets declined ¥68 million to ¥15,453 million due to thepayment of dividends.
[2] Cash Flows
Cash and cash equivalents (hereafter cash) on a consolidated basis during the second quarter of the fiscal year
decreased ¥2,008 million to ¥7,301 million compared with at the previous fiscal year-end (a decrease of ¥1,886
million from the same quarter of the previous fiscal year).
The status of cash flows and factors underlying changes in cash flows for the second quarter of the fiscal year are
shown below.
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to ¥724 million, an increase of 258.5% from the same quarter ofthe previous fiscal year. This consisted mainly of such cash inflows as a decrease in notes and accounts
receivable—trade of ¥1,031 million and income before income taxes and minority interests of ¥992 million, while
cash outflows consisted primarily of an increase in inventories of ¥663 million, income taxes paid of ¥585 million
and a decrease in provision for directors’ retirement benefits of ¥303 million.
Cash Flows from Investing Activities
Net cash used in investing activities amounted to ¥1,894 million, an increase of 241.4% from the same quarter of theprevious fiscal year. This consisted mainly of such outflows as ¥2,183 million for purchase of investment securities,¥639 million for purchase of property, plant and equipment and purchase of intangible assets, and ¥506 million for
payments of loans receivable as well as such inflows as ¥901 million in proceeds from sales of investment securitiesand ¥352 million for collection of loans receivable.
Cash Flows from Financing Activities
Net cash used in financing activities amounted to ¥845 million, an increase of 19.0% from the same quarter of theprevious fiscal year. This was due mainly to such cash outflows as ¥553 million in cash dividends paid, ¥300 million
for payments for redemption of bonds and a ¥292 million net decrease in short-term loans payable, as well as suchcash inflows as ¥300 million in proceeds from long-term loans payable.
(3) Qualitative Information Concerning Consolidated Results Forecast
Regarding the consolidated results forecast, results for the second quarter were generally as planned and no revision
has been made to the forecast released on May 12, 2011. The direction of the economy is increasingly uncertain andwe will quickly disclose information in the event we deem it necessary to revise our full-year business results
projections due to future movements in the economy.

2. Summary Information (Others)(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 Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

3. Important Matters Regarding Assumptions of a Going Concern
None

6SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

4. Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of Yen)
End of second quarter of

Fiscal 2011

fiscal 2012(as of March 31, 2011)(as of September 30, 2011)ASSETS
Current assets:
Cash and deposits

7,940

6,002

Notes and accounts receivable—trade

6,118

5,074

Short-term investment securities

1,504

2,665

Merchandise and finished goods

316

563

Work in process

1,024

1,440

Deferred tax assets

433

494

Other

922

1,147

Allowance for doubtful accounts

(2)

(12)

18,25917,376314

332

Accumulated depreciation

(191)

(206)

Buildings, net

123

126

561

565

(508)

(517)

52

48

Land

0

0

Other

100

101

Accumulated depreciation

(66)

(68)

Other, net

34

32

211

208

Other

629

1,086

Total intangible assets

629

1,086

Investment securities

4,252

4,328

Deferred tax assets

1,579

1,434

Guarantee deposits

460

465

Other

1,145

1,003

Allowance for doubtful accounts

(13)

(14)

Allowance for investment loss

(73)

(83)

Total current assets
Noncurrent assets:
Property, plant and equipment
Buildings

Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net

Total property, plant and equipment
Intangible assets

Investments and other assets

7

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

Total investments and other assets
Total noncurrent assets
Total assets

8

7,351

7,134

8,192

8,429

26,45125,806

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

(Millions of Yen)
End of second quarter of

Fiscal 2011

fiscal 2012(as of March 31, 2011)(as of September 30, 2011)

LIABILITIESCurrent liabilities:
Accounts payable—trade

1,986

1,881

Short-term loans payable

1,901

1,609

Current portion of bonds

300－

Accrued expenses

430

486

Income taxes payable

489

248

Accrued consumption taxes

296

143

Provision for bonuses

602

671

0

30

Provision for loss on construction contracts

151

181

Provision for loss on liquidation of subsidiaries
and affiliates
Asset retirement obligations

14

26

－

3

Other

698

982

6,872

6,264

Long-term loans payable－

300

Deferred tax liabilities

－

3

3,606

3,640

444

141

Negative goodwill

2－

Others

2

2

4,057

4,087

10,92910,352

Capital stock

1,000

1,000

Capital surplus

4,483

4,483

Retained earnings

10,963

11,017

Treasury stock

(894)

(894)

Total shareholders’ equity

15,552

15,606

Valuation difference on available-for-sale securities

239

177

Foreign currency translation adjustments

(309)

(348)

Total accumulated other comprehensive income

(69)

(170)

39

18

15,522

15,453

Provision for directors’ bonuses

Total current liabilities
Noncurrent liabilities:

Provision for retirement benefits
Provision for directors’ retirement benefits

Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity

Accumulated other comprehensive income

Subscription rights to shares
Total net assets
9SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

26,451

Total liabilities and net assets

10

25,806

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Millions of Yen)
Consolidated

Consolidated

cumulative total for

cumulative total forsecond quarter of

second quarter offiscal 2011 (from April

fiscal 2012 (from April

1, 2010 to September

1, 2011 to September

30, 2010)

30, 2011)

Net sales

16,297

15,895

Cost of sales

13,63813,279Gross profit

2,658

2,615

Selling, general and administrative expenses

1,859

1,802

799

813

Interest received

24

51

Dividends received

14

25

Gain on allocation of investment securities

21

－

Other

29

40

Total non-operating income

90

118

Interest expenses

18

15

Transfer agent processing fee

89Foreign exchange losses

－

17

Other

8

1

Total non-operating expenses

34

44

854

886

Gain on reversal of subscription rights to shares－

29

Insurance benefits received－

141

Total extraordinary income－

170

Loss on valuation of investment securities

52

1

Loss on valuation of stocks of subsidiaries and affiliates

86－

Operating income
Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary loss

Loss on application of Accounting Standard for Asset
Retirement Obligations
Provision of allowance for investment loss

13

－

0

9

Company funeral expenses

－

39

Other

1

14

154

65

Total extraordinary loss

11

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

Income before income taxes and minority interests

700

992

Income taxes-current

293

345

Income taxes-deferred

1039

Total income taxes

304

384

Income before minority interests

396

607

Net income

396

607

Income before minority interests

396

607

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

(135)

(61)

(137)

(39)

(273)

(100)

122

506

122

506

－

－

(Quarterly Consolidated Statements of Comprehensive Income)

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

12

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

(3) Consolidated Statements of Cash Flows(Millions of Yen)

Consolidated

Consolidated

cumulative total for

cumulative total forsecond quarter of

second quarter offiscal 2011 (from April

fiscal 2012 (from April

1, 2010 to September

1, 2011 to September

30, 2010)

30, 2011)

Net cash provided by (used in) operating activities:
Income before income taxes and minority interests

700

992

Depreciation and amortization

134

135

Increase (decrease) in provision for retirement benefits

118Increase (decrease) in provision for directors’ retirement benefits

9

(303)

Increase (decrease) in provision for bonuses

69

69

Increase (decrease) in provision for directors’ bonuses

29

29

Increase (decrease) in allowance for doubtful accounts

1

10

Increase (decrease) in allowance for investment loss

1

10Interest and dividend income

(38)

(77)

Interest expense

18

15

Loss (gain) on valuation of investment securities

52

1

Loss on valuation of stocks of subsidiaries and affiliates

86－

Loss on retirement of noncurrent assets

1

1

736

1,031

Decrease (increase) in inventories

(315)

(663)

Increase (decrease) in notes and accounts payable—trade

(809)

(97)

Increase (decrease) in other liabilities

141

384

Increase (decrease) in accrued consumption taxes

(49)

(152)

Other, net

13

(148)

Subtotal

796

1,247

Interest and dividends income received

31

77Interest expenses paid

(17)

(15)

Income taxes paid

(607)

(585)

202

724

Purchase of property, plant and equipment

(85)

(24)

Proceeds from sale of property, plant and equipment－

0

Purchase of intangible assets

(77)

(615)

Purchase of investment securities(340)(2,183)7901

Purchase of investments in subsidiaries

(32)

－

Payments of loans receivable

(17)

(506)

Collection of loans receivable2352

Decrease (increase) in notes and accounts receivable—trade

Net cash provided by operating activities
Net cash provided by (used in) investing activities:

Proceeds from sales of investment securities

13

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

Payments into time deposits

(0)

(70)

Other, net

(10)

251

Net cash used in investing activities(555)(1,894)

(157)

(292)

Proceeds from long-term loans payable－

300

Redemption of bonds

－

(300)

Purchase of treasury stock

(0)

－

(553)

(553)

－

(0)

(710)

(845)

(73)

8

Net increase (decrease) in cash and cash equivalents(1,137)(2,008)Cash and cash equivalents at beginning of period

10,324

9,309

Cash and cash equivalents at the end of period

9,187

7,301

Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable

Cash dividends paid
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

14

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

(4) Notes Concerning Premise of Going Concern
None(5) Segment Information
I. Consolidated cumulative total for second quarter of fiscal 2011 (from April 1, 2010 to September 30, 2010)
1. Information Concerning Net Sales and Income or Losses for each Reporting Segment(Millions of yen)AmountSystemOperations

Systems
Development

andInfrastructurerecorded on
Product

Adjustment

Total

Sales

*1

amountthe quarterly
consolidated
statements ofDevelopment

income*2

Sales
Sales toCustomers

8,882

1,910

5,503

16,297－

16,297

8

107

207

323

(323)

－

8,891

2,018

5,710

16,620(323)

16,297

965

385

371

1,721

(922)

799

Intersegment
sales ortransfers
Total sales
Operating income

Notes:
1. The segment income adjustment of minus ¥922 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.

II. Consolidated cumulative total for second quarter of fiscal 2012 (from April 1, 2011 to September 30, 2011)
1. Information Concerning Net Sales and Income or Losses for each Reporting Segment(Millions of yen)AmountSystemOperations

Systems
Development

andInfrastructurerecorded on
Product

Adjustment

Total

Sales

*1

amountthe quarterly
consolidated
statements ofDevelopment

income*2

Sales
Sales toCustomers

7,601

1,664

6,629

15,895－

15,895Intersegment
sales ortransfers

18

140

200

359

(359)

－

15

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

Total sales
Operating income

7,620

1,805

6,829

16,254(359)

15,895

904

272

285

1,462

(649)

813

Notes:
1. The segment income adjustment of minus ¥649 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.
3. From the first quarter of fiscal 2011 (from April 1, 2010 to June 30, 2010), the Company changed the measurement method for eachbusiness segment along with a change to its standards for evaluating segment business results in undertaking its business management.
Compared with when applying the previous method, segment income declined by ¥107 million in Systems Development, ¥26 million
in System Operations and Infrastructure Development and ¥110 million in Product Sales.

(6) Notes on Significant Changes in Shareholders’ Equity
None

16

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012(7) Significant Subsequent Events
1. Share repurchase
At a meeting of the Board of Directors held on August 29, 2011, the Company resolved to repurchase its shares anddetermined a specific repurchase method pursuant to Article 156, Paragraph 1 of the Corporate Law of Japan as
applicable pursuant to the provisions of Article 165, Paragraph 3 of the Corporate Law of Japan, and the Company’s
Articles of Incorporation, and the Company conducted a share repurchase as explained below.
(1) Objective of the repurchase
Ryugo Marumori, Chairman of SRA Holdings, passed away on July 12, 2011. Around mid-July 2011, theCompany was contacted by Sonomi Fujiwara and Hiromi Sato (hereinafter, the “Inheritor Shareholders”), who
are top shareholders and Ryugo Marumori’s inheritors, indicating their desire to sell their holdings of theCompany’s common shares. Each owns 350,700 shares (corresponding to 2.30% (rounded to the nearest
hundredth), respectively, of total shares issued).
In response to this indication, upon considering the impact of such a sale on the market price and liquidity of
its common shares and from the perspective of maintaining a stable composition of shareholders, the Company
decided that repurchasing its own shares as treasury stock was appropriate. Moreover, the repurchase of its own
shares as treasury stock corresponds with its management policies because this will contribute to raising ROE
and enable the return of profits to shareholders.
(2) Acquisition period
From August 30, 2011 to October 31, 2011
(3) Type of shares and number of shares to be repurchased
Common shares: 701,400 shares(4) Repurchase price¥712 per common share(5) Capital required for the repurchase¥499,396,800(6) Method of procuring funds for the repurchase
Internal funds for the entire amount(7) Repurchase method
Tender Offer(8) Settlement date
October 20, 2011

2. Subscription rights to shares
The Company issued subscription rights to shares (9th subscription rights to shares) based on a resolution at a
meeting of the Board of Directors of the Company held on September 22, 2011.
・Reason for issuance of subscription rights to shares

The Company issued subscription rights to shares as stock options for the Company’s directors and employees aswell as for directors, managing officers and employees of its subsidiaries with the aims of raising motivation andmorale toward attaining the goals of the Medium-Term Management Plan that covers the period from the 22nd
17

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012fiscal term (the fiscal year ending March 2012) through the 24th fiscal term (the fiscal year ending March 2014)
and to help raise the Company’s value over the medium and long terms.
・Name of subscription rights to shares

SRA Holdings 9th subscription rights to shares
・Eligible persons for allotment of new subscription rights to shares and number of persons

Directors (three persons) and employees (six persons) of the Company and directors, managing officers andemployees of the Company’s subsidiaries (48 persons)・Total number of subscription rights to shares

794 subscription rights (200 shares per one subscription right)
・Number of shares allotted to subscription rights to shares

158,800 common shares of the Company
・Amount to be paid for subscription rights

No charge for each subscription right・Value of assets to be invested when subscription rights to shares are exercised¥171,000 per each subscription right to shares(¥855 per share)
・Exercise period for subscription rights to shares

From July 1, 2014 to June 30, 2016
・Conditions for exercising subscription rights to shares
・The holders of the subscription rights to shares shall be able to exercise the rights only when ordinary profit

on the final Consolidated Statements of Income for the Company’s 24th fiscal term (the fiscal year ending
March 2014) or for any prior fiscal term exceeds ¥4.4 billion (hereafter “exercise standard target value”).
However, in the event of such factors as an abrupt change in the management environment, the “exercise
standard target value” may be changed within a range of ± 30% based on a resolution by the Board of
Directors.
・Even during the period for exercising the subscription rights to shares, persons who are not directors andemployees of the Company or directors, managing officers and employees of the Company’s subsidiaries
shall not be allowed to exercise the subscription rights. However, this shall not be applied in cases in which aperson leaves their position due to the expiration of the term of Director or mandatory retirement or for any
other due reason.
・Inheritance of subscription rights to shares shall not be allowed

・The Board of Directors shall be able to attach other necessary conditions. However, conditions attached by the

Board of Directors shall be effective only when stipulated by a “subscription rights to shares allocationagreement” concluded between the Company and the persons eligible for the allocation of subscription rights
to shares.
・Allocation date

October 5, 201118

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

・Increases in capital and the amount of capital reserves in the event of the issue of new shares due to the exercising ofsubscription rights to shares
Issue value: ¥855 per share
Amount included in capital: ¥428 per share
・Restrictions on acquiring subscription rights to shares through a transfer

Approval through a resolution by the Board of Directors of the Company shall be required for acquiring
subscription rights to shares through a transfer.
・Matters concerning the granting of subscription rights to shares in time of organizational restructuring

In the event of any action specified in Article 236-1-8-(a) to (e) of the Corporate Law of Japan, subscription
rights to shares of an entity (hereafter “surviving company or other”) prescribed in the aforementioned (a) to(e) shall be granted to the Company’s holders of subscription rights to shares. However, for mergers,
absorption-type company splits or share exchanges, this shall be conditional on receiving the consent of theother party to the merger agreement, absorption-type company split agreement, or share exchange agreement.
Additionally, the number of granted shares for the subscription rights to shares of the “surviving company orother” that have been issued as well as the exercise price shall be in accordance with the allocation ratio. The
other contents of the subscription rights to shares shall be equal to those of the Company’s subscription rights
to shares. However, the Company may change these at its discretion based on its judgments.

19

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

5. Other Information
1. Status of Production, Orders and Sales(1) Production amounts
Production by segment in the second quarter of the fiscal year ending March 31, 2012 is as follows.
Consolidated cumulative total for
Segment information by type of businesssecond quarter of fiscal 2012
(from April 1, 2011 to September% change YoY

30, 2011)
Systems Development (Millions of Yen)
System Operations and Infrastructure
Development (Millions of Yen)
Total (Millions of Yen)

8,034

83.9

1,670

87.1

9,705

84.4

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 second quarter of the fiscal year ending March 31, 2012 is as follows.
Consolidated cumulative total for
Segment information by type of businesssecond quarter of fiscal 2012
(from April 1, 2011 to September% change YoY

30, 2011)
Product Sales (Millions of Yen)

4,820

143.0

Total (Millions of Yen)

4,820

143.0

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 second quarter of the fiscal year ending March 31, 2012 is as follows.
OrdersSegment information by type of business

Order backlog

received% change YoY(Millions of% change YoY

Yen)

Yen)
Systems Development(Millions of

8,450

20

90.1

4,366

94.7

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2012

System Operations and Infrastructure

1,295

82.5

1,058

87.3

Product Sales

7,143

138.5

3,517

153.3

Total

16,889

104.9

8,942

110.1

Development

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 second quarter of the fiscal year ending March 31, 2012 is as follows.
Consolidated cumulative total for
Segment information by type of businesssecond quarter of fiscal 2012
(from April 1, 2011 to September% change YoY

30, 2011)
Systems Development (Millions of Yen)

7,601

85.6

1,664

87.1

Product Sales (Millions of Yen)

6,629

120.4

Total (Millions of Yen)

15,895

97.5

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.

21