Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2012
(April 1, 2011 through September 30, 2011)(Prepared pursuant to Japanese GAAP)All financial information has been prepared in accord with accounting principles generally accepted in Japan. This is apartial English translation of the original Japanese-language document. All information pertains to consolidated results
unless otherwise noted. Information on the basis of presentation of consolidated financial statements does not appear inthis translation.
November 2, 2011
Company name:
Stock exchange listings:
Stock code:
URL:
Representative:
Contact:
Phone:

IT Holdings Corporation
The First Section of the Tokyo Stock Exchange3626
http://www.itholdings.co.jp/e/Susumu Okamoto, President
Norio Maenishi, Executive Vice President+81 3-6738-7557

Scheduled dates
Submission of quarterly report:
Commencement of dividend payments:

November 9, 2011
-Supplementary materials to the quarterly results:
Quarterly results presentation:

Available
Available (targeted at institutional investors and analysts)
Figures in millions of yen are rounded down to the nearest million

1. Consolidated Results for the First Half of the Fiscal Year Ending March 31, 2012
(April 1, 2011 – September 30, 2011)(1) Consolidated Financial Results
Net sales

Percentages indicate year-over-year changes
Recurring profit
Net income

Operating income

millions of yen%First Half, FY2012
154,682
0.4
4,683
0.3
4,679
(1.7)
(1,469)First Half, FY2011
154,0094.8
4,667(19.6)
4,762(17.8)
1,004
Note: Comprehensive income: First Half, FY 2012: (2,600) million yen (- %) First Half, FY 2011: (723) million yen (- %)millions of yen%－(68.7)

Net income
per share – basicmillions of yen%%

Net income
per share – dilutedyen

First Half, FY2012First Half, FY2011

millions of yenyen(16.74)
11.44-(2) Consolidated Financial Position
Total assets
End-First Half, FY2012

Net assets

Equity ratio

millions of yen

millions of yen%

291,745

146,585

47.8

End-FY2011
301,076
151,110
47.7
For reference: Shareholders’ equity: End-First Half, FY2012: 139,415 million yen End-FY2011: 143,646 million yen.

2. Cash Dividends for Shareholders of Common Stock
Cash dividends per share
Record date orperiod

End-Q1yenEnd-Q2
yen

End-Q3Year-end

Totalyenyen

12.00
FY2011
0.00
FY2012FY2012 (forecast)
Note: Revision from the latest release of dividends forecasts: None

20.00

32.00

yen

18.00

18.00

3. Forecast of Consolidated Results for FY2012 (April 1, 2011 – March 31, 2012)
Net sales
millions of yen

Operating income%millions of yen%

Full FY 2012
(year ending
325,000
0.6
14,0009.2
Mar. 31, 2012)
Note: Revisions from the latest release of earnings forecasts: Yes

Percentages indicate year-over-year changes
Net income perNet income
share – basic

Recurring profit
millions of yen

13,500%

6.9

millions of yen

2,000%yen(66.6)

22.79

4. Other(1) Material reclassifications of subsidiaries during the period: Yes(Changes in specified subsidiaries resulting in change in scope of consolidation)
Additions: None:
Exclusions: Two companies: SORUN Corporation, UFIT Co., Ltd.
(2) Accounting methods specific to quarterly consolidated financial statements: None
(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards, etc.: None2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Common stock issued
1) Issued shares as of period-end (including treasury stock):End-first half, FY2012 (September 30, 2011): 87,789,098 shares
End-FY2011 (March 31, 2011):
87,789,098 shares
2) Treasury stock as of period-end:
End-first half, FY2012 (September 30, 2011):
15,902 shares
End-FY2011 (March 31, 2011):
15,385 shares
3) Average number of shares (during the respective six-month period):First half, FY2012 (ended September 30, 2011): 87,773,455 sharesFirst half, FY2011 (ended September 30, 2010): 87,770,453 shares*Quarterly review status
These materials are not subject to the quarterly review procedure requirements of Japan’s Financial Instruments and ExchangeAct. As of this report’s publication, a review of the quarterly consolidated financial statements in accordance with the Act had
not been completed.
Caution on Forward-Looking Statements and Other Important Matters
This report contains forward-looking statements that reflect IT Holdings Corporation (ITHD)’s plans and expectations.
These forward-looking statements are not guarantees of future performance and involve known and unknown risks,
uncertainties and other factors that may cause ITHD’s actual results, performance, achievements or financial position to bematerially different from any future results, performance, achievements or financial position expressed or implied by theseforward-looking statements.
For the assumptions underlying the forecasts herein and other notice on the use of earnings forecasts, refer to “(2) Analysis ofConsolidated Earnings Forecast” in the “1. Results of Operations” section on page 3 in the accompanying materials.

Accompanying Material – Contents
1. Results of Operations(1) Analysis of Consolidated Operating Results(2) Analysis of Consolidated Earnings Forecast
2. Other Information(1) Changes affecting the status of significant subsidiaries during the period (scope of consolidation)
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the First Half
Consolidated Statements of Comprehensive Income
For the First Half
(3) Note on the Going-concern Assumption(4) Note on Significant Changes in the Amount of Shareholders’ Equity

1223334466788

1. Results of Operations(1) Analysis of Consolidated Operating Results
In the first half of fiscal 2012 (year ending March 31, 2012), though production activity which had been affected by theGreat East Japan Earthquake showed signs of recovery, the domestic economic outlook remained unpredictable reflecting
concerns over the economic stagnation in Europe and the appreciation of the yen.
The IT services industry, to which the IT Holdings Group belongs, is showing signs of steadily changing for the better asclient attitude towards IT investments turned favorable despite the tough business environment.
Amid this business environment, the IT Holdings Group has set forth a management strategy for fiscal 2012 underpinnedby four major initiatives: firm establishment of a new Group formation; strengthening of the Group management foundationand profit structure; top-line expansion and growth of the contract outsourcing business; and preparation for shift to servicesand solutions-oriented business through new investments, which the Group is pursuing to establish a solid business platform.
In the fiscal first half, the IT Holdings Group’s consolidated net sales rose 0.4% year on year to ¥154,682 million,operating income increased by 0.3% year on year to 4,683 million, and recurring profit fell 1.7% year on year to ¥4,679
million. While the group posted a net loss of ¥1,469 million (down from a net income of ¥1,004 million in the previous year)
primarily due to booking an extraordinary loss, all other targets set at the beginning of the term were achieved through strong
business activities and thorough cost-cutting measures.
Strong growth in orders in industrial IT services drove net sales higher, offsetting the sluggishness in financial IT services.
Operating income and recurring profit were at levels similar to the previous year as aggressive cost reductions offset the
impact of unprofitable projects and the cost associated with the opening of the next-generation data center GDC Gotenyama
in April 2011.
The net loss is due to extraordinary losses on expenses related to measures implemented to establish a solid businessplatform. Specifically, expenses of about ¥1.8 billion in Group office relocation and integration and about ¥4.4 billion related
to the special job transfer support program being carried out at TIS, Inc. following structural reforms at that subsidiary werebooked as extraordinary loss in the first half. The Group’s estimates the overall expenses for the office relocation to be about¥3.2 billion and plans to book the remaining ¥1.4 billion from the third quarter onward.
First-half results by segment are as follows.
Beginning with the first quarter of fiscal 2012, the IT Holdings Group has reclassified its business into new segments basedon the service type and by customer/market types, replacing the previous segmentation based on groupings of consolidated
subsidiaries. Sales in each segment include inter-segment sales, and the previous year’s figures have been reclassified into thenew segments for comparison purposes.
1) IT Infrastructure Services
This business provides self-administered computer utility or system operation services through large IT facilities, including
data centers. Consolidated sales declined 0.6% from the same period a year ago to ¥55,180 million while operating income
declined 5.8% to 3,640 million yen primarily due to the upfront investments for GDC Gotenyama data center opened in April
2011 to meet the anticipated growth in data center demand in the future.
2) Financial IT Services
This business supports clients in their efforts to make greater use of IT in their operations and in the execution of theirbusiness activities with IT expertise and business know-how specific to the finance industry. Consolidated sales in the half
declined 7.5% from the same period a year ago to ¥32,233 million, while the operating income fell 25.6% million to ¥1,219
million, as a major life insurer and a bank completed a round of investment and IT investments in the credit card industry
slowed down.
3) Industrial IT Services
This business supports clients in their efforts to make greater use of IT in their operations and in the execution of theirbusiness activities with IT expertise and business know-how in areas other than finance, namely industrial and public sectors.
Consolidated sales increased 7.7% year on year to ¥69,184 million, on the back of robust growth fueled by the gradual
recovery in IT investments in the public sector and process manufacturing. However, the emergence of unprofitable projects
meant that the business posted an operating loss of ¥378 million compared with ¥473 million the previous year.
4) OtherThis includes leases and other incidental business generated from the provision of information systems. Consolidated sales
in this segment declined 7.1% year on year to ¥7,723 million, and operating income increased 69.4% to ¥1,091 million.
2The IT Holdings Group has been continuously reorganizing its Group formation, while implementing the aforementioned
measures including relocation and integration of offices of the Group companies and a special job transfer support program
following structural reform at consolidated subsidiary TIS, Inc., with the aim of establishing a solid business platform.
Relocation and integration of offices of Group companies is aimed at generating synergy effects by enhancing cooperation
between the companies, strengthening group governance and through cost cutting measures. Under the initiative, the Groupplans to relocate the business bases of nine companies in the Tokyo area including IT Holdings to Nishi-shinjuku, Shinjukuku, Tokyo, one after another from December 2011. The initiative is expected to enable cost savings of approximately 900
million yen per year in rents.
The special job transfer support program at TIS, Inc. following the company-wide structural reform has been carried out
based on the judgment that a comprehensive overhaul of the personnel structure and work assignment is essential for the
early improvement of business performance and maximization of merger synergies, which are the company’s top
management priorities following the merger with SORUN Corporation and UFIT Co., Ltd. in April 2011. The measure isexpected to enable the company to reduce personnel expenses by approximately 3.6 billion yen per year.
On April 1, 2011, as part of reorganization of the Group formation, TIS, Inc. merged with SORUN Corporation and UFITCo., Ltd. and INTEC Inc. merged with Nippon System Gijutsu Co., Ltd and INTEC Systems Institute, Inc. In addition, TIS,
Inc. transferred its onsite service business to TIS Solution Link Inc. (formerly known as CST Inc.) on October 1, 2011 andAJS Inc. merged with AJS Software Co., Ltd. Furthermore, two system operation service providers TIS System Service Inc.
and System Support Inc. will undergo a merger on April 1, 2012.
(2) Analysis of Consolidated Earnings Forecast
IT Holdings expects orders to remain strong backed by steady sales initiatives, with client attitude towards IT investment
turning favorable. The Group also expects the measures implemented in the first half for the establishment of a solid businessplatform to start yielding results in the third quarter of the current fiscal year. Still, concerns of a European downturn
triggering a global economic slowdown coupled with a further strengthening of the yen are likely to influence clientdecisions on IT-related investment. Taking into account these conditions which affect the Group’s business performance, IT
Holdings is revising the full-year consolidated earnings forecast as follows.

Net sales(Millions of yen, except percent changes and net income per share)
Net income per
Operating income Recurring profit
Net income
share (¥)

Previous forecast (A)308,000

11,00010,500

3,500

39.88

Revised forecast (B)325,000

14,00013,500

2,000

22.79

Change (B – A)

17,0003,000

3,000(1,500)—

Percent change

5.5%

27.3%

28.6%

(42.9%)—

323,173

12,818

12,625

5,985

68.19

For reference:Previous fiscal year’sresults (FY2011)

Note: The above forecasts are based on information available and certain assumptions deemed reasonable at the time of thisdocument’s release. Actual results may differ materially from these forecasts due to various factors.
2. Other Information(1) Changes affecting the status of significant subsidiaries during the period (scope of consolidation)
Consolidated subsidiaries SORUN Corporation and UFIT Co., Ltd. were absorbed into consolidated subsidiary TIS, Inc.
through an absorption-type merger on April 1, 2011, and therefore they are no longer under the scope of consolidation.

33. Consolidated Financial Statements(1) Consolidated Balance Sheet
As of Mar. 31, 2011

Items

As of September 30, 2011

millions of yen

millions of yen

36,72959,040
8,710
301
2,295
6,554
197
7,741
7,085
(199)

31,42951,599
8,409
201
3,456
9,805
183
8,108
6,813
(153)

Total current assets
Fixed assets
Property and equipment
Buildings and structures, net
Machinery and equipment, net
Land
Leased assets, net
Other property and equipment, net

128,455

119,854

60,2305,009
22,4682,539
5,209

57,835
4,344
22,4502,937
5,782

Total property and equipment
Intangible assets
Goodwill
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other assets
Allowance for doubtful accounts

95,45793,3505,516
13,073

4,311
13,89818,58918,20931,794
8,115
20,995(2,331)58,57330,26010,442
21,863(2,234)60,331

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Lease receivables and lease investment assets
Marketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts

Total investments and other assets
Total fixed assets
Total assets

4

172,620

171,891

301,076

291,745

As of Mar. 31, 2011

Items

As of September 30, 2011

millions of yen

millions of yen

14,944
14,8007,500
3,401
11,041464
20,93813,596
16,6407,500
1,920
10,957
190
22,363

Total current liabilities
Non-current liabilities
Corporate bonds
Long-term debt
Lease obligations
Deferred tax liabilities
Deferred tax liabilities from revaluation of land
Accrued retirement benefits to employees
Accrued retirement benefits to directors
Other non-current liabilities
Total non-current liabilities

73,09073,169100
55,054
3,981
674
993
11,509
244
4,317

100
49,878
3,966
662
993
12,162
206
4,019

76,87571,989Total liabilities

149,965

145,159

10,00186,78847,298(24)

10,00186,78844,069(24)

144,062

140,833

1,729(1,841)(303)

715(1,841)
(291)

(415)
29
7,434

(1,418)38
7,131

151,110

146,585

301,076

291,745

Liabilities
Current liabilities
Notes and accounts payable
Short-term borrowings
Corporate bonds (redeemed within one year)
Income taxes payable
Accrued bonuses to directors and employees
Other allowances
Other current liabilities

Net assets
Shareholders’ equity
Common stock
Additional paid-in capital
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains on other securities
Revaluation of land
Foreign currency translation adjustments
Total accumulated other comprehensive income
Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
First Half, FY2011First Half, FY2012
Items(Apr. 1 – Sept. 30, 2010)(Apr. 1 – Sept. 30, 2011)
millions of yen

millions of yen

Net sales
Cost of sales
Gross profit

154,009
124,915

154,682
127,531

29,094

27,150

Selling, general and administrative expenses

24,426

22,466

Operating income
Non-operating income
Interest income
Dividends income
Other4,667

4,683

25453
445

15462
413

Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of non-consolidated subsidiaries andaffiliates
Other

925

891

524

468

49

110

255
830

315
895

4,762

4,679

1,337
81

420
77

1,418

498－

6,213

2,199－

Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary loss
Restructuring costs
Effect of adoption of new accounting standards for asset
retirement obligations
Other

1,157

921

Income (loss) before income taxes and minority interests

3,356
2,824

7,135
(1,957)

Income taxes: current
Income taxes: deferred

1,959(68)1,654(2,018)

Total income taxes

1,890
934(364)(1,593)

(70)

(124)

1,004

(1,469)Total extraordinary loss

Income (loss) before minority interests
Minority interests in loss of consolidated subsidiaries
Net income (loss)

6

Consolidated Statements of Comprehensive Income
Items
Income (loss) before minority interests
Other comprehensive income
Net unrealized gains on other securities
Foreign currency translation adjustments
Share of other comprehensive income of associates
accounted for using the equity method
Total other comprehensive income
Comprehensive income
Components:
Comprehensive income attributable to owners of theparent
Comprehensive income attributable to minority interests

7

First Half, FY2011(Apr. 1 – Sept. 30, 2010)

First Half, FY2012(Apr. 1 – Sept. 30, 2011)

millions of yen

millions of yen

934(1,593)(1,597)(53)(1,022)
17

(6)

(2)

(1,657)(1,007)(723)(2,600)(388)(2,471)

(334)

(129)

(3) Note on the Going-concern Assumption
Not applicable(4) Note on Significant Changes in the Amount of Shareholders’ Equity
Not applicable8