fy2013 results and future growth strategiespdf.irpocket.com/c4326/qnwx/rnv0/frjo.pdf · 2013. 6....

Copyright© 2013 INTAGE Inc. All Rights Reserved.

May 21, 2013

FY2013 Results and Future Growth Strategies FY2013: Fiscal year ended March 31, 2013

(TSE 4326)

INTAGE Inc.

Copyright© 2013 INTAGE Inc. All Rights Reserved. 2

Contents

FY2013 Results

Future Growth Strategies

FY2014 Earnings Forecast


FY2013 Results




Consolidated Financial Highlights

Net Sales

36.53 36.6539.9

0

15

30

45

FY2011 FY2012 FY2013

Operating Income

3.462.88

3.30

0

1

2

3

4

FY2011 FY2012 FY2013

Net Income

1.911.32 1.24

0

1

2

3

4

FY2011 FY2012 FY2013

(Billions of yen)

Net sales were slightly below the performance forecast, but posted a new high.

Operating income and recurring profits both achieved the planned targets, but net income

declined from the posting of extraordinary losses.


Summary of Income Statements

(Millions of yen)

FY2012

Actual

FY2013

Forecasts

FY2013

Actual

Change YoY

Consolidated

Net Sales 36,658 40,225 39,930 +8.9%

Operating Income 2,885 3,130 3,309 +14.7%

Recurring Profit 2,859 3,088 3,213 +12.4%

Net Income 1,325 1,756 1,249 -5.7%

EPS (Yen) 131.85 174.64 124.30 ―

Non-consolidated

Net Sales 26,918 28,130 27,795 +3.3%

Operating Income 2,228 2,409 2,289 +2.7%

Recurring Profit 2,373 2,438 2,398 +1.0%

Net Income 1,297 1,457 790 -39.1%

EPS (Yen) 129.00 144.97 78.60 ―


Summary of BS and CF (Millions of yen)

Consolidated Balance Sheets FY2012 FY2013 Change Details

Current assets 15,591 18,269 +2,678 Primarily increase in cash and deposits and notes and accounts receivable-trade

Noncurrent assets 12,139 11,128 -1,010 Primarily decrease in investment securities and goodwill

Total assets 27,730 29,398 +1,668 ---

Current liabilities 10,055 7,729 -2,326 Primarily decrease in short-term loans payable

Noncurrent liabilities 3,157 6,174 +3,017 Primarily increases in long-term loans payable

Total liabilities 13,212 13,904 +691 ---

Shareholders’ equity 14,611 15,358 +747 Primarily increases in retained earnings

Valuation and translation adjustments (107) 74 +181 Deference of foreign translation adjustments

Minority interests 13 61 +48

Total net assets 14,517 15,493 +976 ---

Consolidated Cash Flows FY2012 FY2013 Change Details

Cash flow from operating activities 2,943 3,433 +490 Primarily decrease in increase in inventories and increase in notes and account-payable

Cash flow from investing activities (3,341) (1,332) +2,008 Primarily decrease in payments for purchases of investment securities

Cash flow from financing activities 675 (960) -1,635 Primarily increase in proceeds from short-term loans payable and payments for long-term loans payable

Effect of exchange rate changes on cash and cash equivalents

(14) 55 +70 ---

Net increase/(decrease) in cash and cash equivalents

262 1,196 +933 ---

Cash and cash equivalents at beginning of year

4,337 4,599 +262 ---

Cash and cash equivalents at end of year 4,599 5,906 +1,306 ---

(Millions of yen)


Net Sales by Segment

25.3 26.19 28.3

5.18 4.934.96

6.04 5.536.63

0

5

10

15

20

25

30

35

40

45

FY2011 FY2012 FY2013

36.53 36.65

39.93

[17%]

[14%]

[69%]

[15%]

[14%]

[71%]

[17%]

[12%]

[71%]

(-8.4%)

(-4.9%)

(+3.5%)

(+19.9%)

(+0.6%)

(+8.2%)

<Syndicated Panel Data Services>

Sales of SRI (syndicated POS retail panel data) and

SCI-personal (nationwide individual consumer panel

data) increased.

<Customized Research>

Sales were firm at all strategic business units

(SBUs) for both conventional and Internet research.

Sales rose with an increase in clinical monitoring

business personnel and a strengthening of the sales

force for data management and analysis work.

Sales remained near the prior year’s level with a

gradual recovery in enterprise systems investment.

■ Drug Development Solutions

■ System Solutions

■ Marketing Research and Consulting

(Billions of yen) ( ): Change YoY; [ ] Composition


Breakdown of Sales of the Marketing Research

and Consulting Segment

14.95 15.26 15.98

10.35 10.9212.34

0

5

10

15

20

25

30

FY2011 FY2012 FY2013

■ Customized Research Services

Traditional Research Methodologies (Mail

surveys, Interview surveys, etc.)

Internet Research

■ Syndicated Panel Data Services

SRI (syndicated POS retail panel data )

SDI (syndicated OTC Drugs panel data )

SPI (In-store promotions Effectiveness

Measurement)

SLI (syndicated Female consumer panel data)

SCI-personal (Individual consumer panel

data)

Rep Track (MR activities evaluation index)

[41%]

[59%]

[42%]

[58%]

[44%]

[56%]

(+5.5%)

(+2.0%)

(+13.0%)

(+4.7%)

25.30 26.19

28.32

Marketing Research and

Consulting

(Billions of yen) ( ): Change YoY; [ ] Composition


Operating Income by Segment

2.852.56

2.86

0.15

0.16

0.15

0.45

0.15

0.29

0

1

2

3

4

FY2011 FY2012 FY2013

3.46

2.88

3.30

(-65.6%)

(+1.3%)

(-10.0%)

(+90.2%)

(-5.8%)

(+11.4%)

<Syndicated Panel Data Services>

Profits declined from investment in

constructing Single Source Panel data.

<Custom Research>

Profits rose from increased Internet

research sales.

Strong performance at Thai and Vietnam

subsidiaries made a large contribution to

profits.

Profits rose with steady recovery of work

volume in both the monitoring business and

data management and analysis business.

Slight profit decrease despite recovery of

work volume in the travel industry.

■ Drug Development Solutions

■ System Solutions

■ Marketing Research and Consulting

(Billions of yen) ( ): Change YoY


FY2013 Results




INTAGE

Group Companies

Began cross-media efforts with Google and other partners; the construction of the new

platform is advancing.

FMCG sales to major clients grew from a focused client approach.

DCG and services performance remained favorable in the automobile and electrical

machinery industries, and global sales to the lifestyle industry increased.

The number of companies signing contracts for POS services surpassed 100, and this is

becoming the industry platform in both name and reality.

Large orders were secured in the travel industry.

Status of Progress in FY2013

(Domestic)

DOCOMO InsightMarketing, Inc. prepared research environment and initiated development and sales of

mobile interviews and also carried out research and development on the Consumer Panel (tentative name).

The addition of Japan Medical Information Research Institute Inc. (JMIRI) to the Group enables analysis of

both Rx and OTC data and research on an impact analysis model in the drug information field.

(Overseas)

Established INTAGE INDIA Private Limited, ASKLEP TAIWAN Inc. and ASKLEP KOREA Inc. Sales

increased from the expansion and upgrading of bases.

Also expanded number of projects over wide areas of emerging economies including rural India, Russia,

Turkey, Cambodia and Myanmar.

In overseas subsidiaries, the business restructuring of INTAGE CHINA Inc. is a major issue.


Basic Group Policy for FY2014

Establish overwhelming competitive advantages in priority fields

Ultimate client relations and weapons to compete

Keywords toward Growth

Mobile

Global

Healthcare

Create markets and capture share together

with DOCOMO InsightMarketing, Inc.

Group synergy strategy and rebuilding

the story

Accelerate global development by creating

new weapons to compete


Makes it possible to capture election-related data that can only be obtained

from a single source linking supplemental research with media exposure data

Potential clients include political parties, advertising agencies and media

13

Use of i-SSP (INTAGE Single Source Panel)

Clarifies the cause-effect relation

between information exposure and

consumption behavior (purchasing

and awareness)

Reveals the timeline of consumer

information exposure and

consumption behavior

Clarifies the effect and roles of individual

advertisements

Political

party

supported

Political

concerns

Programs

viewed

Media and advertisement exposure data

PC, Mobile, TV, Newspaper, Magazine, Radio, Outdoor advertising Foods, Beverages, Daily sundries, Medicines

Voting

behavior

Attributes, awareness, values

Purchasing data (SCI-personal)

Same

individual


Establish Smartphone Research

Make research smarter!

Launched “Smartphone Research” April 2013

* Premier Club is a registered trademark of NTT DOCOMO, Inc.

Panelists are the approximately 1.2 million smartphone panel members of the DOCOMO Premier

Club nationwide.

Facilitates research of segments that were difficult to approach using PC panelists

Sixty percent are new panelists who are not registered as existing questionnaire panelists

Respond trends remain unchanged from those via PCs using the Company’s proprietary “i-Tile

format” (patent pending) questionnaire format

Convenience that only a smartphone

can provide

Quick research with same-day

delivery

High level of freedom in survey screen and

survey design; service that can be carried

out easily

=>Makes it possible to gain adequate

survey results at a low cost

Ultra-fast questionnaire services

Quick Questionnaire

⇒Questionnaire sent at 11am → raw data delivered

at 7pm the same day (15 questions or less)

Quick Interview

⇒Order placed at 10am → Online discussion

possible that same evening

*Certain conditions apply

Smart Quick


New Value provision of the Smartphone era by

DOCOMO InsightMarketing, Inc.

15

Mobile Interview

Recording

Research

Quick Research

Consumer Panel (Tentative Name)

Consumers are

the starting

point

Continuous data

Inspirational data

Linked research

Know the

present

Enables individual interviews with participants of interest

Chat-format interview survey

Can participate in interviews from anywhere using a

smartphone

Also enables interviews of rare samples

Subject

Clients

Interviewer

Answer

Question

Question


Synergy through Collaboration with

DOCOMO InsightMarketing

Can implement high-impact promotions with free choice of optimal target segments from

one of Japan’s largest membership organizations, the DOCOMO Premier Club

“Interactive Promotion Service”

maximize use of Premier Club

members

Establish a dedicated unit as an agency for DOCOMO InsightMarketing,

and develop services clearly separated from marketing research and

consulting work.

Target Segment

Specification Over 40 types of attribute

segments of around 2.2 million

active members*

Interactive Promotion Conducted via cell phones and

smartphones

Consent to forward sample and

inducement to visit site

STEP1 STEP2 STEP3

Follow-up Questionnaire (Optional)

Enables post-evaluation interviews

after sample use

*As of the end of March 2013


Myanmar

Cambodia

Indonesia

Malaysia

Form a Network in the ASEAN Region to Compete

with the Top Five and Win in Asia

Examine & develop overseas research solutions in domestic markets

FTA Research and Consultant

INTAGE (Thailand)

INTAGE INDIA

ASKLEP KOREA INTAGE CHINA

ASKLEP CHINA

Consumer Search

Hong Kong Limited is

scheduled to become a

subsidiary late July.

INTAGE SINGAPORE

(June, scheduled)

ASKLEP TAIWAN


Consumer Search Hong Kong Limited

商号 Consumer Search Hong Kong Limited (CSG香港)

代表者 Lam Tat

所在地 5/F., Island Place Tower, 510 King’s Road, North Point,

Hong Kong

設立年月日 1982年

主な事業内容市場調査業

決算期 12月

従業員数 150名

主な拠点香港、マカオ、広州、北京、上海

資本金 750万香港ドル（約9,450万円）株主構成 5個人と1法人で100％

直近の業績売上高7,250万香港ドル（約9億1,300万円）（2012年12月期）

18

Restructure the research business in China with a double brand strategy

Company name Consumer Search Hong Kong Limited

Representative Lam Tat

Address 5/F., Island Place Tower, 510 King’s Road, North Point, Honk Kong

Establishment 1982

Businesses Marketing research

Year-end December

No., of employees 150

Offices Hong Kong, Macao, Guangzhou, Beijing, Shanghai

Paid-in capital HK$7.5 million

Shareholders 100%, five individuals and one company

Recent performance Net sales: HK$72.5 million (Year ended December 2012)


Research

Clinical

trials

Applications

and

approvals

New drug

sales Marketing

Post-launch

research

Generic

OTC

INTAGE Group Healthcare Build up a system for comprehensive support for clients by the entire Group in

line with medical product life cycles

Drug discovery phase

Drug growth phase

Late phase

Self-medication

ASKLEP

ANTERIO

JMIRI

PLAMED

INTAGE

INTAGE

ASKLEP

JMIRI

Medical

product life

cycle

• CRO

• Monitoring

• Data management and EDC

• Statistical analysis

• Medical writing

• Consulting

• Reliability assurance

• Safety information

• Global clinical trials support

・Prescription information

analysis

・MR activities support

ANTERIO ・MR evaluation

・Doctor and patient

surveys

・ OTC drug panel data

・ Consumer panel data

・ Health insurance IT solutions

• Prescription data

analysis

ANTERIO ・Healthcare research

・CRO

・ Case registration and

progress management

・ Data Management and EDC

・ Statistical analysis

・ Post-manufacturing and sale

survey support

・Doctor and patient

surveys

• Patient surveys


Overseas Development of ASKLEP Inc.

20

Why is internationalization necessary?

→ Shift to internationalization of budgets for domestic clinical trials

Establish International Business Division

Build an implementation structure to capture

clinical trials in Asia

Establish a structure to capture overseas

clinical trials

Search for new businesses

Establish RPS ASKLEP together with Research

Pharmaceutical Services Inc. (“RPS”) of the U.S.

Fuse RPS’ global solutions with ASKLEP’s

regional solutions and create new service

fields

RESEARCH PHARMACEUTICAL

SERVICES, INC.

(Head office: Pennsylvania, USA)

RPS has a rich store of know-how on international joint clinical trials, and

is developing its dispatch-type businesses globally with over 5,000

employees in 64 countries worldwide. RPS provides unified services for

Phase I through Phase IV in the biopharmaceuticals, medical devices and

diagnostic reagents fields.

Marshal management resources and strengthen functions as a drug information hub in the Asian region.


Transition to a Holding Company System;

Birth of INTAGE Holdings

Optimization of resource allocation to growth

fields

Collaboration among Group companies

Human resources development and

exchange

Aim of changing to a holding company system

Consolidation and improved efficiencies of

common Group works

Toward further increases in enterprise value

Type of corporate split

A physical absorption-type split with INTAGE Inc. as the split-off company

and INTAGE Inc.’s wholly owned subsidiary INTAGE Partition Preparation

Company as the successor company

INTAGE Inc. → INTAGE Holdings Inc.

INTAGE Partition Preparation Company → INTAGE Inc.

General shareholders

meeting to approve

absorption-type split

June 21, 2013 (scheduled)

Absorption-type split

effective date October 1, 2013 (scheduled)


FY2013 Results




FY2014 Earnings Forecasts

23

(Millions of yen)

The above performance forecasts were based on information available at the time they were prepared and incorporate various

uncertainties, so actual performance may differ materially from these projected figures.

FY2013

Actual

FY2014

Forecasts

Change

YoY

Marketing research

and consulting

Net sales 28,327 31,103 ＋9.8%

<Syndicated panel data services> 15,980 16,763 ＋4.9%

<Custom research> 12,347 14,340 ＋16.1%

Operating income 2,860 3,100 ＋8.4%

System solutions Net sales 4,964 5,148 ＋3.7%

Operating income 151 180 ＋19.0%

Drug development

solutions

Net sales 6,638 6,800 ＋2.4%

Operating income 296 325 ＋9.7%

Consolidated

Net sales 39,930 43,052 ＋7.8%

Operating income 3,309 3,606 ＋9.0%

Recurring profit 3,213 3,383 ＋5.3%

Net income 1,249 1,861 ＋48.9%


Consolidated Numerical Targets (FY2014-FY2016)

FY2014

(Forecast)

FY2015

(Forecast)

FY2016

(Forecast)

Net sales 43.05 46.05 49.47

Change YoY ＋7.8% ＋7.0% ＋7.4%

Operating income 3.60 4.00 4.50

Change YoY ＋9.0% ＋10.9% ＋12.5%

24

(Billions of yen)

The above performance forecasts were based on information available at the time they were prepared and incorporate various uncertainties,

so actual performance may differ materially from these projected figures.


Basic Policy on Earnings Distribution

The INTAGE Group’s basic policy is to distribute earnings in

consideration of the balance between dividends and retained earnings,

based on the consolidated results.

INTAGE considers the return of earnings to shareholders to be one of its

highest management priorities.

25

Year-end

Dividends

Payout Ratio

(Consolidated)

DOE

(Consolidated)

Yen % %

FY2012 50.00 37.9 3.6

FY2013 50.00 40.2 3.4

FY2014 (Forecast) 55.00 29.7 ─


INTAGE Inc.

fy2013 results and future growth strategiespdf.irpocket.com/c4326/qnwx/rnv0/frjo.pdf · 2013. 6....

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