Annual Report 2015 - Microsoftirvision2next.blob.core.windows.net/4326/ir/... · ·...

Annual Report 2015

Growth in Consolidated

Net Sales

Signifi cance of the INTAGE Group

Creating Intelligence That Empowers the Global

Society of Tomorrow

Vision of the INTAGE Group

Through our expertise in information and system

solution technologies, the INTAGE Group makes a

valuable contribution to the business success of

our clients. As a result, people’s lives are enriched

and we contribute to the sustainability and

development of the Global Society.

1960

Established Marketing Intelligence Corporation (MiC) (now INTAGE HOLDINGS Inc.)

MiC was established on March 2, 1960 with a staff of

seven and capital of ¥50 million.

Launched SDI (Drug-store tracking research)

Began custom research

1964

Launched SCI (Household consumer panel research)

1973

Hibarigaoka head offi ce building completed

Upon establishment, began gradually systematizing panel research and data collection & analysis.

02 Snapshot

04 Consolidated Performance Highlights

06 Message from the President

12 Review of Operations

12 Marketing Research and Consulting

14 System Solutions

15 Drug Development Solutions

16 Feature The New Media Communications Business

Full-line support for client marketing based on

deep insight into consumer behavior

18 Feature The New Healthcare Business

Establishing a patient (consumer)-oriented

marketing model

Signifi cance of the INTAGE Group

Vision of the INTAGE Group

Vision of each INTAGE

Group Company


Group Company


Group Company

Values

Principles

THE INTAGE WAY

Contents

A History of Creating Value

The INTAGE Group celebrated its 55th anniversary

on March 2, 2015. We will continue to move

forward, empowered by our unwavering

commitment to creating intelligence as we

aim to increase our corporate value.

1960

1970

INTAGE HOLDINGS Inc.

2000

Introduced “The Intelligence Provider” as our business vision

2001

Changed company name to INTAGE Inc.Shares listed on JASDAQ

Established INTAGE Marketing Consulting (Shanghai) Co., Ltd. (now INTAGE CHINA Inc.)

2005

Head offi ce moved to Akihabara

Arrival of the Internet brings explosive growth in data collected/managed. Made bold moves into big data utilization.

Shifted focus to expansion into Asia and development of new services.

1987

Achieved net sales of ¥10 billion

1988

Began switch to SCI “home scan” data gathering system

Started the switch from the “shopping

notebook” method to the home scan system

1994

Launched SRI (FMCG* retail tracking research)

Built a variety of panels and began development of retail POS tracking.Strengthened and expanded systems in step with changing times.

20 Corporate Social Responsibility (CSR)

22 Corporate Governance

24 Directors and Corporate Auditors

26 11-Year Financial Summary

28 Management Discussion and Analysis

31 Business-Related Risks

33 Consolidated Financial Statements

33 Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

34 Consolidated Balance Sheets

36 Consolidated Statements of Changes in Net Assets

37 Consolidated Statements of Cash Flows

38 Corporate Data/INTAGE Group

39 Stock Information

Forward-Looking StatementsThis Annual Report contains forward-looking statements concerning future strategies of INTAGE HOLDINGS Inc. These forward-looking statements are not historical facts. They are expectations and projections based on information currently available to the Company and are subject to a number of risks, uncertainties, and assumptions. As such, actual results may differ materially from those projected.

Year ended March 2015¥43.9 billion

2007

TM Marketing Inc. (now ANTERIO Inc.) becomes a subsidiary

2008

INTAGE listed on the Second Section of the Tokyo Stock Exchange

Established INTAGE (Thailand) Co., Ltd.

2009

INTAGE listed on the First Section of the Tokyo Stock Exchange

2010

Launched SCI-personal

2011

FTA Research and Consultant, LLC (now INTAGE VIETNAM LLC) becomes a subsidiary

2012

Established DOCOMO InsightMarketing, INC. as a joint venture with NTT DOCOMO INC.

Established INTAGE INDIA Private Limited

Japan Medical Information Research Institute Inc. becomes a subsidiary

2013

Launched i-SSPLaunched i-SSP (INTAGE Single Source Panel), a marketing service that

gauges the relationship between ad/media exposure and purchasing

behavior of the same individuals

Established INTAGE SINGAPORE PTE. LTD.

Consumer Search Hong Kong Limited becomes a subsidiary

Established PT. INTAGE INDONESIA

2014

R.S. Market Research Solutions Private Limited becomes a subsidiary

Name of SCI-personal changed to SCI

Established Plamed Korea Co., Ltd.

2015

Established INTAGE CONSULTING Inc.

Established Nielsen-INTAGE DigitalMetrics Inc. as a joint venture between INTAGE Inc. and The Nielsen Company

2000

1980

1990

2010

2015

55thAnniversary

* Fast-moving consumer goods

01ANNUAL REPORT 2015

Snapshot

Sales GrowthConsolidated net sales for the year ended March 31,

2015 were ¥43.9 billion, up 3.3% from the previous

fiscal year. This fiscal period marks the INTAGE

Group’s 22nd consecutive year of sales growth.

Leadership in JapanThe INTAGE Group began conducting panel research

in 1960, and has since consistently delivered

high-level service in terms of data quality and

quantity, analytical know-how, price and speed.

Today, our panel research has become the de facto

standard across many industries.

Panel Research

Consolidated Net Sales

No.1A Dominant Share in Panel Research

• SRI (FMCG retail tracking research)• SDI (Drug-store tracking research)• SPI (In-store promotion tracking research)• IFI (Flyer promotion tracking research)

• SCI (Nationwide individual consumer panel research)

• i-SSP (INTAGE Single Source Panel research)• SLI (Nationwide female consumer

panel research)• Kitchen Diary (Menu survey)

• Prescription data analysis service• Impact Track

22Years of Sales Increases

Panel research involves the continuous collection of data

on a fixed group of respondents (individuals, households,

stores, etc.) over a long period. This research makes it

possible to assess both purchasing and sales data over time.

Retail Tracking Research

Consumer Panel

Research

Other Panels

Consolidated Net Sales(Billions of yen)

06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/30

45.0

30.0

15.0

02 INTAGE HOLDINGS Inc.

Global PositionSince its founding, the INTAGE Group has won

the support of a long list of clients as one of

Japan’s leading marketing research providers. We

rank first in Japan and ninth worldwide in the

latest rankings.

Expansion of Overseas OperationsThe INTAGE Group is expanding its presence outside

Japan, and has operating bases in China, Korea,

Hong Kong, Macao, Thailand, Vietnam, India,

Singapore and Indonesia.

RankCompany Name and

Location of Headquarters

2013 Sales (Millions of U.S. dollars)

1 Nielsen Holdings N.V. (U.S.) 6,045.0

2 Kantar (U.K.) 3,389.2

3 IMS Health Inc. (U.S.) 2,544.0

4 Ipsos SA (France) 2,274.2

5 GfK SE (Germany) 1,985.2

6 Information Resources Inc. (U.S.) 845.1

7 Westat Inc. (U.S.) 582.5

8 dunnhumby Ltd. (U.S.) 453.7

9 INTAGE HOLDINGS Inc. (Japan) 435.5*

10 The NPD Group Inc. (U.S.) 287.7

Overseas Operations

No.9Global Sales Ranking of

Marketing Research Companies

Top 10 Global Marketing Research Companies

China

Korea

Hong Kong, Macao

Thailand

India

Vietnam

Singapore

Indonesia

(As of June 2015)

Source: Marketing News, August 2014 edition (American Marketing Association)* The ranking is as of August 2014. Sales for the fi scal year ended March 31, 2014.

9Countries/Regions

Overseas Operations


Marketing Research and Consulting

System Solutions

Drug Development Solutions

Sales

34.3billion

Sales

5.5billion

Sales

4.0billion

Operating Income

3.0billion

Operating Income

0.4billion

Operating Income

1.0million

Marketing research based on the

various data we collect, our

research expertise, data analysis

capabilities and other strengths

Software development and sales,

system operation and maintenance,

and development of models

combining systems and research data

Data management and statistical

analysis of drugs and medical

equipment in clinical testing and

post-marketing surveillance, and

business related to safety information

Year ended March 2015net sales

¥43.9billion

78.2%


9.2%


12.6%

System Solutions

Note: The Company will introduce new segments from the fi rst quarter of the fi scal year ending March 31, 2016. (see page 8)

Consolidated Performance Highlights (Year ended March 31, 2015)

The INTAGE Group’s businesses consist of Marketing Research and Consulting based on the various types of data

collected by the Group, our research expertise and data analysis; System Solutions including software

development and sales, and system operation and maintenance; and Drug Development Solutions, in which we

provide contract research organization (CRO) services.


Notes: 1. On October 1, 2013, the Company implemented a stock split at a ratio of two shares for each share of common stock. However, net income per share is calculated assuming this stock split took place at the beginning of the previous fi scal year.

2. On October 1, 2013, the Company implemented a stock split at a ratio of two shares for each share of common stock. Per-share dividend amounts from the fi scal year ended March 31, 2014 refl ect this stock split.

Consolidated Performance Highlights (Year ended March 31, 2015)

Net Sales

(Billions of yen)

Net Sales by Segment

(Billions of yen)

Equity Ratio

(%)

Operating Income/Operating Margin(Billions of yen) (%)

Operating Income by Segment

(Billions of yen)

ROE/ROA

(%)

�� Operating Income (left scale)� Operating Margin (right scale)

�� Marketing Research and Consulting�� System Solutions�� Drug Development Solutions

�� Marketing Research and Consulting�� System Solutions�� Drug Development Solutions

� ROE� ROA

�� Net Income (left scale)� Net Income per Share (right scale)

�� Total Assets�� Total Net Assets

� Payout Ratio (left scale)�� Cash Dividends per Share (right scale)

Net Income/Net Income per Share1

(Billions of yen) (Yen)

Total Assets/Total Net Assets

(Billions of yen)

Payout Ratio/Cash Dividends per Share2

(%) (Yen)

39.93

36.6536.53

42.5043.92

13/312/311/3 14/3 15/30

45.0

30.0

15.0

5.53

4.93

26.19

6.63

4.96

28.32

6.04

5.18

25.30

6.27

5.66

30.57

4.02

5.55

34.34

13/312/311/3 14/3 15/30

45.0

30.0

15.0

55.8

52.3 52.5

50.5

59.3

13/312/311/3 14/3 15/30

60

55

50

45

40

0.150.16

2.56

0.290.15

2.86

0.45

0.15

2.85

–0.0050.48

3.02

0.0010.49

3.07

13/312/311/3 14/3 15/30

4.0

3.0

2.0

1.0

14.7

14.310.9

9.48.4

11.2 10.7

10.1

13.4

10.3

13/312/311/3 14/3 15/30

25

20

15

10

5

15.4914.5113.75

17.1719.91

29.3927.73

24.66

33.74 33.30

13/312/311/3 14/3 15/30

40.0

30.0

20.0

10.0

50.050.050.0

27.530.0

26.2

37.9 40.233.7

24.5

13/312/311/3 14/3 15/30

100

0

60

75 45

50 30

25 15

3.30

2.88

3.46 3.50 3.57

9.5

7.9 8.3 8.2 8.1

13/312/311/3 14/3 15/30

4.0

0

16

3.0 12

2.0 8

1.0 4

1.91

190.51

1.32

131.85

1.24

1.64

2.46

62.15

81.66

123.03

13/312/311/3 14/3 15/30

2.5

0

200

2.0 160

1.5 120

1.0 80

0.5 40


Message from the President

Under our theme of “Renovation & Innovation,” we will

steadily work to increase our medium- to long-term

corporate value as we accelerate our pace of growth.

Kenji Miyakubi INTAGE HOLDINGS Inc.President and Representative Director


We were expecting the year ended March 31, 2015, the initial year of our 11th

Medium-Term Management Plan, to be a challenging one requiring us to deal

with numerous issues, and therefore we planned on a decrease in profi t. However,

we revised our forecast upward in November 2014 to refl ect progress that was

better than expected. Our results for the year were in line with that revised plan,

with both top- and bottom-line growth.

A major contributor to sales growth was our steady reinforcement of the panel

research business, a stable source of earnings for the INTAGE Group. Although

competitors began moving into the retail tracking research business, they ended

up quickly withdrawing; meanwhile, we also regained clients in the consumer

panel research arena. In addition, i-SSP (INTAGE Single Source Panel) research

expanded in the media communications business, one of our priority fi elds.

Growth in operating income was driven by two main factors. The fi rst was

steady progress in strengthening the Drug Development Solutions business, which

transferred its clinical development operations in June 2014. Bolstering clinical

research services, our ongoing business in that segment, was an urgent task, but

the efforts we have made to invest in EDC systems (electronic data capture for

electronic collection of clinical testing data) are now paying off, and have resulted

in strong business expansion. The second factor was the turnaround of our China

business, which had an unavoidable setback during the previous medium-term

management plan. Successful efforts such as comprehensive education and

training to enhance competitiveness as well as review and redevelopment of

facilities led to a dramatic improvement in performance.

Financially, we further improved our balance sheet, and with an equity ratio

near 60 percent, we have the fi nancial fl exibility to invest in future growth.

i-SSP

A service that makes it possible to determine

the causal relationships between consumers’

buying behavior and awareness and their

exposure to media (computer, mobile, TV, etc.)

through collection of data from single sources

(the same individuals). Solution tools and

supplementary services based on i-SSP are

currently under development.

See pages 16, 17

Review of the Year Ended March 31, 2015

Net sales

¥43.9 billion

Equity ratio

59.3%

Reinforcement Boost market value by reinforcing mainline businesses

Challenge & Creation Seek and establish new business models transcending research

Fruition Achieve steady growth in the mobile & single-source, global and healthcare fi elds

Acceleration Strengthen the management of strategic planning and implementation from optimal perspectives

Renovation & InnovationToward accelerated growth utilizing our deep insights on people as our greatest asset.

Basic Policy

Starting Point = Action Principle

Priorities

Consumers fi rst, with a thorough commitment to intelligence

11th Medium-Term Management Plan (April 2014 – March 2017)


While we achieved steady results in the year ended March 31, 2015, we need

to build on that progress to further solidify our growth path. Accordingly, we

have set “Further Acceleration of Renovation & Innovation” as our objective for

the year ending March 31, 2016, and are carrying out even more fl exible and

bold initiatives.

Introduction of New Segments and Rearrangement of the Group FormationOne of our strategic initiatives was to introduce new segments and rearrange our

Group formation to match the Group’s growth strategy. With the former service-

based segmentation, it was diffi cult to clearly communicate the Group’s strategies

and intentions, a diffi culty about which we received more than a few questions

from shareholders and other investors. Therefore, in the new segments, we have

reorganized our business areas based both on the industries and the services the

Group is focusing on, and we have also adjusted our internal management

structure accordingly.

First, INTAGE Inc., the main operating company in the Marketing Support

(Consumer Goods & Services) business, will concentrate its resources on that fi eld,

and will focus on reinforcing its research business and expanding the

communications business. In addition, we have established INTAGE CONSULTING

Inc. to step up engagement with senior management at client companies.

In the Marketing Support (Healthcare) business, we will provide healthcare

support for both prescription and OTC (over-the-counter) drugs. Coordination of

information on prescription and OTC drugs is essential from the perspective of

patients, and our ability to provide data on OTC and prescription drugs as an

integrated set has also received a positive response from pharmaceutical

companies. Our operating companies in this segment each have a powerful

presence in their respective areas, and by offering services that draw on their

integrated collective strengths, we intend to make the healthcare fi eld a new

growth driver of the INTAGE Group.

Policies of each business

Details are available in “Policies for the Year Ending

March 31, 2016” in the Review of Operations.

See pages 13, 14, 15

OTC drugs

Over-the-counter: Drugs that can be bought at

pharmacies and drugstores without a prescription

from a doctor.

See pages 18, 19

Future Initiatives


INTAGE TECHNOSPHERE

INTAGE

INTAGE RESEARCH

Access JP

Overseas subsidiaries

ANTERIO

ASKLEP

Japan Medical Information Research Institute

PLAMED

Marketing Support (Consumer Goods & Services)

Marketing Support (Healthcare)

Business Intelligence

System Solutions

[Former Segments]

[New Segments] Migrate to classifi cation based on industry axis × service axis

Categorized based on services provided




In the Business Intelligence business, we intend to establish a competitive edge by

further sharpening our information technology capabilities, one of the INTAGE Group’s

strengths, through initiatives including actively bringing in advanced external resources.

In these ways, the reorganization will facilitate better understanding of the

INTAGE Group for those outside the Group, and enable services that leverage our

comprehensive capabilities in each segment.

Steady Growth of the Media Communications BusinessThe media communications business is a fi eld where we expect signifi cant growth

given the INTAGE Group’s strong leadership. Today, when communication across

media platforms is common, client companies are struggling to make the best use

of TV and Internet advertising. This need makes i-SSP a tremendously powerful

tool. i-SSP has been highly evaluated as a source of unique data unavailable

anywhere else in the world because it clarifi es the causal relationships between

consumers’ exposure to advertising and information and their purchasing

behavior. Its groundbreaking effectiveness has led to inquiries from businesses in

many different industries, and the number of clients for this service in the year

ended March 31, 2015 soared 170% from the previous year. In addition, we are

rolling out solution tools and supplementary services based on i-SSP, which are

also progressing strongly. Going forward, we will step up these efforts and expand

cross-media services and services in related areas.

Another notable development in this business is the establishment of a joint

venture with The Nielsen Company, the world’s leading marketing and media

information provider, with whom we have had a competitive relationship for

many years. The Nielsen Digital Ad Ratings service, which measures the digital ad

audience, has already received high acclaim from clients in many countries. It is

structured to quickly provide large-scale, high-quality viewership data for ads on

computers and smartphones. The joint venture is developing new products that

combine this measurement data with the attribute-based purchasing data from

INTAGE’s SCI and other sources, and expects to be ready to provide measurement

of ad effectiveness in the cross-platform market in the near future.

Measurement of ad effectiveness in the cross-platform marketMeasuring ad effectiveness and audience trends

on multiple media platforms

Nielsen

Nielsen-INTAGE DigitalMetrics

INTAGE

World’s largest digital advertising

viewership ratings survey

Nielsen Digital

Ad Ratings

New services providing broad-reaching analyses of digital advertising reach;

attributes include brand ownership, purchase intent, lifestyle and regional

information, as well as analysis of the impact of digital advertising on

purchasing behavior and brand switching

Product development based on

the solutions of both companies

Collection and tracking of

multiple types of data on the

same individuals

SCI / i-SSP

Established Nielsen-INTAGE DigitalMetrics Inc. to develop new advertising effectiveness measurement solutions in the cross-platform market in Japan

Left: Kenji Miyakubi, President & Representative Director,

INTAGE HOLDINGS

Right: Nada Bradbury, Senior Vice President, Nielsen Buyer

Insights, The Nielsen Company

Number of clients using i-SSP

+170%year on year


Based on the strategies I have outlined, we expect to achieve

record sales and operating income in the year ending March 31,

2016. By segment, we are forecasting solid sales and profi t growth

in the Marketing Support (Consumer Goods & Services) business

and the Marketing Support (Healthcare) business. In the Business

Intelligence business, we expect sales to be near the level of the

year ended March 31, 2015. Despite this favorable performance

outlook, we are not yet on full throttle. We expect growth to

accelerate further in the year ending March 31, 2017 and beyond,

and the beginnings of that are now becoming visible.

On this growth track, we will also work to enhance returns to shareholders,

which we view as one of our highest management priorities. Up to now, we have

targeted a consolidated payout ratio of 25%, but have raised that target to 30%

as of the year ending March 31, 2016. For the year, we plan to pay a dividend of

¥32.5 per share, an increase of ¥2.5 from the previous fi scal year, for a consolidated

payout ratio of 27.2%.

Performance Outlook and Shareholder Returns for the Year Ending March 31, 2016

Strategic Investments for Group-wide GrowthIn the year ending March 31, 2016, we will implement a venture fund-driven

incubation business by which we plan to generate new business opportunities

through investment in startup companies that offer potential synergy with INTAGE

Group companies, as well as possible support for commercialization and

collaboration. We have already begun to expand into new business areas after

forming tie-ups with Kyoto Constella Technologies Co., Ltd., a Kyoto-based

venture company, and XCompass Ltd. in the year ended March 31, 2015.

Through these investments, we are seeking synergies with our management

strategies; but they also have signifi cance as CSV (creating shared value) activities

that help address social issues and support the businesses we invest in.

Strengthening Overseas BusinessThe INTAGE Group currently operates in nine countries and regions outside Japan.

To date, we have focused on developing the business infrastructure of our

overseas companies. As a result, our overseas business in total is on the verge of

profi tability, and we want to make sure it turns a profi t in the year ending March 31,

2016. Toward that end, in addition to sharing solutions and client information

and conducting education and training, we will promote initiatives such as local

product development geared to market conditions in each country and

strengthening sales operations at local subsidiaries. For example, we refi ned our

mobile research platform (developed in Japan) for use in Southeast Asia, where

the rate of smartphone usage is extremely high, and put it into full-scale

operation in Thailand in June 2015. Organizationally, the regional offi ce we

established in Thailand last year will serve as the base for setting up a system that

enables subsidiaries to conduct more fl exible management. With this foundation

in place, we will work to further strengthen governance.

CSV activitiesCreating shared value: Activities that leverage the

strengths of each company to contribute to solving

social issues.

Consolidated payout ratio target

25% 30%



The INTAGE Group is aiming to increase corporate value through execution of the

11th Medium-Term Management Plan, but the source of that growth will be our

people. I have coached a soccer team for many years, and one thing I always say

is that while strategy and tactics are important, ultimately the team cannot win

without skilled individual players. At the Company, too, we place priority on the

professional development of individuals, and have put efforts into improving our

human resource development system and providing extensive training. We will

continue to do so, and intend to further strengthen our human resources to

promote the mobility of people within the Group and cultivate the next

generation of managers.

To increase long-term corporate value, it is also important to create value in the

non-fi nancial and social aspects of the Company. In the case of non-fi nancial

value, I think we need to increase our intellectual property. Since we are not a

manufacturer, that is diffi cult to judge based on number of patents, but I believe

we must take stock of the Group’s intellectual property and focus on ways to

continually increase its value. Similarly, business development that not only

benefi ts clients but also emphasizes value creation for consumers is important for

the INTAGE Group, which places a “consumers-fi rst” approach at the heart of its

business. In contributing to society, last year we initiated a program in which we

provide consumer price index data (the SRI-Hitotsubashi Consumer Purchase

Index) to universities and research institutions free of charge. That is the kind of

unique value creation on which the INTAGE Group will focus.

Looking back, the INTAGE Group has maintained its steady growth by pursuing

continuous innovation. We will remain committed to steadily increasing our

medium- to long-term corporate value even as we accelerate the pace of growth.

We are excited about the future of the INTAGE Group, and will work to meet the

expectations of shareholders as we continue to take on new challenges.

July 2015

Kenji Miyakubi

President and Representative Director

Increasing Corporate Value

SRI-Hitotsubashi Consumer Purchase Index

Start of the release of the “SRI-Hitotsubashi

Consumer Purchase Index” developed in a

collaborative project by INTAGE Inc., Hitotsubashi

University and the New Supermarket Association

of Japan

See page 21


Review of Operations

Under our new organizational structure, we will work to

maximize Group synergies and leverage our consumer

insight to further expand new businesses.


Strengthsn Our panel research helps clients to understand

both consumer purchasing and retail sales data over time.

n Our panel data is well established as an essential index for understanding market trends and the competitive landscape.

Business Overview

Operating Companies

• INTAGE Inc. • INTAGE RESEARCH Inc.• ANTERIO Inc.• Japan Medical Information Research

Institute Inc.• PLAMED Inc.

• Access JP Inc.• INTAGE ASIA HOLDINGS LIMITED• INTAGE CHINA Inc.• INTAGE (Thailand) Co., Ltd.• INTAGE VIETNAM LLC• INTAGE INDIA Private Limited

• R.S. Market Research Solutions Private Limited

• INTAGE SINGAPORE PTE. LTD.• Consumer Search Hong Kong Limited• PT. INTAGE INDONESIA• Plamed Korea Co., Ltd.

In this business, we provide panel research services that offer insights based on our proprietary data about consumer buying behavior and media exposure and on analysis of that data, as well as custom research services aimed at solving clients’ marketing challenges. Recently, we have also rolled out services for planning, action and effectiveness measurement of media communications in the field of advertising.

Consumer panel research

What do different types of households and individuals purchase, where and at what prices?

Retail tracking research

What kinds of products are selling, when, where, and at what prices?

ClientsOur retailer and consumer panel data, collected over many years, is utilized by approximately 400 of the leading companies in Japan as an essential index for ascertaining clients’ market trends and competitor conditions.

Panel Research

Custom Research

Based on diverse research methods and our own unique analytical abilities, we provide valuable information that reflects real market conditions.

Beverages Finance

Food products OTC drugs

Cosmetics Telecommunications

Miscellaneous daily items

Automobiles

Internet(Access panel: approx.

5.55 million individuals)

Data collection, processing and

analysis Proposing marketing

strategies

Media Advertisingagencies

Noriaki IshizukaPresident & CEO

INTAGE Inc.


Market Environment and Initiatives The marketing research industry is changing rapidly due to

rising expectations toward big data, the proliferation of

online social networks, developments in research techniques

and other trends. In addition, the widespread use of

smartphones has led to expanded sharing and use of

information by consumers, which is making their purchasing

behavior more diverse and complex. These changes make a

detailed understanding of the target audience and selection

of the best media communication methods based on various

data more important than ever in marketing.

This business has responded by building on our foundation

in panel research and custom research and by steadily

releasing new services. Among these are i-SSP (INTAGE

Single Source Panel), which is aimed at determining the

correlation between information exposure and buying

behavior, and a data management platform that

integrates INTAGE’s research data with big data. As a

result, we achieved solid growth by expanding the new

media communications business.

Policies for the Year Ending March 31, 2016 During the year ending March 31, 2016, INTAGE Inc.’s

research service for OTC drugs and its system solutions

business will be transferred to other Group companies, and

the consulting business will be split off and established as

INTAGE CONSULTING Inc. Consequently, the name of this

segment will be changed to Marketing Support (Consumer

Goods & Services).

INTAGE Inc. will continue to concentrate its resources

on this segment. We will focus on improving the

profi tability of research for consumer goods manufacturers

and service industries, and on further expanding the

media communications business.

Outside Japan, based on market strategies for each

country, we will roll out INTAGE Inc.’s solutions to bolster

the business foundation and competitiveness of our

overseas subsidiaries, an effort begun in the last fi scal year.

In addition, we will increase business synergy within the

Group in areas such as sharing of client information and

utilization of human resources to advance sales strategies.

SRI (Retail Tracking Research) SDI (Drug-Store Tracking Research)

Collects POS data focused on healthcare-related categories, centered on OTC drugs, from approximately 3,200 pharmacy, drugstore, supermarket, and convenience store outlets nationwide.

Collects POS data on a variety of product categories, from approximately 4,000 leading retailers nationwide.

Boasts overwhelming strengths in this fi eld, used as a standard index in various industriesEstablished a position as the sole source of data for learning about

the retail OTC drug market

Food products Beverages OTC drugsCosmetics

Cosmetics

Miscellaneousdaily items

i-SSP (INTAGE Single Source Panel) Research

Collects highly detailed and accurate information from the same person on his or her product purchases, interaction with media, demographic profi le, lifestyle and awareness of categories and brands.

Food products Beverages Miscellaneousdaily items

SCI (Nationwide Individual Consumer Panel Research)

Using mobile devices and the Internet, we collect data on purchases of food products, beverages, and miscellaneous daily items, consumed both inside and outside the home, from 50,000 male and female respondents nationwide.

Japan’s largest consumer panel, providing insights backed by high-quality data

Food products Beverages Miscellaneousdaily items

Media Advertisingagencies

Communications

The industry’s largest online access panel comprising some 5.55 million individuals called “Mighty Monitors” (As of April 2015)

� We can fl exibly handle requests, from simple surveys to highly challenging research requiring detailed design.

� Respondents are classifi ed by information screened for attributes and specifi c themes, enabling precise and effi cient respondent selection.

� Mobile interviews by chat or video calls that take advantage of the unique characteristics of smartphones are also possible.

Mail (Access panel: approx. 210,000 individuals)

Door-to-Door interviews

Global Interviews Central location test (CLT)


Review of Operations

Market Environment and Initiatives The IT industry has maintained growth as a result of stable

budgets in comparison to the year ended March 31, 2012,

when the industry recovered to the level before the 2008

fi nancial crisis. However, conditions are such that companies

are not making signifi cant investments.

In the INTAGE Group, sales in this business were down

slightly from the previous year, when we received large

orders. However, operating income was near the level of

the previous year as a result of strong orders for development

and operation projects for clients in the wholesale

distribution and travel fi elds.

In the fi scal year ended March 31, 2015, we entered

new business areas with a focus on using data for

marketing support. As part of that effort, INTAGE

TECHNOSPHERE Inc. formed a business alliance in January

2015 with XCompass Ltd., a venture company launched at

the Tokyo Institute of Technology.

Through this partnership, we began studying data

analysis services using the cutting-edge artifi cial

intelligence-driven data processing technologies of

XCompass and the INTAGE Group’s extensive marketing

and data analysis technologies.

Policies for the Year Ending March 31, 2016 We are continuing the integration of IT resources initiated

last year, and the April 1, 2015 transfer of the IT solution

services that remained at INTAGE Inc. over to INTAGE

TECHNOSPHERE Inc. completes the establishment of our

business platform. As a result, the System Solutions segment

will be renamed the Business Intelligence segment.

We will maximize this opportunity to review what

differentiates us in this business, and will give top priority to

strategic planning in the overall business intelligence fi eld,

and to the thorough improvement of our advanced IT

capabilities. With this approach, we will aim to establish a

medium- to long term competitive advantage.

In terms of new business fi elds, we will accelerate

initiatives for full-scale commercialization, including

conducting trial businesses, and promote venture fund-

driven business incubation.

Strengths� Provides unique system services backed by advanced technologies,

including big data technology, and industry expertise.

Operating Companies

• INTAGE Inc.• INTAGE TECHNOSPHERE Inc.

In this business, the INTAGE Group primarily carries out: software development and sales; system operation, maintenance and management; and data center operation.

The completion of organizational improvements is

the starting point for restructuring our growth strategy.

System Solutions

Shigemi SugawaPresident

INTAGE TECHNOSPHERE Inc.

Business Overview


Market Environment and Initiatives The CRO (contract research organization) industry as a

whole is taking steps to strengthen its professionalism,

including making proposals to pharmaceutical companies

and medical institutions for improving testing effi ciency and

raising quality in the various phases of pharmaceutical

development and post-marketing surveillance.

ASKLEP Inc. transferred its monitoring services for clinical

development in June 2014, and changed from a labor-

intensive to a knowledge-intensive business model that

seeks to add value to information.

Consequently, sales in this business in the year ended

March 31, 2015 decreased from the previous year.

However, the segment shifted its business focus to post-

marketing surveillance and pharmacovigilance, and pursued

high-value-added solutions including ADDIN—an EDC

system developed by the INTAGE Group that can fl exibly

meet client needs—and provision of full support services

that include everything from research design to report

writing, as well as BPO services for research-related

peripheral tasks. As a result, the medical intelligence

business, which conducts data management and statistical

analysis and develops EDC systems, grew signifi cantly.

Policies for the Year Ending March 31, 2016 In the year ending March 31, 2016, we have formed

Marketing Support (Healthcare) as a new segment that

includes ANTERIO Inc., an INTAGE Group company

specializing in the healthcare-related business, Japan

Medical Information Research Institute Inc., and PLAMED

Inc., in addition to ASKLEP Inc., which had been conducting

this business alone. The goal is to solve common issues in

the Group’s healthcare business and maximize synergy.

As a part of this change, on April 1, 2015, SDI (drug-

store tracking research), a service previously provided by

INTAGE Inc. in the fi eld of OTC drugs, was transferred to

ANTERIO Inc., a marketing research company specializing in

prescription drugs and medical equipment.

ASKLEP Inc. will continue to expand its EDC share and

strengthen its capabilities in EDC operation with the goal of

becoming Japan’s number-one company in post-marketing

surveillance, its area of expertise. In addition, ASKLEP Inc.

has entered into a capital and business alliance with Kyoto

Constella Technologies Co., Ltd. The two companies will

further strengthen their relationship by expanding

pharmacovigilance services and cooperating in drug

discovery research support.


By bringing together our experts with powerful

information content, we will aim to be

“the company that knows patients best.”

Yuichi YahagiPresident & CEO

ASKLEP Inc.

Strengths� Has more than 25 years of experience and expertise in drug

development and surveillance� Provides full support services in post-marketing surveillance and

BPO2 services for related tasks� Offers high-quality, fast data processing that blends ICT and

business operation capabilities � Has track record in meeting client needs with EDC3 systems

developed by the INTAGE Group� Delivers consulting expertise related to safety information

Business Overview

Operating Companies • ASKLEP Inc.

This business focuses on providing services such as data management, statistical analysis and medical writing in clinical testing and post-marketing surveillance for pharmaceuticals and medical equipment, as well as on business related to safety information (pharmacovigilance1).

Notes: 1. Pharmacovigilance: Drug safety monitoring

2. BPO (Business Process Outsourcing): Outsourcing of administrative work and business processes to a specialist company.

3. EDC (Electronic Data Capture): Electronic collection of clinical testing data


DISCUSSIONFull-line support for client marketing based on deep insight into consumer behavior

Nagasaki

Changes in the information landscape,

including the rapid proliferation of

smartphones and the growing popularity

of social networking sites, are profoundly

changing consumers’ purchasing

processes. For example, most of us have

experienced seeing a product on a TV

commercial, then checking user reviews

on the Internet before purchasing the

product. The close and interactive

relationship between information and

purchasing has increased the importance

of obtaining a deeper understanding of

the consumer purchasing decision process.

Tanaka

INTAGE is poised to provide new value

and services that respond to these

changes. One such service is i-SSP

(INTAGE Single Source Panel), which

focuses on the relationship between

Driven by the proliferation of smartphones, tablets and other mobile devices, buying behavior is becoming more diverse and complex as consumers are exposed to online advertising, and also post and share information on customer review, price comparison and various other kinds of websites. Here, we discuss the innovative services in INTAGE’s media communications business that support client marketing activities in this changing landscape, and the growth potential of those services.

Profile

consumers’ exposure to advertising and

information on TV, the Internet and other

media, and their buying behavior. For

example, by examining the history (log

data) of a person’s exposure to TV

commercials and information on

smartphones, PCs and websites, we can

measure the effect of cross-media

advertising. Combining this with

purchase history data linked to a single

source makes it possible to verify the

correlation of that exposure to

purchases. It’s a new service that is

unique in the industry. This service, which

we developed in collaboration with a

major advertising agency, features data

of very high quality and has received a

positive response from clients.

Nagasaki

INTAGE’s traditional services were mainly

geared to the marketing divisions of

Feature The New Media Communications Business

(Center)

Takahiro NagasakiCorporate Offi cerGroup Director, MCA Business Group (Media, Communications & Analytics)INTAGE Inc.

Joined INTAGE in 1987. Worked on research systems development, the launch of the Internet research business and other projects before taking on his current position.

(Left)

Masayuki HashimotoGeneral Manager, Digital Marketing Div., MCA Business GroupINTAGE Inc.

Joined INTAGE in 1995. Experienced in data analysis ranging from research data to business data.

(Right)

Hiromasa TanakaGeneral Manager, Cross-Media Solutions Development Div., MCA Business GroupINTAGE Inc.

Handled projects utilizing single-source panel data at an advertising agency-affi liated research company. Joined INTAGE Inc. in 2014.

DISCUSSION


client companies. A major benefi t of

i-SSP is that we can use it to approach

other departments such as advertising

and public relations.

Tanaka

That’s right. Advertising is a 6 trillion yen

market, and there is plenty of room for

growth. The i-SSP service broadens our

business to different departments and

industries, and I believe that in the near

future, companies will regard it as

essential data for effi cient and effective

use of their advertising budgets.

Nagasaki

The amount of information that

companies handle is also changing. We’re

seeing explosive growth in big data, such

as company website access information

and consumer behavior logs, including

e-commerce purchase histories. Using this

information in an integrated way with

data management platforms (DMP)1 is a

key to implementing the marketing PDCA

cycle faster and more accurately. With

that in mind, we launched our DMP

service “di-PiNK” in 2014.

Hashimoto

di-PiNK is a new service that integrates

and analyzes data from INTAGE panel

research, i-SSP single-source data, data

handled by DOCOMO InsightMarketing,

INC2. on more than 50 million mobile

subscribers,3 customer data held by client

companies themselves, browser data

from e-commerce sites, and data from

1. A platform to optimize action plans for online advertising delivery using centralized management and analysis of big data uploaded to servers via the Internet, log data for the company website, and other data.

other sources, to support the marketing

activities of client companies. Specifi cally,

by integrating the data held by client

companies and our own research data,

di-PiNK makes possible the planning of

Internet advertising for the client’s target

demographic while watching customer

reactions and online activity. It also

allows us to measure the effect of

targeted advertising and propose ideas

on what to do next.

Nagasaki

In other words, di-PiNK and i-SSP are

services that complement each other.

i-SSP enables clients to understand the

target and determine whether their

target-setting is appropriate and their

advertising message is being delivered to

the target effectively. Our di-PiNK service

helps clients set more precise targets by

applying i-SSP data so they can plan

more effective advertising programs.

Nagasaki

You’ve mentioned some of the ways in

which INTAGE is creating services that

track changes in consumer behavior and

services that can provide overall support

for the marketing PDCA of manufacturers

and other clients. Please talk about your

future outlook.

Tanaka

Last year we focused on media

companies such as advertising agencies

and television stations, as well as

consumer goods manufacturers that use

purchase history data, but for durable

goods manufacturers and clients in the

service industry we also want to be able

to analyze the entire purchasing process,

from the point when the consumer

learns about the product or service up to

the point of purchase, in combination

with advertising exposure. It would also

be interesting from the standpoint of

customer loyalty and advocacy4 if we

could shed light on effective combinations

2. A joint venture established in 2012 by NTT DOCOMO, INC. and INTAGE Inc. (now INTAGE HOLDINGS Inc.)

3. Data obtained only with subscriber permissionof TV commercials and Internet ads, and

on the process that leads consumers to

become fans of a company, make

purchases and increase the quantity of

their purchases.

Hashimoto

Collection of big data is intensely

competitive, and data collection itself is

diffi cult, but we would like to create a

cross-media platform.5 Based on the vast

amount of data obtained from that

platform, including customers’ product

and digital content purchase histories,

payment information, and posting

history on social networking sites, we

can further raise the effectiveness and

effi ciency of advertising.

Nagasaki

Only INTAGE offers support covering

both the purchasing behavior of

consumers and the marketing PDCA

cycle of client companies in Japan. We

have clear strengths with growth

potential, and our business opportunities

are expanding with the changes in

consumer attitudes. We will approach a

wider range of target clients with

innovative new services such as di-PiNK

and i-SSP, which we talked about here

today. This fi eld is positioned as the

“media communications business” in the

INTAGE Group, and will contribute to the

Group’s growth by further expanding our

business reach.

4. In the context of marketing, advocacy refers to a customer-oriented, trust-based marketing approach in which the company respects customer wishes to the greatest extent possible in order to build strong relationships of trust with customers.

5. Use of a common platform for multiple media types


DISCUSSION

Establishing a patient (consumer)- oriented marketing model

company. Almost all pharmaceutical

companies use it as data for their audits,

indicating its high level of reliability.

Ohashi

JMIRI was established in 2005 as a

venture initiated by the University of

Tokyo. We collect drug prescription data

from dispensing pharmacy chains

throughout Japan, and provide the

analysis information to pharmaceutical

companies for use in marketing and

development, and to research institutions.

Nishi

By combining the facts provided by

JMIRI’s prescription data with ANTERIO’s

data on why those prescriptions were

made, we can explain the reasons behind

events that are happening.

Yahagi

ASKLEP collects data from clinical trials

and subsequent verifi cation research,

and uses that data to analyze drug

effi cacy and safety. We also support

essential processes in drug development

Nishi

In discussing the future of the INTAGE

Group’s healthcare business, I think we

should each start by talking about the

uniqueness and competitive advantages

of our companies.

First, ANTERIO focuses mainly on the

pharmaceutical industry, and tracks the

prescription practices of physicians and

the use of medications by patients. It

then provides information that

pharmaceutical companies use in

formulating development and marketing

strategies. In 2007, ANTERIO became

part of the INTAGE Group, which had

been conducting the SDI (drug-store

tracking research)1 service as a founding

business. ANTERIO has since grown to

become one of Japan’s largest marketing

research fi rms specializing in

pharmaceuticals and medical equipment.

Tokita

I used the SDI research data for a long

time when I worked at a pharmaceutical

1. A service that tracks trends in the market for OTC drugs at about 3,200 drugstores, supermarkets, convenience stores and home centers throughout Japan.

The INTAGE Group has a long-standing presence in the healthcare arena, but its operating companies are aiming to provide new services that cut across the company’s business fi elds in response to the changes taking place in the healthcare market. In this discussion, members of ANTERIO Inc., ASKLEP Inc. and Japan Medical Information Research Institute Inc. (JMIRI) talk about the future direction and potential of the INTAGE Group’s healthcare business.

and have established a leading position

in post-marketing surveillance.

Nishi

We’ve talked about the strengths of our

individual companies, but with the

changes taking place in the healthcare

environment, the Group will need to

work together to generate greater value.

Last year, we set a vision for the

healthcare business in the INTAGE

Group: “Pioneering patient-oriented,

next-generation healthcare marketing.”

Cooperation among Group companies

will help to steadily translate these

opportunities into growth.

Ohashi

One of the major trends in the market is

that more patients are now gathering

information themselves. Someone has to

even up the information imbalance in

which medical institutions and the

government have a monopoly on data. If

patients and consumers are given equal

access to data, they can learn through

Feature The New Healthcare Business


Establishing a patient (consumer)- oriented marketing modelthe Internet and other sources what

prescription options are available and

which treatments are effective for their

disease. That will empower them to make

better-quality decisions. Therefore, it will

be important to convert the data held by

medical institutions and the government

into patient-friendly data and information

to support the decision-making of

patients and consumers, as well as

patient-oriented private companies.

Nishi

As patients make more of their own

healthcare decisions, the ability to

conduct detailed analysis to understand

why patients and consumers think the

way they do will open the door for us to

provide consulting services to medical

institutions and other related clients.

Yahagi

Patients and doctors will likely have the

ability to verify and judge a wide range

of use cases as objective data on drug

safety. For example, Kyoto Constella

Technologies Co., Ltd., a company in

which we have invested, has created a

database that aggregates information on

adverse reactions. In the INTAGE Group’s

drugstore channel, pharmacists could use

information retrieved from that database

to provide counseling to patients.

Nishi

As Japan becomes a super-aged society,

the OTC2 sector will need to be expanded

to address soaring medical and nursing

care costs. With that expansion, a switch

from prescription drugs to OTC drugs will

be inevitable. For example, some plasters

and decongestants that had been

available only by prescription may

become available from the OTC market.

This shift presents a significant business

opportunity for the INTAGE Group, and

our knowledge of both the prescription

and OTC markets will be a big advantage.

Tokita

If the shift to OTC progresses, we can

create and propose models to

pharmaceutical companies to forecast

how well their products are likely to sell.

JMIRI might also be able to provide its

data as feedback to drug stores and

dispensing pharmacies.

Nishi

To wrap up the discussion, what are you

excited about going forward?

2. Drugs that can be purchased at pharmacies and drug stores without a prescription.

Ohashi

I think that if the INTAGE Group’s three

healthcare companies collaborate, we

can offer wide-ranging support in the

pharmaceutical sector.

Yahagi

Yes. I want to build strong partnerships

with pharmaceutical companies by

packaging the services we offer.

Tokita

As someone who was involved in

consumer healthcare for many years, I

have always looked at the market with

the patient-oriented perspective that Mr.

Nishi mentioned. If we share this

perspective within the Group, I believe

we can implement more aggressive

Group activities.

Nishi

Unfortunately, there will always be a need

for medical care. China will probably be

facing the same problems 20 years from

now in terms of containing healthcare

costs. So our know-how will be applicable

outside Japan as well. As the market

environment changes, clients’ business

models are bound to change too. It‘s our

mission to use information (intelligence)

as a guide to help our clients navigate the

various changes and contribute to the

success of their businesses.

Yoshiya NishiPresident and Representative Director ANTERIO Inc.

Founding member of TM MARKETING Inc. (now ANTERIO Inc.). Appointed president and representative director in 2007.

Seishi OhashiPresident & CEO Japan Medical Information Research Institute, Inc. (JMIRI)

After working at a foreign management consulting company and as a part-time lecturer at a school of medicine, became president and CEO of JMIRI in 2009.

Satoru TokitaSenior Executive INTAGE HOLDINGS Inc.

Came to INTAGE in 2004 from a pharmaceutical company. Served as SDI Index Manager in the SDI (drug-store tracking research) department. Currently a director and member of the board of ANTERIO Inc. and Japan Medical Information Research Institute, Inc.

Yuichi YahagiPresident & CEO ASKLEP Inc.

Worked as a medical representative, in investor relations and as a corporate strategy manager at a pharmaceutical company before joining ASKLEP in 2008. Was appointed president & CEO of ASKLEP in 2014.

Profile

(From left)


Corporate Social Responsibility (CSR)

Frequency Annually

Methodology Internet survey

QuestionnairePrepared based on JCSI (Japanese Customer Satisfaction Index)

Language Japanese

Companies conducting

survey

INTAGE Inc., ASKLEP Inc., ANTERIO Inc.,INTAGE RESEARCH Inc., INTAGE TECHNOSPHERE Inc.,Japan Medical Information Research Institute Inc.

Number of employeesRegular employees: 759, Contract employees: 60, Transfer employees: 7,Direct hire part-time employees: 62

Breakdown of employees, part-time employees, union

members, and percentage of employees who join the union

Managers: 240, Full-time employees: 519, Contract employees: 60, Part-time employees: 62, Union members: 240, Percentage of union employees: 46.2%

Turnover

Number of employees who left: 84 (50 men and 34 women)

Turnover rate: 10.2%(Male employees: 10.6%, Female employees: 9.6%)

Number of female managers41: 11.8%

(41 out of 346 managers)

IMR* Client Survey The INTAGE Group places great importance on listening to

client feedback to continuously provide services that deliver

satisfaction. As part of that effort, the Group has conducted

an annual IMR Client Survey since 2000 to gauge the level of

client satisfaction with its services. The survey results are

disclosed to employees and senior management to make

them aware of the current status, and are applied to further

improve service and management initatives.

Energy UsageIn the INTAGE Group, which engages in energy-intensive

businesses, electricity use at our Hibarigaoka Offi ce is particularly

high due to the large-scale equipment deployed there.

The Hibarigaoka Offi ce is considered a Type 2 specifi ed

business operator under the Energy Saving Act and a

specifi ed business operator under the Tokyo Metropolitan

Ordinance on Environmental Preservation. Therefore, it is

promoting environmental measures including reduction of

energy use in cooperation with an energy service company

(ESCO), reduction of waste, and green purchasing.

* Internal Marketing Research: A survey of the series of actions we take to effectively train and motivate employees who interface with clients, as well as everyone who supports those employees, so that they can deliver client satisfaction and turn clients into our “fans.”

Note: Figures shown are for INTAGE Inc. only (as of March 31, 2015)

Amounts are rounded down

INTAGE D&I employees Offi ce scene

Based on the belief that “our business is our CSR,” the INTAGE Group strives to remain indispensable to all

stakeholders and society through the implementation of our corporate activities.

Relationship with Our Clients

Relationship with Our Employees

Environmental Conservation Efforts

� Energy Usage by Business Location (Year ended March 31, 2015)

Akihabara Hibarigaoka Higashikurume Total

Electricity usage (thousands of kWh) 1,187 5,602 414 7,203

Crude oil equivalent (kl) 305 1,441 106 1,852

Diversity Initiatives The INTAGE Group respects diverse values and individuality,

and seeks to employ a wide range of people.

For example, more than 600 employees of non-Japanese

nationality work in the INTAGE Group. In August 2014, we

established INTAGE D&I Inc., a special subsidiary that employs

persons with disabilities and carries out business tasks

according to their characteristics. In addition, the IMR (QWL)

Employee Survey is conducted annually as part of employee

support. This survey is designed to measure employee

satisfaction and mental health, and is an indicator used to

gauge the soundness of Group companies; the results are

one of the items used to evaluate each company.


Distribution, Consumption and Economic Indicators Development Project(SRI-Hitotsubashi Consumer Purchase Index)

Distribution, Consumption and Economic Indicators

Development Project

Analysis and indexing; Development of academic research

Request for collaboration; Industry development

Data collection, preparation and provision; Support of corporate activities

In April 2014, INTAGE Inc., Hitotsubashi University and the

New Supermarket Association of Japan launched a

collaborative “Distribution, Consumption and Economic

Indicators Development Project.” The purpose of this joint

industry-university collaboration is not only academic research,

but also to contribute to a better society by developing new

distribution, consumption and economic indices and widely

sharing the information based on them. The main activity of

the project is development and analysis of a consumer

purchasing index using retailer sales data (INTAGE SRI).

Consumption and purchasing behavior are broken down into

“expenditures,” “purchase price” and “purchase quantity,”

also making it possible to analyze the economic infl uence and

effect from the introduction of new products, which was

formerly diffi cult to do. To promote its widespread use as a

socioeconomic indicator, data from the Consumer Purchase

Index has been released weekly on the INTAGE website free of

charge since September 2014, and is being used in academic

research and new product development.

(Year ended March 31, 2015)¥2 million (donated ¥1 million as an offi cial sponsor and¥1 million to the “Five Senses Project”)

Donations

Contribution to Social Projects Since May 2007, the INTAGE Group has been supporting

the C. W. Nicol Afan Woodland Trust, headed by

environmentalist C. W. Nicol, as an offi cial sponsor to help

support woodland conservation.

Donations from Shareholders and Survey PanelistsThe INTAGE Group supports the activities of various

organizations through donations from shareholders and

survey panelists.

(Yen)

Afan Woodland

Trust

Japan Guide Dog

AssociationUNICEF

Japan Earthquake and Tsunami Relief Fund (Japanese Red Cross)

Total

Year ended March 31,

2014179,890 523,750 530,490 122,000 1,356,130

Year ended March 31,

2015128,690 563,990 468,130 90,000 1,250,810

Relationship with Society

Indicators

Social science research

Corporate activities and econom

ic activities

Realization of a better society

Consumer behavior

https://www.intage.co.jp/shisuu/(Japanese-language website)

Note: Total donations from shareholder benefi t plan and Cue monitors

Topic


Corporate Governance

Corporate Governance Structure

Board of Directors(3 inside directors and

2 outside directors)

President and Representative Director

Internal Audit Offi ce

Group Management Meeting

Executive Committee

General Meeting of Shareholders

Report

Report

Operating departments and management departments of

INTAGE HOLDINGS and Group companies

Independent Auditor

Consulting Law Offi ce

• THE INTAGE WAY• INTAGE Group’s Ethical Charter

• INTAGE Group Employee Code of Conduct• Basic Policy on Internal Control Systems

Board of Corporate Auditors(2 inside and 2 outside

corporate auditors)

Basic Approach to Corporate GovernanceINTAGE HOLDINGS Inc. (“the Company”) believes that, as an enterprise made up of numerous stakeholders, it has an important responsibility not only to improve business results but also to ensure the soundness, fairness and transparency of management.

The INTAGE Group’s Ethical Charter has been established as a set of guidelines that all of the Group’s executives and employees must follow in conducting business activities. Based on this charter, the Group has formulated the INTAGE Group Employee Code of Conduct, which defi nes the basic attitude and behaviors expected of employees, and strives to carry out sound business activities in compliance with laws and regulations. In addition, the Company’s internal control system is operated in accordance with the Basic Policy on Internal Control Systems.

Corporate Governance StructureThe Company has elected to use the corporate audit system as its corporate governance structure, and therefore has a Board of Directors and a Board of Corporate Auditors. The rationale for adopting this corporate governance structure is that the current structure has been established through making necessary changes to the governance structure in accordance with changes to applicable laws and regulations since the Company’s founding. The Company believes that the system functions adequately not only for improving business performance, but also for ensuring management soundness, fairness and transparency.

� Board of DirectorsThe Board of Directors consists of fi ve directors, who meet once a month, in principle, to make decisions on important matters concerning the Company’s business execution, and oversees management’s execution of duties. Of these, two outside directors are appointed to the Board to incorporate objective opinions on all aspects the Company’s management. The outside

directors express their views on the Company’s overall management at Board meetings, and their views are refl ected in the Board’s discussions and decisions.

� Board of Corporate AuditorsThe Board of Corporate Auditors consists of four corporate auditors, including two outside auditors, and convenes monthly. Corporate auditors also attend Board of Directors meetings, and audit and act as a check on the business execution of the Company’s directors and its subsidiaries. In accordance with the audit policies set by the Board of Corporate Auditors, the corporate auditors attend Board of Directors meetings and other key meetings, where they monitor the decision-making process for management decisions and express their views as they deem appropriate. They also perform audits to monitor business execution and ascertain its legality.

� Internal Audit DepartmentThe Internal Audit Offi ce, which reports to the president of the Company, conducts audits on business execution from the perspectives of the appropriateness of business activities and legal compliance. When necessary, it provides guidance for improvement of internal control and support for implementation of improvement measures.

� Committees The Company has established the Internal Control Committee to promote internal control initiatives in the Group, the Crisis Management Committee to respond to crises involving the Group’s business, and the Management System Committee to further improve the Group’s management systems.

Internal Control Comm

ittee

Managem

ent System Com

mittee

Instru

ct

Instru

ct

Audits by corporate auditors

Collaboration

Collaboration

Promote Internal audits

Emergency response

Reporting of legal or compliance violations

Accounting audits/Audits of internal control over fi nancial reporting

Legal consultation/Reports of compliance violations

Crisis Managem

ent Comm

ittee


Internal Control SystemsThe Board of Directors meets whenever necessary in addition to its regular monthly meetings. Furthermore, the Group Management Meeting, which is responsible for reporting, deliberation and decision-making on management policies and measures and matters related to business operations, convenes once a month, and is attended by full-time directors, full-time corporate auditors and the presidents of Group companies. The Executive Committee, which is attended by full-time directors, full-time corporate auditors and executive offi cers, meets once a month to support the Board of Directors, report on and discuss various matters, and improve management effi ciency.

Risk Management StructureIn accordance with the Basic Policy on Internal Control Systems, the Company appoints a director as Chief Risk Offi cer, and has set up the Internal Control Committee comprising representatives from business units and Group companies to establish mechanisms for recognizing and assessing risks, as well as rules for risk management. This committee also collaborates and cooperates with the Management System Committee to increase the effectiveness of risk management and handles cross-sectional risk management for the entire INTAGE Group.

The Company’s quality management system is regularly audited internally and externally to verify that it conforms to the framework of ISO9001, for which the Company holds certifi cation. In addition, a system for the protection of personal information based on the Privacy Mark, which the Company has obtained, is applied and implemented throughout the INTAGE Group. The INTAGE Group’s Ethical Charter and the INTAGE Group Employee Code of Conduct are publicized to all employees on the company intranet, and compliance training is provided on a regular basis through e-learning and other systems, to promote compliance throughout the Group. Moreover, a compliance hotline that connects to the Company’s law fi rm has been set up to facilitate adherence to and maintenance of the compliance system.

Systems to Ensure the Appropriateness of Subsidiaries’ OperationsThe basic policy and internal regulations required for the management of subsidiaries and affi liates are in place to ensure the appropriateness and effi ciency of the Group’s business operations. In addition, transactions between companies belonging to the INTAGE Group are checked to ensure that they adhere to laws, accounting principles, tax law and other social norms. Furthermore, to maintain an appropriate internal control system within the Group, the Internal Control Committee, which is responsible for overseeing and promoting all aspects of internal control, including compliance and risk management, works to improve these systems in close cooperation with committee members of Group companies.

Internal Audits and Statutory AuditsThe Internal Audit Offi ce, an organization of seven full-time employees responsible for internal audits, reports directly to the president. In accordance with the Company’s management philosophy, management policies and regulations, the Internal Audit Offi ce conducts internal audits as necessary to confi rm the fairness, accuracy and effectiveness of organizational management

and the conduct of business. The audits are based on the Company’s Internal Audit Regulations and Procedures and involve preparation of an audit plan, conducting of the audit, reporting on audit results and confi rmation of post-audit improvements.

The Internal Audit Offi ce and Board of Corporate Auditors hold periodic liaison meetings to improve the effectiveness and effi ciency of their audits. They collaborate closely at the liaison meetings, confi rming the audit policy and audit plan at the beginning of the fi scal year, receiving reports on the status of internal audits during the fi scal year and at the fi scal year-end, and exchanging opinions. The Internal Audit Offi ce and Board of Corporate Auditors also exchange opinions and information concerning audits with independent auditors, and maintain close cooperation with internal control departments, which centrally monitor the status of these audits and internal control activities.

Outside Directors and Outside Corporate AuditorsThe Company has two outside directors and two outside corporate auditors. There are no special interests between the Company and the outside directors or corporate auditors.

The functions and roles of the outside directors and outside corporate auditors in supervising the Company are to draw on their experience, achievements and professional insight to provide advice and recommendations from an independent standpoint to promote sound, appropriate decision-making by the Board of Directors. At meetings of the Board of Corporate Auditors, they make statements and recommendations aimed at ensuring sound business operations, which are refl ected in the Company’s management.

The Company believes that appointing outside directors and outside corporate auditors enables it to refl ect a broad range of expertise from an independent standpoint in its management decisions. The Company’s criteria for the independence of outside directors and outside corporate auditors are based on the rules of the Tokyo Stock Exchange.

The outside corporate auditors share information on audits with the Internal Audit Offi ce through meetings of the Board of Corporate Auditors. They also maintain close cooperation with the Company’s independent auditors by exchanging opinions on each other’s audits and sharing information on the status and results of audits.

Communication with Shareholders and Investors Recognizing the importance of listening to the views of its shareholders and investors and refl ecting them in its management, the Company works to enhance communication with them through IR activities.

For communication with individual shareholders and investors, the Company participates in the Tokyo Stock Exchange IR Festa and holds regular information meetings for individual investors throughout Japan, in addition to the general meeting of shareholders.

For communication with analysts and institutional investors, the Company holds regular briefi ngs in conjunction with announcements of fi nancial results for the fi scal year and for the fi rst half, and also holds numerous individual meetings.

For overseas shareholders and investors, the Company provides information through its website and conducts individual meetings as necessary.


Directors

1

1

2

2

3

3

5

5

4

4

Kenji MiyakubiPresident and Representative Director

Apr. 1980 Joined the CompanyJun. 2007 Director and General Manager, Incubation

CenterApr. 2010 Executive Director and General Manager,

Business Development GroupApr. 2011 President, Representative Director and General

Manager, Business Development GroupApr. 2012 President and Representative Director

(current position)

Noriaki IshizukaDirector

Apr. 1982 Joined the CompanyJun. 2006 Director and Deputy General Manager,

Sales GroupApr. 2008 Director and Unit Director, Business Solutions

UnitApr. 2009 Director and General Manager, Sales GroupApr. 2011 Director and General Manager, DCG and

Services Business GroupApr. 2013 Executive DirectorJun. 2015 Director (current position)

Susumu MatsumotoDirector in charge of Affi liated Companies

Apr. 1973 Joined the CompanyJun. 2009 Director and Unit Director, Business Solutions

UnitApr. 2011 Director and General Manager,

Healthcare Business GroupIn charge of System Solutions Business, Drug Development Solutions Business

Apr. 2012 Director and General Manager, Healthcare Business Group

Apr. 2013 Director in charge of Corporate Planning Department, Group Healthcare Business

Jun. 2013 Director in charge of Corporate Planning Department, Affi liated Companies, Group Healthcare Business, Crisis Management Committee, Internal Control Promotion Committee

Apr. 2014 Director in charge of Corporate Planning Department, Affi liated Companies, Group Healthcare Business, Group HR Strategy, Crisis Management Committee, Internal Control Promotion Committee

Apr. 2015 Director in charge of Corporate Planning, Affi liated Companies, Group HR Strategy, Crisis Management Committee, Internal Control Promotion Committee

Jun. 2015 Director in charge of Affi liated Companies (current position)

Yukihiko UeharaOutside Director

Apr. 1968 Joined Nihon Kangyo Bank, Ltd.Jul. 1970 Researcher, The Distribution Economics

Institute of JapanApr. 1974 Chief ResearcherApr. 1980 Assistant Professor, Department of Economics,

Meiji Gakuin UniversityApr. 1986 Department ProfessorApr. 2004 Professor, Graduate School of Global Business,

Meiji UniversityMay 2008 Chairman, Japan Direct Marketing AssociationJun. 2009 Director, the Company (current position)May 2010 Chairman, The Distribution Economics

Institute of JapanDec. 2012 Outside Corporate Auditor,

Suntory Beverage & Food LimitedApr. 2014 Visiting Professor, Showa Women’s UniversityApr. 2015 Special Professor, Showa Women’s University

(current position)May 2015 Outside Director and Member of the Audit and

Supervisory Committee, Suntory Beverage & Food Limited (current position)

Jun. 2015 Chairman of The Distribution Economics Institute of Japan (current position)

Shizue Kishi Outside Director

Apr. 1983 Full-time Instructor, Faculty of Commerce, Nagoya University of Commerce & Business

Mar. 1988 Assistant Professor, Faculty of Economics, Nagoya City University

Apr. 1996 ProfessorApr. 1998 Professor, Faculty of Business Administration,

Tokyo Keizai University (current position)Oct. 2010 Chairperson, Japan Academy of Advertising

(current position)Apr. 2014 Dean, Faculty of Business Administration, Tokyo

Keizai University (current position)Jun. 2015 Director, the Company (current position)

Directors and Corporate Auditors (As of June 19, 2015)


Corporate Auditors

1

1

2

2

3

3

4

Toru SakamotoCorporate Auditor

Apr. 1973 Joined the CompanyApr. 1992 General Manager, Library Systems Department,

BU Supervision Division, Systems Business GroupApr. 2005 General Manager, Sales Department,

Sales GroupApr. 2006 Full-time General Manager, Sales Department,

Sales GroupMar. 2010 Assistant to General Manager, Sales GroupApr. 2012 Assistant to General Manager, Corporate

Management DivisionJun. 2012 Corporate Auditor (current position)

Itaru NangoCorporate Auditor

Apr. 1975 Joined the CompanyJun. 2005 Director and Deputy General Manager,

Solutions GroupApr. 2006 Director and Unit Director, Marketing

Solutions UnitApr. 2009 Executive Director and General Manager,

Corporate Planning Division, General Manager, Personnel Planning Division, in charge of Affi liated Companies

Apr. 2013 Executive Director in charge of Affi liated Companies, Group HR Strategy

Jun. 2013 Executive Director in charge of Group HR Strategy

Jan. 2014 Executive Director and General Manager, Offi ce of the President, in charge of Group Overseas Business, Group HR Strategy

Apr. 2014 Executive Director in charge of Group Overseas Business

Jan. 2015 Executive Director in charge of Special Assignments

Jun. 2015 Corporate Auditor (current position)

Toshio SaitoOutside Corporate Auditor

Apr. 1969 Joined IBM Japan CorporationJul. 1989 In charge of Development and

Manufacturing DivisionApr. 1997 In charge of Personnel and OrganizationMar. 2002 Director in charge of Personnel and OrganizationJun. 2003 Full-time Corporate AuditorMar. 2006 AdvisorJun. 2007 Corporate Auditor, the Company

(current position)Jun. 2009 Outside Corporate Auditor, JBCC Holdings Inc.

(current position)

4

Hajime NakajimaOutside Corporate Auditor

Apr. 1986 Appointed as JudgeApr. 1997 Judge, Tokyo District CourtApr. 2002 General Manager, Administrative Bureau,

Secretarial Training Institute, Supreme CourtApr. 2004 General Manager of Training, Comprehensive

Training Institute for Court StaffApr. 2005 Judge, Tokyo High CourtMar. 2007 Retired as Judge, Tokyo High CourtApr. 2007 Professor, Toin Law School (current position)Jun. 2007 Registered as an AttorneyJun. 2014 Substitute Corporate Auditor, the CompanyJun. 2015 Outside Corporate Auditor, the Company

(current position)

Directors and Corporate Auditors (As of June 19, 2015)


11-Year Financial Summary

(Millions of yen)

2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

For the Year:

Net sales ¥43,925 ¥42,508 ¥39,930 ¥36,658 ¥36,538 ¥34,526 ¥34,345 ¥33,104 ¥30,800 ¥28,777 ¥26,619

Cost of sales 31,723 31,107 29,121 25,874 26,021 24,138 23,870 22,755 21,958 20,681 19,285

Selling, general and administrative expenses 8,630 7,895 7,499 7,898 7,051 7,131 7,154 7,034 5,910 5,481 5,147

Operating income 3,571 3,505 3,309 2,885 3,465 3,256 3,320 3,314 2,930 2,614 2,186

Net income 2,463 1,642 1,249 1,325 1,915 1,679 1,728 1,765 1,626 1,361 997

Cash fl ows from operating activities 2,947 3,612 3,433 2,943 3,025 2,905 3,190 2,247 2,042 1,627 1,230

Cash fl ows from investing activities 2,327 (1,151) (1,332) (3,341) (1,052) (1,810) (1,554) (1,033) (1,902) (1,060) (1,652)

Cash fl ows from fi nancing activities (4,940) (592) (960) 675 (1,108) (924) (1,707) (546) 9 (597) 667

Cash and cash equivalents at end of year 8,366 7,926 5,906 4,599 4,337 3,484 3,303 3,394 2,721 2,569 2,595

At Year-end:

Total assets 33,301 33,740 29,398 27,730 24,660 23,349 21,180 21,261 20,272 17,945 17,364

Total net assets1 19,917 17,171 15,493 14,517 13,757 12,386 11,590 10,288 9,034 7,454 6,238

Equity ratio (%) 59.3 50.5 52.5 52.3 55.8 53.0 54.2 47.9 43.4 41.5 35.9

Per Share Data (Yen):

Net income2 123.03 81.66 62.15 131.85 190.51 164.31 168.69 170.10 157.58 129.34 94.13

Total shareholders’ equity2 989.01 846.49 767.29 1,442.25 1,367.39 1,230.86 1,120.90 994.41 851.35 719.52 601.81

Cash dividends3 30.00 27.50 50.00 50.00 50.00 50.00 50.00 40.00 30.00 26.00 14.00

Financial Data (%):

Operating income-to-net sales ratio 8.1 8.2 8.3 7.9 9.5 9.4 9.7 10.0 9.5 9.1 8.2

ROA 10.3 10.7 11.2 10.9 14.3 14.5 15.6 16.0 15.2 14.7 12.5

ROE4 13.4 10.1 8.4 9.4 14.7 14.1 15.9 18.6 20.0 19.9 17.2

Notes: 1. In line with the enactment of the Companies Act of Japan in 2006, “Total net assets” for fi scal years ended on or after March 31, 2007 has been calculated by adding minority interests and other items to “Total shareholders’ equity” from prior years.

2. On October 1, 2013, the Company implemented a stock split at a ratio of two shares for each share of common stock. However, net income per share and net assets per share are calculated assuming this stock split took place at the beginning of the previous fi scal year.

INTAGE HOLDINGS Inc. and Consolidated Subsidiaries/Years ended March 31


(Millions of yen)

2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

For the Year:

Net sales ¥43,925 ¥42,508 ¥39,930 ¥36,658 ¥36,538 ¥34,526 ¥34,345 ¥33,104 ¥30,800 ¥28,777 ¥26,619

Cost of sales 31,723 31,107 29,121 25,874 26,021 24,138 23,870 22,755 21,958 20,681 19,285

Selling, general and administrative expenses 8,630 7,895 7,499 7,898 7,051 7,131 7,154 7,034 5,910 5,481 5,147

Operating income 3,571 3,505 3,309 2,885 3,465 3,256 3,320 3,314 2,930 2,614 2,186

Net income 2,463 1,642 1,249 1,325 1,915 1,679 1,728 1,765 1,626 1,361 997

Cash fl ows from operating activities 2,947 3,612 3,433 2,943 3,025 2,905 3,190 2,247 2,042 1,627 1,230

Cash fl ows from investing activities 2,327 (1,151) (1,332) (3,341) (1,052) (1,810) (1,554) (1,033) (1,902) (1,060) (1,652)

Cash fl ows from fi nancing activities (4,940) (592) (960) 675 (1,108) (924) (1,707) (546) 9 (597) 667

Cash and cash equivalents at end of year 8,366 7,926 5,906 4,599 4,337 3,484 3,303 3,394 2,721 2,569 2,595

At Year-end:

Total assets 33,301 33,740 29,398 27,730 24,660 23,349 21,180 21,261 20,272 17,945 17,364

Total net assets1 19,917 17,171 15,493 14,517 13,757 12,386 11,590 10,288 9,034 7,454 6,238

Equity ratio (%) 59.3 50.5 52.5 52.3 55.8 53.0 54.2 47.9 43.4 41.5 35.9

Per Share Data (Yen):

Net income2 123.03 81.66 62.15 131.85 190.51 164.31 168.69 170.10 157.58 129.34 94.13

Total shareholders’ equity2 989.01 846.49 767.29 1,442.25 1,367.39 1,230.86 1,120.90 994.41 851.35 719.52 601.81

Cash dividends3 30.00 27.50 50.00 50.00 50.00 50.00 50.00 40.00 30.00 26.00 14.00

Financial Data (%):

Operating income-to-net sales ratio 8.1 8.2 8.3 7.9 9.5 9.4 9.7 10.0 9.5 9.1 8.2

ROA 10.3 10.7 11.2 10.9 14.3 14.5 15.6 16.0 15.2 14.7 12.5

ROE4 13.4 10.1 8.4 9.4 14.7 14.1 15.9 18.6 20.0 19.9 17.2

3. On October 1, 2013, the Company implemented a stock split at a ratio of two shares for each share of common stock. Dividend amounts for fi scal years prior to the year ended March 31, 2014 are the actual amounts before the stock split.

4. ROE for fi scal years ended on or after March 31, 2007 = Net income ÷ Average shareholders’ equity x 100


Management Discussion and Analysis

Scope of ConsolidationThe INTAGE Group (the “Group”) consists of INTAGE

HOLDINGS Inc. (the “Company”), 20 consolidated

subsidiaries and 1 affi liated company. The Group’s activities

are centered on three major businesses: Marketing Research

and Consulting, System Solutions, and Drug Development

Solutions. The Marketing Research and Consulting business

is based on data handling techniques (handling techniques

and abilities from gathering to processing of data), data

analysis skills and information evaluation capabilities,

including expansion of various intelligence gathering

networks, establishment of data processing systems and

development of information systems. The System Solutions

business provides unique system services backed by system

development and system operation technologies, business

analysis skills and industry expertise. The Drug Development

Solutions business provides a full range of clinical

development services mainly consisting of contract research

organization (CRO) services, in which it has the longest track

record and experience in post-marketing surveillance.

The Group helps clients to solve issues in their businesses

by blending its research techniques, system technologies,

industry and operations knowledge, consulting capabilities

and other professional skills, along with a comprehensive

understanding of marketing, to provide intelligence that

aids in decision-making.

Summary of ResultsIn fi scal 2015 (the year ended March 31, 2015), the

Japanese economy was on a gradual recovery trend overall.

While there were concerns about a drop in personal

consumption in reaction to the spike in demand prior to the

April 2014 increase in Japan’s consumption tax rate,

corporate earnings and employment conditions improved

due to the effects of economic stimulus measures by the

government and monetary easing by the Bank of Japan.

In the information services industry, of which the INTAGE

Group is a part, sales showed year-on-year increases each

month according to the Survey of Selected Services

Industries prepared by the Ministry of Economy, Trade and

Industry (METI).

Under these conditions, in fi scal 2015, which was the fi rst

year of its 11th Medium-Term Management Plan, the

INTAGE Group worked to achieve the plan’s priority

objectives by renewing its strengths and continuing bold

reforms under the Group’s basic policy of “Renovation &

Innovation: towards accelerated growth utilizing our deep

insights on people as our greatest asset.”

As a result of these developments, sales and profi ts both

increased. Consolidated net sales for fi scal 2015 amounted

to ¥43,925 million (up 3.3% year on year), with operating

income of ¥3,571 million (up 1.9%), ordinary income of

¥3,446 million (up 1.9%) and net income of ¥2,463 million

(up 50.0%).

The Company’s consolidated subsidiary ASKLEP Inc.

transferred its clinical development operations and related

businesses to its newly established wholly owned subsidiary

A2 Healthcare Corporation effective June 2, 2014 and sold

all the shares of A2 Healthcare Corporation to ITOCHU

Corporation on the same day. With this sale, the Company

posted an extraordinary gain of ¥2,911 million on the sales

of subsidiaries’ and affi liates’ shares.

Results by Business Segment� Marketing Research and Consulting

In Marketing Research and Consulting, sales and profi ts

both rose, refl ecting year-on-year increases in sales of SCI

(nationwide individual consumer panel research) and i-SSP

(INTAGE Single Source Panel) research at INTAGE, Inc. and

the prescription data analysis service of Japan Medical

Information Research Institute Inc., as well as the strong

performance of Internet surveys at ANTERIO Inc., which

specializes in healthcare research.

As a result, sales in the Marketing Research and Consulting

segment amounted to ¥34,346 million (up 12.3% year on

year), with operating income of ¥3,070 million (up 1.6%).

� System Solutions

In System Solutions, sales decreased from the previous year,

when the Group won large orders, but profi ts rose with the

receipt of highly profi table orders at INTAGE Inc. and INTAGE

TECHNOSPHERE Inc.

As a result, sales in the System Solutions segment

amounted to ¥5,557 million (down 1.8% year on year),

with operating income of ¥499 million (up 1.9%).

� Drug Development Solutions

In Drug Development Solutions, while sales declined because

the Company’s consolidated subsidiary ASKLEP Inc.

transferred its clinical development operations and related

businesses, profi ts improved from fi rm orders for EDC

(Electronic Data Capture) systems that meet customer needs.

As a result, sales in the Drug Development Solutions

segment amounted to ¥4,022 million (down 35.9% year on

year), with operating income of ¥1 million, compared with

an operating loss of ¥5 million in the previous fi scal year.


Sales and Income� Net Sales

Sales declined due to the transfer of one of the businesses

of ASKLEP Inc. in the Drug Development Solutions

segment. However, net sales increased 3.3% overall to

¥43,925 million, refl ecting robust orders in the Marketing

Research and Consulting segment.

� Cost of Sales and Selling, General and

Administrative Expenses

Cost of sales increased ¥616 million, or 2.0%, year on year

to ¥31,723 million, largely due to the increase in operating

costs associated with growth in net sales. The cost-to-sales

ratio was 72.2%, a decrease of 1.0 percentage point from

the previous fi scal year.

Selling, general and administrative (SG&A) expenses

increased ¥735 million, or 9.3%, year on year to ¥8,630

million due to factors including the increase in sales-related

expenses with the increase in net sales. The ratio of SG&A

expenses to net sales was 19.6%, up 1.0 percentage point

from the previous fi scal year.

� Operating Income

Operating income increased ¥65 million, or 1.9%, to

¥3,571 million as the increase in net sales exceeded the

increase in cost of sales and SG&A expenses.

� Non-Operating Income and Expenses

Non-operating income increased ¥6 million, or 6.0%, year

on year to ¥105 million due to factors including an

increase in dividends received. Non-operating expenses

increased ¥6 million, or 2.8%, to ¥230 million as a result

of an increase in equity in losses of affi liates, despite a

decrease in interest expenses.

� Extraordinary Income and Losses

Net extraordinary income was ¥1,640 million compared with

net extraordinary loss of ¥52 million in the previous fi scal

year. Extraordinary income was ¥2,919 million (none was

recorded in the previous fi scal year), mainly consisting of gain

on sales of subsidiaries’ and affi liates’ shares. Extraordinary

losses increased ¥1,227 million from ¥52 million in the

previous year, to ¥1,279 million, mainly due to an increased

impairment loss as well as extra retirement payment and

loss on abolishment of retirement benefi t plan.

� Net Income

Income before income taxes increased ¥1,757 million and

income taxes increased ¥908 million compared with the

previous fi scal year. As a result, net income increased ¥820

million, or 50.0%, year on year to ¥2,463 million. Net

income per share was ¥123.03 compared with ¥81.66 in

the previous fi scal year.

� Cash Flows

Cash and cash equivalents (“cash”) as of March 31, 2015

totaled ¥8,366 million, an increase of ¥439 million from the

previous fi scal year. The increase was the result of ¥2,947

million in cash generated by operating activities, ¥2,327

million in cash generated by investing activities and ¥4,940

million in cash used in fi nancing activities.

Cash Flows from Operating Activities

Net cash provided by operating activities totaled ¥2,947

million, a decrease of ¥665 million from the previous fi scal

year. This lower fi gure was a result of factors including a

decline in the increase in net defi ned benefi t retirement

liabilities and a decline in the increase in notes and

accounts payable.

Cash Flows from Investing Activities

Net cash provided by investing activities amounted to

¥2,327 million, compared with net cash used in investing

activities of ¥1,151 million in the previous fi scal year. This

increase was mostly because, while expenditures for the

acquisition of investment securities increased, the Company

realized proceeds from the sale of shares of a subsidiary

resulting in a change in the scope of consolidation.

Cash Flows from Financing Activities

Cash used in fi nancing activities amounted to ¥4,940

million, which was ¥4,348 million more than in the

previous fi scal year. The increase was largely due to a

decrease in proceeds from short-term loans payable and an

increase in repayments of long-term loans payable.


Analysis of Financial Position� Assets

Current assets as of March 31, 2015 decreased ¥165

million from the end of the previous fi scal year to ¥21,560

million. This decrease was mostly because, while cash and

deposits increased ¥434 million, notes and accounts

receivable–trade declined ¥621 million.

Non-current assets declined ¥272 million from the end of

the previous fi scal year to ¥11,740 million. This decrease was

the result of factors including decreases of ¥807 million in

goodwill and ¥576 million in deferred tax assets, which

offset increases of ¥610 million in investment securities and

¥742 million in net defi ned benefi t retirement assets.

As a result, total assets decreased ¥438 million to

¥33,301 million.

� Liabilities

Current liabilities decreased ¥2,639 million from the end of

the previous fi scal year to ¥10,042 million. This decrease

was mostly because, while income taxes payable rose ¥667

million, short-term loans payable declined ¥3,836 million.

Long-term liabilities declined ¥544 million to ¥3,342

million, largely due to a decline of ¥480 million in

retirement benefi ts.

As a result, total liabilities decreased ¥3,183 million to

¥13,384 million.

� Net Assets

Total net assets increased ¥2,745 million from the end of

the previous fi scal year to ¥19,917 million. This increase was

mostly because retained earnings rose ¥1,679 million and

remeasurements of defi ned benefi t plans rose ¥448 million.

Dividend Policy The INTAGE Group’s basic policy is to distribute earnings

while considering the balance between dividends and

retained earnings, based on consolidated results that refl ect

the performance of the Group’s management. INTAGE

HOLDINGS considers the return of earnings to shareholders

to be one of its highest management priorities, and aims

for a consolidated payout ratio of 30%. Retained earnings

are used for investment to continually enhance the Group’s

growth and profi tability. Our aim is to ensure returns to

shareholders through efforts to enhance performance.

The Company plans to pay a dividend of ¥30.00 per

share (a payout ratio of 24.5%) for the fi scal year ended

March 31, 2015. For the fi scal year ending March 31, 2016,

the Company plans to pay a dividend of ¥32.50 per share.

Performance Outlook for the Year Ending March 31, 2016The INTAGE Group’s forecast for the fi scal year ending

March 31, 2016 anticipates continued gradual economic

recovery with increased personal consumption and other

positive developments, assuming support from the

economic policies of the government and the Bank of

Japan, and improvements in employment conditions and

wage levels accompanying a recovery in corporate earnings.

Under these conditions, in the fi scal year ending March 31,

2016, the second year of the Group’s 11th Medium-Term

Management Plan, the INTAGE Group will further pursue

growth potential, profi tability and productivity to steadfastly

maintain its efforts toward “Renovation & Innovation for

further growth,” and steadily implement strategic

investments.

As a result, the INTAGE Group forecasts consolidated net

sales of ¥46,000 million (up 4.7% year on year), with

operating income of ¥3,800 million (up 6.4%), ordinary

income of ¥3,770 million (up 9.4%), and net income

attributable to owners of the Parent of ¥2,400 million

(down 2.6%).

Management Discussion and Analysis


1. Information ManagementThe information services industry in which the INTAGE Group

participates involves handling a large volume and variety of

corporate and personal information, given the characteristics of

the business. Therefore, in addition to utilizing a system for

protection of personal information in accordance with the

Personal Information Protection Law and the Privacy Mark, the

INTAGE Group gives adequate attention to management of

various types of information, including establishing a specialized

unit for information security management systems (ISMS) and

taking security measures for the public disclosure system.

In addition, as there is a risk that various types of information

held by the Group may be improperly obtained or falsifi ed as a

result of unauthorized access to the Group’s information

systems, stringent verifi cation is conducted when systems are

used, and necessary measures are taken to protect their security.

However, any leakage or other misuse of information could

cause a loss of public trust in the Group and could have a

material impact on the Group’s business results.

2. Dependence on Second-Half PerformanceThe business performance of the INTAGE Group is

disproportionately weighted toward the second half of the fi scal

year. This imbalance is attributable to three main factors: in the

Marketing Research and Consulting business, research required

by corporate clients for the preparation of the following year’s

marketing plans is concentrated toward the end of the fi scal

year; completion and delivery periods for reports commissioned

by governmental agencies are concentrated toward the end of

the fi scal year; and, in the System Solutions business, a high

proportion of systems development contracts stipulate delivery

at the end of the fi scal year.

Consequently, the slippage of fi scal year-end sales into the

following fi scal year could adversely affect the INTAGE Group’s

business performance.

Business-Related Risks

Risks related to the INTAGE Group’s business operations and fi nancial condition that may have a signifi cant

impact on investor decisions are described below. Note that any references to the future in this section are

based on the judgment of the Group’s management as of March 31, 2015.

Apr.-Sep. 2013 Oct. 2013-Mar. 2014 Apr.-Sep. 2014 Oct. 2014-Mar. 2015

Net sales 18,505 (43.5) 24,003 (56.5) 19,338 (44.0) 24,587 (56.0)

Marketing Research and Consulting 13,227 (43.3) 17,345 (56.7) 14,660 (42.7) 19,685 (57.3)

Systems Solutions 2,330 (41.2) 3,330 (58.8) 2,507 (45.1) 3,049 (54.9)

Drug Development Solutions 2,947 (47.0) 3,327 (53.0) 2,169 (53.9) 1,852 (46.1)

Operating income 880 (25.1) 2,625 (74.9) 1,317 (36.9) 2,253 (63.1)

Ordinary income 811 (24.0) 2,570 (76.0) 1,255 (36.4) 2,191 (63.6)

For Reference: Performance in Each Half of the Past Two Fiscal Years (Millions of yen)

Parentheses indicate percentage of total amounts for the year

3. Business Investment The INTAGE Group makes up-front investments that are

necessary for ensuring growth, increasing its competitive

advantage and expanding its business fi elds. Management

makes investment decisions after careful consideration of various

factors, including the prospects for investment recovery.

However, results and profi ts commensurate with those up-

front investments are diffi cult to forecast accurately, and

demand might fail to develop in line with forecasts. For this

reason, the inability to achieve results and profi ts commensurate

with investments within a certain period of time could adversely

affect the INTAGE Group’s business performance.

4. Business Risk(1) In the INTAGE Group’s mainstay Marketing Research and

Consulting business, the panel surveys that heretofore have

supported growth and profi ts are approaching the limits of

market share potential. To secure further growth potential

the Group is introducing new products and working to

increase added value through a shift from data provision to

solutions provision. Should these measures fail to progress as

anticipated, the INTAGE Group’s business performance could

be adversely affected.

In the custom research sector, competition is intensifying

with the emergence of companies specializing in Internet

research. To overcome this competition, the INTAGE Group

must constantly invest in systems at each stage of collecting,

processing, analyzing and providing research data. If the

results of this competition and the cost of system investment

become an excessive burden, the INTAGE Group’s business

performance could be adversely affected.

(2) In the System Solutions business, the INTAGE Group expects

to increase sales and income and maintain consistent growth

by enhancing its ability to provide industry-specifi c solutions

based on its familiarity with industries and its client base


cultivated in conducting client-oriented services such as

system operation, maintenance and management. Should

these efforts fail to progress as anticipated, the INTAGE

Group’s business performance could be adversely affected.

(3) The Drug Development Solutions business can be greatly

affected by trends in the pharmaceutical industry. The

Group’s business performance could be adversely affected in

the event of a contraction of the market resulting from

factors such as a decrease in new drug development in

Japan, or by changes such as revisions to the Pharmaceutical

Affairs Act or other laws or regulations.

5. PersonnelAs the INTAGE Group engages in many highly specialized

businesses, the recruitment and development of human assets

is an important matter. Recruitment of global human assets

has also become urgent as the Group actively expands its

business internationally.

Accordingly, the INTAGE Group has formulated a human asset

development plan for the implementation of systems related to

recruitment, development and evaluation of personnel, and

continuously reviews the plan. Furthermore, as a priority measure,

the Group is taking steps to develop the next generation of leaders.

However, should human asset development fail to progress

satisfactorily despite these measures, the INTAGE Group’s

business performance could be adversely affected.

6. Conditions in Overseas MarketsIn the INTAGE Group, the marketing research business is

conducted by consolidated subsidiaries INTAGE CHINA Inc. in

China; Consumer Search Hong Kong LIMITED and Macao

Research Centre Ltd. in Hong Kong and Macao; Plamed Korea

Co., Ltd. in Korea; INTAGE (Thailand) Co., Ltd., INTAGE

VIETNAM LLC, INTAGE SINGAPORE Private Ltd. and PT. INTAGE

INDONESIA in Southeast Asia; and INTAGE INDIA Private Limited

and R.S. Market Research Solutions Private Limited in India.

However, the INTAGE Group’s business performance could be

adversely affected if laws or regulations related to the Group’s

business overseas are enacted, amended or otherwise changed;

if situations that hinder the Group’s business operations arise as

a result of political factors; or if unforeseen events such as

natural disasters or infectious disease epidemics occur.

7. Management IssuesThe INTAGE Group maintains the Management System Committee

to respond to various management issues. Furthermore, the Group

has an Internal Control Committee and is placing particular

emphasis on strengthening the compliance structure.

Nevertheless, should these mechanisms fail to function

adequately and inadequate inculcation of the spirit of

compliance at the individual employee level occur, the INTAGE

Group’s business performance could be adversely affected.

8. Changes in Foreign Exchange RatesThe INTAGE Group translates the fi nancial statements of the

overseas Group companies listed in “6. Conditions in Overseas

Markets” from local currencies into Japanese yen. Consequently,

changes in exchange rates could adversely affect the INTAGE

Group’s business performance.

9. Systems FailureThe INTAGE Group’s data center is manned around the clock,

and the management system incorporates thorough security

measures including the installation of surveillance cameras and

information control at the time of entry and exit by means of

electronic key cards. In addition, all possible measures are taken

to ensure stable operation at all times, including an earthquake-

resistant structure, fi re-extinguishing equipment, redundancy of

electric power facilities, and the installation of on-site power

generation facilities.

Nevertheless, the inability to use the Group’s facilities or

networks due to unexpected serious events such as the

occurrence of a system or hardware failure, a malicious computer

virus, a hacker attack, a large-scale power outage or an

earthquake, fi re, fl ood, accident or other disaster of unexpected

magnitude could adversely affect the INTAGE Group’s business

performance.

10. Intellectual PropertyIn the course of conducting its business activities, the INTAGE

Group takes meticulous care not to violate the patents,

trademarks or other intellectual property rights of third parties.

Nevertheless, should the Group violate the intellectual property

rights of a third party, or should a third party newly establish

intellectual property rights in one of the INTAGE Group’s

business areas, the Group may be forced to discontinue business

operations in the fi eld in question, or receive demands for

compensation, an injunction, or other claims from that third

party. Such outcomes could adversely affect the INTAGE Group’s

business performance.

11. Holding Company INTAGE HOLDINGS Inc., the listed holding company representing

the INTAGE Group, derives its income primarily from

management fees paid to the Company by the operating

companies whose shares it directly holds. The Company also

receives dividends paid according to the business results and

fi nancial position of the operating companies. Therefore,

deterioration of the fi nancial position of operating companies

resulting in their inability to pay dividends to the Company could

adversely affect the Company’s business performance.

Business-Related Risks


Consolidated Financial Statements

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

INTAGE HOLDINGS Inc. and Consolidated SubsidiariesFor the fi scal years ended March 31, 2014 and 2015

INTAGE HOLDINGS Inc. and Consolidated SubsidiariesFor the fi scal years ended March 31, 2014 and 2015

Millions of yen Thousands of U.S. dollars*

2014 2015 2015

Net sales ¥42,508 ¥43,925 $365,523

Cost of sales 31,107 31,723 263,984

Gross profi t 11,401 12,201 101,531

Selling, general and administrative expenses: 7,895 8,630 71,814

Operating income 3,505 3,571 29,716

Non-operating income:

Interest income 6 4 33

Dividend income 26 33 274

Insurance benefi t received and dividends 16 43 357

Commission for insurance offi ce work 3 3 24

Other 46 21 174

Total 99 105 873

Non-operating expenses:

Interest expenses 51 29 241

Equity in losses of affi liates 107 144 1,198

Commission fees 9 17 141

Loss on disposal of equipment and fi xtures 15 12 99

Foreign exchange losses 25 19 158

Other 14 6 49

Total 223 230 1,913

Ordinary income 3,382 3,446 28,676

Extraordinary income:

Gain on bargain purchase — 7 58

Gain on sales of subsidiaries and affi liates' stocks — 2,911 24,224

Total — 2,919 24,290

Extraordinary losses:

Loss on transfer of business 13 — —

Impairment loss 38 703 5,850

Extra retirement payment — 131 1,090

Loss on abolishment of retirement benefi t plan — 396 3,295

Other — 48 399

Total 52 1,279 10,643

Income before income taxes 3,329 5,087 42,331

Income taxes - current 1,851 2,458 20,454

Income taxes - deferred (152) 148 1,231

Total 1,698 2,607 21,694

Income before minority interests 1,630 2,480 20,637

Minority interests in income (loss) (11) 16 133

Net income ¥ 1,642 ¥ 2,463 $ 20,495


2014 2015 2015

Income before minority interests ¥1,630 ¥2,480 $20,637

Other comprehensive income:

Valuation difference on available-for-sale securities (0) 91 757

Foreign currency translation adjustments 304 206 1,714

Remeasurements of defi ned benefi t retirement plans — 450 3,744

Total of other comprehensive income 304 748 6,224

Comprehensive income ¥1,935 ¥3,228 $26,861

Comprehensive income attributable to:

Comprehensive income attributable to owners of the parent ¥1,940 ¥3,185 $26,504

Comprehensive income attributable to minority interests (5) 43 357

* The U.S. dollar amounts presented are calculated from Japanese yen at US$1 = ¥120.17, the rate prevailing on March 31, 2015.



2014 2015 2015

ASSETS

Current assets:

Cash and deposits ¥ 7,943 ¥ 8,377 $ 69,709

Note and accounts receivable-trade 9,830 9,208 76,624

Work in progress 1,453 1,384 11,517

Stored items 45 34 282

Deferred tax assets 1,132 1,101 9,162

Other current assets 1,321 1,459 12,141

Allowance for doubtful accounts (0) (6) (49)

Total current assets 21,726 21,560 179,412

Non-current assets:

Property, plant and equipment:

Buildings and structures 6,339 5,520 45,934

Accumulated depreciation (4,482) (3,823) (31,813)

Net buildings and structures 1,856 1,697 14,121

Equipment and fi xtures 1,544 1,153 9,594

Accumulated depreciation (1,128) (800) (6,657)

Net equipment and fi xtures 416 352 2,929

Land 1,998 1,998 16,626

Lease assets 1,475 1,304 10,851

Accumulated depreciation (754) (603) (5,017)

Net lease assets 720 701 5,833

Other 0 0 3

Accumulated depreciation (0) (0) (3)

Net other 0 0 0

Net property and equipment 4,991 4,749 39,519

Intangible assets:

Goodwill 1,345 537 4,468

Other intangible assets 1,222 1,326 11,034

Total intangible fi xed assets 2,568 1,864 15,511

Investments and other assets:

Investment securities 965 1,576 13,114

Deferred tax assets 1,373 796 6,623

Net defi ned benefi t retirement assets 827 1,569 13,056

Other 1,287 1,184 9,852

Total investments and other assets 4,453 5,127 42,664

Total non-current assets 12,013 11,740 97,694

Total assets ¥33,740 ¥33,301 $277,115

Consolidated Balance SheetsINTAGE HOLDINGS Inc. and Consolidated SubsidiariesAs of March 31, 2014 and 2015





2014 2015 2015

LIABILITIES

Current liabilities:

Accounts payable-trade ¥ 2,421 ¥ 2,462 $ 20,487

Short-term loans payable 3,893 57 474

Lease obligations 314 300 2,496

Income taxes payable 1,407 2,074 17,258

Provision for bonuses 1,505 1,492 12,415

Allowance for point program 867 960 7,988

Allowance for directors’ bonuses 3 6 49

Provision for stock benefi ts — 3 24

Other current liabilities 2,270 2,685 22,343

Total current liabilities 12,681 10,042 83,564

Non-current liabilities:

Long-term loans payable 37 — —

Retirement allowance for directors 29 4 33

Provision for stock benefi ts — 23 191

Net defi ned benefi t retirement liability 3,321 2,840 23,633

Lease obligations 498 473 3,936

Total long-term liabilities 3,886 3,342 27,810

Total liabilities 16,568 13,384 111,375

NET ASSETS

Shareholders’ equity:

Capital stock 1,681 1,681 13,988

Capital surplus 1,336 1,336 11,117

Retained earnings 14,012 15,692 130,581

Treasury stock, at cost (533) (221) (1,839)

Total shareholders’ equity 16,497 18,489 153,857

Accumulated other comprehensive income:

Unrealized holdings gains on securities, net of taxes 21 113 940

Foreign currency translation adjustments 350 532 4,427

Net defi ned benefi t retirement assets 155 603 5,017

Total accumulated other comprehensive income 527 1,249 10,393

Minority interests 146 178 1,481

Total net assets 17,171 19,917 165,740

Total liabilities and net assets ¥33,740 ¥33,301 $277,115


Millions of yen

Shareholders’ equity Accumulated other comprehensive income

2014

Capital stock Capital surplus Retained earnings Treasury stock Total Net unrealized holding gain on

securities

Foreign currency

translation adjustment

Net defi ned benefi t

retirement assets Total

Minority interests Total net assets

Balance at the previous year-end ¥1,681 ¥1,336 ¥12,873 ¥(533) ¥15,358 ¥22 ¥ 52 — ¥ 74 ¥ 61 ¥15,493

Cumulative effects of changes in accounting policies

— — — — — — — — — — —

Restated balance 1,681 1,336 12,873 (533) 15,358 22 52 — 74 61 15,493

Change during period shown:

Dividends from surplus — — (502) — (502) — — — — — (502)

Net income — — 1,642 — 1,642 — — — — — 1,642

Purchase of treasury stock — — — (0) (0) — — — — — (0)

Retirement of treasury stock — — — — — — — — — — —

Net changes of items other than shareholders' equity

— — — — — (0) 298 155 453 84 537

Total — — 1,139 (0) 1,139 (0) 298 155 453 84 1,677

Balance at fi scal year-end ¥1,681 ¥1,336 ¥14,012 ¥ (533) ¥16,497 ¥21 ¥350 ¥155 ¥527 ¥146 ¥17,171

Millions of yen


2015


securities

Foreign currency





Balance at the previous year-end ¥1,681 ¥1,336 ¥14,012 ¥(533) ¥16,497 ¥ 21 ¥350 ¥155 ¥ 527 ¥146 ¥17,171


— — 298 — 298 — — — — — 298

Restated balance 1,681 1,336 14,311 (533) 16,796 21 350 155 527 146 17,470


Dividends from surplus — — (553) — (553) — — — — — (553)

Net income — — 2,463 — 2,463 — — — — — 2,463

Purchase of treasury stock — — — (217) (217) — — — — — (217)

Retirement of treasury stock — — (529) 529 — — — — — — —


— — — — — 91 181 448 722 32 754

Total — — 1,380 311 1,692 91 181 448 722 32 2,446

Balance at fi scal year-end ¥1,681 ¥1,336 ¥15,692 ¥(221) ¥18,489 ¥113 ¥532 ¥603 ¥1,249 ¥178 ¥19,917

Thousands of U.S. dollars*


2015


securities

Foreign currency





Balance at the previous year-end $13,988 $11,117 $116,601 $(4,435) $137,280 $174 $2,912 $1,289 $ 4,385 $1,214 $142,889


— — 2,479 — 2,479 — — — — — 2,479

Restated balance 13,988 11,117 119,089 (4,435) 139,768 174 2,912 1,289 4,385 1,214 145,377


Dividends from surplus — — (4,601) — (4,601) — — — — — (4,601)

Net income — — 20,495 — 20,495 — — — — — 20,495

Purchase of treasury stock — — — (1,805) (1,805) — — — — — (1,805)

Retirement of treasury stock — — (4,402) 4,402 — — — — — — —


— — — — — 757 1,506 3,728 6,008 266 6,274

Total — — 11,483 2,588 14,080 757 1,506 3,728 6,008 266 20,354

Balance at fi scal year-end $13,988 $11,117 $130,581 $(1,839) $153,857 $940 $4,427 $5,017 $10,393 $1,481 $165,740


Consolidated Statements of Changes in Net AssetsINTAGE HOLDINGS Inc. and Consolidated SubsidiariesFor the fi scal years ended March 31, 2014 and 2015




2014 2015 2015

Cash fl ows from operating activities: Income before income tax and minority interests ¥ 3,329 ¥ 5,087 $ 42,331 Depreciation 1,445 1,370 11,400 Impairment loss 38 703 5,850 Amortization of goodwill 205 190 1,581 Decrease (increase) in net defi ned benefi t retirement assets (827) (742) (6,174)Increase (decrease) in net defi ned benefi t retirement liability 756 (482) (4,010)Increase (decrease) in provision for directors’ retirement benefi ts — (25) (208)Increase (decrease) in accrued employees’ bonuses 69 128 1,065 Increase (decrease) in provision for directors’ bonuses (3) 3 24 Increase (decrease) in allowance for doubtful accounts (4) 5 41 Increase in allowance for point program 110 93 773 Increase (decrease) in provision for stock benefi ts — 26 216 Interest and dividend income (33) (37) (307)Interest expenses 51 29 241 Equity in (earnings) losses of affi liates 107 144 1,198 Loss on retirement of equipment and fi xtures 15 12 99 Loss (gain) on sales of shares of subsidiaries and affi liates — (2,911) (24,224)Gain on bargain purchase — (7) (58)Extra retirement payments — 131 1,090 Loss on abolishment of retirement benefi t plan — 396 3,295 Decrease (increase) in notes and accounts receivable-trade (167) (487) (4,052)Decrease (increase) in inventories (104) (145) (1,206)Increase (decrease) in notes and accounts payable-trade 641 31 257 Increase (decrease) in accrued consumption taxes 189 599 4,984 Other (577) 747 6,216

Sub total 5,242 4,860 40,442 Proceeds from Interest and dividend income 32 38 316 Interests expenses paid (50) (29) (241)Extra retirement payments paid — (131) (1,090)Income taxes paid (1,611) (1,791) (14,903)Net cash provided by operating activities 3,612 2,947 24,523

Cash fl ows from investing activities: Payments into time deposits (15) (36) (299)Proceeds from withdrawal of time deposits 80 — —Payments for purchases of property, plant and equipment (209) (347) (2,887)Payments for acquisition of intangible assets (546) (764) (6,357)Payments for purchases of investment securities (1) (630) (5,242)Payments for loans (1) (0) (3)Proceeds from loans receivable 1 1 8 Payments of long-term loans receivable (46) — —Collection of long-term loans receivable — 48 399 Proceeds from sales of shares of subsidiaries and affi liates — 22 183 Payments for transfer of business (33) — —Payments for asset retirement obligations — (99) (823)Purchase of investments in affi liates resulting in change in scope of consolidation (372) (114) (948)Proceeds from sales of investment in subsidiaries resulting in change in scope of consolidation — 4,185 34,825 Payments for security deposits (39) (193) (1,606)Proceeds from refund of security deposits 22 244 2,030 Other 10 10 83 Net cash provided by (used in) investing activities (1,151) 2,327 19,364

Cash fl ows from fi nancing activities: Proceeds from short-term loans payable 1,746 52 432 Repayments of short-term loans payable (1,470) (756) (6,291)Proceeds from long-term loans payable 100 — —Repayments of long-term loans payable (127) (3,173) (26,404)Proceeds from stock issuance to minority shareholders 52 58 482 Repayments of lease obligations (389) (341) (2,837)Payments for acquisition of treasury stock (0) (217) (1,805)Dividends paid (503) (561) (4,668)Cash dividends paid to minority shareholders (1) (0) (6)Net cash used in fi nancing activities (592) (4,940) (41,108)

Effect of exchange rate changes on cash and cash equivalents 152 105 873 Net increase in cash and cash equivalents 2,020 439 3,653 Cash and cash equivalents at beginning of year 5,906 7,926 65,956 Cash and cash equivalents at end of year ¥ 7,926 ¥ 8,366 $ 69,618

Consolidated Statements of Cash FlowsINTAGE HOLDINGS Inc. and Consolidated SubsidiariesFor the fi scal years ended March 31, 2014 and 2015



Corporate Data/INTAGE Group (As of March 31, 2015)

Company Name INTAGE HOLDINGS Inc.

Established March 1960

President and Representative Director Kenji Miyakubi

Capital ¥1,681.4 million

Net Sales (Consolidated) ¥43.9 billion (Fiscal year ended March 2015)

Employees (Consolidated) 2,283

Head Offi ce INTAGE Akihabara Building,

3 Kanda-Neribeicho, Chiyoda-ku, Tokyo 101-0022, Japan

Tel: +81-3-5294-7411 Fax: +81-3-5294-0199

Domestic Group Companies

CompanyCapital or Amount Invested

(Thousands of yen)Percentage of

Voting Rights Held*

INTAGE Inc. 450,000 100.0

ASKLEP Inc. 150,000 100.0

INTAGE RESEARCH Inc. 40,000 100.0 (100.0)

INTAGE TECHNOSPHERE Inc. 400,000 100.0

INTAGE ASSOCIATES Inc. 30,000 100.0

ANTERIO Inc. 145,400 100.0

Japan Medical Information Research Institute Inc. 188,250 100.0

PLAMED Inc. 90,000 100.0 (100.0)

Access JP Inc. 10,000 100.0 (100.0)

DOCOMO InsightMarketing, INC. 950,000 49.0

Overseas Group Companies

Company Capital or Amount Invested Percentage of

Voting Rights Held*

INTAGE (Thailand) Co., Ltd. 105,000 thousand baht 94.2 (91.0)

INTAGE ASIA HOLDINGS LIMITED US$21,085 thousand 100.0

INTAGE CHINA Inc. 11,978 thousand yuan 99.0 (99.0)

INTAGE VIETNAM LLC 3.1 billion Vietnamese dong 93.3 (93.3)

INTAGE INDIA Private Limited 175 million Indian rupees 98.8

INTAGE SINGAPORE Private Ltd. 1.5 million Singaporean dollars 100.0

Consumer Search Hong Kong LIMITED 13.8 million H.K. dollars 51.0 (51.0)

PT. INTAGE INDONESIA 5 billion Indonesian rupiah 60.0 (60.0)

Plamed Korea Co., Ltd. 350 million Korean won 51.0 (51.0)

Corporate Data

INTAGE Group

*Numbers in parentheses in percentage of voting rights held indicate the percentage held indirectly.


Stock Information (As of March 31, 2015)

Authorized Shares 74,000,000

Shares Issued 20,118,000

Number of Shareholders 3,435

Stock Major Shareholders

Distribution Chart

Stock Price and Trading Volume

Securities Firms

1.2%

Financial Institutions

33.4%

Treasury Stock

0.0%

OtherCorporations

11.8%

Foreign Companies, Others

28.4%

Individuals and Others

25.2%

Investment in INTAGE

Number ofshares held

Shareholding ratio (%)

BBH Fidelity Low-Priced Stock Fund (Principal All Sector Subportfolio)

1,918,600 9.5

Mizuho Trust & Banking Co., Ltd. as trustee for Retirement Benefi t Trust of Eisai Co., Ltd. (re-entrusted to Trust & Custody Services Bank, Ltd.)

1,800,000 9.0

BNP PARIBAS SEC SERVICES LUXEMBOURG JASDEC ABERDEEN GLOBAL CLIENT ASSETS

1,533,100 7.6

Intage Group Employees’ Stockholding Association

1,169,328 5.8

Saitama Resona Bank, Ltd. 1,004,000 5.0

Goldman Sachs and Company Regular Account 929,681 4.6

Hoei Jitsugyo Co., Ltd. 910,000 4.5

Mizuho Bank, Ltd. 700,000 3.5

The Dai-ichi Mutual Life Insurance Company 700,000 3.5

Daiei Real Estate & Development 628,000 3.1

Note: Shareholding ratio is calculated after deducting treasury stock (5,052 shares).

(Yen)

Stock Information

Total3,435

4 5 6 7 8 9

2012

10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3

2,500

900,000

2,000

1,500

1,000

500 600,000

300,000

0

2013 2014 2015

(Shares)

Stock price of INTAGE Holdings

TOPIX

Trading volume


Further Information: INTAGE HOLDINGS Inc.

INTAGE Akihabara Building, 3 Kanda-Neribeicho, Chiyoda-ku, Tokyo 101-0022, Japan

Tel.+81-3-5294-7411

Fax.+81-3-5294-0199

URL: http://www.intageholdings.co.jp/english/

2015070000

Date post:	15-Apr-2018
Category:	Documents
Upload:	hoangnhu
View:	221 times
Download:	7 times

Annual Report 2015 - Microsoftirvision2next.blob.core.windows.net/4326/ir/... · ·...

Documents