18 May 2005
THE INTELLIGENCE PROVIDERhttp://www.intage.co.jp/
Copyright © 2005 INTAGE Inc. All rights reserved.
Business Results for the Fiscal Year Ended March 31, 2005 and Future Outlook
Plans, expectations, and strategies included in this document that are not historical facts are forward-looking statements related to INTAGE Inc. or the INTAGE Group decided by management based on currently available information. Accordingly, the reader should avoid placing undue reliance on these forward-looking statements. INTAGE cautions that a number of factors affecting the business could cause actual results to differ materially from these forward-looking statements. These include, but are not limited to, general economic conditions and changes or reforms in the industries in which our clients operate.
18 May 2005
THE INTELLIGENCE PROVIDERhttp://www.intage.co.jp/
Copyright © 2005 INTAGE Inc. All rights reserved.
A b o u t I N T A G E
3Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
INTAGE Company Profile
Combining “IntIntelligenceelligence” with “AgeAge”Origin of company name
http://www.intage.co.jp/Website
¥23.0 billion (¥26.6 billion consolidated)2005 Annual sales
March 1960Established
¥1.6814 billion *At March 31, 2005Capitalization
844 (1,411 INTAGE Group) *At March 31, 2005 Number of employees
Norio TaoriPresident & Representative Director
INTAGE Inc. Name
* FY endedMar 31, 2005
4Copyright © 2005 INTAGE Inc. All rights reserved.
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THE INTELLIGENCE PROVIDER
Company History
5Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Sales Turnover & Milestones
0
50
100
150
200
250
300
1960 1970 1980 1990 2000
(Hundred millions of yen)
Sales reach ¥10 billion.
FY ended March 31, 1987
Sales of ¥26.6 billion
FY ended March 31, 2005
Sales reach ¥20.0 billion.
FY ended March 31, 1998
Sales reach ¥5 billion.
FY ended March 31, 1973
Note: Figures for the fiscal year ended March 2000 and subsequent years are consolidated sales.
6Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Scope of Services
Marketing Research and Consulting
INTAGE is one of Japan’s largest marketing research firms. The leader in Japan for Panel servicesINTAGE Ranks 17th in sales worldwide among global marketing research firms (AMA study)
S y s t e m S o l u t i o n s
Wide rage of solutions ranging from system development, operation and maintenance to the construction of data usage models and other customized tools
M e d i c a l S o l u t i o n s
Full-Service CRO and Site Management Services
Sales Contribution by Business Segment (Year ended March, 31 2005)
Medical Solutions 12%
System Solutions 28%Marketing Research and Consulting
60%
7Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
The INTAGE Corporate Vision
The Intelligence ProviderThe Intelligence Provider We define intelligence as the aggregation of the techniques, expertise,
knowledge, and wisdom necessary for the collection, evaluation, analysis, use and systematization of data and the valuable information achieved thereby.
コンサルティン力Research techniques Consulting skills Systemization techniques
Industry and business process knowledge
Marketing know-how and expertise
●Integration and analysis of disparate data●Construction of a framework for data
analysis and provision that meets user needs
●Greater speed in information distribution realized ●Construction of a framework for continuous
data utilization
8Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
INTAGE Group & INTAGE Inc. - Organization
President
M a r k e t i n g D i v i s i o n
S o l u t i o n s D i v i s i o n
T e c h n o l o g y D i v i s i o n
S t a f f i n g D e p a r t m e n t
INTAGE, Inc. Organization
Clients
INTAGE, Inc.①②③
ASKLEP Inc.③(CRO)
INTAGE Nagano, Inc.①②(Systems development and operation, research)INTAGE Marketing Consulting(Shanghai) Co., Ltd. ①(Marketing research in China)INTAGE Interactive, Inc.①(Online marketing research)
INTAGE Research, Inc.①(Research data collection)
INTAGE Links, Inc.①②③(Temporary staffing for
Group companies)
Flow of services and data
① Marketing Research and Consulting② System Solutions③ Medical Solutions
18 May 2005
THE INTELLIGENCE PROVIDERhttp://www.intage.co.jp/
Copyright © 2005 INTAGE Inc. All rights reserved.
F i n a n c i a l R e s u l t s
10Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Financial Highlights (Consolidated) — Record High Earnings Achieved
S a l e s O p e r a t i n g I n c o m e
234.9 238.9266.1
0
100
200
300
03/3 04/3 05/3
18.217.0
21.8
0
10
20
30
03/3 04/3 05/3
7.26.6
9.9
0
5
10
15
03/3 04/3 05/3
18.016.5
21.6
0
10
20
30
03/3 04/3 05/3
O r d i n a r y I n c o m e N e t I n c o m e
(Hundred millions of yen) (Hundred
millions of yen)
(Hundred millions of yen)
(Hundred millions of yen)
11Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Profit and Loss Summary for the Fiscal Year Ended March 2005
EPS
Net income
Ordinary income
Operating income
Sales
EPS
Net income
Ordinary income
Operating income
Sales
+38.7% 633602456
+18.0% 1,427ー1,209
¥59.65¥43.10
+49.8% 997790665
¥94.13¥63.33
+14.9% 1,4551,4531,258
+8.0% 23,00822,59221,312
+31.1% 2,1651,8851,651
+28.0%2,1861,9401,708
+11.4%26,61925,88023,899
Year-on-year change
Year ended 3/05Actual
Year ended 3/05Initial forecast
Year ended 3/04Actual
(Millions of yen)
Consolidated
Non-C
onsolidated
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18 May 2005
THE INTELLIGENCE PROVIDER
Balance Sheet Summary for the Fiscal Year Ended March 2004
ー
Increase in retained earnings
INTAGE Interactive (equity participation: INTAGE 51%, Yahoo 49%) profit increaseー
Reclassification of corporate bonds (with maturity dates within one year)Increase in bank loans, reclassification of corporate bonds (with maturity dates within one year)
ー
Increase in guarantee money paid (Akihabara office) Increase in leasehold improvement (Data Center), othersー
Increase in cash and deposits, increase in accounts receivable — trade
Remarks
1,25011,0199,769Total liabilities
2,17317,36415,191Total liabilities, minority interest, and shareholders’ equity
8716,2385,366Shareholders’ equity
5110655Minority interests
2741,9891,715Investments and other assets
5094,7324,222Tangible and intangible assets
7831,39010,6429,252Current assets
2,17317,3641,5,191Total assets
1,5627,6066,044Current liabilities
6,7215,938Fixed assets
△3113,4123,724Fixed liabilities
VarianceYear ended 3/05
Year ended 3/04
Balance sheet summary (Consolidated)(Millions of yen)
ー
ー
ー
ー
Increase in proceeds from long-term bank loansIncrease in payments for purchases of property and equipmentIncrease in net income before income taxes
Remarks
2,5952,348Cash and cash equivalents at the end of year
2,3481,667Cash and cash equivalents at the beginning of year
246681Net increase in cash and cash equivalents
7△6Effect of exchange rate changes on cash and cash equivalents
66797Cash flows from financing activities
△1,652△376Cash flows from investing activities
1,230967Cash flows from operating activities
Year ended 3/05
Year ended 3/04
Consolidated cash flows summary(Millions of yen)
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18 May 2005
THE INTELLIGENCE PROVIDER
Segment Information
60%28%
12%
Marketing Researchand Consulting
System Solutins
Medical Solutions
S a l e s
04/3 05/3
Marketing Research and Consulting 60% → 60%
System Solutions 30% → 28%
Medical Solutions 10% → 12%
Revenues increased across all segments. No major change in segment contributions occurred.
78%
10%
12%
Marketing Researchand ConsultingSystem Solutins
Medical Solutins
O p e r a t i n g I n c o m e
04/3 05/3
Marketing Research and Consulting 88% → 78%
System Solutions 8% → 10%
Medical Solutions 4% → 12%
Operating income increased in all segments. Increase in profitability in the Medical Solutions business resulted in a change in segment contributions.
14Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Segment Information — Marketing Research and Consulting
(Hundred millions of yen)
(Hundred millions of yen)S a l e s Operating Income
141.8159.3
0
50
100
150
200
04/3 05/3
15.017.1
0
5
10
15
20
04/3 05/3
Sales increased sharply.Sales in all major panel services increased except SCI which saw a slight drop.Sales in Online Research nearly doubled helping drive a solid sales performance in Customized Research
Operating income also showed favorable results.Noticeable profit improvements in Customized Research. Profits rose despite up-front investment in the new individual panel (Personal Eye) and as well as SCI upgrades. Discontinuation of SSJ (Single Source Japan).
15Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
3-Year Sales & Client Trend for Principal Syndicated Panel Services
(Hundred millions of yen, companies)
(470)(290)(240)No. of clients *
45.034.031.4SalesCustomized Research
32
7.0146
29.2
72
12.7182
50.4
Year ended 3/05
48.141.8SalesSRI
No. of clients
Sales
No. of clients
Sales
No. of clients
Sales
No. of clients 186165Nationwide Retail Panel
12.312.1SDI
Nationwide Female Consumer Panel
SLI
National Household Panel
SCI
Nationwide Pharmacy and Drugstore panel
31
6.4141
30.2
69
Year ended 3/04
34
6.5147
30.4
75
Year ended 3/03
* The figures are approximate owing to potential overlap with subsidiaries in online research and other areas.
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THE INTELLIGENCE PROVIDER
Segment Information — System Solutions
S a l e s(Hundred millions of yen)
(Hundred millions of yen)
72.3 75.4
0
50
100
04/3 05/3
2.1
1.3
0
1
2
3
04/3 05/3
System sales increased for the first time in four years. Withdrawal from unprofitable businesses was completed.
Aggressive marketing strategy focused on Business Intelligence (BI) projects was implemented and executed.Leveraged research strengths for aggressive cross-functional sales for BI projects. Business relationships with panel survey clients were cultivated.
Operat ing Income
Operating income increased by 53%. Favorable sales result through capacity maximization and a shift toward high-end value-added businesses.
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THE INTELLIGENCE PROVIDER
Segment Information — Medical Solutions
(Hundred millions of yen)
(Hundred millions of yen)S a l e s
31.324.8
0
10
20
30
40
04/3 05/3
O p e r a t i n g I n c o m e
2.5
0.6
0
1
2
3
04/3 05/3
CRO operations saw sales from clinical monitoring and data management and biostatistical analysis increase significantly. Strategic measures to increase profitability bore fruit, and higher capacity utilization brought a sharp increase in profits. Results from the SMO business less favorable. It will take time for the business to reach the point of viability.
18Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Overview of the Seventh Medium-Term Business Plan(3/03 to 3/05) (Consolidated)
28.0
280.0Year ended 3/05
22.0
260.0Year ended 3/04
242.2 S a l e s
17.1
Year ended 3/03
Operating income
Initial plan (announced at the Business Results Briefing on May 22, 2002) (Hundred millions of yen)
26.6
265.0Year ended 3/05
20.1
249.8Year ended 3/04
-S a l e s
-
Year ended 3/03
Operating income
Revised plan (announced at the Business Results Briefing on May 21, 2003) (Hundred millions of yen)
21.8
266.1Year ended 3/05
17.0
238.9Year ended 3/04
234.9S a l e s
18.0
Year ended 3/03
Operating income
Actual results (Hundred millions of yen)
The initial plan was revised due to a change in policy for the systems business and unfavorable performance from new businesses.
In the final year of the plan, the revised sales target was achieved. The operating income target was not achieved owing to a shift in sales to custom research, a business in which expenses increase along with sales, and an increase in the number of new investment projects.
18 May 2005
THE INTELLIGENCE PROVIDERhttp://www.intage.co.jp/
Copyright © 2005 INTAGE Inc. All rights reserved.
Business Strategy (Eighth Medium-Term Business Plan)
20Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Segment Information — Milestones Reached in the Seventh Medium-Term Management Plan
System SolutionsMilestone: Offer differentiated, high-value-added servicesIssue: The nature of the business makes it difficult to establish owing to partial optimization and the pursuit of short-term profit resulting from the business unit structure.Action point: Create solutions integrating research with systems
Medical Solutions (Healthcare Sector)Milestone: The INTAGE Group has diversity and uniqueness unmatched in the healthcare sector.Issue: INTAGE lacks the speed of the two previously established players.Action point: Develop systems that enable deployment of the Group’s collective strength.
Marketing Research and ConsultingMilestone: Successful transformation into a comprehensive full-service marketing intelligence services providerIssue: Market share of principle panel surveys has reached the saturation point.Action point: Pursue “actionable insights” that lie beyond conventional research and progress to a new stage
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18 May 2005
THE INTELLIGENCE PROVIDER
The Eighth Medium-Term Management Plan (April 2005 to March 2008)
Basic Policy“Team INTAGE” Intelligence ProviderRaising the bar in client satisfaction through business partnering
Key Priorities1. Implementation of an organizational structure best suited for
IP (intelligence provider) business2. Centralization of business activities starting with office
relocation to Central Tokyo. The incorporation of a new work-style (I-Style)
3. Active investment in strategic new business sectors4. Strengthen all areas of human resources including
recruitment, professional development, evaluation, and retention programs.
5. Proactive development and integration of management systems for group-level management.
22Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Sales Targets for the Eighth Medium-Term Management Plan
(Hundreds of million yen)
32.527.723.8Operating incomeSales 349.8311.5283.0
Fiscal year ending 3/08
Fiscal year ending 3/07
Fiscal year ending 3/06
Absorb costs of new office relocation and continue the trend of higher revenues and higher earnings.Key growth drivers will come from the cultivation of businesses that will replace SRI as well as increasing efficiencies across the board for other panel services.
23Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
A New Organizational Structure to Realize the Intelligence Provider Business
Elimination of the dual business units (System/Research) structure that has been in place since the beginning to a Specialized Division based structure. Total Solution Provider for Clients, encompassing the seamless integration of sophisticated research with system solutions.
Marketing DivisionClient acquisition, Retention, Service, Solutions
Marketing DivisionClient acquisition, Retention, Service, Solutions
Solutions DivisionIntegration of INTAGE products, Value Adding
Solutions DivisionIntegration of INTAGE products, Value Adding
Technology DivisionOverall optimization, standardization, quality maintenance & low cost
Technology DivisionOverall optimization, standardization, quality maintenance & low cost
Staffing DepartmentStaffing Department
Change fromself-contained business unitsto a structure
based on functionalspecialization
Marketing Intelligence D
ivision
Business Intelligence D
ivision
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18 May 2005
THE INTELLIGENCE PROVIDER
A New Organizational Structure to Realize the Intelligence Provider Business
Toward the provision of total solutions and realization of an IP businessTarget FMCG clients and engage in panel data-driven sales force automation in the broad sense of the word.Provide non-FMCG clients with marketing solutions based on a CRM approach.
Marketing Division / Solutions Division / Technology Division / Staffing Department
Total solutions provisionTotal solutions provision Realization of the IP businessRealization of the IP business
Information analysis capabilities
Industry and business process knowledge
Systemization techniques
Marketing understanding and expertise
Modeling techniques
Data handling techniques
Differentiation andsustained growth
Research and information gathering expertise
INTAGE core competenciesINTAGE core competencies
Clients
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THE INTELLIGENCE PROVIDER
Office Relocation and Organization Integration
The INTAGE Group is set to relocate to new offices in Akihabara, November 2005
Accommodate the new organization (functionally specialized divisions)Greatly reduce the physical distance and time spent traveling to & from clientsAn office environment that allows for future growthI-Style (new workstyle)The I-Style concept is an optimal working environment conducive to proactive thinking, creativity, progressiveness & flexibility sparking innovative & intelligent solutions for our clients
Artist’s perspective
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THE INTELLIGENCE PROVIDER
Priority Investment Areas
1. Greater shift to online research across services2. Healthcare, medical marketing, others…3. Integrated solutions in Customer Relationship
Management (CRM), Supply Chain Management (SCM), Sales Force Automation (SFA), and Database Management (DBM)
4. Business viability for Personal Eye and the renewal/upgrading of consumer panels
5. Investigate business opportunities globally and continue to develop business in China out of the Shanghai office
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18 May 2005
THE INTELLIGENCE PROVIDER
The Shift to Online ResearchPosition online research as the driver for growth and the base for future business development for the INTAGE Group. Aggressively invest in the business which carries the highest priority in the Eighth Medium-Term Management Plan.The shift towards online research
Shift to online research not merely to secure growth in Customized Research business, but also:
As a means for establishing CRM and database marketing businessesAs a growth factor in the medical and healthcare sectorsAs an impetus for new business development in China & other markets
Internet Research — Medium-Term Sales Plan (Hundred millions of yen)
Internet Research — Three-Year Sales Results (Hundred millions of yen)
05/3
6015
4010
205
00 06/3 07/3 08/303/3 04/3 05/3
28Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
The Online Research Strategy
Market PerceptionThe market continues to grow by about 150% each year. In the near future online research is expected to become the principle method of customized/ad hoc research. Market segments are (1) Conversion Market – involves the switching from conventional research methods to online methods (2) Expansion Market - that cultivates the advantageous characteristics of online research: speed and low cost. The former segment involves many comparatively complex, high-volume studies, while the latter segment involves many comparatively simple studies. INTAGE Group is considered the market leader in the conversion market. Niche online research companies have the lead in the expansion segment.
29Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Online Research - The Current Approach
The Service Concept Quality — By ensuring reproducibility and market reflectivity, inform correct decision making on the part of clients. Valuable — Pursue applicability to complex studies that require traditional research methods and the added value possible from conducting research online.
ValuableGenuine research
High-value-added research
The INTAGE business domain
Conversion market
Speed & Cost“First past the post” research
QualityRespondent quality Response rate (fixed-period research)
Simple& StandardizedProvision of services involving standardization of simple studies
New market formed due to speed and low cost
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18 May 2005
THE INTELLIGENCE PROVIDER
Quality — Market Reflectivity and Reproducibility
Critical considerations in conducting marketing research are market reflectivity and reproducibility. These attributes of good research cannot be guaranteed with research involving “first past the post”sampling. This sampling method, by which a study is closed once the target number of respondents is reached, results in skewed research. INTAGE recommends “fixed-term research,” the mainstream research method in the conversion market.
職業 回答者全体と初期回答者比較
0.0
10.0
20.0
30.0
40.0
50.0
60.0
TOTAL(N=491)
Initial stage respondents(n=100)
Case Example: Differences in Occupation Composition Between All Respondents and Initial Stage Respondents (in First Past the Post Research)Nationwide Survey Conducted Among Males and Females Age 20 and Above Excluding Students
0.012.08.016.011.011.05.037.0Initial stage respondents(n=100)
0.4
Unknown
7.9
Other
6.3
Unemployed, retired
11.8
Fulltime housewives
12.4
Part-time or temporary workers
7.1
Self-employed, SOHO
5.7
Public servants,NPO employees
48.3
Companyemployees
TOTAL(N=491)
31Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
The Online Research Market — Future Outlook
Future StrategyFull-scale deployment in a segment where speed and cost are the business drivers. Win share from established players by providing products and services with competitive advantage in speed, price, and quality.
For INTAGE, differentiation begins with research expertise. Emphasis on the research process and quality results . Even in research where speed and cost drive the business.
Appropriate research process in products where speed is important. Online provision of research theme-based packages and corresponding reference value databases resulting from INTAGE’s accumulated data and expertise. Enhancement of the human support structure.
To build and maintain the top position in the conversion segment, high quality and high value research expertise will be the norm . Through active product introduction and marketing, establish strongholds in CRM, Area Marketing, Medical, and other sectors, where synergies can be brought to bear.
32Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
The Online Research Market — Future Outlook
Speed, Cost& Quality
Only Speed &Cost
ValuableGenuine researchHigh-value-added
research
Conversion market
New market base Drivers, speed and low cost
Expansion of the INTAGE online business: build competitive advantage via differentiation in both segments
Establishment of a strong position through the pursuit of
added value
Application of research expertise to fast, low-cost, simple studies
Distancing of INTAGE from specialty Internet business companies
Medical
Area Marketing
CRM
Establishment of strongholds
New client development using existing client assets → Growth and development of research demand from the new clients
Simple& Standardized
Provision of services involving standardization
of simple studies
33Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Future Strategy Issues
Develop and maintain strongholds through industry and client specializationDevelopment of high-value-added research analysis and models that work with research conducted online Expand physician and patient panels
Build a network of physicians in private practice in collaboration with iMobile Inc. Build a network of staff physicians in collaboration with PLAMED Inc.
Greatly increase the core monitor network from the current 350,000 participants to 600,000 by March 2008 and develop a separate large-scale monitor networkExpanded utilization of current client assets
Provide services that generate repeat demand.Pursue horizontal approaches to new users within existing clientcompanies.
System augmentation and service level enhancementIncrease efficiency in research processesEnhance service provision systems.
Establishment of systems of related products and brands
34Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
The INTAGE Group’s Medical and Healthcare Strategy
ASKLEP (CRO), INTAGE SMO, Medical Marketing Research, healthcare-related systems, and SDI (OTC Drug Panel) – Total Medical Service SolutionRepTrack (MR Detailing system) to be launched in October
Research and Development
Production, Logistics Marketing Post-Marketing
CRO・Monitoring・DM, BS・Biostatistical Analysis・EDC (electronic data capture)
SMO・Clinical trial support service・ CRC dispatching・ Clinical trials system support
Medical Research
・Market studies ・Concept studies ・Sales forecasting・Promotion
Planning Support
・Production planning & support
Market Analysis, Product Databases・MR detailing & activity index (RepTrack)・Diabetes Web-based panel・OTC POS-Data sales index (SDI)・By-store-attribute shelf allocation data (INTAGE real POS)・OTC products databases (OTC-DI, JSM-DB)
GPSP and GVP Support・Early post-marketing studies, post-marketing studies・ Post-marketing utilizing EDC (CapToolA-sol)・Safety information collection and communication
Health Promotion Support
・ Health promotionsupport(Sukoyaka Support 21)
Marketing Information・Sales performance ・Sales planning support・Budget and results management ・Master control
MR Activities Support・Customer targeting (incaster) ・Total MR detailing support:: SFA・Area analysis, strategy allocation support (AreaManager)
SCM・Demand forecasting (EPOCH)・Production plan simulation・Delivery center review
35Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
ASKLEP Strategy Issues
The quest to be bestThe quest to be best--inin--classclass—— When the ASKLEP standard becomes the industry goal When the ASKLEP standard becomes the industry goal ——
Evolution toward group-level activities
Business structure establishment- Shift from a business execution model to cross-organizational management model-Strengthening of operational control and business development
Business process optimization- Minimization of the impact of structuralrisk in the CRO business-Optimal allocation & deployment of limited but competent staff
Engage in new businesses-CRA/CRC dispatch business-EDC business
36Copyright © 2005 INTAGE Inc. All rights reserved.
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THE INTELLIGENCE PROVIDER
Involvement with EDC Electronic Data Capture (EDC)Development and introduction of CapTool A-sol., an EDC tool
Web-based, EDC Post-Marketing Surveillance systemSystem design that is easy to use for physician end users
● Contract information
● Progress management
● Data fixing
● Affixation of seal and collection of fixed questionnaire
● Management of adverse event cases
InstitutionsInstitutions
Pharmaceutical Pharmaceutical manufacturermanufacturer
A医療機関 ● Case registration
● Questionnaire input
● Health desk● ID, password issuance● Data management● Statistical analysis
Registration dataRegistration data
Questionnaire dataQuestionnaire data
FollowFollow--up questionnaire up questionnaire datadata
FollowFollow--up questionnaire up questionnaire requestrequest
Adverse event mailAdverse event mail
Progress Progress confirmationconfirmation
Data fixing Data fixing instructioninstruction
Delivery (data, forms)Delivery (data, forms)
InquiriesInquiries
Data CenterData CenterData accumulation
37Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Rep Track MR Detailing Evaluation Index
A nationwide network of 1,500 private practice physician monitors (in collaboration with iMobile Inc.)
Collaboration has iMobile running physician monitor management, and INTAGE handling survey design, tabulation, analysis, and data provision.
Daily tracking of MR detailing activities via online surveys.
38Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Moving Forward with Integrated Solutions
By adopting an innovative organizational structure demonstrates the uniqueness of INTAGE as it charts a course to achieve further business growth across all divisions.
Research assets × Systems construction capabilitiesINTAGE Database Management: (client DB + research data + analysis ) × IT toolsSales Force Automation: (POS Data + panel data + product masters) × system development
Strategic strongholds: Database Management (DBM), Customer Relationship Management (CRM), Frequent Shopper Programs (FSP), Supply Chain Management (SCM), and Sales Force Automation (SFA)Database marketing strategy issues
Establishment of strongholds by means of industry specialization (automotive, banking and finance, etc.) and client specializationEnhancement of IT products and construction of a comprehensive CRM monitor network
SFA strategy issuesTargeting of panel survey clients in the FMCG and pharmaceuticals industriesLeveraging chain store POS analysis system to break through in the sectorDevelopment of a system to support manufacturer marketing activities
39Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Outlook for the Fiscal Year Ending March 31, 2006 (Consolidated)
23.8 283.0
Total
2.2 74.8
System Solutions
3.0 34.7
Medical Solutions
173.4 S a l e s18.5
Marketing Research and
Consulting
Operating income
(Hundred millions of yen)
Online research is expected to continue to grow sharply and drive increased revenues for the Group.
Panel services and Customized Research are also expected to perform well.
Implementing the new organization structure will activate integrated solutions.
The CRO business will develop favorably from factors including orders for long-term monitoring. INTAGE will sustain the uptrend in sales and profit, absorbing office relocation costs and new project investments.
Net income will increase sharply in the absence of the charge for transition obligation at the time of a change in accounting standards for retirement benefits(an extraordinary loss of about ¥400 million).
40Copyright © 2005 INTAGE Inc. All rights reserved.
18 May 2005
THE INTELLIGENCE PROVIDER
Factors That May Affect Future Business Performance
Market share expansion in the online research market fails to occur as anticipated due to intensification of competition, and INTAGE struggles to secure dominance in the market. Time is required for establishment of new products such as Personal Eye and Rep Track and recovery of investment is delayed. Dulling of growth in SRI at a time of share saturation and cannibalization of other panel surveys occur. The business in China is destabilized due to increased anti-Japanese sentiment intensifies.The marketing research industry becomes entangled in global realignment. INTAGE fails to keep up with expansion of the CRO and SMO markets.The number of clients decreases due to corporate mergers, or revenues fall due to cost cutting pressure.
Risk FactorsINTAGE succeeds in increasing its share of the online research market and achieves a sharp sales increase alongside market growth. INTAGE creates new demand as establishment of the market for Personal Eye and attainment of synergy with SCI make it possible to provide new value.INTAGE’s integrated solutions are recognized by clients, INTAGE acquires a clear position in the industry, and a trend toward higher revenue takes shape. INTAGE achieves continued growth in the medical solutions business as growth in the CRO market and SMO market continues and commercialization of business in related areas progresses.
Upside Factors
Plans, expectations, and strategies included in this document that are not historical facts are forward-looking statements related to INTAGE Inc. or the INTAGE Group decided by management based on currently available information. Accordingly, the reader should avoid placing undue reliance on these forward-looking statements. INTAGE cautions that a number of factors affecting the business could cause actual results to differ materially from these forward-looking statements. These include, but are not limited to, general economic conditions and changes or reforms in the industries in which our clients operate.