Summary of Consolidated Financial Results
for the Six Months Ended December 31, 2022 (Japanese GAAP)
February 7, 2023 | |||
Company name: | INTAGE HOLDINGS Inc. | Stock listing: Tokyo Stock Exchange | |
Code number: | 4326 | URL | https://www.intageholdings.co.jp/ |
Representative: | Noriaki Ishizuka, President and Representative Director | ||
Contact person: | Toru Takeuchi, Director | Tel: +81-3-5294-7411 |
Planned filing of quarterly report: | February 7, 2023 |
Planned start of dividend payments:- |
Preparation of supplementary explanations of quarterly financial results: Yes
Quarterly financial results presentation held: Yes (for institutional investors and analysts)
(Amounts are rounded off to nearest million yen.)
1. Consolidated Financial Results for the Six Months Ended December 31, 2022 (July 1, 2022, to December 31, 2022)
(1) Consolidated Operating Results (Cumulative) | (Percentages indicate year-on-year changes.) | |||||||||||
Net sales | Operating income | Ordinary income | Net income attributable | |||||||||
to owners of parent | ||||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||
29,960 | 2.8 | 1,976 | -24.6 | 2,213 | -18.1 | 1,651 | -16.6 | |||||
December 31, 2022 | ||||||||||||
Six months ended | 29,131 | 6.6 | 2,619 | 39.0 | 2,701 | 19.9 | 1,980 | 22.8 | ||||
December 31, 2021 | ||||||||||||
(Note) Comprehensive income: | Six months ended December 31, 2022: ¥1,727 million (8.6%); | |||||||||||
Six months ended December 31, 2021:¥1,591 million (16.6%) | ||||||||||||
Net income per share | Net income per share | |||||||||||
after dilution | ||||||||||||
Six months ended | Yen | Yen | ||||||||||
42.56 | - | |||||||||||
December 31, 2022 | ||||||||||||
Six months ended | 49.74 | - | ||||||||||
December 31, 2021 | ||||||||||||
(Note) | For the purpose of calculating net income per share, the number of shares of the Company held in trust for directors' compensation | |||||||||||
was included in the number of treasury shares, which was to be deducted from the calculation of the average number of shares | ||||||||||||
during the period. | ||||||||||||
(Note) | The Company finalized the provisional accounting treatment for the business combination at the end of the fiscal year ended June | |||||||||||
2022. The figures for the six months ended December 31, 2021, reflect the important revision of initial allocation of acquisition | ||||||||||||
costs following the finalization of the provisional accounting treatment. |
- Consolidated Financial Position
Total assets | Net assets | Equity ratio | ||||||||
Millions of yen | Millions of yen | % | ||||||||
As of December 31, 2022 | 45,158 | 29,140 | 63.9 | |||||||
As of June 30, 2022 | 45,633 | 30,823 | 66.8 | |||||||
(Reference) Total shareholders' | equity: As of December 31, 2022: ¥28,869 million | |||||||||
As of June 30, 2022: ¥30,466 million | ||||||||||
2. Dividends | ||||||||||
Dividends per share | ||||||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | ||||||
Yen | Yen | Yen | Yen | Yen | ||||||
Year ended June 30, 2022 | - | 0.00 | - | 38.00 | 38.00 | |||||
Year ending June 30, 2023 | - | 0.00 | ||||||||
Year ending June 30, 2023 | - | 42.00 | 42.00 | |||||||
(Forecast) | ||||||||||
(Note) Revisions to the most recently | disclosed dividend forecasts: None |
3. Consolidated Earnings Forecasts for the Fiscal Year Ending June 30, 2023 (July 1, 2022, to June 30, 2023) (Percentages indicate year-on-year changes.)
Net income | Net income per | ||||||||||
Net sales | Operating income | Ordinary income | attributable to owners | ||||||||
of parent | share | ||||||||||
Full year | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||
63,300 | 5.1 | 4,650 | 0.0 | 5,000 | 1.0 | 4,000 | 17.0 | 105.06 | |||
(Note) Revisions | to the most | recently | disclosed earnings forecasts: Yes |
(Note) The Company finalized the provisional accounting treatment for the business combination at the end of the fiscal year ended June 2022. The year-on-year changes reflect the important revision of initial allocation of acquisition costs following the finalization of the provisional accounting treatment.
* Notes | |
(1) Changes in significant subsidiaries during the six months under review: | None |
(Changes in specified subsidiaries resulting in change in scope of consolidation) | |
New: - companies (Company name) | |
Excluded: - companies (Company name) |
- Application of Accounting Treatment Specific to the Preparation of Quarterly Consolidated Financial Statements: Yes
- Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial
statements: | ||||||
1) | Changes in accounting policies due to revisions to accounting standards and other regulations: Yes | |||||
2) | Changes in accounting policies due to other reasons: | None | ||||
3) | Changes in accounting estimates: | None | ||||
4) | Restatement of prior period financial statements: | None | ||||
(4) Number of shares issued and outstanding (common shares) | ||||||
1) | Number of shares issued at the end of | Six months ended | 40,426,000 | Year ended June 30, | 40,426,000 | |
the period (including treasury shares) | December 31, 2022 | 2022 | ||||
2) | Number of treasury shares at the end of | Six months ended | 2,352,785 | Year ended June 30, | 1,181,785 | |
the period | December 31, 2022 | 2022 | ||||
3) | Average number of shares during the | Six months ended | Six months ended | |||
period (cumulative from the beginning of | 38,795,697 | 39,815,923 | ||||
the fiscal year) | December 31, 2022 | December 31, 2021 | ||||
* This quarterly financial results report is outside the scope of quarterly review procedures by certified public accountants or auditing firms.
* Explanation on the appropriate use of earnings forecasts and other special notes
The forward-looking statements made in this document, including the earnings forecasts, are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual performance and other results may differ materially owing to various factors. For the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof, please refer to section "(3) Explanation of Forward-looking Information, Including Consolidated Earnings Forecasts" of "1. Qualitative Information Regarding the Consolidated Results for the Six Months under Review" on page 4 of the attached material.
INTAGE HOLDINGS Inc. (4326)
Summary of Consolidated Financial Results for the Six Months Ended December 31, 2022
- Table of Contents of the Attached Material
1. Qualitative Information Regarding the Consolidated Results for the Six Months under Review | ||
(2) | Explanation of Financial Position | 4 |
(3) | Explanation of Forward-looking Information, Including Consolidated Earnings Forecasts | 4 |
2. Consolidated Financial Statements and Notes Thereto | 5 | |
(1) | Consolidated Balance Sheet | 5 |
(2) | Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | 7 |
(3) | Consolidated Statements of Cash Flows | 9 |
(4) | Notes to Quarterly Consolidated Financial Statements | 11 |
(Note on assumptions for going concern) | 11 | |
(Note in the event of major change in shareholders' equity) | 11 | |
(Application of accounting treatment specific to the preparation of quarterly consolidated | ||
financial statements) | 11 | |
(Changes in accounting policies) | 11 | |
(Additional information) | 11 | |
(Segment information) | 12 | |
(Material subsequent events) | 13 |
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INTAGE HOLDINGS Inc. (4326)
Summary of Consolidated Financial Results for the Six Months Ended December 31, 2022
1. Qualitative Information Regarding the Consolidated Results for the Six Months under Review
(1) Explanation of Operating Results
During the six months under review (July 1, 2022, to December 31, 2022), the Japanese economy is expected to see a moderate recovery as a result of various government policies and the promotion of vaccinations as a measure against COVID-19. However, the environment surrounding customers remains uncertain due to factors including the impact of global tightening, in addition to rising raw material prices and supply constraints mainly owing to the prolonged situation in Ukraine.
Meanwhile, the economies of the Asian region where the Group operates are showing signs of recovery.
The Group has steadily caught up on research needs in order to capture the challenges for customer businesses affected by various changes in social conditions, such as COVID-19, based on stable business operations through a new way of working in a hybrid system of remote work and going to the office.
Under these circumstances, the Group has made aggressive investment based on the growth strategy in the fiscal year under review, the final year of its 13th Medium-Term Management Plan (three-year plan), under the Group's basic policy of "Change the design of business!! - together with customers and consumers, who are changing - Reframe, Connect, Create."
In the Marketing Support (Consumer Goods & Services) segment, we aim to achieve profitability in Japan by promoting preparations for establishing the CX marketing platform from 2024 onward, revamping SCI, and expanding sales of next-generation research by Research and Innovation Co.,Ltd., in addition to expanding existing businesses and expanding domains.
Overseas, we are building a business structure to achieve stable profitability, strengthening our online shift, and establishing a business foundation for segmentation.
In the Marketing Support (Healthcare) segment, we are strengthening medical real-world data, such as the renewal of the integrated database (Cross Fact) from the viewpoint of healthcare consumers. In addition, by continuing to develop (invest in) data science human resources, we will provide additional value. As a result, we work to expand our business domains to support customers in the decision-making phase.
In the Business Intelligence segment, we expand the scope of DX support by leveraging our strengths in human flow analysis, data utilization, and data visualization, as well as collaborating with partners, in order to realize a business structure that is robust enough to withstand environmental changes.
Across the Group as a whole, we work to strengthen capital policies based on a stable financial base, create business through intergroup alliances, implement measures to increase non-financial capital, including human capital, and increase value by strengthening sustainability.
As a result of these efforts, the INTAGE Group's consolidated net sales for the six months under review amounted to ¥29,960 million (up 2.8% from the same period of the previous year), with an operating income of ¥1,976 million (down 24.6%), ordinary income of ¥2,213 million (down 18.1%), and net income attributable to owners of parent of ¥,651 million (down 16.6%).
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INTAGE HOLDINGS Inc. (4326)
Summary of Consolidated Financial Results for the Six Months Ended December 31, 2022
The results by business segment are described below.
1) Marketing Support (Consumer Goods & Services)
In the Marketing Support (Consumer Goods & Services) segment, sales increased and profit decreased, consolidated net sales for the segment amounted to ¥19,241 million (up 5.9% from the same period of the previous year), and operating income decreased to ¥639 million (down 43.9%).
Panel surveys, the core business of the segment, and the custom research business achieved higher growth than the previous year, but fell below the initial forecast, due to deterioration of the business environment of consumer goods manufacturers, which are the main customer group, as a result of rising raw material costs and the depreciation of the yen.
Meanwhile, Research and Innovation Co.,Ltd., which operates CODE (a smartphone app that allows users to register shopping information and commodity ratings), performed well.
As for overseas, sales in Asian nations excluding Hong Kong increased year on year due to recovery from the impact of COVID-19 and progress of the online shift.
In terms of investment activities, overall progress for the year was as planned for establishing the CX marketing platform and revamping SCI.
Profit decreased owing to lower-than-expected growth in core businesses, increased investment and spending to make up for stagnant investment and spending in the previous year, and the expansion of investments made in full swing, especially in the new SCI.
2) Marketing Support (Healthcare)
In the Marketing Support (Healthcare) segment, both sales and profit decreased; consolidated net sales of the segment amounted to ¥7,298 million (down 2.8% from the same period of the previous year), with an operating income of ¥1,116 million (down 14.4%).
At INTAGE Healthcare Inc., the research business, its mainstay, has fallen below the level of the previous year due to the impact of the organizational changes in the previous year, we are continuing to strengthen our manufacturing and sales systems.
The profitability of the post-marketing surveillance of the CRO (contract research organization) business has improved due to improvement of the overall business, resulting in sales that exceeded those of the previous year and improved profitability.
In KYOWA KIKAKU LTD., both the promotion and education businesses have been sluggish due to a decrease in new drug launch projects.
Profits were affected by the decline in sales of the research business, although CRO sales exceeded the previous year's level.
- Business Intelligence
In the Business Intelligence segment, sales decreased and profit increased; consolidated net sales of the segment amounted to ¥3,420 million (down 1.1% from the same period of the previous year), with an operating income of ¥220 million (up 26.4%).
At INTAGE TECHNOSPHERE Inc., in this business, while sales of solutions for existing industries, mainly the travel industry, showed signs of recovery, the acquisition of projects in the DX support area remained steady.
In addition, sales at Buildsystem Co.,Ltd. and NSK Co.,Ltd. also exceeded previous-year levels. Profits increased owing to efforts to reduce costs and expenses, despite a decrease in sales.
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Intage Holdings Inc. published this content on 20 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 February 2023 14:59:03 UTC.