Know today, Power tomorrow - Intage Holdings Inc...2009 INTAGE listed on the First Section of the Tokyo Stock Exchange 2010 Launched SCI-personal (nationwide individual consumer panel

Knowtoday,Powertomorrow

INTAGE GROUPREPORT

2018

THE INTAGE GROUP WAY

We connect our customers to their customers,to create a prosperous society of limitless possibilities.

Know today, Power tomorrow

01 Our Present02 The INTAGE Group’s History and

Operating Environment04 The INTAGE Group’s Profit Generation

Model and Solutions06 The INTAGE Group’s Core Strength

and Objectives08 Consolidated Performance Highlights10 Message from the President15 Feature: R&D Initiatives17 Overview of Services19 Review of Operations 19 Marketing Support (Consumer Goods

& Services) 20 Marketing Support (Healthcare) 21 Business Intelligence22 Sustainability

25 Corporate Governance26 Management Team28 Comments from Outside Directors29 Management’s Discussion and Analysis32 Business-Related Risks34 Consolidated Financial Statements 34 Consolidated Balance Sheets 36 Consolidated Statements of Income 36 Consolidated Statements of

Comprehensive Income 37 Consolidated Statements of Changes in

Net Assets 38 Consolidated Statements of Cash Flows39 Business Alliances and Cooperation/

Main IR Activities40 Corporate Data/INTAGE Group41 Stock Information

Collecting, processing and analyzing data, and giving information value

That is the greatest strength of the INTAGE Group.

We apply this strength to support the marketing activities and business strategies of customers working in various industries and business categories, including manufacturers, service providers and government agencies. Through these activities, the INTAGE Group also contributes to consumers, who are the ultimate end-users.

In a society inundated with complex information, we can pioneer the future by ascertaining current trends and using that knowledge to connect people, products and services. We will continue to evolve in our quest for a society in which products, healthcare and services that match people’s needs are plentiful, and consumers have a greater range of options.

Contents

Forward-Looking Statements This INTAGE Group 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.

Sales Growth Market Leader in Japan

Consolidated net sales for the fiscal year ended March 31,

2018 were ¥50.4 billion, up 5.2% from the previous fiscal

year. This marks the INTAGE Group’s 25th consecutive

year of sales growth.

The INTAGE Group began conducting panel research in

1960, and since then has 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.

2017 Global Top 10 Marketing Research Companies

Source: Marketing News, October 2017 edition (American Marketing Association) * Revenue for the fiscal year ended March 31, 2017

Expansion of Overseas Operations Global Position

Since its founding, the INTAGE Group has won the support

of a long list of clients as Japan’s leading marketing

research provider. We rank first in Japan and ninth

worldwide in the latest rankings.

The INTAGE Group is expanding its business presence

in Asia, and has established operating bases in China,

South Korea, Hong Kong, Macao, Thailand, Vietnam,

India, Singapore and Indonesia, as well as in the

United States.

Overseas Operations (As of July 1, 2018)

China

South Korea

Hong Kong MacaoThailand

India

Vietnam

Singapore

IndonesiaUnited States

Our Present

Rank Company Name and Location of Headquarters

2016 Global Revenue(Millions of U.S. dollars)

1 Nielsen Holdings N.V. (U.K.) 6,309.0

2 Kantar (U.K.) 3,847.0

3 QuintilesIMS (U.S.) 3,301.0

4 Ipsos SA (France) 1,962.0

5 GfK SE (Germany) 1,677.2

6 Information Resources, Inc. (U.S.) 1,026.7

7 Westat Inc. (U.S.) 511.5

8 Wood MacKenzie (U.K.) 442.8

9 INTAGE HOLDINGS Inc. (Japan) 441.6*

10 dunnhumby (U.K.) 429.0

Years of Sales Increases

Countries and Regions

01INTAGE GROUP REPORT 2018

The INTAGE Group’s History and Operating Environment

Since its founding in 1960, the INTAGE Group has continued to provide a variety of services tailored to the needs of its customers in addressing changes in consumers and the consumer environment, and has shown steady growth without being significantly affected by general economic conditions.

Our History

1960

Consolidated Net Sales

1970 1980

From the Company’s founding in 1960, conducted and gradually systematized panel research and data collection and analysis.

1960 Established Marketing Intelligence Corporation (MiC) (now INTAGE HOLDINGS Inc.)

Launched SDI (nationwide drugstore tracking research) Began custom research

1964 Launched SCI (nationwide individual consumer panel research)

Strengthened and expanded systems in step with changing times.

1973 Completed Head Office in Hibarigaoka, Tokyo1987 Net sales surpassed ¥10 billion1988 Began switch to SCI “home scan” data gathering

system

Built a variety of panels and began development of retail POS tracking. Made bold moves into big data utilization with the arrival of the Internet.

1994 Launched SRI (FMCG* retail tracking research) * Fast-moving consumer goods

Expanded business operations in Asia and focused on development of new services in the communications area.

2000 Adopted “Intelligence Provider” as business vision IBRD Japan Co., Ltd. (now ASKLEP Inc.) became a

subsidiary2001 Changed company name to INTAGE Inc.

Shares listed on JASDAQ2002 Established INTAGE Marketing Consulting

(Shanghai) Co., Ltd. (now INTAGE CHINA Inc.)2005 Relocated Head Office to Akihabara, Tokyo2007 TM Marketing Inc. (now ANTERIO Inc.) became 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 (nationwide individual consumer panel research)

2011 FTA Research and Consultant, LLC (now INTAGE VIETNAM LIMITED LIABILITY COMPANY) became 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.

became a subsidiary2013 Launched i-SSP

Established INTAGE SINGAPORE PTE. LTD. CONSUMER SEARCH HONG KONG LIMITED

became a subsidiary Transitioned to holding company structure and

changed company name to INTAGE HOLDINGS Inc. Established PT. INTAGE INDONESIA

2014 Name of SCI-personal changed to SCI Transferred clinical research support operations and

related businesses of ASKLEP Inc. to A2 Healthcare Corporation and sold all issued and outstanding shares of A2 Healthcare Corporation to Itochu Corporation

Sales surpassed ¥40 billion 2015 Established INTAGE CONSULTING Inc. 2016 Established DataAge Inc. Jointly established INTAGE Open Innovation

Investment Limited Partnership with SBI Investment Co., Ltd.

Kyoto Constella Technologies Co., Ltd. became a subsidiary of ASKLEP Inc.

2017 Established INTAGE USA Inc. 2018 Buildsystem Co., Ltd. became a subsidiary Sales surpassed ¥50 billion

Timeline

02 INTAGE HOLDINGS INC.

Consolidated net sales

¥50.4 billionFiscal year ended March 31, 2018

1990 2000 2010

Growth of the Market Research Industry in Japan*

176.0 176.6

+0.9%–5.3%

+1.6% +1.9% +5.1% +0.9% +2.7% +3.2% +7.9%

167.2 169.9 173.1181.9 183.5

188.5194.6

209.9

230

190

210

0

150

170

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(Billions of yen)

(Fiscal years)

2018

In recent years, drastic changes have occurred not only in the business environment, but in consumers’ circumstances as well. In addition to the diversification and segmentation of consumer values, rapid advances in digitalization due to the spread of a variety of devices and media have given rise to big data, the use of which is continuing to spread. The ability to gather a wide variety of information and process it in real time has become expected in marketing.

Our Changing Operating Environment

Digitalization

The spread of the Internet has enabled, for example, books to be read on electronic devices rather than in printed form. In the same way, the marketing research industry has been shifting away from traditional methods of conducting surveys, such as by mail, through door-to-door interviews and on paper, and there has been a substantial increase in Internet-based questionnaires administered via smartphone and personal computer.

Spread of Social Media

Spearheaded by social media sites such as Facebook and Twitter, methods and opportunities for communication are expanding with the increase in person-to-person interaction via websites and smartphone apps.

Diversification of Media

Media have diversified, with mass media, such as television, newspapers, magazines and radio, now joined by e-mail and the Internet, as well as social media associated with the spread of smartphones.

Source: Marketing Research Business Status Survey, Japan Marketing Research Association* Percentage figures indicate growth versus previous year.

Diversification and Segmentation of Values

Due to factors including a shift away from television, magazines and radio in tandem with the popularization of the Internet, and changes in family composition and economic conditions, the values of consumers in Japan have become more diversified and segmented than ever.


The INTAGE Group’s Profit Generation Model and Solutions

Expert Human Resources and an Environment That Supports ThemThe INTAGE Group is supported by highly specialized human resources

with expertise in data analysis and other research, and strong proficiency in marketing.We are also ambitious in conducting workstyle reforms as we strive to provide

a comfortable working environment for each employee.

Stable Base for Profit Generation Businesses mainly focused on consumer data from panel research including SCI (nationwide individual consumer panel research), SRI (nationwide retail tracking research)

and SDI (nationwide drugstore tracking research)

Evolution of Services Groundwork for the Future

Building on and providing a wide range of services in response to a

changing environment

R&D initiatives

Enhancing and raising the efficiency of existing businesses

Businesses that add further value to data

Human resources that are a driving force in the creation of new value and services that build on our core competency in panel research are among the resources called upon by the INTAGE Group to accelerate business development and technological research initiatives. In doing so, we are contributing to the creation of a prosperous society with a wider range of choices for consumers.

Our Profit Generation Model

See pages 17–18.

Commentary in this report Commentary in this report

See pages 10–16.

See page 17.

See page 23.


Business Intelligence

See page 21.

Marketing Support (Healthcare)

See page 20.

Marketing Support (Consumer Goods

& Services)

See page 19.

Data-driven solutions and services that start

with consumers

The INTAGE Group’s businesses consist of Marketing Support (Consumer Goods & Services), Marketing Support (Healthcare) and Business Intelligence segments.

Our Solutions

cust

om r

esea

rch

prescription drug surveys(Contract research organization)

OTC andData analysis

Glo

bal r

esea

rch

Com

mun

icat

ion

Pan

el r

esea

rch/

Research & Development

IT solutions Systems development

IT infra

struc

tu

re in

stal

latio

n

Prescription data analysis

EDC

systems

CRO


The INTAGE Group’s Core Strength and Objectives

Data Collection Data Cleaning, Tabulation

Processing, Analysis, Reporting

Value-Creating O

utput

Data collected through various methods

including panel research and custom research

Accumulated expertise, techniques and

knowledge

Various products and methods

Handling Techniques for Data Accumulated in Research

Provision of useful information Precise grasp of needs

Understanding of marketing Understanding of markets Research expertise

Expert Human Resources

Accumulation of more experience

Customer and external data collected without

specific purpose

Development of new methods through R&D,

alliances, etc.

Exploration and development of new research methods

Creation of services that meet customer needs

Technological innovation

Greater efficiency

Responding to a Changing Environment and Generating New Value

Consumers are always changing. We deepen understanding of consumers by linking assets (such as data held by the Group, handling techniques, expertise and research functions) with external data, and thereby respond to the shifting needs and demands of our customers. This is the core strength of the INTAGE Group.

Our Core Strength in the Value Creation Process


Our customer base has gradually expanded from our core client group, manufacturers, to encompass a wide range of trades and industries. Along with this growth, the INTAGE Group aims to build a cross-industry system for the flow of information linked by marketing. Moreover, by making ourselves indispensable to our customers’ growth and value creation as a B-to-B company, we will also be able to render service to the consumers of the future.

Our Objectives

Broadening client base

Know today, Power tomorrow

We connect our customers to their customers, to create a prosperous society

of limitless possibilities.

THE INTAGE GROUP WAY

Offer a wide range of solutions by enhancing our services in line with customer needs and

changes in consumers, based on the INTAGE Group’s core strength

From Information Partner to Strategic PartnerLink customer, external

and INTAGE Group data to go beyond research with support for customer marketing

activities as a whole

Publishing

Government agencies

Advertising agencies

AutomotiveResearch and

educationinstitutes

HR

Travel, tourism, transport

Apparel, fashion

Finance, insurance

Energy, housing

Distribution, retail, food and

beverage

Home appliances, electronics

Pharmaceutical manufacturers

Food and daily item

manufacturers

Entertainment, service industry

Communications


Notes: 1. The Company implemented a stock split at a ratio of two shares for each share of common stock on October 1, 2017. Accordingly, figures have been calculated assuming this stock split took place at the beginning of the fiscal year ended March 31, 2014.

2. The Company implemented a stock split at a ratio of two shares for each share of common stock on October 1, 2017. Accordingly, dividend amounts for the fiscal year ended March 31, 2014 and thereafter take this stock split into account.

Net SalesOperating Income/Operating Margin

Net Income Attributable to Owners of Parent/Net Income per Share1

4.024.02

8.08.0

2.46

1.641.64

2.872.87

40.83

61.52 58.2871.91 76.0876.08

3.053.05

0

150

120

90

60

30

0

2.4

3.0

1.8

1.2

0.6

(Billions of yen) (Yen)

Net Income Attributable to Owners of Parent (left scale)Net Income per Share (right scale)

2.322.32

0

15

9

12

6

3

0

5.0

4.0

3.0

2.0

1.0

(Billions of yen) (Billions of yen) (%)50.4950.49

20180

50.0

30.0

40.0

10.0

20.0

43.9242.5045.48

47.9847.98

20152014 2016 2017

3.573.503.883.88

4.26

8.2 8.1 8.5 8.9

Operating Income (left scale)(Years ended March 31)

Operating Margin (right scale)

201820152014 2016 2017(Years ended March 31)

201820152014 2016 2017(Years ended March 31)

Consolidated Performance Highlights INTAGE HOLDINGS Inc. and Consolidated Subsidiaries

Years ended March 31 2018 2017 2016 2015 2014

Millions of yen Thousands of U.S. dollars Millions of yen Thousands of

U.S. dollars Millions of yen Thousands of U.S. dollars Millions of yen Thousands of

U.S. dollars Millions of yen Thousands of U.S. dollars

For the Year:

Net sales ¥50,499 $475,329 ¥47,987 $427,729 ¥45,481 $403,629 ¥43,925 $365,523 ¥42,508 $413,019

Cost of sales 35,732 336,332 34,603 308,432 33,257 295,145 31,723 263,984 31,107 302,244

Selling, general and administrative expenses 10,743 101,120 9,115 81,246 8,340 74,014 8,630 71,814 7,895 76,710

Operating income 4,023 37,867 4,268 38,042 3,883 34,460 3,571 29,716 3,505 34,055

Net income attributable to owners of parent 3,050 28,708 2,871 25,590 2,326 20,642 2,463 20,495 1,642 15,954

Cash flows from operating activities 3,188 30,007 4,072 36,295 1,713 15,202 2,947 24,523 3,612 35,095

Cash flows from investing activities (2,414) (22,722) (2,110) (18,807) (1,791) (15,894) 2,327 19,364 (1,151) (11,183)

Cash flows from financing activities 399 3,755 (1,300) (11,587) 1,566 13,897 (4,940) (41,108) (592) (5,752)

Cash and cash equivalents at end of year 11,622 109,393 10,418 92,860 9,812 87,078 8,366 69,618 7,926 77,011

At Year-End:

Total assets 41,486 390,493 39,067 348,221 36,830 326,854 33,301 277,115 33,740 327,827

Total net assets 27,428 258,170 23,771 211,881 21,338 189,368 19,917 165,740 17,171 166,838

Equity ratio (%) 65.5 60.3 57.5 59.3 50.5

Per Share Data (Yen/Dollars):

Net income1 76.08 0.71 71.91 0.64 58.28 0.51 61.52 0.51 40.83 0.39

Total shareholders’ equity1 660.69 6.21 589.87 5.25 530.09 4.70 494.50 4.11 423.24 4.11

Cash dividends2 20.00 0.18 17.50 0.15 16.25 0.14 15.00 0.12 13.75 0.13

Financial Data (%):

Operating margin 8.0 8.9 8.5 8.1 8.2

ROA 10.7 11.6 11.3 10.3 10.7

ROE 12.0 12.8 11.4 13.4 10.1


Total Assets/Total Net Assets/Equity Ratio ROA/ROE

Consolidated Payout Ratio/Cash Dividends per Share2

12.012.0

10.7

11.4

10.111.3

12.8

10.710.7

10.3

13.4

11.6

20152014 2016 2017 20180

16

12

8

4

(%)

20.0020.00

26.326.3

0

30

10

20

20180

75

50

25

(%) (Yen)

ROEROA Consolidated Payout Ratio (left scale)

Cash Dividends per Share (right scale)Total Assets (left scale)Total Net Assets (left scale)Equity Ratio (right scale)

0

90

30

60

(Billions of yen) (%)

20180

45.0

30.0

15.0

27.4227.42

41.4841.4839.06

20152014 2016 2017

17.1719.91 21.33

33.74 33.3036.83

50.550.5

59.357.5 60.3

65.565.5

23.77 15.0016.25

24.3

33.7

24.528.1

17.50

20152014 2016 2017

13.7513.75

(As of March 31) (Years ended March 31) (Years ended March 31)

Years ended March 31 2018 2017 2016 2015 2014

Millions of yen Thousands of U.S. dollars Millions of yen Thousands of

U.S. dollars Millions of yen Thousands of U.S. dollars Millions of yen Thousands of

U.S. dollars Millions of yen Thousands of U.S. dollars

For the Year:

Net sales ¥50,499 $475,329 ¥47,987 $427,729 ¥45,481 $403,629 ¥43,925 $365,523 ¥42,508 $413,019

Cost of sales 35,732 336,332 34,603 308,432 33,257 295,145 31,723 263,984 31,107 302,244

Selling, general and administrative expenses 10,743 101,120 9,115 81,246 8,340 74,014 8,630 71,814 7,895 76,710

Operating income 4,023 37,867 4,268 38,042 3,883 34,460 3,571 29,716 3,505 34,055

Net income attributable to owners of parent 3,050 28,708 2,871 25,590 2,326 20,642 2,463 20,495 1,642 15,954

Cash flows from operating activities 3,188 30,007 4,072 36,295 1,713 15,202 2,947 24,523 3,612 35,095

Cash flows from investing activities (2,414) (22,722) (2,110) (18,807) (1,791) (15,894) 2,327 19,364 (1,151) (11,183)

Cash flows from financing activities 399 3,755 (1,300) (11,587) 1,566 13,897 (4,940) (41,108) (592) (5,752)

Cash and cash equivalents at end of year 11,622 109,393 10,418 92,860 9,812 87,078 8,366 69,618 7,926 77,011

At Year-End:

Total assets 41,486 390,493 39,067 348,221 36,830 326,854 33,301 277,115 33,740 327,827

Total net assets 27,428 258,170 23,771 211,881 21,338 189,368 19,917 165,740 17,171 166,838

Equity ratio (%) 65.5 60.3 57.5 59.3 50.5

Per Share Data (Yen/Dollars):

Net income1 76.08 0.71 71.91 0.64 58.28 0.51 61.52 0.51 40.83 0.39

Total shareholders’ equity1 660.69 6.21 589.87 5.25 530.09 4.70 494.50 4.11 423.24 4.11

Cash dividends2 20.00 0.18 17.50 0.15 16.25 0.14 15.00 0.12 13.75 0.13

Financial Data (%):

Operating margin 8.0 8.9 8.5 8.1 8.2

ROA 10.7 11.6 11.3 10.3 10.7

ROE 12.0 12.8 11.4 13.4 10.1

Sales by Segment and Composition Ratio

Fiscal 2018 Results

The following exchange rates applied: March 31, 2018: US$1 = ¥106.24 March 31, 2017: US$1 = ¥112.19 March 31, 2016: US$1 = ¥112.68 March 31, 2015: US$1 = ¥120.17 March 31, 2014: US$1 = ¥102.92

Marketing Support(Consumer Goods & Services)

¥33,186 million

$312,368 thousand


¥11,070 million

$104,198 thousand

Business Intelligence¥6,243 million

$58,763 thousand

65.7%

22.0%

12.3%

( )

Total Net Sales

¥50,499million

$475,329thousand


Toward the steady implementation

and rollout of our plan to become a

strategic partner to our customers

Kenji MiyakubiPresident and Representative DirectorINTAGE HOLDINGS Inc.

Message from the President

INTAGE HOLDINGS INC.10

Overview of the 12th Medium-Term Management Plan and Fiscal 2018 Results

We are advancing three strategic points to become a strategic partner to our customers.Today, as big data and the IoT become increasingly commonplace, society is inundated with a wide variety of information that must be processed and utilized in real time. Born from a sense of crisis that rigid adherence to traditional marketing research offers a limited future, the INTAGE Group embarked upon its 12th Medium-Term Management Plan in the fiscal year ended March 31, 2018 (fiscal 2018). Covering the three-year period of fiscal 2018–2020, the plan’s basic policy is Take the Initiative—in the field of data-activation. As information becomes increasingly crucial for all companies, this policy addresses transitioning from an information partner to our customers, to demonstrating our value as a strategic partner. From its inception, the plan has focused on three strategic points.

The first strategic point is to develop an R&D framework for creating growth drivers. To effectively utilize our resources and capabilities with an awareness of Group-wide synergy, we have established and are proactively developing the INTAGE Group R&D Center as a virtual organization. Moreover, in addition to securing and training data scientists, we will use corporate venture capital and other means to work with external partners to accelerate business development, technology research and innovation.

The second strategic point is to evolve business domains and increase data value. In the Marketing Support (Consumer Goods & Services) segment, we decided to conduct a renewal of SRI, one of our flagship products, and are steadily advancing design and development. In the Marketing Support (Healthcare) and Business Intelligence segments, we intend to strengthen existing operations as well as cultivate businesses stemming from new ideas.

The third strategic point is to take on the challenge of workstyle reform. We aim to create a workplace where all of our diverse employees, as professionals, can play active, fulfilling roles. We will also raise productivity with workstyles suited to each team or individual, thus generating a higher level of added value than ever before.

Growing our businesses and strengthening our core competencies will be key to achieving the targets of the 12th Medium-Term Management Plan. We realize the necessity of concrete investments, and will maintain the ratio of R&D expenses to net sales at the 2% level rather than the former level of 1%. At the same time, we will ensure solid profitability and plan to maintain the consolidated operating margin at the 8% level (for the 3-year period of fiscal 2018–2020).

12th Medium-Term Management Plan (Fiscal 2018–2020)

Take the Initiative—in the field of data-activation

Group Basic Policy

1. Put more effort into and steadily roll out an R&D framework for creating growth drivers

2. Ensure the evolution of business domains and improvement in data value

3. Accelerate workstyle reform

Strategic Points (Fiscal 2019)

Maintain the consolidated operating margin at the 8% level and the ratio of R&D expenses to net sales at the 2% level

Management Numerical Targets (Fiscal 2019)

Internet of Things (IoT)

The networking of many different types of objects in the physical world through embedded devices that allow mutual communication and control via an Internet connection.

Big Data

Generally, extremely large data sets that are generated and recorded in various types and formats every day.

Corporate Venture Capital (CVC)

A mechanism for companies to invest their own capital directly in external startup companies. Unlike typical venture capital, which gathers capital from investors and targets capital gains, the aim of CVC is often to generate synergy with a company’s main business. The INTAGE Group established the INTAGE Open Innovation Fund in partnership with SBI Investment Co., Ltd. in October 2016.

SRI

Nationwide retail tracking research

See page 17.


Results for fiscal 2018, the first year of the 12th Medium-Term Management Plan, reached record highs, with consolidated net sales exceeding ¥50 billion and net income attributable to owners of parent exceeding ¥3 billion. Although operating income decreased slightly from the previous fiscal year, this was expected due to the steady execution of our planned investments including R&D activities and the renewal of SRI. The operating margin also reached the target level of 8%.

Progress under Strategic Points of the 12th Medium-Term Management Plan

Each of our priority strategies led to reassuring results. We are entering the next phase – ensuring implementation and rollout.We made solid progress in the first year of the plan, achieving reassuring results under each of the plan’s strategic points.

For R&D, the structure set in place through the establishment of the INTAGE Group R&D Center during fiscal 2018 is producing results. Specifically, it has brought together more than 30 themes worthy of deeper study. Because the R&D Center is a virtual organization, the best human resources for each theme can participate across Group boundaries, and joint research by multiple companies has also started, incorporating Group companies outside Japan, among others. The initial testing stage can cost as little as a few hundred thousand yen, or up to several million yen at the most, so budgetary considerations are left to the discretion of respective workplaces. In such R&D activities, we consider it important to facilitate appealing activities that help to motivate and retain young talent.

In addition, the INTAGE Open Innovation Fund has invested in a total of more than 10 companies in a wide range of fields from those strongly connected to existing businesses to entirely unrelated fields. Using both the R&D Center, which centralizes the Group’s internal knowledge, and CVC to utilize external resources, we will step up our efforts and steadily roll out an R&D framework to create growth drivers, which is the goal of our first strategic point.

We are also making steady progress in evolving business domains and improving data value, our second strategic point. To begin with, in the Marketing Support (Consumer Goods & Services) segment, we started work on the first renewal in over a decade for SRI, one of our flagship products. In recent years, differences in the products handled by retail channels such as convenience stores, supermarkets and drugstores are diminishing, and the boundaries between channels are becoming blurred. Consequently, we are considering discontinuing the service of offering data by business type, and instead, making data projections for individual stores across all business types. Doing so will require us to process big data on an unprecedented scale. We enter the development phase in 2018, which will include the establishment of high-speed processing infrastructure, for a planned release of Census-Hybrid SRI (tentative name) in 2020.

Efforts toward evolution and growth are accelerating in the Business Intelligence segment as well. This segment has high growth potential, and I have great expectations for it. Reasons underlying this sentiment are that the size of the domestic market has grown to approximately ¥21 trillion* and in this business we will be able to leverage our existing advantages. Currently, we specialize in fields such as travel, publishing and healthcare, which are areas of strength for us, and we are aiming for future net sales of ¥10 billion. Introducing AI will be indispensable for reaching this target in order to provide our original systems solutions to our customers, and M&A represents another avenue for raising technological capabilities in the field of AI.

For workstyle reform, the third strategic point, we are establishing a workplace where individuals are free to choose the time and place they work. Measures include the introduction of systems for flextime and remote work. What is important, however, is accelerating reforms for the ultimate outcome of these measures, which is improving productivity and creativity. We are now introducing software robotics to free employees from routine work so they can spend time on the creative aspects of their jobs, and I believe the impact will be substantial. Of course, individual efforts are also necessary. After reading books by prominent figures who make their living

Artificial Intelligence (AI)

Software or systems that use a computer to imitate the cognitive processing performed by the human brain.

* Source: Materials prepared by the Japan Information Technology Services Industry Association based on a 2015 fact-finding survey on specified services conducted by the Ministry of Economy, Trade and Industry

INTAGE Group R&D Center

Established in April 2017 with the mission to conduct a wide range of R&D and business support for the creation of growth drivers.

See pages 15–16.

INTAGE Open Innovation Fund

Established in partnership with SBI Investment Co., Ltd. in October 2016. Invests in promising venture companies in Japan and overseas to build alliances in the Group’s existing and new business domains as well as conduct joint R&D in cutting-edge technology fields.



Setting the direction for the management integration of ASKLEP Inc. and ANTERIO Inc., our core companies

in the Marketing Support (Healthcare) segment, and our structural reorganization in the healthcare field

Establishment of a new company through integration

Scheduled integration date: April 1, 2019

Japan Medical Information Research Institute Inc.

PLAMED Inc.Kyoto Constella

Technologies Co., Ltd.Plamed Korea Co., Ltd.

creating things, it is my conclusion that the key to cultivating one’s creativity is making creative acts a daily habit, and I intend to consider initiatives to encourage such ways of working. At the same time, it is important to have more advanced expertise along with creativity, so creating a system for training employees in tandem with workstyle reform will be a matter to address. Putting in place such a system will make our company an attractive place to work, and allow us to better retain excellent talent. We are aware that creating a place where employees can work enjoyably with a positive attitude is one of the duties of management.

Announcement of Management Integration of Two Companies in the Healthcare Field

We are aiming to launch a new consumer-oriented business in line with current trends.In May 2018, we announced the major decision to integrate the management of ASKLEP Inc. and ANTERIO Inc., which form the core of our healthcare operations. The integration is scheduled for April 1, 2019, and at the same time we plan to structurally reorganize all companies responsible for the Group’s healthcare operations. Management and employees on the front line are in agreement that integrating resources and centralizing investments are necessary for further growth in the Marketing Support (Healthcare) segment. The market for the post-marketing surveillance provided by ASKLEP is maturing and ANTERIO already has a high market share for the custom research it conducts in the healthcare field, so it is difficult to envision any significant future growth. By integrating these two companies, we will utilize their respective resources and work to expand their businesses into new consumer-related areas as we approach an age of self-care, in which consumers themselves are the ones who evaluate and choose medical services and pharmaceuticals. We have made it the objective of the management integration to focus investment resources on this new business.

Toward Future Group Management

We forecast increases in sales and income as we continue proactive investments in fiscal 2019. We will also emphasize shareholder returns through ongoing efforts to increase dividends.We have positioned fiscal 2019 for steady implementation and rollout of various measures for our three strategic points under the 12th Medium-Term Management Plan. We forecast increased sales in every segment. We are planning a total of around ¥1 billion in investment


Year-end dividend per share

Fiscal 2018 ¥20.00Fiscal 2019 (forecast) ¥22.00

Consolidated dividend payout ratio

Fiscal 2018 26.3%Fiscal 2019 (forecast) 31.2%

Dividends

Note: The Company implemented a stock split at a ratio of two shares for each share of common stock on October 1, 2017.

Fiscal 2018 (results) Fiscal 2019 (forecast) Year-on-year

Consolidated

Net sales 50,499 53,000 +5.0%

Operating income 4,023 4,200 +4.4%

Ordinary income 4,311 4,250 –1.4%

Net income attributable to owners of parent 3,050 2,900 –4.9%

Marketing Support (Consumer Goods & Services)

Net sales 33,186 35,000 +5.5%



Net sales 11,070 11,500 +3.9%


Business IntelligenceNet sales 6,243 6,500 +4.1%

Operating income 446 450 +0.9%

Fiscal 2019 Consolidated Performance Forecast By Segment

expenses, the same as in fiscal 2018, which we will allocate primarily to R&D and the renewal of SRI. Even though the ratio of R&D expenses to net sales will be kept at the 2% level, we still expect operating income to increase year on year, and our policy will be to maintain the operating margin at the 8% level.

I am strongly committed to shareholder returns. The return of profits to our shareholders is a highest priority management issue. Our fundamental approach is to base shareholder returns on consolidated earnings and conduct profit distribution with consideration for the balance between dividends and retained earnings. Our goal is a consolidated dividend payout ratio of 35% in fiscal 2020. We have increased dividends every year since I assumed office as president, and I am determined to continue to do so. For fiscal 2019, we expect to pay a year-end dividend per share of ¥22, an increase of ¥2, for a forecast consolidated dividend payout ratio of 31.2%.

(Millions of yen)

In the coming information age, we will continue to focus on our stakeholders’ interests and help to resolve social issues by realizing our Group Vision.In an age of information overload, consumers and companies face a variety of information-related social issues. We must therefore evolve into a strategic partner to our customers to resolve those issues together with them.

For example, for the past ten years, I have thought that people should be able to keep all their own personal information on hand and manage it themselves. This includes hospital medical records. Essentially, people should be able to manage their own data, to be stored in a reliable place or disclosed, as necessary. I have no doubt that such a time will come. At that time, we will still need to ensure that consumers can confidently entrust us with their data. Moreover, I want to provide our employees with a sense of excitement as a company where they can do creative work by generating value in this way. At the INTAGE Group, we continue to connect our customers to their customers, and by realizing our Group Vision, “Know today, Power tomorrow,” we will help to resolve various social issues. In doing so, we will improve our corporate value.

You can continue to expect great things from the INTAGE Group.

July 2018

Kenji Miyakubi

President and Representative Director



R&D InitiativesThe INTAGE Group R&D Center is a virtual organization without a fixed form. Under the catchphrase “Enjoy

Innovation,” those who have an interest in R&D or want to take on challenges in new fields gather freely from

across the Group to conduct wide-ranging research in the quest to create new technologies. In this feature,

the General Manager of the INTAGE Group R&D Center provides an overview of the center’s activities, and

two center staff explain their respective fields and the research they are involved in.

Today, consumers’ daily lives and the activities of corporations

are facing major changes due to advances in digitalization,

automation and AI, utilization of big data, and other factors.

For companies to respond to these changes requires not just

an extension of existing businesses but also the creation of

new value.

Combining data from throughout the INTAGE Group with new

technologies and accumulated insights about consumers, the

INTAGE Group R&D Center conducts research together with

various external partners to resolve not only the marketing

problems of companies and organizations, but social issues as

well. Our research interests can be broadly divided into two

areas: Life Insights and Data Science (see figure at right). In the

area of Life Insights, we pursue the study of the mind in terms

of perception, cognition, thinking and emotion related to how

consumers see, consider and judge things. We also promote

the study of how consumers behave, and their decision-

making processes in their daily lives. In the area of Data

Science, we promote research in data analysis and statistical

modeling to generate better value in big data analytics,

including techniques for integration, estimation and prediction.

We are also progressing with research into the optimal design

of environments, indices and operations that utilize data.

Links between the results of this research and our current

businesses are beginning to materialize, and I am confident

that they will lead to the creation of a prosperous society of

limitless possibilities.

INTAGE Group Assets

(technologies, data, etc.)

Life Insights Data Science

Takahiro NagasakiGeneral Manager, INTAGE Group R&D Center General Manager, Development Group, INTAGE Inc.

Visualizing the consumer’s mind and behavior

Promotes the study of how

consumers behave, and

their decision-making processes

in their daily lives

Increasing the efficiency and speed of marketing activities

Promotes research in data analysis

and statistical modeling for big data

analytics, including techniques

for integration, estimation

and prediction

Research Areas: Toward a More Refined Understanding of

Consumer Behavior

Working to Resolve Social Issues

Feature


R&D Initiatives

Mr. S.T.Digital Marketing Department, Life Log Data Business Group, INTAGE Inc.

Traditionally, we have used cookies1 to track exposure to

corporate advertisements to measure their effectiveness, but

rules on cookie use have gradually become more stringent

out of privacy concerns. Meanwhile, needs in digital

advertising are increasing, especially in video advertising, and

needs for measuring ad effectiveness are on the rise as well.

As an R&D Center project in 2017, we attempted to track ad

exposure through a method that does not rely on cookies.

Specifically, we had individual panelists install a new app that

automatically saves screenshots only when using video

services. This allows for extraction and

comparison of data between screenshots and

original video ads in order to track ad exposure

(see figure at left). User privacy is protected by

shrinking the images considerably during this

process. I would like to develop this

technology as a way to autonomously track ad

exposure – with panelists’ permission – without

relying on cookies.

1. Mechanism by which website operators temporarily write and store data on a visitor’s computer via the web browser.

Measuring the Effectiveness of New Advertisements

Over the past few years, the use of AI to automate various

tasks is a topic seen increasingly in the media. To hear it

explained gives the impression that processing is carried out

smoothly and automatically, but in reality, a massive amount of

human labor goes into creating annotations, i.e. correctly

preparing data that enables machine learning. Of course, the

burden will become smaller as this technology advances, and

improvements in accumulated data or collection methods will

create an environment where machine learning is more efficient.

Under these circumstances, we must ask ourselves, “How

should we integrate intelligent

machines into our lives in a way

that preserves our humanity?” For

that purpose, the INTAGE Group

R&D Center wants to deepen

understanding of both machines

and human beings (see figure

at right).

Deepening Understanding of Machines and Humans

Feature

Mr. A.T.Advanced Technology Department Development Group, INTAGE Inc.

Overview of Methodology

View video ad

Capture and save screenshots only when

YouTube is runningYouTube or other free-of-

charge streaming video service

Video ad

Same processing as smartphone app

Data processing

Server-side processing

User-side sequence

SALE

Ad exposure determined based on similarity

between data

Fields of Interest

Research and approaches for understanding humans

* A common area where two different entities can meet and interact.

Research and approaches for understanding machines

Interfaces* for information exchange between machines and people

Understanding human brain functions

Research into machine-learning mechanisms Where does “humanity” come from?

Self-expression methods used by humans and machines


Overview of Services

Nationwide Retail Tracking Research

• Which products are sold when, where, in what amounts, at what prices and at which kinds of stores• How stores are competing in terms of distribution, merchandise assortment and price, and the

resulting sales volume• Merchandise assortment and hot-selling products by store type

What the data reveal

The SRI collects POS data on a variety of product categories, such as food

products, beverages and miscellaneous daily items, from approximately 4,000

supermarkets, convenience stores and drugstores and other major retailers

nationwide. It has unrivaled strength in this field, and is used as the standard index

in various industries.

SRI

Nationwide Drugstore Tracking Research

• What was sold when, where and at what prices• The size of the market for each category• Changes in product market shares


The SDI collects POS data focused on healthcare-related categories, centered on

over-the-counter (OTC) drugs, from approximately 3,200 pharmacy, drugstore,

supermarket and convenience store outlets nationwide. It has established a position

as the sole source of data for learning about the OTC drug market.

SDI

Panel Research

Nationwide Individual Consumer Panel Research

• Where, in what quantity and by whom products are purchased• Quantitative changes in the market structure associated with purchasing behavior such

as brand switching• Consumer attributes such as the types of people who are purchasing a product


Using specialized scanners, smartphones and apps, the SCI collects data on

purchases of food products, beverages and miscellaneous daily items, consumed

both inside and outside the home, from 52,500 male and female panelists aged 15

to 79 nationwide. It is Japan’s largest consumer panel, and provides insight based

on high-quality data that gives a detailed picture of consumer purchasing behavior.

SCI

Main Client Industries

Miscellaneous daily items Cosmetics

Food products Beverages

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?

Miscellaneous daily items Cosmetics

Food products Beverages


Pharmaceuticals

Main Client Industry

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


This research is customized to address each client’s

issues. We use various research methods and our

unique analytical abilities to provide valuable

information that reflects the real market situation.

The industry’s largest online access panel comprising some 8.92 million1 individuals

“Mighty Monitors”• We can flexibly handle requests, from simple surveys to highly

challenging research requiring detailed design.

• Panelists are classified by information screened for attributes and specific themes, enabling precise and efficient panelist selection.

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

Cue Monitor Official Character

“Cuemot”Conceived to raise awareness of our Cue Monitor system, Cuemot is cast as a “hotshot producer” that appears across a wide range of events and media.

Mighty Monitors

Approx. 8.92 million1 individuals

1. As of April 20182. Members of NTT DOCOMO’s d POINT CLUB who have consented to participate in surveys

conducted by DOCOMO Insight Marketing as part of d POINT CLUB Surveys tendered by NTT DOCOMO, INC.

3. MApps Panel is a service provided by Marketing Applications Inc.

Data Collection Methods

Custom Research

Today, with the spread of social media and the use of multiple devices, new approaches to diversifying consumer purchasing

behavior are required. The INTAGE Group’s panel research data provide a visual representation of the customer journey,4 and help

to measure the effectiveness of clients’ communication strategies.

The i-SSP collects data from the same person

(single source data) on his or her exposure to

advertisements and interaction with media such as

television, computers and mobile devices, as well as

purchasing data from the SCI. It is Japan’s largest

cross-media single source panel.

• The actual media exposure of target segments and the true face of the audience

• How to efficiently reach the target of the ad campaign• Whether the ad campaign strategy led to purchases or a

better image


Communications Field

INTAGE Single Source Paneli-SSP

Three Types of Panelists

INTAGE Cue Monitors

DOCOMO Insight Marketing d POINT CLUB Members2

MApps Panel3

Multi-device panelists

4. The behavioral, thought and emotional processes that customers go through, from discovering a product or service through to making a purchase.

Online researchInternet research, location-based research (survey distribution service based on geospatial information)

Non-verbal researchEye tracking research, evaluation of ad creative content using expression analysis, neuro-research

Offline researchPostal survey, mystery shopping, in-store observational survey, central location tests (CLT), in-store interviews, door-to-door interviews

Qualitative researchGroup and one-on-one interviews, remote interviews

i-SSP Service Overview

Collects purchasing data, media contact data and other data from the same person

TelevisionComputer Smartphone Tablet

Purchases Attributes and values

Newspapers, outdoor advertisements, etc.


Home appliances, electronics

Finance, insurance

Automotive

Advertising agencies

Entertainment Government agencies etc.

Distribution, retail, food and beverage

Communications

Apparel

Overview of Services

Mighty Monitors


In the marketing field, through a business alliance with Webrage Co., Ltd. (Koriyama City, Fukushima Prefecture), INTAGE Inc. has launched a

service for eye tracking and expression analysis1 via smartphone.2 Using the smartphone’s front-facing camera, Webrage’s FACT4 app

automatically detects and analyzes lines of sight and facial expressions during video ad playback and website browsing, and is capable of

simultaneously evaluating the viewer’s focus of attention, reaction and other data. Announcements for the start of tests in on-site surveys and

online surveys were made in June 2017 and January 2018, respectively.

Review of Operations

Custom research¥10,053

Eye Tracking and Expression Analysis Service

Online An eye tracking and expression analysis request is sent to panelistsNote: Panelists are INTAGE Cue Monitors.

1. Panelist launches FACT4 app on his or her smartphone2. Views specified video ad or website on FACT4 app

Sending of survey request Implementation of eye tracking and expression analysis

Questionnaire or interview

Operating Companies

• INTAGE Inc.• INTAGE RESEARCH Inc.• Access JP Inc.• IXT Inc.• INTAGE CONSULTING Inc.• Overseas subsidiaries

Business Overview

The INTAGE Group mobilizes its sophisticated research techniques and data analysis capabilities

based on data obtained from panel research and custom research to provide one-stop marketing

support for a diverse range of clients, including consumer goods manufacturers. Based on our

stable revenues from panel research, which is a cornerstone of the Group’s profits, we have

developed a series of new research methods and services in response to ever-changing consumer

environment and values. Moreover, in recent years we have been working toward a stronger

organization and greater efficiency by proactively entering into business alliances with synergistic

partners, thus expanding our customer base to achieve sustained growth.

Panel research¥13,229

Communication¥2,796

Overseas subsidiaries

¥3,600

Others¥3,506

Net Sales

¥33,186

Sales by Service (Millions of yen)


Consumer goodsDurable consumer

goods

ServicesGovernment

agencies

Marketing Support (Consumer Goods & Services)

Performance in the Fiscal Year Ended March 31, 2018

Revenues in this segment increased, bolstered mainly by the strong performance of

customer research, namely existing research studies and Internet surveys, as well as

public-sector projects. At the same time, with a view toward expanding the service

areas we offer over the medium-to-long term, in October 2017 we announced the

renewal of SRI, our core panel research product, and have been investigating

customer needs, conducting redesign and development, collecting new data and

carrying out other measures. We also stepped up investment in R&D activities to

contribute to the development of leading-edge services. Consequently, although

revenues from existing products grew, as a result of the above investments, net sales

increased but operating income declined.

In fiscal 2018, net sales were ¥33,186 million, up 5.6% year on year, and operating

income was ¥2,165 million, down 9.3%.

Policies for the Fiscal Year Ending March 31, 2019

INTAGE Inc., the largest operating company in this segment, will provide various

services based on INTAGE Group data, handling techniques, research functions and

understanding of consumers to work closely with its customers on marketing activities as

they become increasingly sophisticated with the advance of digitalization. By combining

such services, the company aims to resolve marketing issues and contribute to

marketing PDCA cycles.

In the fiscal year ending March 31, 2019, we plan to focus on development of new

services and the renewal of SRI along with R&D activities with a view toward medium-

to-long-term growth.

Topic: New Research Method

On-site Consenting panelists come to the survey site

Note: Panelists are INTAGE Cue Monitors.

1. Panelist launches FACT4 app on smartphone provided on-site

2. Views specified video ad or website on FACT4 app

After viewing, responses to video ad playback or

website are checked with a questionnaire.

Each panelist’s focus of attention and expression

can be confirmed.

Subjects come to site Implementation of eye tracking and expression analysis

1. Without needing to attach any special device to the body, this service makes it possible to conduct eye tracking and expression analysis of subjects’ daily environment using just a smartphone.

2. Currently only supported for iPhone. iPhone is a trademark of Apple Inc.


Sales by Service (Millions of yen)

Panel research¥2,625

Custom research¥2,861

CRO¥4,361

Others¥1,220

Net Sales

¥11,070

Developing a new drug involves numerous phases,

starting with basic research, and takes a long time –

typically more than 10 years – and enormous effort

and expense. In that process, contract research

organizations (CROs) perform and support various

related work for pharmaceutical manufacturers, such

as clinical trials and post-marketing surveillance. In the

INTAGE Group, ASKLEP conducts this business.

About CROs

This is an electronic data capture (EDC) system developed to enable the digital

management of clinical reports created in hard copy. This system allows drug

manufacturers and CROs to collect data input into computers or other terminals by

doctors and medical staff over the Internet for real-time monitoring and management.

ASKLEP launched sales of their EDC solutions service in 2004 and in 2010 released

ADDIN, an EDC system specifically designed for post-marketing surveillance.

ADDIN SeriesEDC System

Service Introduction: CRO and EDC System ADDIN

Pharmaceutical Development

Flow

Basic research2-3 years

Preclinical studies

3-5 years

Clinical trials3-7 years

Phase I-III trials

Post-marketing surveillance4-10 years

LaunchReviewADDIN

specializes here

CRO (contract research organization)

Support

Main Client Industry

Pharmaceuticals


Review of Operations

Business Overview

The INTAGE Group supports the research and development and marketing activities of

pharmaceutical companies with services including marketing research, contract research

organization (CRO) services and prescription data analysis for over-the-counter and prescription

drugs. The source of our competitiveness in this business is our high-value-added solutions

that draw on the insight and expertise we have gained through extensive experience in

surveying consumers, patients and healthcare professionals, together with our system

development capabilities.

Operating Companies

• ANTERIO Inc.• ASKLEP Inc.• Japan Medical Information Research

Institute Inc.• PLAMED Inc.• Plamed Korea Co., Ltd.• Kyoto Constella Technologies Co., Ltd.


Revenues in this segment increased due chiefly to the brisk performance of

pharmaceutical post-marketing surveillance at ASKLEP Inc. and promotion

activity evaluation services at ANTERIO Inc. On the other hand, operating income

decreased slightly due to limitations on orders because of a labor shortage,

investments made by ANTERIO to improve the value of products for existing

services and the absence of large project orders that were present in the previous

fiscal year. However, the two expanded new initiatives focused on general and

medical consumers,* including ASKLEP’s announcement that it would provide

support services for patients’ associations, and ANTERIO’s announcement of a

capital and business alliance with ReasonWhy Inc.

In fiscal 2018, net sales were ¥11,070 million, up 3.5% year on year, and

operating income was ¥1,412 million, down 4.8%.

* Patients and general consumers wishing to improve their health.


As announced in a news release entitled “Notice Regarding Policy Decision on

Management Integration between Consolidated Subsidiaries” dated May 11,

2018 (Japanese only), we will integrate the management of ASKLEP and

ANTERIO, which form the core of this segment, and have decided on a structural

reorganization policy that includes other operating companies in the healthcare

field. We will build a framework to implement this process and secure a firm

foothold in our existing fields of operation.


Sales by Field (Millions of yen)

Others¥2.4

• Health management support services (Sukoyaka Support 21)

• Disease prevention solutions using health data

• Sales information systems• MR activities support

• Sales space management systems• Vending machine route planning systems

• Area Manager (commercial area analysis tool)• Distribution route simulators

• Land Stage (information management system for

real estate use as collateral)

• Settlement systems for travel agents• Internet survey systems for customer

satisfaction research

• Publication point-of-sales systems• Bookstore information portal sites

Services and Target Industries/Businesses of INTAGE TECHNOSPHERE

INTAGE TECHNOSPHERE

Domestic CG&S*¥3,843

Healthcare¥2,397

Net Sales

¥6,243

* Consumer goods and services


Services PharmaceuticalsHealth

insurance

Business Intelligence

Medical

Wholesale and retail

Finance Publishing

Travel

Operating Companies

• INTAGE TECHNOSPHERE Inc.• DataAge Inc.• Buildsystem Co., Ltd.


Both revenues and profits increased in this segment, with brisk growth in inquiries

for planning and development of health management support systems for

integrated management of a company’s total health data (health examinations,

health guidance, overtime data, etc.) and settlement systems for travel agencies. In

addition, in March 2018 we acquired all the shares of Buildsystem Co., Ltd. and

made it a member of the INTAGE Group. As a systems company mainly engaged in

development and introduction support for high-speed, high-productivity tools for

systems development, Buildsystem has engineers with high technical capabilities.

By working together with them, we will enhance the technological capabilities of the

INTAGE Group to create new value in data utilization.

In fiscal 2018, net sales were ¥6,243 million, up 6.5% year on year, and operating

income was ¥446 million, up 12.0%.


INTAGE TECHNOSPHERE Inc. aims to further expand its existing businesses by

developing and investing in its strongly performing services and systems for the

pharmaceutical and travel industries for “realization of a data utilization business that

supports a data revolution,” its basic policy under the 12th Medium-Term Management

Plan. In addition to developing and building a processing platform for big data, which

will be important for the renewal of SRI being conducted by INTAGE Inc., we aim to

expand contract services such as AI solutions for the manufacturing industry.

Business Overview

The INTAGE Group’s business extends from software development and sales to system operation,

maintenance and management, as well as data center operation. In addition, we provide other

services in support of management strategies, including support for improvement of business

processes related to system development and operation. Our strengths in this business are our ability

to solve problems with a unique approach that combines advanced information technology with our

marketing insight, and to provide proprietary systems services backed by industry expertise. In recent

years, we have also expanded our service offerings to research of the latest information technologies,

particularly AI and deep learning, and development of related services.

Health insurance and health

management


The INTAGE Group respects diverse values and individuality.

Consequently, we have long ensured a workplace culture

inclusive to women, free from promotion bias and working

condition inequality. To maintain an optimum working

environment, we conduct an internal marketing research

(quality of working life) survey once a year to measure

employee work satisfaction. This survey is positioned as a

performance indicator for gauging the

soundness of each Group company.

Since October 2017, we have also

issued a monthly CSR newsletter

for Group employees to raise

CSR awareness.

The INTAGE Group promotes initiatives under its Basic CSR Policy to communicate honestly with its various stakeholders and to

contribute to society through sound business activities.

INTAGE Group Basic CSR Policy

Based on The INTAGE Group Way, we apply the INTAGE Group’s capabilities

to solve issues facing society through communication with stakeholders

while meeting our fundamental social responsibilities. With this approach,

we aim for the continuous synergistic development of the INTAGE Group and society.

Fiscal year ended March 31, 2016



Electricity usage (thousands of kWh)

7,095（5,435）

6,699（4,904）

6,544（4,735）

Crude oil equivalent (kl)

1,762（1,350）

1,664（1,218）

1,626（1,177）

Note: Amounts are rounded down.

* Totals for the Akihabara, Hibarigaoka and Higashikurume offices. Figures in parentheses are for Hibarigaoka only.

Energy Usage at Main Offices*

Sustainability

Environment Conservation Efforts

Relationship with Our Employees

Energy Usage

Workplace Culture at the INTAGE Group

インテージグループの歴史から見えたもの、伝えていくこと

　インテージグループのCSR基本方針の根幹にあるのが「THE INTAGE GROUP WAY」。そこには「事業を通じて社会を豊かにする」という意思が込められています。インテージグループは創業して57年。創業の精神はどのようにして生まれ、引き継がれてきたのでしょうか。

大衆薬(OTC)の市場実態を定期的に調査する専門機関として創業広く世間からの信用を得るために、中立性を担保し「公共性」と「社会性」を維持していく、これが創業の精神でした

1960年

Historyof

INTAGEGroup

株式会社社会調査研究所創業

「1億人に知られたい…とは思っていません1億人の役にたちたい－と願っているのです」

1971年毎日新聞に全面広告

創業10周年

「企業とは世の中の役に立つことが第一の使命である。お客様や世の中への価値のあるサービスを提供し、それに応じて対価をいただく。それを社員と株主、次の年へバランスよく配分し持続的な成長をしていくことができる会社―それが『まともな会社』のあるべき姿である」

2000年「インテリジェンス・プロバイダー」を提唱

2001年株式会社インテージに社名変更

中途・新入社員の増加、グループフォーメーションの変更、海外グループ会社の増加、事業領域の環境変化を踏まえ、THE INTAGE WAYがTHE INTAGE GROUP WAYへ進化

2015年創業55周年　THE INTAGE GROUP WAY制定

データやインフォメーションではなく、インテリジェンスを提供するのだという決意を示しました

1968年 MiC (Marketing IntelligenceCorporation) を英文社名として採用

「MiC WORK MEMORY」に掲載された、当時の経営理念「物の見方・考え方」（以下、抜粋）

1970年

社会調査研究所の目標

社会調査研究所の考え方

創業時オフィスを構えた文京区小石川の伝通院ビル

お客様と生活者をつなぐ架け橋として、豊かで可能性の広がる社会を創造する

2010年創業50周年　THE INTAGE WAY制定

知る、つなぐ、未来を拓くKnow today, Power tomorrow

私たちの使命はお客さまの事業を総合的に支援し、事業の成功に貢献することによって、その先にいる生活者を豊かにし、社会の公正な発展に寄与することです

THE INTAGE WAYインテージのミッション（当時）

　毎日のように耳にする「ブラック企業」という言葉。ブラック企業と聞いて思い浮かべるのは、経営者の利益優先、ハラスメント、長時間労働など。不祥事も同様に、企業が果たすべき「約束事」をないがしろにした代償は大きく、信頼の回復に相当な時間がかかっています。　一方、消費電力が小さいLED照明や高齢者にやさしい自動車開発、環境保護を意識

した日用雑貨品の製造など、社会問題への対応力が高い企業は競争力を上げています。　「業務が忙しくてCSRどころではない」と思うかもしれませんが、CSRとは社会が求める

「よい品質の提供、公正な取引、労働環境向上、環境に配慮」に誠実に対応し、「事業を通じて社会のためになること」を行い、企業も社会もハッピーになることなのです。

－井出さんはどのような活動をされていますか？　明治大学法学部の「法律無料相談部」にOBとして参加し、毎週土曜日に行う一般の方からの法律相談をサポートしています。

（http://meiji-lawclub.jp/soudan）－「法律無料相談部」に参加したきっかけと思

いは？　無料相談は法律の勉強のアウトプットの場として良いと思い、選びました。一方的に「してあげている（教えてあげる）」つもりで活動していましたが、実は学びを得ているのは自分だと気づきました。今は、恩返しをしたいという気持ちで活動に関わっています。－ボランティアから学んだことはありますか？法律相談で多くの年上の方と話すことで、コミュ

ニケーションスキルが身に付きました。印象深いのは、離婚を考えているというおばあさんの相談。法律的な結論は5分もあれば出るのですが、気持ちに寄り添い1時間くらい話を聞いたことがありました。法律の知識だけでなく人の話を「聞く力」も養われましたね。－法律相談は「プロボノ*」の原点。自分のスキル

で困った人をサポートする、コミュニケーションすることが会社への貢献につながっているんですね。

はい。ボランティアという意識はあまりなかったのですが、知らずしらずのうちに社会に貢献していました。そうなったことはうれしいですし、これはお金では得られない経験です。

Corporate Social Responsibility企業の社会的責任＝社会対応力

そもそも…「CSR」ってなに？

創業の精神とDNAって？

前　編

ガバナンス、経済・人材・環境に対する責任基本的CSR

寄付、慈善、プロボノ、メセナ意思ある社会貢献

強みを活かした社会課題の解決＝CSV

戦略的CSR事業と連動し企業価値を

上げる

これに取り組まないと存在できない

コストではなく投資の

視点で

*プロボノは、各分野の専門家が、職業上持っている知識・スキルや経験を活かして社会に貢献するボランティア活動全般を指します。米国の法曹界が始めた無償の法律相談が発端といわれています

No.1

実践している社員にインタビュー！

「してあげている」つもりが、こんなにも自分が恩恵を受けていた

いまこそ知りたい！

中編は「女性活躍」後編は「働き方」がテーマです。お楽しみに！

●従業員に将来に亘って安定した職場を保障する ●利潤を高め、従業員の福祉を増大する ● その結果として、情報産業として先進的な役割を果たす

● サービス業としての認識　一枚の報告書の結果よりも、そこに至

る過程が重要であることが多い。

● サラリーマン根性からの脱皮　できないできないではなく、どうすれ

ばできるかを明らかにする。

● 仕事に誠意をつくす　顧客に最も大きな満足を与えるために

努力する。

● チームプレーに徹する　個人の利益を組織の利益に優先させ

たり、組織を盾に自己の防御をはかったりする人間は必要ない。

DNAには、「公共性」と「社会性」が！

この頃から社会への貢献意識が高かったのですね

従業員を第一に考えた目標ですね

「公共性」「社会性」

従業員が第一

高い社会貢献意識

P O I N T

十人十色の

社会貢献

こうして歴史をひも解いてみると、創業当初から「社会への貢献」が重要なキーワードだったことが分かりますね！

株式会社アスクレップ　システム企画部

井出康夫さんいでやすお

※詳細は『インテージ50年史』をご覧ください

99.97％とはMiCを知らない

人の割合


　アベノミクスの成長戦略の中核としてここ数年、注目されている「女性の活躍」。インテージグループには現在、雇用や待遇における男女の格差はありませんが、これが「当たり前」になったのは、いつ頃からなのでしょうか。「女性」を切り口に社史を振り返り、現在の環境がどのように培われてきたのか、探ってみましょう。

調査という仕事になじみがなく、女性の社会参加がままならない時代。鉄道会社の婦人会や新聞社の紹介など、あらゆるルートを通じて採用活動を展開し、調査員組織を拡充した

1960年

Historyof

INTAGEGroup

株式会社社会調査研究所設立SDIがスタートし女性調査員をリクルート

不透明な経営などにより社内不安が高まり、労働組合が結成。多くの一般社員が参加し、経営側と4カ月にわたり争った

「多様な個性を発揮できる会社」を目指して、プロジェクトを発足セミナー開催や情報発信を積極的に行った(2007-12年)

1974年団体交渉で労働組合が男女格差是正を要求

1986年男女雇用機会均等法が施行

集計結果をグラフに起こすチャート室

SD I 調査票（当時）

労使紛争が起こった1974年に1400人近く在籍していた社員はこの時、500人以下に1976年以降中断していた新卒採用を再開。翌年1980年に本格的な新規採用を復活

1979年単年度黒字を達成、新卒採用を再開、新入社員7人は全員女性

1983年東京営業所（麹町）開設。営業職に女性を登用

2017年インテージリサーチが女性活躍推進法に基づく「えるぼし」企業に認定

2007年インテージが「子育てサポート企業」に認定

グループ女性社員有志による「知花―TOMOKAプロジェクト」開始

　マイケル・E・ポーターが2011年に提唱したCSV（Creating Shared Value＝共益の創造）は、社会的課題の解決と企業の経済的価値の向上を同時に実現する新しい概念として広まりました。実はこの概念は、日本に古くからある商慣習「売り手よし、買い手よし、世間よし」の三方よしに通じる考え方。社会が抱えている課題を解決する（社会の期待に応える）こと、顧客に価値あるものを提供して利益を出すこと、これらを同時に実現するのがCSV（＝戦略的CSR）です。　例えば、森永製菓が行うキャンペーン「１チョコfor１スマイル」。商品を通じた寄付は、開発途上国の教育支援にとどまらず、持続可能なカカオの安定調達＝生産者の自立支援にもつながっています。そ

のほか、空き家を見回るALSOK（綜合警備保障）の「るすたくサービス」、契約栽培と茶園造成を軸にした伊藤園の茶産地育成事業など、社会の課題やニーズ（期待）に適合した事業が企業の競争力を上げています。　CSVはいま、新しい市場を開拓し、企業の競争優位性を高めるための有効な手段として注目されています。

－泉山さんはどのような活動をしていますか？「グラフィックレコーディング」という、図式や絵

を用いて議論の内容を描き出し記録する手法を使い、活動しています。昨年発生した熊本地震の際に、公的機関や弁護士などから出される複雑な情報を、分かりやすく見える化（グラフィック化）して住民に発信する「み絵るヘルプ」プロジェクトに参加。今もこのスキルを通じた支援の呼びかけに応じるかたちで、プロボノを行っています。先日も指名され、内閣官房のワークショップに参加してきました。

－ボランティアには以前から取り組んでいたのですか？

実は、寄付や慈善活動に興味がなく、災害が起きても「何かしよう」という気持ちは湧きませんでした。でも、自分の得意なことが生かせて、社会の役に立ち、それに費やせる時間があるなら、何かすべきではないかと。時間をつくれないのが目下の悩みです…。－この活動から得たものはありますか？グラフィックレコーディングに必要な、「本質をとらえる視点」が養われました。提案やプレゼンテーションなど、この手法を業務に生かせる場面があると思うので、活用の可能性を広げていきたいですね。

CSVって何？

中　編

No.2


「描く」スキルで社会とつながる～変わったボランティアへの意識

十人十色の

社会貢献

創業当時から女性を積極的に採用したり、男女の格差をなくそうと行動を起こしたり…。このような歴史があって、いま整った環境で働くことができているのですね。

インテージ　FMCG事業本部カスタマーサービス2部　1G

泉山清佳さんいずみやまさやか

女性採用の先駆け？

https://www.gensaiinfo.com/blog/2016/0509/3447

【み絵るヘルププロジェクトについてはこちら】

企業の「経済的価値」と「社会的価値」を同時に実現

NG

社会貢献慈善活動・メセナ

社会貢献事業戦略

事業戦略

利益の追求

ⓒEtsuhiro Hosoda

高

低

社会的価値

高低

CSV

経済的価値

本庄にインプットセンターを開設。データ入力を担うキーパンチャーは当時、女性の花形職業。従業員の健康管理と稼働率向上のために職場環境や福利厚生設備も充実させた

1965年インプット事業で女性キーパンチャー大量採用

カードパンチの入力風景(本庄センター)

ひばりヶ丘ビル玄関前でスト集会労組の全面勝利で集結。創業社長が退陣、退職者も相次ぐ

知花プロジェクトのメンバー（2009年当時）

労組の要求事項12項目の一部❶ 夏季一時金一律10万円上積み❷ 女子社員に1万円の住宅手当❸ 週休2日制の実施❹ 女子社員の生理休暇（有給月2回）❺ 産休を産前・産後各8週間確保❻ 時間外労働の短縮

女性が多く活躍するインテージグループいつから？その背景は？

制服姿で健康管理体操

センター敷地内に福利厚生施設の25mプール

認定マーク「くるみん」


　「労働慣行」は企業が社会的責任を果たすための中心的課題の一つであり、企業が評価される重要なポイントにもなっています。　インテージグループは2017年度から「働き方改革」をスタートさせました。新しい取り組みのように感じますが、実は今に始まったわけではありません。社員はいつから、どのように、「働きがい」と「働きやすさ」を求め、会社はどう応えてきたのでしょうか。

1960年

Historyof

INTAGEGroup

株式会社社会調査研究所設立

給与水準アップの実現を目指す労組と、資金繰りに窮している経営側との意識格差が広がる

秋葉原への移転を機にPHSと無線LANを利用することによる、フリーアドレス、レスペーパー、クリアデスクを実施。直接対話する「リアル」と情報技術を駆使した「バーチャル」の融合を目指す

1976年給与水準アップと男女格差是正が労使交渉の重要課題に

長時間残業の削減を目的として「環境改善委員会」が発足。1カ月70時間以上の残業が3カ月続くことを禁止、1カ月以内に代休消化することの完全実施を通達

1984年業績回復の矢先、残業問題がクローズアップ

単にゆとりを創出するだけでなく、業務の多様化、効率化に対応するためにも有効との判断から、取り組みを開始

1990年フレックスタイム制度の試行

画一的なスーツ着用を強要せず、勤務中の服装を自由に。ただし、自己管理を徹底し、「清潔であること、颯爽としていること、不快感を与えないこと」の三つを原則とした。翌98年の社内報『Heartland』で、「女性社員が語る男性社員のカジュアルウェア」を特集

1997年ビジネスカジュアルを導入

システム事業本部で参加希望者を募り、3カ月間施行。ハード面での課題もあり、制度化は実現しなかった

1999年在宅勤務の試行

フルフレックス制とリモートワークを軸とし、「働く時間・場所の自律的な選択」ができるインテージグループのワークスタイルを推進。プロフェッショナリティ－の高い働き方を目指し、社員一人ひとりが挑戦している

2017年「グループ働き方改革」プロジェクト始動

希望する社員全員を再雇用する制度で、国の基準を上回るものだった2006年 60歳定年後の再雇用制度を導入

2005年「自由と自律」を重視した新しい働き方「I-Style」を導入

2010年アンテリオがグループ他社に先駆け、スーパーフレックス制や自宅勤務など自由度の高い勤務体制の導入を検討

急激な事業展開に追いついていなかった社内体制を見直す。また、福利厚生施設の充実を図り、軽井沢と鳴子に保養施設を設置した

1973年人事部を新設未整備の社内体制を見直し、福利厚生を充実

このころ、社内の労働環境は日ごとに厳しさを増した。

1974年労働環境が悪化。全国規模で「国民春闘」が呼び掛けられ、戦後最大の交通ゼネストが発生

　「ESG」とは、Environment（環境）、Social（社会）、Governance（企業統治）の頭文字

を合わせた言葉。

「E」エネルギー使用量や温室効果ガス排出量の削減など環境面への配慮

「S」人権や貧困問題に加え、ダイバーシティーやワークライフバランスへの取り組み

「G」社外取締役の設置など経営の透明性や充実した情報開示上記などが主な要素として挙げられます。　これまで、株式投資に必要な判断材料は、対象となる企業の売上・利益やキャッシュフ

ローといった「財務情報」がメインでした。ところが現在は、「E」「S」「G」で挙げられたような財務数字に表れない「見えない価値」（非財務情報）にも着目し、中長期的な企業の成長力を評価して行う「ESG投資」が主流になってきています。　世界で急拡大している「ESG投資」。日本でも私たちの年金を管理・運用している世界最大の年金基金「年金積立金管理運用独立行政法人」(GPIF)が、資金運用を委託している金融機関に対してESGを考慮するように強く求めるなど、重要な指標となっているのです。

新しい企業評価のモノサシ「ESG」ってなに？

後　編

No.3

ひばりヶ丘ビル2F執務フロア

長時間勤務の日常化、賃金決定メカニズムの不透明さなどにより社員のいら立ちが募る。労働組合

（以下、労組）が経営側と団体交渉を開始。しかし労組も決裂し、対決。一方の労組が21日間のストライキを決行した

労組の対立によりオフィスに立ち入ることが困難に

秋葉原ビル執務フロア

「ワークスウェブ」で働き方、ヒト、カルチャーを紹介

インテージグループの働き方（労働慣行）

いまから27年前に

フレックス制度を試行！

－ボランティア活動を始めたきっかけは？自分のコミュニケーションの範囲が日ごろ、固定されていると感じ、これまでの交友関係以外の人と接点を持つためにも、興味のあったボランティアに関わろうと思いました。そこで、平日の就業後や土日に活動可能なボランティアを探し、認定NPO法人サービスグラント*に登録しました。－実際にはどのような活動をされたのですか？高齢化した集合住宅で八王子市と生活協同組合が住民に対して行う活動（相談室の設置、見守りサービスなど）の効果を検証するプロジェクトに参加。リーダーとして、インタビューやアンケートなどを行いました。スピード感や考え方の

違いに戸惑いもありましたが、高齢者の話を理解する、複雑な人間関係の間に立って意見を聞くなどのよい経験をしました。－プロボノ活動から得られたことは？私たちリサーチャーは、「生活者を知る」必要があります。でも、普段の生活や仕事の中でできることは限られています。私の場合は定量の調査で見えなかったことが、高齢者へのインタビューや家庭訪問をとおして腹落ちしました。リアルな社会課題に接し、数字だけでは分からなかった

「生活者が置かれている実態」を理解することができたのです。このような経験は、リサーチャーとしての幅を広げることにつながっていくと思います。

*ビジネススキルや専門知識を活かして、社会的課題解決に取り組む非営利組織（NPO・地域活動団体など）の基盤強化を支援する「プロジェクト型助成」　>> http://www.servicegrant.or.jp/


プロボノ活動をとおして「生活者を知る」、

「社会課題を知る」機会の創出を

十人十色の

社会貢献

インテージ　FMCG事業本部カスタマーサービス2部　1G

高見悦子さんたかみえつこ

投資情報財務情報

非財務情報 ESG

社会的評価向上

無形資産に寄与

企業価値向上

ESG

　「SDGs」という言葉、聞いたことがありますか。SDGsは「Sustainable Development Goals」の略。一言で表すと、「世界をより暮らしやすくするための取り組み」です。具体的にはどのようなものなのでしょうか。そしてなぜ今、注目を集めているのでしょうか。

No.4

エスディージーズ

－どのような活動をされたのですか？葛飾区で、男性向けワーク・ライフバランスの啓発冊子を制作するプロジェクトに参加しました。妻に勧められたのがきっかけです。私は3人の子どもがいて2度の育児休業を取得。その経験が役に立てばと思い、応募しました。会議は平日の夜に行われ、プロジェクトメンバーと座談会をしたり、記事の内容を提案したり。冊子は男性の家庭への関わりを促すもので「育児編」「家事編」「介護編」に分かれています。私は特に「育児編」のページに大きく携わり、コメントも掲載されました。－実際に参加して得られた気づきは？プロジェクトメンバーの中には、働きながら介護と育児のダブルケアをしている人もいて、自身のワーク・ライフバランスをあらためて考えさせ

られました。ワークとライフ、別々に捉えがちですが、仕事は自分の人生の一部。軸となる人生(ライフ）と仕事（ワーク）がうまく融合できるといいかもしれませんね。今までは目の前の仕事を一生懸命こなすことに精いっぱいでした。でも、冊子の制作をとおして、その先の「社会」を見据えて仕事をしないといけないと思うようになりました。仕事や生活環境の違う地域の人と交流することで自分の視野も広がりましたね。


育休取得の「ライフスキル」を活かして地域に貢献

～あらためて考えたワーク・ライフバランス～

十人十色の

社会貢献

株式会社アスクレップ統計解析部

碓井英司さんうすいえいじ

いま「SDGs（持続可能な開発目標）」が

熱い！

　ホールディングス広報・CSRグループのメンバーは1月末、一般社団法人イマココラボが主催する「SDGsカードゲーム」の体験イベントに参加。　このカードゲーム「2030 SDGs（ニイゼロサンゼロエスディージーズ）」では、SDGsの17の目標を達成するための、現在から2030年までの道のりを体験できます。　ルールはいたってシンプル。与えられたお金と時間を使って、プロジェクト活動を行うことで、最終的に決められたゴールを達成するというもの。あるチームは、「大いなる富」という価値観のゴール設定でした。そのため利益を追求するプロジェクトばかり実施していたら、CO2の排出を増やして環境に負担をかけてしまったり、児童労働をさせてしまったり。しかし後半は、世の中全体の動きを見て、他のチームと協力しながら環境や社会にも配慮するように。カードゲームをとおして、SDGsの達成を目指す世界の縮図を体験することができました。

企業が取り組む理由は大きく三つあります。一つ目はSDGsがビジネスチャンスになり得るから。世界がSDGsの達成に向けて動き始めれば、年間12兆ドル（約1340兆円）ものマーケットが生まれるという試算がでています。17の目標にある社会課題はイノベーション創出の機会にもなり得るのです。

二つ目は投資家の要求に応えるため。つまりESG投資への対応です。

「SDGsに取り組む企業へのアクションが投資リターンを増やす」と考える機関投資家が増加しています。SDGsの達成に向けた活動こそが企業価値を上げ、投資家からの高い評価につながるといえます。

三つ目は、SDGsに取り組まないことはもはや許されないから。SDGsに対する取り組みは義務ではないものの、経済の主役である企業（特に上場企業）に対する社会の期待と要請は相当なもの。これらの社会問題は、企業が率先して対応しなければ解決に向かって進まず、「この先地球がもたない」という深刻な状況が背景にあるからです。

なぜ企業がSDGsに取り組むの？

17の目標をご覧ください。「１.貧困をなくそう」「２.飢餓をゼロに」からはじまると開発途上国に対する支援と思いますか？しかし「３．すべての人に健康と福祉を」「４．質の高い教育をみんなに」「５．ジェンダー平等を実現しよう」と続くとキーワードにぴんとくる人もいるかもしれません。さらに、「８．働きがいも経済成長も」や「12.つくる責任、つかう責任」、「17．パートナーシップで目標を達成しよう」を見てみると、働き方改革、生活者の消費行動の変化、オープンイノベーションなど、日本の社会や身近な問題にもつながってくることが分かります。SDGsはこのように「それぞれの社会、そして世界全体の課題が挙げられたもの」と言うこともできます。

「私たちの事業が優先する目標やターゲットってどれだろう」「社会課題起点で考えると、今携わっているプロジェクトも当てはまりそう」このような意識がSDGsに取り組むはじめの一歩です。

はじめの一歩はココから

2分でわかる！動画「持続可能な開発とは？」https://www.youtube.com/watch?v=1c48vhokWLQ

ニュース2

経団連は2017年11月、会員企業向けの行動指針「企業行動憲章」にSDGsの理念を取り入れるよう改定。多くの上場企業がこの理念に伴った取り組みを開始しました。

ニュース3

日本政府は2017年12月「SDGsアクションプラン2018」を発表。https://www.kantei.go.jp/jp/singi/sdgs/pdf/actionplan2018.pdf

ニュース１

外務省が2017年7月、ピコ太郎とコラボし、SDGsの「PPAP」バージョンを国連本部で披露。SDGsの認知度アップに貢献!?

https://www.youtube.com/watch?v=H5l9RHeATl0

カードゲームでSDGsを体験 !政府も民間企業も

生活者もみんなで

取り組む

2015年9月に採択！

2030年までに達成！

国連に加盟する193カ国が参加

誰も置き去りにしないLeaving no one behind.

SDGsの基本理念

INTAGE Inc. held a Bring Your Kids to Work Day as an opportunity

for employees’ children to learn about their parents’ jobs and

understand more about working life. Experiences included an

INTAGE quiz and learning how to exchange business cards, and the

children posed some enthusiastic questions. In addition to

promoting understanding on the

part of family members and

coworkers, an essential factor in

employee retention, this event

also helps to raise awareness of

the importance of mutual support.

INTAGE Bring Your Kids to Work Day

Participation in the Ministry of the Environment’s “Cool Choice” CampaignThe INTAGE Group is participating in “Cool Choice,” a new national campaign to prevent global warming

promoted by Japan’s Ministry of the Environment. We are communicating information through the Group

newsletter and using educational video content to raise employee environmental awareness.

One of the INTAGE Group’s energy conservation measures is

promoting reduction of electricity usage at our offices and data

center. At the Hibarigaoka Office, steps have included

introduction of energy-saving fluorescent lights, window film

that blocks out heat from sunlight, and monitoring equipment

to regulate air conditioning usage. As a result, we maintained

energy usage below our benchmark of 1,500 kiloliters crude oil

equivalent for the third consecutive year. In addition,

confidential documents are collected in dedicated boxes for

dissolution processing by a specialist company and recycling

as toilet paper, containerboard or other materials, some of

which we purchase.


Sustainable Human Resources Management at the INTAGE Group

Communication and Dialogue on the Status of Workstyle Reform MeasuresTo promote workstyle reform, we consider it essential for employees to share issues with each other and

engage in constructive dialogue. We conduct employee surveys and collect information on topics including

working remotely and flextime, changes in working hours and productivity, and matters for future consideration,

and then share the results within the Group. In addition, project members have established opportunities for

regular dialogue.

The INTAGE Group’s measures to enhance professionalism earned it an honorable mention at the 2018 Japan HR

Challenge Awards. The INTAGE Group focuses on creating opportunities for proactive growth and an environment

where employees can choose their own working hours and location. In addition to generating Group synergies, this

focus was recognized as “an excellent effort to further raise the professionalism of each employee.”

Posting of Mid-Career Positions Inside and Outside the GroupThis is an initiative we are promoting in order to mobilize our human resources. It crosses internal Group needs with employee career development. By advertising mid-career positions both inside and outside the Group, we support our employees in actively thinking about and taking on challenges in their own careers.

Introducing an Open Format for Study Sessions Held by Each CompanyKnowledge Events are study sessions held by each Group company. We transitioned to an open format whereby employees from all Group companies can participate, as and when appropriate. We have also created opportunities for study that include Knowledge Event videos for employees unable to attend.

Health-Conscious Lunch DeliveriesEmployee health is a crucial factor in achieving higher work productivity. We therefore contracted to have nutritionally balanced lunches delivered for sale to employees. When introducing the service, we trialed several companies and chose one based on a survey of satisfaction and support. The lunches also improve employee health consciousness.

By increasing options for working hours and location, employees can find the workstyle

that is most efficient and productive for them. As a result, they have the feeling of a job

well done, which is sure to have a positive impact on their output.

If the INTAGE Group does not cultivate professionals, it will not grow. I believe it is

important for us to respect each other and confront outstanding issues through

workstyle reform.

Yoshiya NishiDirector in charge of

Promoting Workstyle Reform, INTAGE HOLDINGS Inc.

The INTAGE Group aims to create an environment where each employee can

demonstrate his or her potential to the fullest. Going forward, we will continue to

promote the effective deployment of human resources throughout the Group with

the aim of creating a climate that will encourage employees to take on challenges

with autonomy.

Shigeyoshi MatsuoGeneral Manager, Human

Resources Planning Division, INTAGE HOLDINGS Inc.

Opportunity

Climate

PracticeSeeking to ensure the sustainable growth of all Group companies, the INTAGE

Group makes continuous improvements to the workplace environment from a

variety of perspectives to advance the professional development of each employee.

Under our program of workstyle reform, we are laying the groundwork for the

active and fulfilling engagement of all employees as they raise productivity through

optimal styles of working. In April 2017, INTAGE HOLDINGS Inc. took the lead in

implementing a flextime system, which eliminates core hours. Measures have been

rolled out to six Group companies, and are being expanded and promoted,

including support for working remotely, which allows employees to choose where

to work without any limits on eligibility or frequency of use.

Opportunities for proactive growth and for mutual encouragement

Leadership by all

Environment where diversity thrives

Balancing work and home life

Maintaining the best conditions for performance


Relationship with Society

Educational Support by INTAGE (Thailand) Co., Ltd.

JMIRI Support for People with Disabilities Donations and Support for Various Organizations

Total Donations from Shareholder Benefit Plan and Cue Monitors


The C.W. Nicol Afan Woodland Trust 90,370

Japan Guide Dog Association 490,970

UNICEF 460,880

Japan Earthquake and Tsunami Relief Fund (Japanese Red Cross Society) 42,000

Total 1,084,220

(Yen)

We support the activities of various organizations through

donations from shareholders and survey panelists. In addition,

as part of its CSR, each Group company provides support

for social contribution activities through donations to

organizations that contribute to regional cultural activities,

sports and other areas relating to our business operations.

Based on a belief that knowledge is the foundation of growth

for children, who will shoulder the responsibilities of the next

generation, INTAGE (Thailand) Co., Ltd. provides ongoing

support for education in Thailand.

In 2017, the company provided support for Baan Hua Kuang

School, Chiang Mai Province, attended by students from a

highland ethnic group. Students at the school collaborated

with INTAGE (Thailand) employees on a “One Book, One

Design” project to produce notebooks using paper crafts.

Proceeds from the sale of these notebooks are used for the

purchase of teaching materials and expansion of the school’s

lunch program.

Japan Medical Information Research Institute Inc. (JMIRI)

provides support for people with disabilities through

“Wa.to.Wa,” a facility in Saga Prefecture that aids their

ongoing employment. Wages are paid from the sale of goods

such as ornaments and aroma candles produced at the

facility, which leads to greater independence for those with

special needs. Such goals have led like-minded employees

from other Group companies to join JMIRI employees in

supporting this initiative.

Support for Earthquake Victims

The INTAGE Group continued to sponsor the Japanese Red

Cross Society project “Forever remembered” from the

previous fiscal year. Group employees in Japan wear project

badges and spread information on disaster prevention and

mitigation through social media and the company intranet.

We will continue our activities to raise awareness of disaster

prevention and mitigation while maintaining the memory of

previous disasters.

Sustainability


Corporate Governance Structure General Meeting of Shareholders

Crisis Managem

ent Comm

ittee

Board of Directors(6 inside directors and

4 outside directors)

Audit & Supervisory Committee

(1 inside and 3 outside members)


Executive Committee

Internal control departments Internal Audit Department

Operating departments and management departments of

INTAGE HOLDINGS and Group companies

Group Management Meeting

Managem

ent System

Comm

ittee

Internal Control Comm

ittee Independent Auditor

Consulting Law Office

• The INTAGE Group Way• INTAGE Group’s Ethical Charter

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

Promote

Emergency response

Accounting audits/Audits of internal control over financial reporting

Reporting of legal or compliance violations

Legal consultation/Reports of compliance violations

Instruct

Instruct

Collaboration

Collaboration

Internal audits

Report

Report Audit and supervision

• Board of Directors

The Board of Directors consists of six directors (excluding directors serving as Audit & Supervisory Committee members; including one outside director), and four directors serving as Audit & Supervisory Committee members (including three outside directors), who meet once a month, in principle, to make decisions on policies and other important matters concerning the Company’s management, and oversee the execution of duties by executive officers and directors, including the representative directors.

• Committees

The Company has established the Internal Control Committee to promote internal control initiatives, the Crisis Management Committee to respond to crises involving business operations, the Management System Committee to further improve management systems, and the Information Security Committee to identify and resolve information security issues.

The Audit & Supervisory Committee consists of four directors serving as Audit & Supervisory Committee members (including three outside directors), who meet once a month, in principle.

• Outside Directors

The Company has four outside directors, three of whom are Audit & Supervisory Committee members. The Company believes that appointing outside directors enables it to reflect a broad range of expertise from an independent standpoint in its management decisions. The Company’s criteria for the independence of outside directors are based on its Independence Criteria for Outside Directors, with reference to the independence criteria of Tokyo Stock Exchange, Inc.

Corporate Governance

Basic Approach to Corporate GovernanceWe believe that, as an enterprise made up of numerous stakeholders, the INTAGE Group has an important responsibility not only to improve business results but also to ensure the soundness, fairness and transparency of management.

The INTAGE Group Way, our corporate philosophy, is the cornerstone of our management. To fulfill that philosophy, 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 defines the basic attitude and behaviors expected of employees. The Code of Conduct is instilled in the Group’s executives and employees to ensure that they carry out sound business activities in compliance with laws and regulations. In keeping with our Basic Policy on Corporate Governance, the Group has implemented all principles set forth in the Corporate Governance Code issued by Tokyo Stock Exchange, Inc.

Corporate Governance StructureIn 2016, we transitioned from a company with a Board of Corporate Auditors to a company with an Audit & Supervisory Committee. This change strengthens our corporate governance structure by bolstering the oversight and supervision function of the Board of Directors, accelerating decision-making through the delegation of authority, and raising the level of fairness, transparency and effectiveness in business execution.


Management Team (As of June 27, 2018)

Directors

Kenji MiyakubiPresident and Representative Director

1980 Joined the Company2007 Director and General Manager, Incubation Center2010 Executive Director and General Manager,

Business Development Group2011 President, Representative Director and General

Manager, Business Development Group2012 President and Representative Director (current position)

Noriaki IshizukaRepresentative Director and Executive Vice President

1982 Joined the Company2006 Director and Deputy General Manager, Sales Group2008 Director and Unit Director, Business Solutions Unit2009 Director and General Manager, Sales Group2011 Director and General Manager,

DCG and Services Business Group2013 Executive Director President and Representative Director,

INTAGE Inc. (current position)2015 Director2017 Representative Director and Executive Vice President

(current position)

Kenji IkeyaDirector and CFO, in charge of Internal Controls

1980 Joined The Saitama Bank, Ltd.2011 General Manager, Corporate Management Division,

the Company2013 Executive Officer and General Manager, Finance &

Investor Relations Division2014 Executive Officer in charge of Finance & Investor

Relations Division and General Manager, Corporate Administration Office

2015 Executive Officer in charge of Finance & Investor Relations Division and General Manager, President’s Office

Senior Executive Officer in charge of Finance, Crisis Management Committee, Internal Control Committee

2016 Senior Executive Officer in charge of Corporate Finance Division, President’s Office, Internal Control and Risk Management Division, Crisis Management Committee, Internal Control Committee

Director and CFO, in charge of Internal Controls (current position)

Yoshiya NishiDirector, Executive Officer in charge of Group Healthcare Business, in charge of Promoting Workstyle Reform

1992 Joined Social Survey Research Information Co., Ltd.1994 Director, TM Marketing Inc. (currently ANTERIO Inc.)2005 Vice President and Representative Director,

TM Marketing Inc.2007 President and Representative Director, TM Marketing

Inc. (current position)2014 Executive Officer in charge of Group

Healthcare Solutions2015 Executive Officer in charge of Group Healthcare

Business Director, ASKLEP Inc. (current position)2016 Director in charge of Group Healthcare Business2017 Director in charge of Group Healthcare Business,

in charge of Promoting Workstyle Reform (current position)

Kiyomi MiyauchiDirector, in charge of Group Overseas Business, Chief Senior Director of Overseas Business

1983 Joined the Company2005 General Manager, Global Research Division,

Solution Group2007 General Manager, Sales Division IX, Sales Group2008 Chief Executive Officer, INTAGE (Thailand) Co., Ltd.

(current position)2014 Executive Officer in charge of Overseas Business,

ASEAN and India, Representative, INTAGE HOLDINGS Inc. Regional Office (current position)

2015 Executive Officer in charge of Group Overseas Business Senior Executive Officer in charge of Group Overseas

Business2016 Senior Executive Officer, in charge of Group Overseas

Business, Chief Director of Overseas Business2017 Director, in charge of Group Overseas Business,

Chief Senior Director of Overseas Business (current position)

Shizue KishiOutside Director

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

1988 Assistant Professor, Faculty of Economics, Nagoya City University

1996 Professor1998 Professor, Faculty of Business Administration, Tokyo

Keizai University (current position), Executive Director, Japan Academy of Advertising (current position)

2010 Chairperson, Japan Academy of Advertising2014 Dean, Faculty of Business Administration, Tokyo

Keizai University2015 Outside Director, the Company2016 Outside Director serving on the Audit & Supervisory

Committee2017 Outside Director (current position)2018 Vice President and Director, Tokyo Keizai University

(current position)

Kenji Miyakubi

Kiyomi MiyauchiNoriaki IshizukaKenji Ikeya

Yuzo Miyama

Shizue Kishi


Directors Serving on the Audit & Supervisory Committee Executive Officers and Their Responsibilities

Ayumi HigakiSenior Executive Officer, in charge of Group Business Strategy

Director, INTAGE Inc.

Director (part-time), INTAGE TECHNOSPHERE Inc.

Shigemi SugawaExecutive Officer, in charge of Group Shared Services

Toshio OdagiriExecutive Officer, in charge of Affiliated Companies, in charge of Management Planning, in charge of Incubation Promotion

Director (part-time), ASKLEP Inc.,

Corporate Auditor (part-time), ANTERIO Inc.

Shinobu AibaExecutive Officer, Group CIO, in charge of Information Security

President and Representative Director, INTAGE TECHNOSPHERE Inc.

Takashi ItoDirector Serving on the Audit & Supervisory Committee (full-time)

1977 Joined IBM Japan, Ltd.2008 Deputy General Manager, Sales Group, the Company2012 Executive Officer, General Manager, FMCG Business

Group2015 Senior Executive, Auditing Staff and in charge of Internal

Audit Office2016 Senior Executive, Auditing Staff and in charge of Internal

Audit Division Director serving on the Audit & Supervisory Committee

(full-time) (current position)2017 Corporate Auditor, INTAGE Inc. (current position)

Hajime NakajimaDirector Serving on the Audit & Supervisory Committee (Outside Director)

1986 Appointed as Judge1997 Judge, Tokyo District Court2002 General Manager, Administrative Bureau, Secretarial

Training Institute, Supreme Court2004 General Manager of Training, Comprehensive Training

Institute for Court Staff2005 Judge, Tokyo High Court2007 Retired as Judge, Tokyo High Court,

Professor, Toin Law School (current position), Registered as an Attorney

2014 Substitute Corporate Auditor, the Company2015 Outside Corporate Auditor, the Company2016 Outside Director serving on the Audit & Supervisory

Committee (current position)2017 Outside Director, Toyo Sugar Refining Co., Ltd.

(current position)

Yuzo MiyamaDirector Serving on the Audit & Supervisory Committee (Outside Director)

1983 Registered as lawyer (Dai-ichi Tokyo Bar Association)1986 Established Yuzo Miyama Law Office2001 Representative, Miyama Law Office (current position)2007 Outside Director, Ai Holdings Corporation

(current position)2016 Member of the independent committee, the Company2017 Outside Director serving on the Audit & Supervisory

Committee (current position)

Shizuo KashimaDirector Serving on the Audit & Supervisory Committee (Outside Director)

1982 Joined Arthur Young & Company, Tokyo Office1985 Registered as Certified Public Accountant1987 Transferred to International Business Department of

Asahi Shinwa Kaikeisha Audit Firm due to the integration of Arthur Young & Company and Asahi Shinwa Kaikeisha Audit Firm

1992 Established Kashima Certified Public Accountant Office, registered as Certified Tax Accountant

Established Kashima Certified Tax Accountant Office Head, Kashima Certified Public Accountant Office

(current position)2002 Representative Director, Horwath Japan Corporation

(currently Minato Trust Corporation) (current position) Established Kashima & Komiyama Certified Public

Accountant Office Representative Certified Public Accountant, Kashima &

Komiyama Certified Public Accountant Office (current position)

2008 Corporate Auditor, Miki Tourist Co., Ltd. (current position)

2010 Corporate Certified Public Accountant, the Company (until March 2018)

2018 Outside Director serving on the Audit & Supervisory Committee (current position)

Hajime Nakajima

Yoshiya Nishi

Takashi Ito

Shizuo Kashima

Noriaki Ishizuka


I will work to enhance strengths that are not easily copied.

The strength of the INTAGE Group is its framework and expertise related to gathering and analyzing the large-volume data that is vital to digital marketing and is a core aspect of consumer behavior patterns, media penetration and storefront sales. The Group has continued to grow by applying that expertise to overseas markets and the domestic pharmaceuticals business. “Intelligence,” the inspiration for the Company name,* is something that is not easily copied and as we head into the age of AI, will become an even more invaluable management resource. As an academic researcher of advertising, marketing and consumer behavior, I hope to be able to provide advice in those areas.

Shizue Kishi Outside Director

* As part of the change in company name from Marketing Intelligence Corporation in 2001, we defined the 21st century as the “Intelligence Age,” with “INTAGE” representing our mission to pioneer a new age.

Comments from Outside Directors

I will voice my opinion in a variety of areas to promote appropriate decision-making.

Even in this age of AI, IoT and big data, it is people that are able to convert information into value. For the INTAGE Group to achieve further growth, I believe it must build a framework that promotes the Group-wide sharing of the experience and untapped knowledge of Group members in order to pass this on to the next generation. My role is to provide a broad range of opinions as an attorney and also to conduct monitoring from an independent, third-party perspective to ensure that decision-making is conducted appropriately.

Yuzo MiyamaDirector Serving on the Audit & Supervisory Committee (Outside Director)

I aim to conduct constructive audits from a third-party perspective so that the Company can ensure business continuity and development.

Market research is a cornerstone of the Company’s profits. However, market research that is nothing more than deductive reasoning, consisting solely of data analysis and prediction, will eventually be superseded by the capabilities of AI. The INTAGE Group has no choice but to transform into a business that uses inductive reasoning to create new hypotheses from limited data. Each member of the Board of Directors shares this sense of impending crisis. It is likely to entail taking risks and navigating the many pitfalls of failure. Amid such dramatic change in the corporate environment, the role that should be played by an outside director poses a particular dilemma. Taking a passive approach to checking compliance will not prove adequate. In carrying out my duties, I intend to establish avenues of communication within the Company as I consider the complicated issue of conducting constructive checks from a third-party perspective, so that the INTAGE Group can ensure business continuity and development.

Hajime NakajimaDirector Serving on the Audit & Supervisory Committee (Outside Director)

I will use my knowledge and experience in finance, accounting and taxation to consider the appropriateness of decision-making.

My role as an outside director is to audit the effectiveness of the Board of Directors’ performance of its functions when making important decisions related to the management of the INTAGE Group, based on the Company’s management philosophy and fiduciary responsibility to its shareholders. For this purpose, when the Board of Directors delivers key decisions, examination from an independent standpoint based on sufficient information and an accurate understanding is essential. In our rapidly changing business environment, measures including strategic investment in Japan and overseas will be indispensable for the ongoing sustainable growth of Group companies. As a member of the Board of Directors, I will strive to conduct audits based on my knowledge and experience in finance, accounting and taxation.

Shizuo KashimaDirector Serving on the Audit & Supervisory Committee (Outside Director)


Management’s Discussion and Analysis

Scope of ConsolidationThe INTAGE Group (the “Group”) consists of INTAGE HOLDINGS Inc. (the “Company”), 26 consolidated subsidiaries and 3 affiliated companies.

The Group’s activities are classified according to client industry and services provided. The three reportable segments are “Marketing Support (Consumer Goods & Services),” “Marketing Support (Healthcare)” and “Business Intelligence.”

In Marketing Support (Consumer Goods & Services), the Group provides data services, custom research, analytical models, communication services and other services based on various types of independently collected data, research techniques and data analysis.

In Marketing Support (Healthcare), the Group conducts marketing research for over-the-counter and prescription pharmaceuticals, performs data management and analysis on consignment from pharmaceutical manufacturers, and provides contract research organization (CRO) services to support pharmaceutical development.

In Business Intelligence, the Group’s services include software development and sales, system operation, maintenance and management, and data center operation.

The Group also 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, backed by a comprehensive understanding of marketing, to provide intelligence that aids in decision-making. In addition, the Group proposes new business models.

Summary of ResultsIn fiscal 2018 (the fiscal year ended March 31, 2018), the Japanese economy saw both corporate earnings and consumer spending continue to follow a moderate recovery path backed largely by the Bank of Japan’s easy monetary policy and government spending under large-scale economic policies. On the other hand, although continuing to pick up on the whole, overseas economies remained unstable owing chiefly to a cloudy outlook for economic growth and uncertainty over policy direction in China and other emerging markets in Asia, as well as the volatility of financial and capital markets.

Against this backdrop, establishing “Take the Initiative—in the field of data-activation” as its basic policy in the 12th Medium-Term Management Plan, which began in fiscal 2018, the INTAGE Group has implemented proactive business investments and R&D activities with the aim of accelerating the development of next-generation services toward further enhancement of its corporate value.

As a result, the INTAGE Group’s consolidated net sales for fiscal 2018 amounted to ¥50,499 million (up 5.2% year on year), with operating income of ¥4,023 million (down 5.7%), ordinary income of ¥4,311 million (down 1.9%) and net income attributable to owners of parent of ¥3,050 million (up 6.2%).

Results by Business Segment• Marketing Support (Consumer Goods & Services)

In the Marketing Support (Consumer Goods & Services) segment, sales increased, bolstered mainly by the strong performance of custom research, namely existing research studies and Internet surveys, as well as public-sector projects. On the other hand, operating income decreased owing to investments in the renewal of SRI, which is a key panel survey product, R&D activities and other areas, to achieve the goals of improvement in data value and expansion of service areas set in the 12th Medium-Term Management Plan.

As a result, consolidated net sales of the Marketing Support (Consumer Goods & Services) segment amounted to ¥33,186 million (up 5.6% year on year), with operating income of ¥2,165 million (down 9.3%).

• Marketing Support (Healthcare)

In the Marketing Support (Healthcare) segment, sales increased thanks chiefly to the brisk performance of post-marketing surveillance of medical products at ASKLEP Inc. and promotion activity evaluation services at ANTERIO Inc. Operating income decreased, due largely to investments made by ANTERIO Inc. to improve the value of products for existing services and the absence of large project orders that were present in the previous fiscal year.

As a result, consolidated net sales of the Marketing Support (Healthcare) segment amounted to ¥11,070 million (up 3.5% year on year), with operating income of ¥1,412 million (down 4.8%).

• Business Intelligence

In the Business Intelligence segment, both sales and operating income increased owing to strong orders from the travel, publishing and healthcare industries.

As a result, consolidated net sales of the Business Intelligence segment amounted to ¥6,243 million (up 6.5% year on year), with operating income of ¥446 million (up 12.0%).


• Production, Orders and Sales

1) Production

Production by segment for fiscal 2018 was as follows.

Segment Amount (Thousands of yen) Year-on-Year Change (%)

Marketing Support (Consumer Goods & Services) 22,753,760 −0.6

Marketing Support (Healthcare) 7,920,988 +10.4

Business Intelligence 5,057,558 +11.6

Total 35,732,307 +3.3

Note: Total indicates cost of sales.

2) Orders

Orders by segment for fiscal 2018 were as follows.

Segment Orders Received (Thousands of yen)

Year-on-Year Change (%)

Orders in Hand (Thousands of yen)

Year-on-Year Change (%)

Marketing Support (Consumer Goods & Services) 33,538,582 +0.5 12,249,557 +3.0

Marketing Support (Healthcare) 9,692,247 −10.2 6,267,200 −18.0

Business Intelligence 7,362,215 +35.5 3,879,640 +40.5

Total 50,593,046 +2.0 22,396,398 +0.4

Note: Total does not include consumption taxes.

3) Sales

Sales by segment for fiscal 2018 were as follows.

Segment Amount (Thousands of yen) Year-on-Year Change (%)

Marketing Support (Consumer Goods & Services) 33,186,088 +5.6

Marketing Support (Healthcare) 11,070,060 +3.5

Business Intelligence 6,243,658 +6.5

Total 50,499,807 +5.2

Note: Total does not include consumption taxes.

Cash FlowsCash and cash equivalents (“cash”) as of March 31, 2018 totaled ¥11,622 million, an increase of ¥1,203 million from the end of the previous fiscal year, owing primarily to ¥3,188 million and ¥399 million in cash provided by operating and financing activities, respectively, versus ¥2,414 million in cash used in investing activities.

• Cash Flows from Operating Activities

Net cash provided by operating activities amounted to ¥3,188 million, representing a decrease of ¥883 million in cash inflows from the previous fiscal year. This was mainly because the increase in notes and accounts receivable–trade was greater than in the previous fiscal year.

• Cash Flows from Investing Activities

Net cash used in investing activities amounted to minus ¥2,414 million, representing an increase of ¥304 million in cash outflows from the previous fiscal year. This was mainly due to an increase in payments for purchases of investment securities.

• Cash Flows from Financing Activities

Net cash provided by financing activities amounted to ¥399 million, compared with net cash used in financing actitivies of ¥1,300 in the precious fiscal year. This was chiefly due to an increase in proceeds from issuance of shares resulting from exercise of share acquisition rights.

Management’s Discussion and Analysis


Analysis of Financial Position

• Assets

Current assets increased ¥2,161 million from the end of

the previous fiscal year (March 31, 2017) to ¥27,856

million. This increase was mostly because cash and

deposits increased ¥1,165 million and notes and accounts

receivable–trade increased ¥1,246 million.

Non-current assets increased ¥257 million from the end of

the previous fiscal year to ¥13,630 million. Although net

defined benefit retirement assets decreased ¥1,329

million, the increase was mainly due to a ¥1,984 million

increase in investment securities.

As a result, total assets increased ¥2,418 million to

¥41,486 million.

• Liabilities

Current liabilities decreased ¥397 million from the end of

the previous fiscal year to ¥11,601 million. This decrease

was mostly because income taxes payable and accounts

payable–trade decreased ¥309 million and ¥201 million,

respectively.

Non-current liabilities decreased ¥839 million from the end

of the previous fiscal year to ¥2,456 million, largely owing

to the ¥1,146 million decrease in net defined benefit

liability.

As a result, total liabilities decreased ¥1,237 million to

¥14,057 million.

• Net Assets

Total net assets grew ¥3,656 million from the end of the

previous fiscal year to ¥27,428 million. This growth was

mostly because capital stock, capital surplus and retained

earnings gained ¥697 million, ¥512 million and ¥2,346

million, respectively.

Dividend Policy

The Company’s basic policy is to distribute earnings while

considering the balance between dividends and retained

earnings, based on consolidated results that reflect the

performance of the Group’s management. The Company

considers the return of earnings to shareholders to be a

top management priority, and targets a consolidated

payout ratio of 35%. Retained earnings are used for

investment to continually enhance the Group’s growth and

profitability. Our aim is to ensure returns to shareholders

through efforts to enhance performance.

For fiscal 2018, the Company plans to pay a year-end

dividend of ¥20.00 per share* (for a consolidated payout

ratio of 26.3%). For fiscal 2019, the Company is planning

to pay a year-end dividend of ¥22.00 per share.

* The Company implemented a stock split at a ratio of two shares for each share of

common stock on October 1, 2017.

Performance Outlook for the Fiscal Year

Ending March 31, 2019 (Fiscal 2019)

In fiscal 2019, although we need to take heed of the

negative effects of uncertainty over the future of overseas

economies and the volatility of financial and capital

markets, the Japanese economy is likely to remain on a

moderate recovery trend underpinned mainly by a range of

measures of the government amid continuous improvement

in the employment and income environment.

The Group has set “Take the Initiative—in the field of data-

activation” as its basic policy in the 12th Medium-Term

Management Plan. In fiscal 2019, the second year of the

plan, the Group will continue to implement proactive

investments and develop new services and solutions with

a view to achieving sustainable growth.

As a result, the Group forecasts consolidated net sales of

¥53,000 million (up 5.0% year on year) in fiscal 2019, with

operating income of ¥4,200 million (up 4.4%), ordinary

income of ¥4,250 million (down 1.4%) and net income

attributable to owners of parent of ¥2,900 million (down 4.9%).


Business-Related Risks

Risks related to the INTAGE Group’s business operations and financial condition that may have a significant 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, 2018.

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 computer security incidents 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 falsified as a result of unauthorized access to the Group’s information systems, stringent verification 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 fiscal year. This imbalance is attributable to three main factors: in the Marketing Support (Consumer Goods & Services) segment, research required by corporate clients for the preparation of the following year’s marketing plans is concentrated toward the end of the fiscal year; completion and delivery periods for reports commissioned by governmental agencies are concentrated toward the end of the fiscal year; and, in the Business Intelligence segment, a high proportion of systems development contracts stipulate delivery at the end of the fiscal year.

3. Business Investment The INTAGE Group makes investments that are necessary for ensuring growth in its established businesses and developing new areas of business.

However, negative effects that arise as a result of these investments, or the inability to obtain results from the investments as expected, could adversely affect the INTAGE Group’s business performance and business development.

In addition, the delayed discovery of problems at a company the INTAGE Group has invested in and inability to take prompt corrective action, or the INTAGE Group’s inability to devote sufficient personnel or other resources to investment activities, could adversely affect the INTAGE Group’s business performance and business development.

4. Business Risk(1) In panel research, the core service of the INTAGE Group’s Marketing Support (Consumer Goods & Services) segment, the Group is introducing new products and working to increase added value through a shift from data provision to solutions provision in order to secure further growth potential. 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) The Marketing Support (Healthcare) segment 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

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

Apr.-Sep. 2016 Oct. 2016-Mar. 2017 Apr.-Sep. 2017 Oct. 2017-Mar. 2018

Net sales 21,448 (44.7) 26,539 (55.3) 22,941 (45.4) 27,558 (54.6)

Marketing Support (Consumer Goods & Services) 13,828 (44.0) 17,604 (56.0) 14,806 (44.6) 18,379 (55.4)

Marketing Support (Healthcare) 5,098 (47.7) 5,595 (52.3) 5,388 (48.7) 5,681 (51.3)

Business Intelligence 2,521 (43.0) 3,339 (57.0) 2,746 (44.0) 3,497 (56.0)

Operating income 1,373 (32.2) 2,895 (67.8) 1,270 (31.6) 2,753 (68.4)

Ordinary income 1,370 (31.2) 3,022 (68.8) 1,469 (34.1) 2,842 (65.9)

Parentheses indicate percentage of total amounts for the year.


resulting from factors such as a decrease in new drug development in Japan, or by changes such as revisions to the Pharmaceuticals and Medical Devices Law or other laws or regulations.

(3) In the Business Intelligence segment, the INTAGE Group is strengthening its solution functions for specific industries based on the industry knowledge and client base it has cultivated by providing services in close contact with clients, such as operation, maintenance and management of systems. However, the Group’s business performance could be adversely affected if these efforts do not progress as expected.

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 continuously reviews the implementation of systems related to recruitment, development and evaluation of personnel, and the plan. Furthermore, the Group places priority on developing the next generation of managers, and is working to speed up succession.

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 MarketsThe INTAGE Group conducts the custom research business at consolidated subsidiaries INTAGE CHINA Inc. in China, CONSUMER SEARCH HONG KONG LIMITED in Hong Kong and MACAO RESEARCH CENTRE LTD. in Macao; the healthcare research business at Plamed Korea Co., Ltd. in Korea; the custom research business at INTAGE (Thailand) Co., Ltd. in Thailand and INTAGE VIETNAM LIMITED LIABILITY COMPANY in Vietnam; the panel research and custom research businesses at INTAGE SINGAPORE PTE. LTD. in Singapore; and the custom research business at PT. INTAGE INDONESIA in Indonesia, INTAGE INDIA Private Limited in India and INTAGE USA Inc. in the United States.

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 financial statements of the overseas Group companies listed in 6. 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, fire-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, fire, flood, 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 field 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 CompanyINTAGE HOLDINGS Inc., the listed holding company representing the INTAGE Group, derives its income from management fees paid to the Company by the operating companies whose shares it directly holds, and from dividends paid according to the business results and financial position of the operating companies. Therefore, deterioration of the financial position of operating companies resulting in their inability to pay dividends to the Company could adversely affect the Company’s business performance.


Consolidated Balance SheetsINTAGE HOLDINGS Inc. and Consolidated SubsidiariesAs of March 31, 2017 and 2018

Millions of yen Thousands of U.S. dollars*

2017 2018 2018

ASSETS

Current assets:

Cash and deposits ¥10,466 ¥11,631 $109,478

Notes and accounts receivable–trade 11,533 12,779 120,284

Work in progress 1,620 1,270 11,954

Stored item 80 85 800

Deferred tax assets 1,187 1,216 11,445

Other current assets 810 877 8,254

Allowance for doubtful accounts (4) (4) (37)

Total current assets 25,694 27,856 262,198

Non-current assets:

Property, plant and equipment:

Buildings and structures 5,898 5,936 55,873

Accumulated depreciation (4,279) (4,488) (42,243)

Net buildings and structures 1,619 1,447 13,620

Equipment and fixtures 1,219 1,312 12,349

Accumulated depreciation (902) (987) (9,290)

Net equipment and fixtures 317 324 3,049

Land 1,998 1,998 18,806

Lease assets 1,315 1,111 10,457

Accumulated depreciation (667) (617) (5,807)

Net lease assets 647 494 4,649

Other 0 0 0

Accumulated depreciation (0) (0) (0)

Net other 0 0 0

Net property, plant and equipment 4,582 4,264 40,135

Intangible assets:

Goodwill 117 130 1,223

Other intangible assets 1,790 1,676 15,775

Total intangible assets 1,908 1,806 16,999

Investments and other assets:

Investment securities 3,327 5,311 49,990

Deferred tax assets 669 636 5,986

Net defined benefit retirement assets 1,329 — —

Other 1,556 1,617 15,220

Allowance for doubtful accounts (1) (7) (65)

Total investments and other assets 6,882 7,558 71,140

Total non-current assets 13,373 13,630 128,294

Total assets ¥39,067 ¥41,486 $390,493

* The U.S. dollar amounts presented are calculated from Japanese yen at US$1 = ¥106.24, the rate prevailing on March 31, 2018.

Consolidated Financial Statements



2017 2018 2018

LIABILITIES

Current liabilities:

Accounts payable–trade ¥ 3,065 ¥ 2,864 $ 26,957

Short-term loans payable 2,200 2,057 19,361

Lease obligations 271 230 2,164

Income taxes payable 733 423 3,981

Provision for bonuses 1,778 1,729 16,274

Allowance for point program 1,218 1,435 13,507

Allowance for directors’ bonuses 17 — —

Provision for stock benefits 1 1 9

Other current liabilities 2,713 2,858 26,901

Total current liabilities 11,999 11,601 109,196

Non-current liabilities:

Long-term loans payable — 408 3,840

Lease obligations 448 318 2,993

Provision for stock benefits 76 106 997

Net defined benefit liability 2,763 1,617 15,220

Other non-current liabilities 7 4 37

Total non-current liabilities 3,295 2,456 23,117

Total liabilities 15,295 14,057 132,313

NET ASSETS

Shareholders’ equity:

Capital stock 1,681 2,378 22,383

Capital surplus 1,336 1,849 17,403

Retained earnings 19,651 21,997 207,050

Treasury stock, at cost (207) (200) (1,882)

Total shareholders’ equity 22,462 26,024 244,954

Accumulated other comprehensive income:

Valuation difference on available-for-sale securities 589 848 7,981

Foreign currency translation adjustments 390 421 3,962

Remeasurements of defined benefit plans 115 (117) (1,101)

Total accumulated other comprehensive income 1,095 1,153 10,852

Share acquisition rights — 16 150

Non-controlling interests 214 234 2,202

Total net assets 23,771 27,428 258,170

Total liabilities and net assets ¥39,067 ¥41,486 $390,493




Consolidated Statements of Income INTAGE HOLDINGS Inc. and Consolidated SubsidiariesFor the fiscal years ended March 31, 2017 and 2018


2017 2018 2018

Net sales ¥47,987 ¥50,499 $475,329 Cost of sales 34,603 35,732 336,332

Gross profit 13,384 14,767 138,996 Selling, general and administrative expenses 9,115 10,743 101,120

Operating income 4,268 4,023 37,867

Non-operating income

Interest income 6 11 103 Dividend income 45 235 2,211 Share of profit of entities accounted for using equity method 122 187 1,760 Insurance benefit received and dividends 24 21 197 Other 32 63 592

Total non-operating income 231 519 4,885

Non-operating expenses

Interest expenses 26 17 160 Loss on investments in partnership 33 139 1,308Loss on retirement of non-current assets 17 10 94 Foreign exchange losses 11 40 376 Other 20 24 225

Total non-operating expenses 108 232 2,183

Ordinary income 4,392 4,311 40,577

Extraordinary loss

Impairment loss 118 — —Loss on extinguishment of tie-in shares — 9 84

Total extraordinary loss 118 9 84 Net profit before income taxes 4,273 4,301 40,483 Income taxes–current 1,498 1,301 12,245 Income taxes–deferred (109) (6) (56)

Total 1,388 1,294 12,179 Net income 2,885 3,007 28,303 Profit (loss) attributable to non-controlling interests 13 (43) (404)Net income attributable to owners of parent ¥ 2,871 ¥ 3,050 $ 28,708

Consolidated Statements of Comprehensive IncomeINTAGE HOLDINGS Inc. and Consolidated SubsidiariesFor the fiscal years ended March 31, 2017 and 2018


2017 2018 2018

Net income ¥2,885 ¥3,007 $28,303

Other comprehensive income

Valuation difference on available-for-sale securities 305 259 2,437 Foreign currency translation adjustments (79) 31 291 Remeasurements of defined benefit plans (63) (233) (2,193)Share of other comprehensive income of entities accounted for using equity method — (2) (18)

Total of other comprehensive income 162 55 517 Comprehensive income ¥3,047 ¥3,062 $28,821

Comprehensive income attributable to:

Comprehensive income attributable to owners of parent ¥3,039 ¥3,108 $29,254 Comprehensive income attributable to non-controlling interests 8 (45) (423)



Consolidated Statements of Changes in Net AssetsINTAGE HOLDINGS Inc. and Consolidated SubsidiariesFor the fiscal years ended March 31, 2017 and 2018

Millions of yen

Shareholders’ equity Accumulated other comprehensive income

2018Capitalstock

Capital surplus

Retained earnings

Treasurystock Total

Valuation difference on available-for-sale securities

Foreign currency

translation adjustment

Remeasurements of defined benefit

plans Total

Share acquisition

rightsNon-controlling

interestsTotal

net assets

Balance at the previous year-end ¥1,681 ¥1,336 ¥19,651 ¥(207) ¥22,462 ¥589 ¥390 ¥ 115 ¥1,095 ¥— ¥214 ¥23,771

Change during period shown:

Issuance of new shares 697 697 — — 1,394 — — — — — — 1,394

Dividends from surplus — — (703) — (703) — — — — — — (703)Net income attributable to

owners of parent — — 3,050 — 3,050 — — — — — — 3,050

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

Disposal of treasury shares — — — 6 6 — — — — — — 6 Change in ownership

interest of parent due to transactions with non-controlling interests — (184) — — (184) — — — — — — (184)

Net changes of items other than shareholders’ equity — — — — — 259 30 (233) 57 16 20 93

Total 697 512 2,346 6 3,562 259 30 (233) 57 16 20 3,656

Balance at fiscal year-end ¥2,378 ¥1,849 ¥21,997 ¥(200) ¥26,024 ¥848 ¥421 ¥(117) ¥1,153 ¥16 ¥234 ¥27,428

Millions of yen


2017Capitalstock

Capital surplus

Retained earnings

Treasurystock Total


Foreign currency



plans Total

Share acquisition


interestsTotal

net assets

Balance at the previous year-end ¥1,681 ¥1,336 ¥17,433 ¥(216) ¥20,234 ¥284 ¥464 ¥179 ¥ 928 — ¥175 ¥21,338


Issuance of new shares — — — — — — — — — — — —

Dividends from surplus — — (653) — (653) — — — — — — (653)Net income attributable to

owners of parent — — 2,871 — 2,871 — — — — — — 2,871


Disposal of treasury shares — — — 9 9 — — — — — — 9Change in ownership

interest of parent due to transactions with non-controlling interests — (0) — — (0) — — — — — — (0)

Net changes of items other than shareholders’ equity — — — — — 305 (74) (63) 167 — 39 206

Total — (0) 2,218 9 2,227 305 (74) (63) 167 — 39 2,433

Balance at fiscal year-end ¥1,681 ¥1,336 ¥19,651 ¥(207) ¥22,462 ¥589 ¥390 ¥115 ¥1,095 — ¥214 ¥23,771

Thousands of U.S. dollars*


2018Capitalstock

Capital surplus

Retained earnings

Treasurystock Total


Foreign currency



plans Total

Share acquisition


interestsTotal

net assets

Balance at the previous year-end $15,822 $12,575 $184,967 $(1,948) $211,426 $5,544 $3,670 $1,082 $10,306 $ — $2,014 $223,748


Issuance of new shares 6,560 6,560 0 — 13,121 — — — — — — 13,121

Dividends from surplus — — (6,617) — (6,617) — — — — — — (6,617)Net income attributable to

owners of parent — — 28,708 — 28,708 — — — — — — 28,708


Disposal of treasury shares — — — 56 56 — — — — — — 56 Change in ownership

interest of parent due to transactions with non-controlling interests — (1,731) — — (1,731) — — — — — — (1,731)

Net changes of items other than shareholders’ equity — — — — — 2,437 282 (2,193) 536 150 188 875

Total 6,560 4,819 22,082 56 33,527 2,437 282 (2,193) 536 150 188 34,412

Balance at fiscal year-end $22,383 $17,403 $207,050 $(1,882) $244,954 $7,981 $3,962 $(1,101) $10,852 $150 $2,202 $258,170



Consolidated Statements of Cash FlowsINTAGE HOLDINGS Inc. and Consolidated SubsidiariesFor the fiscal years ended March 31, 2017 and 2018


2017 2018 2018Cash flows from operating activities:

Income before income tax and minority interests ¥ 4,273 ¥ 4,301 $ 40,483 Depreciation 1,417 1,379 12,980 Impairment loss 118 — —Amortization of goodwill 116 43 404 Decrease (increase) in net defined benefit retirement assets (32) 1,329 12,509

Increase (decrease) in net defined benefit retirement liability (33) (1,169) (11,003)Increase (decrease) in accrued employees’ bonuses 138 (61) (574)Increase (decrease) in provision for directors’ retirement benefits 6 (17) (160)Increase (decrease) in allowance for doubtful accounts (0) 6 56 Increase (decrease) in allowance for point program 105 216 2,033 Increase (decrease) in provision for stock benefits 26 29 272

Interest and dividend income (52) (247) (2,324)Equity in (earnings) losses of affiliates (122) (187) (1,760)Interest expenses 26 17 160 Loss (gain) on investments in partnership 33 139 1,308 Loss on retirement of non-current assets 17 10 94 Loss (gain) on extinguishment of tie-in shares — 9 84 Decrease (increase) in notes and accounts receivable–trade (701) (1,135) (10,683)

Decrease (increase) in inventories (417) 358 3,369 Increase (decrease) in notes and accounts payable–trade 392 (261) (2,456)Increase (decrease) in accrued consumption taxes (39) 15 141 Other 763 (259) (2,437)

Sub total 6,036 4,520 42,545 Proceeds from interest and dividend income 52 247 2,324 Interests expenses paid (26) (13) (122)Income taxes paid (1,990) (1,565) (14,730)

Net cash provided by operating activities 4,072 3,188 30,007 Cash flows from investing activities:

Payments into time deposits (38) (0) (0)Proceeds from withdrawal of time deposits 4 39 367 Payments for purchases of property, plant and equipment (520) (165) (1,553)Payments for acquisition of intangible assets (829) (823) (7,746)Payments for purchases of investment securities (684) (1,507) (14,184)Payments for loans (25) (2) (18)Proceeds from loans receivable 4 3 28 Purchase of investments in affiliates resulting in change in scope of consolidation (12) (10) (94)Proceeds from liquidation of subsidiaries and associates — 66 621 Payments for security deposits (27) (23) (216)Proceeds from refund of security deposits 19 8 75 Other 0 1 9

Net cash used in investing activities (2,110) (2,414) (22,722)Cash flows from financing activities:

Proceeds from short-term loans payable 4,032 4,000 37,650 Repayments of short-term loans payable (4,381) (4,000) (37,650)Proceeds from long-term loans payable — 300 2,823 Repayments of long-term loans payable — (200) (1,882)Repayments of lease obligations (322) (289) (2,720)Proceeds from issuance of shares resulting from exercise of share acquisition rights — 1,387 13,055 Proceeds from issuance of share acquisition rights — 22 207 Proceeds from payments from non-controlling interests 31 129 1,214 Payments for acquisition of treasury stock (0) (0) (0)Dividends paid (659) (702) (6,607)Payments for dividends paid to non-controlling interests (0) (0) (0) Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation — (247) (2,324)

Net cash provided by (used in) financing activities (1,300) 399 3,755 Effect of exchange rate changes on cash and cash equivalents (55) 10 94 Net increase (decrease) in cash and cash equivalents 605 1,183 11,135 Cash and cash equivalents at beginning of year 9,812 10,418 98,060 Increase in cash and cash equivalents resulting from merger — 19 178 Cash and cash equivalents at end of year ¥10,418 ¥11,622 $109,393




In addition to presenting business briefings for institutional

investors and analysts in May and November of each year, we

hold IR meetings as the occasion demands. About four times

a year, we also conduct financial roadshows for retail

investors throughout Japan with appearances by either the

president or a director to raise recognition and understanding

of the Company. Opinions and information gained through

this communication with shareholders and investors in Japan

and overseas are shared within the Group as necessary and

fed back into IR activities and execution of management.

January 2017 Capital and business alliance between INTAGE Inc., Agile Media Network Inc., the Dentsu Group, and Mynavi CorporationFurther increase in effectiveness of and value derived from ambassador programs

April 2017 Business alliance between INTAGE Inc. and DO HOUSE Inc.Retail flyer collection and analysis business for consumer product manufacturers

Capital and business alliance between ANTERIO Inc. and ReasonWhy Inc.New business development targeting medical care users

June 2017 Business alliance between INTAGE Inc. and Webrage Co., Ltd.Eye tracking and expression analysis using smartphones

July 2017 Participation by INTAGE Inc. in Consumption Trend Index Research ConsortiumContribution to the improvement and advancement of public statistics and the progress of academic research through collaboration among industry, academia and government

August 2017 Start of alliance between INTAGE Inc. and the Japan Weather Association for demand forecastingApplication of SRI data

October 2017 Capital and business alliance between INTAGE Inc., IXT Inc., and Dentsu Inc. Promotion of utilization of smart TV viewing data

March 2018 Signing of a basic agreement for academic-industrial collaboration between INTAGE HOLDINGS Inc. and Yokohama City UniversityContribution to development of data scientists through academic-industrial collaboration

April 2018 Capital and business alliance between INTAGE Inc. and Research and Innovation Co., Ltd.Start of joint creation of basic product information and other data

Business alliance between Japan Medical Information Research Institute Inc. and plus-medi-corp.Expansion of new services using internal hospital information

May 2018 Business alliance between INTAGE Inc. and Datorama JapanDevelopment of solutions and templates and creation of new services in the field of live monitoring

Business alliance between INTAGE Inc. and Xica Co., Ltd.Development of solutions in the field of data science

Business Alliances and Cooperation/Main IR Activities

The INTAGE Group’s Business Alliances and Cooperation in Recent Years

Main IR Activities

Target Audience Times Held (April 2017–March 2018)

Business briefingsInstitutional investors and analysts

Twice(Year-end and second-quarter announcements of financial statements)

IR information meetings(for individuals/small groups)

Institutional investors and analysts

About 60 times

Financial roadshows for retail investors Retail investors

July 2017: SapporoMarch 2018: Kurashiki, Matsuyama, Kobe

Main Activities

May 2017 business briefing (Chiyoda-ku, Tokyo)

July 2017 financial roadshow for retail investors (Sapporo, Hokkaido)

March 2018 financial roadshow for retail investors (Kurashiki, Okayama)

Capital and business alliance between ANTERIO Inc. and ReasonWhy Inc.

Basic agreement for academic-industrial collaboration between INTAGE HOLDINGS Inc. and Yokohama City University


Domestic Group Companies

CompanyCapital or Amount Invested

(Thousands of yen)Percentage of Voting Rights Held*

INTAGE Inc. 450,000 100.0

IXT Inc. 139,600 80.2 (80.2)

Access JP Inc. 10,000 100.0 (100.0)

INTAGE RESEARCH Inc. 40,000 100.0 (100.0)

INTAGE CONSULTING Inc. 140,000 100.0

ASKLEP Inc. 100,000 100.0

Kyoto Constella Technologies Co., Ltd. 40,750 65.8 (65.8)

ANTERIO Inc. 145,400 100.0

PLAMED Inc. 90,000 100.0 (100.0)

Japan Medical Information Research Institute Inc. 188,250 100.0

INTAGE TECHNOSPHERE Inc. 400,000 100.0

DataAge Inc. 100,000 100.0 (100.0)

Buildsystem Co., Ltd. 19,000 100.0

INTAGE ASSOCIATES Inc. 30,000 100.0

Overseas Group Companies

Company Capital or Amount Invested Percentage of Voting Rights Held*

INTAGE CHINA Inc. 31,978 thousand yuan 99.0 (99.0)

INTAGE (Thailand) Co., Ltd. 105,000 thousand baht 94.3 (91.0)

INTAGE VIETNAM LIMITED LIABILITY COMPANY 3,100 million Vietnamese dong 100.0 (100.0)

INTAGE INDIA Private Limited 325 million Indian rupees 98.8 (1.3)

INTAGE SINGAPORE PTE. LTD. 2.8 million Singaporean dollars 100.0

CONSUMER SEARCH HONG KONG LIMITED 13.8 million H.K. dollars 51.0 (51.0)

PT. INTAGE INDONESIA 8 billion Indonesian rupiah 60.0 (60.0)

INTAGE USA Inc. 500 thousand U.S. dollars 100.0 (100.0)

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

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

Corporate Data/INTAGE Group (As of March 31, 2018)

Corporate Data

Company Name INTAGE HOLDINGS Inc.

Established March 1960


Kenji Miyakubi

Capital ¥2,378.7 million

Net Sales (Consolidated) ¥50.4 billion (fiscal year ended March 2018)

Employees (Consolidated) 2,527

Head Office INTAGE Akihabara Building, 3 Kanda-Neribeicho, Chiyoda-ku, Tokyo 101-0022, JapanTel: +81-3-5294-7411 Fax: +81-3-5294-0199

INTAGE Group


Authorized Shares 148,000,000

Shares Issued 41,426,000

Number of Shareholders 4,496

Investment in INTAGE

Number ofShares Held

Shareholding Ratio (%)

Mizuho Trust & Banking Co., Ltd. as trustee for Retirement Benefit Trust of Eisai Co., Ltd. (reentrusted to Trust & Custody Services Bank, Ltd.)

3,600,000 8.7

BBH Fidelity Low-Priced Stock Fund (Principal All Sector Subportfolio) 3,354,800 8.1

INTAGE Group Employees’ Stockholding Association 2,028,603 4.9

Goldman Sachs and Company Regular Account 1,989,435 4.8

Saitama Resona Bank, Ltd. 1,870,000 4.5

Hoei Jitsugyo Co., Ltd. 1,820,000 4.4

Mizuho Bank, Ltd. 1,400,000 3.4

The Dai-ichi Mutual Life Insurance Company 1,400,000 3.4

Daiei Real Estate & Development 1,256,000 3.0

BNP PARIBAS SEC SERVICES LUXEMBOURG JASDEC ABERDEEN GLOBAL CLIENT ASSETS 1,200,000 2.9

(Yen)

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

1,000,000

2,000

1,500

500

1,000

0

1,500,000

2,000,000

2,500,000

3,000,000

500,000

0

2015

1 2 3 4 5 6 7 8 9 10 11

2016

121 2 3 4 5 6 7 8 9 10 11

2017 2018

(Shares)

Stock Information (As of March 31, 2018)

Stock Information

Distribution Chart

Stock

Stock Price and Trading Volume

Major Shareholders

Securities Firms

1.7%

Other Corporations

11.5%

Foreign Companies, Others

27.9%

Individuals and Others

24.2%

Total

4,496shareholders

Financial Institutions

34.7%

Note: Shareholding ratio is calculated after deducting treasury stock (10,440 shares).

Stock price of INTAGE HOLDINGS (left scale)

TOPIX (left scale)

Trading volume (right scale)

Note: The Company implemented a stock split at a ratio of two shares for each share of common stock on October 1, 2017. Accordingly, stock price and trading volume amounts for January 2015 and thereafter are prepared taking this stock split into account.


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

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

Documents

Know today, Power tomorrow - Intage Holdings Inc...2009 INTAGE listed on the First Section of the Tokyo Stock Exchange 2010 Launched SCI-personal (nationwide individual consumer panel