FY2013 Results and Future Growth Strategies

Transcription

1 FY2013 Results and Future Growth Strategies FY2013: Fiscal year ended March 31, 2013 May 21, 2013 (TSE 4326) INTAGE Inc. Copyright 2013 INTAGE Inc. All Rights Reserved.

2 Contents FY2013 Results Future Growth Strategies FY2014 Earnings Forecast Copyright 2013 INTAGE Inc. All Rights Reserved. 2

3 FY2013 Results Future Growth Strategies FY2014 Earnings Forecast Copyright 2013 INTAGE Inc. All Rights Reserved. 3

4 Consolidated Financial Highlights Net sales were slightly below the performance forecast, but posted a new high. Operating income and recurring profits both achieved the planned targets, but net income declined from the posting of extraordinary losses. Net Sales Operating Income (Billions of yen) FY2011 FY2012 FY FY2011 FY2012 FY2013 Net Income FY2011 FY2012 FY2013 Copyright 2013 INTAGE Inc. All Rights Reserved. 4

5 Summary of Income Statements FY2012 Actual FY2013 Forecasts FY2013 Actual (Millions of yen) Change YoY Consolidated Net Sales 36,658 40,225 39, % Operating Income 2,885 3,130 3, % Recurring Profit 2,859 3,088 3, % Net Income 1,325 1,756 1, % EPS (Yen) Non-consolidated Net Sales 26,918 28,130 27, % Operating Income 2,228 2,409 2, % Recurring Profit 2,373 2,438 2, % Net Income 1,297 1, % EPS (Yen) Copyright 2013 INTAGE Inc. All Rights Reserved. 5

6 Summary of BS and CF Consolidated Balance Sheets FY2012 FY2013 Change Details (Millions of yen) Current assets 15,591 18,269 +2,678 Primarily increase in cash and deposits and notes and accounts receivable-trade Noncurrent assets 12,139 11,128-1,010 Primarily decrease in investment securities and goodwill Total assets 27,730 29,398 +1, Current liabilities 10,055 7,729-2,326 Primarily decrease in short-term loans payable Noncurrent liabilities 3,157 6,174 +3,017 Primarily increases in long-term loans payable Total liabilities 13,212 13, Shareholders equity 14,611 15, Primarily increases in retained earnings Valuation and translation adjustments (107) Deference of foreign translation adjustments Minority interests Total net assets 14,517 15, Consolidated Cash Flows FY2012 FY2013 Change Details Cash flow from operating activities 2,943 3, Primarily decrease in increase in inventories and increase in notes and account-payable Cash flow from investing activities (3,341) (1,332) +2,008 Primarily decrease in payments for purchases of investment securities Cash flow from financing activities 675 (960) -1,635 Primarily increase in proceeds from short-term loans payable and payments for long-term loans payable Effect of exchange rate changes on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year (14) , ,337 4, Cash and cash equivalents at end of year 4,599 5,906 +1, (Millions of yen) Copyright 2013 INTAGE Inc. All Rights Reserved. 6

7 Net Sales by Segment (Billions of yen) (-8.4%) 5.53 [17%] 5.18 (-4.9%) 4.93 [14%] ( ): Change YoY; [ ] Composition [15%] [14%] (+19.9%) (+0.6%) [17%] 4.96 [12%] Drug Development Solutions Sales rose with an increase in clinical monitoring business personnel and a strengthening of the sales force for data management and analysis work. System Solutions Sales remained near the prior year s level with a gradual recovery in enterprise systems investment (+3.5%) [69%] [71%] (+8.2%) 28.3 [71%] Marketing Research and Consulting <Syndicated Panel Data Services> Sales of SRI (syndicated POS retail panel data) and SCI-personal (nationwide individual consumer panel data) increased. <Customized Research> Sales were firm at all strategic business units (SBUs) for both conventional and Internet research. 0 FY2011 FY2012 FY2013 Copyright 2013 INTAGE Inc. All Rights Reserved. 7

8 Breakdown of Sales of the Marketing Research and Consulting Segment (Billions of yen) 30 ( ): Change YoY; [ ] Composition [41%] (+2.0%) [59%] (+5.5%) [42%] [58%] (+13.0%) (+4.7%) [44%] [56%] FY2011 FY2012 FY2013 Marketing Research and Consulting Customized Research Services Traditional Research Methodologies (Mail surveys, Interview surveys, etc.) Internet Research Syndicated Panel Data Services SRI (syndicated POS retail panel data ) SDI (syndicated OTC Drugs panel data ) SPI (In-store promotions Effectiveness Measurement) SLI (syndicated Female consumer panel data) SCI-personal (Individual consumer panel data) Rep Track (MR activities evaluation index) Copyright 2013 INTAGE Inc. All Rights Reserved. 8

9 Operating Income by Segment (Billions of yen) 4 ( ): Change YoY Drug Development Solutions (-65.6%) (+1.3%) (+90.2%) (-5.8%) Profits rose with steady recovery of work volume in both the monitoring business and data management and analysis business. System Solutions Slight profit decrease despite recovery of work volume in the travel industry (-10.0%) 2.56 (+11.4%) 2.86 FY2011 FY2012 FY2013 Marketing Research and Consulting <Syndicated Panel Data Services> Profits declined from investment in constructing Single Source Panel data. <Custom Research> Profits rose from increased Internet research sales. Strong performance at Thai and Vietnam subsidiaries made a large contribution to profits. Copyright 2013 INTAGE Inc. All Rights Reserved. 9

10 FY2013 Results Future Growth Strategies FY2014 Earnings Forecast Copyright 2013 INTAGE Inc. All Rights Reserved. 10

11 Status of Progress in FY2013 INTAGE Began cross-media efforts with Google and other partners; the construction of the new platform is advancing. FMCG sales to major clients grew from a focused client approach. DCG and services performance remained favorable in the automobile and electrical machinery industries, and global sales to the lifestyle industry increased. The number of companies signing contracts for POS services surpassed 100, and this is becoming the industry platform in both name and reality. Large orders were secured in the travel industry. Group Companies (Domestic) DOCOMO InsightMarketing, Inc. prepared research environment and initiated development and sales of mobile interviews and also carried out research and development on the Consumer Panel (tentative name). The addition of Japan Medical Information Research Institute Inc. (JMIRI) to the Group enables analysis of both Rx and OTC data and research on an impact analysis model in the drug information field. (Overseas) Established INTAGE INDIA Private Limited, ASKLEP TAIWAN Inc. and ASKLEP KOREA Inc. Sales increased from the expansion and upgrading of bases. Also expanded number of projects over wide areas of emerging economies including rural India, Russia, Turkey, Cambodia and Myanmar. In overseas subsidiaries, the business restructuring of INTAGE CHINA Inc. is a major issue. Copyright 2013 INTAGE Inc. All Rights Reserved. 11

12 Basic Group Policy for FY2014 Establish overwhelming competitive advantages in priority fields Ultimate client relations and weapons to compete Keywords toward Growth Mobile Create markets and capture share together with DOCOMO InsightMarketing, Inc. Global Accelerate global development by creating new weapons to compete Healthcare Group synergy strategy and rebuilding the story Copyright 2013 INTAGE Inc. All Rights Reserved. 12

13 Use of i-ssp (INTAGE Single Source Panel) Political party supported Attributes, awareness, values Political concerns Programs viewed Reveals the timeline of consumer information exposure and consumption behavior Media and advertisement exposure data Same individual Clarifies the effect and roles of individual advertisements Clarifies the cause-effect relation between information exposure and consumption behavior (purchasing and awareness) Purchasing data (SCI-personal) Voting behavior PC, Mobile, TV, Newspaper, Magazine, Radio, Outdoor advertising Foods, Beverages, Daily sundries, Medicines Makes it possible to capture election-related data that can only be obtained from a single source linking supplemental research with media exposure data Potential clients include political parties, advertising agencies and media Copyright 2013 INTAGE Inc. All Rights Reserved. 13

14 Establish Smartphone Research Make research smarter! Launched Smartphone Research April 2013 Panelists are the approximately 1.2 million smartphone panel members of the DOCOMO Premier Club nationwide. Facilitates research of segments that were difficult to approach using PC panelists Sixty percent are new panelists who are not registered as existing questionnaire panelists Respond trends remain unchanged from those via PCs using the Company s proprietary i-tile format (patent pending) questionnaire format Smart Convenience that only a smartphone can provide High level of freedom in survey screen and survey design; service that can be carried out easily =>Makes it possible to gain adequate survey results at a low cost Quick research with same-day delivery Ultra-fast questionnaire services Quick Questionnaire Questionnaire sent at 11am raw data delivered at 7pm the same day (15 questions or less) Quick Interview Quick Order placed at 10am Online discussion possible that same evening *Certain conditions apply * Premier Club is a registered trademark of NTT DOCOMO, Inc. Copyright 2013 INTAGE Inc. All Rights Reserved. 14

15 New Value provision of the Smartphone era by DOCOMO InsightMarketing, Inc. Consumer Panel (Tentative Name) Consumers are the starting point Inspirational data Recording Research Continuous data Mobile Interview Chat-format interview survey Can participate in interviews from anywhere using a smartphone Also enables interviews of rare samples Question Answer Question Clients Know the present Linked research Quick Research Subject Interviewer Enables individual interviews with participants of interest Copyright 2013 INTAGE Inc. All Rights Reserved. 15

16 Synergy through Collaboration with DOCOMO InsightMarketing Interactive Promotion Service maximize use of Premier Club members Can implement high-impact promotions with free choice of optimal target segments from one of Japan s largest membership organizations, the DOCOMO Premier Club STEP1 STEP2 STEP3 Target Segment Specification Over 40 types of attribute segments of around 2.2 million active members* *As of the end of March 2013 Interactive Promotion Conducted via cell phones and smartphones Consent to forward sample and inducement to visit site Follow-up Questionnaire (Optional) Enables post-evaluation interviews after sample use Establish a dedicated unit as an agency for DOCOMO InsightMarketing, and develop services clearly separated from marketing research and consulting work. Copyright 2013 INTAGE Inc. All Rights Reserved. 16

17 Form a Network in the ASEAN Region to Compete with the Top Five and Win in Asia Consumer Search Hong Kong Limited is scheduled to become a subsidiary late July. INTAGE CHINA ASKLEP CHINA ASKLEP KOREA INTAGE INDIA Myanmar ASKLEP TAIWAN Cambodia FTA Research and Consultant INTAGE (Thailand) Malaysia INTAGE SINGAPORE (June, scheduled) Indonesia Examine & develop overseas research solutions in domestic markets Copyright 2013 INTAGE Inc. All Rights Reserved. 17

18 Consumer Search Hong Kong Limited Company name Consumer Search Hong Kong Limited 商 号 Consumer Search Hong Kong Limited (CSG 香港 ) Representative 代表者 Lam Lam Tat Tat 5/F., Island Place Tower, 510 King s Road, North Point, Address 所在地 Hong Kong Establishment 設立年月日 年 Businesses 主な事業内容 市場調査業 Marketing research Year-end 決算期 12 月 December 従業員数 150 名 No., of employees 150 主な拠点香港 マカオ 広州 北京 上海 Offices 資本 金 750 万香港ドル Hong Kong, ( Macao, 約 9,450 Guangzhou, 万円 ) Beijing, Shanghai Paid-in 株主 capital 構 成 5 個人と HK$7.5 1 法人で million 100% 直近の業績 売上高 7,250 万香港ドル ( 約 9 億 1,300 万円 )(2012 年 12 月期 ) Shareholders 5/F., Island Place Tower, 510 King s Road, North Point, Honk Kong 100%, five individuals and one company Recent performance Net sales: HK$72.5 million (Year ended December 2012) Restructure the research business in China with a double brand strategy Copyright 2013 INTAGE Inc. All Rights Reserved. 18

19 INTAGE Group Healthcare Build up a system for comprehensive support for clients by the entire Group in line with medical product life cycles Late phase INTAGE OTC drug panel data Consumer panel data Health insurance IT solutions Self-medication JMIRI Prescription information analysis ANTERIO Healthcare research ASKLEP Generic OTC Post-launch research CRO Case registration and progress management Data Management and EDC Statistical analysis Post-manufacturing and sale survey support Marketing ANTERIO MR evaluation Doctor and patient surveys Research Medical product life cycle New drug sales PLAMED Drug discovery phase Clinical trials INTAGE ASKLEP Applications and approvals MR activities support Doctor and patient surveys CRO Monitoring Data management and EDC Statistical analysis Medical writing Consulting Reliability assurance Safety information Global clinical trials support ANTERIO JMIRI Patient surveys Prescription data analysis Drug growth phase Copyright 2013 INTAGE Inc. All Rights Reserved. 19

20 Overseas Development of ASKLEP Inc. Why is internationalization necessary? Shift to internationalization of budgets for domestic clinical trials Establish International Business Division Build an implementation structure to capture clinical trials in Asia Establish a structure to capture overseas clinical trials Search for new businesses Establish RPS ASKLEP together with Research Pharmaceutical Services Inc. ( RPS ) of the U.S. Fuse RPS global solutions with ASKLEP s regional solutions and create new service fields RESEARCH PHARMACEUTICAL SERVICES, INC. (Head office: Pennsylvania, USA) RPS has a rich store of know-how on international joint clinical trials, and is developing its dispatch-type businesses globally with over 5,000 employees in 64 countries worldwide. RPS provides unified services for Phase I through Phase IV in the biopharmaceuticals, medical devices and diagnostic reagents fields. Marshal management resources and strengthen functions as a drug information hub in the Asian region. Copyright 2013 INTAGE Inc. All Rights Reserved. 20

21 Transition to a Holding Company System; Birth of INTAGE Holdings Aim of changing to a holding company system Optimization of resource allocation to growth fields Collaboration among Group companies Human resources development and exchange Consolidation and improved efficiencies of common Group works Type of corporate split General shareholders meeting to approve absorption-type split Absorption-type split effective date Toward further increases in enterprise value A physical absorption-type split with INTAGE Inc. as the split-off company and INTAGE Inc. s wholly owned subsidiary INTAGE Partition Preparation Company as the successor company INTAGE Inc. INTAGE Holdings Inc. INTAGE Partition Preparation Company INTAGE Inc. June 21, 2013 (scheduled) October 1, 2013 (scheduled) Copyright 2013 INTAGE Inc. All Rights Reserved. 21

22 FY2013 Results Future Growth Strategies FY2014 Earnings Forecast Copyright 2013 INTAGE Inc. All Rights Reserved. 22

23 FY2014 Earnings Forecasts Marketing research and consulting System solutions Drug development solutions Consolidated FY2013 Actual FY2014 Forecasts (Millions of yen) Change YoY Net sales 28,327 31, % <Syndicated panel data services> 15,980 16, % <Custom research> 12,347 14, % Operating income 2,860 3, % Net sales 4,964 5, % Operating income % Net sales 6,638 6, % Operating income % Net sales 39,930 43, % Operating income 3,309 3, % Recurring profit 3,213 3, % Net income 1,249 1, % The above performance forecasts were based on information available at the time they were prepared and incorporate various uncertainties, so actual performance may differ materially from these projected figures. Copyright 2013 INTAGE Inc. All Rights Reserved. 23

24 Consolidated Numerical Targets (FY2014-FY2016) FY2014 (Forecast) FY2015 (Forecast) (Billions of yen) FY2016 (Forecast) Net sales Change YoY +7.8% +7.0% +7.4% Operating income Change YoY +9.0% +10.9% +12.5% The above performance forecasts were based on information available at the time they were prepared and incorporate various uncertainties, so actual performance may differ materially from these projected figures. Copyright 2013 INTAGE Inc. All Rights Reserved. 24

25 Basic Policy on Earnings Distribution The INTAGE Group s basic policy is to distribute earnings in consideration of the balance between dividends and retained earnings, based on the consolidated results. INTAGE considers the return of earnings to shareholders to be one of its highest management priorities. Year-end Dividends Payout Ratio (Consolidated) DOE (Consolidated) Yen % % FY FY FY2014 (Forecast) Copyright 2013 INTAGE Inc. All Rights Reserved. 25

26 INTAGE Inc. Copyright 2013 INTAGE Inc. All Rights Reserved. 26