INTAGE : 【Delayed】Summary of Consolidated Financial Results for the Fiscal Year Ended June 30, 2022 (Japanese GAAP)423KB

Summary of Consolidated Financial Results

for the Fiscal Year Ended June 30, 2022 (Japanese GAAP)

			August 5, 2022
Company name:	INTAGE HOLDINGS Inc.	Stock listing: Tokyo Stock Exchange
Code number:	4326	URL	https://www.intageholdings.co.jp/
Representative:	Noriaki Ishizuka, President and Representative Director
Contact person:	Kenji Ikeya, Director	TEL: [phone]

Planned date of ordinary general meeting of shareholders:	September 28, 2022
Planned start of dividend payments:	September 29, 2022
Planned filing of securities report:	September 28, 2022
Preparation of supplementary explanations of financial results:	Yes
Financial results presentation held:	Yes (for institutional investors and analysts)

(Amounts are rounded off to nearest million yen.)

1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2022 (July 1, 2021, to June 30, 2022)

(1) Consolidated Operating Results				(Percentages indicate year-on-year changes.)
	Net sales		Operating income	Ordinary income	Net income attributable
		to owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Year ended June 30, 2022	60,232	4.6	4,649	5.2	4,952	-2.5	3,418	1.4
Year ended June 30, 2021	57,558	-	4,421	-	5,081	-	3,372	-

(Note) Comprehensive income:	As of June 30, 2022: ¥2,901 million (-2.4%)
			As of June 30, 2021: ¥2,974 million (-%)
		Net income per	Net income per	Return on	Ordinary income-	Operating income-
			share	share after dilution	equity	to-total assets ratio	to-net sales ratio
Year ended June 30, 2022		Yen	Yen	%	%	%
	86.31	-	11.3	10.8	7.7
Year ended June 30, 2021		84.40	-	11.6	11.6	7.7
(Reference) Share of profit	(loss) of entities	accounted for using equity method: Year ended June 30, 2022: ¥303 million
						Year ended June 30, 2021: ¥235 million
(Note)	Owing to a change in fiscal year end, the fiscal year ended June 30, 2020, was a transitional period of 15 months (April 1, 2019,
	to June 30, 2020). As a result, year-on-year changes for the fiscal year ended June 30, 2021 are not provided due to the
	difference in the periods for comparison.
(Note)	For the purpose of calculating net income per share, the number of shares of the Company held in trust for directors'
	compensation was included in the number of treasury shares, which was to be deducted from the calculation of the average
	number of shares during the period.
(Note)	The Company finalized the provisional accounting treatment for the business combination at the end of the fiscal year ended
	June 2022. The figures for the fiscal year ended June 2021 reflect the important revision of initial allocation of acquisition costs
	following the finalization of the provisional accounting treatment.

1. Consolidated Financial Position

	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen	%	Yen
As of June 30, 2022	45,633	30,823	66.8	776.32
As of June 30, 2021	45,751	30,526	65.6	750.50

(Reference) Total shareholders' equity: As of June 30, 2022: ¥30,466 million As of June 30, 2021: ¥29,993 million

(Note) The Company finalized the provisional accounting treatment for the business combination at the end of the fiscal year ended June 2022. The figures for the fiscal year ended June 2021 reflect the important revision of initial allocation of acquisition costs following the finalization of the provisional accounting treatment.

1. Consolidated Cash Flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at end of
	operating activities	investing activities	financing activities
	period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Year ended June 30, 2022	3,391	-634	-2,854	14,277
Year ended June 30, 2021	4,845	-1,241	-1,354	14,132

2. Dividends
		Dividends per share		Total amount of	Payout ratio	Dividends-to-
			dividends	net assets ratio
						(Consolidated)
	1Q-end	2Q-end	3Q-end	Year-end	Total	(Fiscal year total)	(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Year ended June	-	0.00	-	35.00	35.00	1,414	41.5	4.8
30, 2021
Year ended June	-	0.00	-	38.00	38.00	1,508	44.0	5.0
30, 2022
Year ending June	-	0.00	-	42.00	42.00		41.2
30, 2023 (Forecast)
(Note) Total amount of	dividends	includes	dividends on	Company	shares held in trust for directors'	compensation (¥	17 million for the
year ended June 30, 2022, and ¥15 million for the year ended June 30, 2021).

3. Consolidated Earnings Forecasts for the Fiscal Year Ending June 30, 2023 (July 1, 2022, to June 30, 2023) (Percentages indicate year-on-year changes.)

									Net income		Net income per
		Net sales		Operating income	Ordinary income	attributable to owners
									of parent		share
	Interim period	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
	31,000		6.4	2,700	3.1	2,900	7.3	2,100		6.0	53.51
	(Cumulative)
	Full year	64,000		6.3	5,200	11.8	5,600	13.1	4,000		17.0	101.93
	(Note) The Company finalized the provisional accounting treatment for the business combination at the end of the fiscal year ended
	June 2022. Year-on-year changes reflect the important revision of initial allocation of acquisition costs following the finalization
	of the provisional accounting treatment.

* Notes

(1) Changes in significant subsidiaries during the period:None (Changes in specified subsidiaries resulting in change in scope of consolidation)

New: - companies (Company name)

Excluded: - companies (Company name)

(2)	Changes in accounting policies, changes in accounting estimates and restatement of prior period financial
	statements:
	1)	Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
	2)	Changes in accounting policies due to other reasons:	None
	3)	Changes in accounting estimates:	None
	4)	Restatement of prior period financial statements:	None
(3)	Number of shares issued and outstanding (Common shares)

1. Number of shares issued at the end of the period (including treasury shares)
2. Number of treasury shares at the end of the period
3. Average number of shares during the period

Year ended June 30,	40,426,000	Year ended June 30,	40,426,000
2022	2021
Year ended June 30,	1,181,785	Year ended June 30,	461,690
2022		2021
Year ended June 30,	39,611,771	Year ended June 30,	39,952,949
2022	2021

(Reference) Summary of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year Ended June 30, 2022 (July 1, 2021, to June 30, 2021)
(1) Non-Consolidated Operating Results					(Percentages indicate year-on-year changes.)
		Net sales			Operating income	Ordinary income	Net income
Year ended June	Millions of yen		%		Millions of yen		%	Millions of yen	%	Millions of yen		%
4,235		11.9	2,016		14.0	1,870	12.2	1,722		148.1
	30, 2022
Year ended June	3,783		-	1,768		-	1,667	-	694		-
	30, 2021
		Net income per share		Net income per share
			after dilution
				Yen				Yen
Year ended June			43.49				-
	30, 2022
Year ended June			17.38				-
	30, 2021
(Note)	Owing to a change in fiscal year end, the fiscal year ended June 30, 2020, was a transitional period of 15 months (April 1, 2019,
	to June 30, 2020). As a result, year-on-year changes for the fiscal year ended June 30, 2021 are not provided due to the
	difference in the periods for comparison.
(Note)	For the purpose of calculating net income per share, the number of shares of the Company held in trust for directors'
	compensation was included in the number of treasury shares, which was to be deducted from the calculation of the average
	number of shares during the period.

1. Non-ConsolidatedFinancial Position

	Total assets	Net assets	Equity ratio		Net assets per share
	Millions of yen	Millions of yen		%	Yen
As of June 30, 2022		22,701	17,476		77.0	445.32
As of June 30, 2021		22,715	18,718		82.4	468.38
(Reference) Total shareholders'	equity:	As of June 30, 2022: ¥17,071 million
		As of June 30, 2021: ¥18,718 million

• This summary of financial reports is outside the scope of audit procedures by certified public accountants or auditing firms.
• Explanation on the appropriate use of earnings forecasts and other special notes
• • The forward-looking statements made in this document, including the earnings forecasts, are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual performance and other results may differ materially owing to various factors. For the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof, please refer to the section "(4) Future Outlook" of "1. Overview of Operating Results, etc." on page 5 of the attached material.

INTAGE HOLDINGS Inc. (4326)

Summary of Consolidated Financial Results for the Fiscal Year Ended June 30, 2022

• Table of Contents of the Attached Material

1. Overview of Operating Results, etc. .................................................................................................	2
(1)	Overview of Operating Results ................................................................................................	2
(2)	Overview of Financial Position ................................................................................................	3
(3)	Overview of Cash Flows ..........................................................................................................	4
(4)	Future Outlook .........................................................................................................................	4
2. Basic Policy regarding Selection of Accounting Standards..............................................................	4
3. Consolidated Financial Statements and Notes Thereto.....................................................................	5
(1)	Consolidated Balance Sheet .....................................................................................................	5
(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive
	Income......................................................................................................................................	7
(3)	Consolidated Statements of Changes in Net Assets .................................................................	9
(4)	Consolidated Statements of Cash Flows ................................................................................	11
(5)	Notes to Consolidated Financial Statements ..........................................................................	13
	(Note on assumptions for going concern)...............................................................................	13
	(Changes in accounting policies)............................................................................................	13
	(Segment information) ...........................................................................................................	14
	(Per share data).......................................................................................................................	16
	(Material Subsequent Events).................................................................................................	16
4. Other ...............................................................................................................................................	17
(1)	Change of officers ..................................................................................................................	17

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INTAGE HOLDINGS Inc. (4326)

Summary of Consolidated Financial Results for the Fiscal Year Ended June 30, 2022

1. Overview of Operating Results, etc.

(1) Overview of Operating Results

During the fiscal year under review (July 1, 2021 to June 30, 2022), the Japanese economy showed signs of recovery due to the effect of the promotion of vaccination and various government measures, although economic activities are still partially restricted due to the intermittent wave of the spread of COVID-19. However, the environment surrounding the Japanese economy is undergoing drastic changes, such as rapid yen depreciation and trade balance deterioration, in addition to rising raw material prices and supply constraints amid concerns over the prolonged Ukrainian situation.

Meanwhile, in the Asian region, the impact of curbing economic activities associated with COVID-19 varies among countries and regions. The future of the Asian economy is becoming increasingly uncertain mainly due to the tightening of U.S. monetary policy, in addition to rising raw material prices and supply chain disruptions.

The Group has consistently maintained its business by shifting employees to remote work and transforming offline operations into online operations. Particularly with regard to remote work, new ways of working that take advantage of the benefits of remote work are taking root, contributing to increased productivity.

Under these circumstances, the Group has made aggressive investment for growth strategy in the fiscal year under review, the second year of its 13th Medium-Term Management Plan (three-year plan), under the Group's basic policy of "Change the design of business!! - together with customers and consumers, who are changing - Reframe, Connect, Create."

In the Marketing Support (Consumer Goods & Services) segment, research using CODE (a smartphone app that allows you to register shopping information and commodity ratings) operated by Research and Innovation Co.,Ltd., which became a subsidiary in May 2021, has been progressing steadily, and preparations are underway to establish the CX marketing platform. In addition, the Company and Switch Media Inc., with which the Company has formed a capital and business alliance, have been promoting joint development of solutions that support the optimization of TV commercials.

In the Marketing Support (Healthcare) segment, seeing the growing importance of data and services related to medical consumers as an opportunity for growth, we strengthen data collection through partners such as Welby Inc., and expand business areas focusing on consumers (consumption and healthcare). In addition, we will accelerate the development of human resources in the data science field (investment) in order to strengthen our ability to provide valuable information by converting vast amounts of data collected from medical consumers and healthcare professionals.

In the Business Intelligence segment, in order to become a DX Promotion Partner for Customers, we are actively conducting sales activities such as promoting online seminars, providing DX support services, and proposing solutions to customer issues through the use of the INTAGE Group's comprehensive strength.

In addition, with regard to the work-style reforms that we started to tackle under the previous medium-term management plan, we have been promoting the revitalization of communication and the sharing of knowledge even in the remote work-centered working environment due to COVID-19. We will continue striving to create and establish new work styles that maximize individual performance by providing opportunities for the Group's employees to grow autonomously and on their own initiative.

As a result of these efforts, the INTAGE Group's consolidated net sales for the fiscal year under review amounted to ¥60,232 million (up 4.6% from the same period of the previous year), with an operating income of ¥4,649 million (up 5.2%), ordinary income of ¥4,952 million (down 2.5%) and net income attributable to owners of parent of ¥3,418 million (up 1.4%).

The results by business segment are described below.

1) Marketing Support (Consumer Goods & Services)

In the Marketing Support (Consumer Goods & Services) segment, both sales and profit increased; consolidated net sales for the segment amounted to ¥38,503 million (up 8.2% from the same period of the previous year), with an operating income of ¥2,300 million (up 20.4%).

Panel surveys, the core business of the segment, and custom research business performed well. In addition, sales activities and service provision adapted to remote work arrangements started to pay off, resulting in solid overall performance.

As for overseas, both sales and profit increased due to the recovery from the impact of COVID-19 and the progress of the online shift. In addition, dataSpring Inc., which is engaged mainly in online surveys, fared well.

In terms of investment activities, although there was a delay in progress during the fiscal year due to the impact of social conditions such as the spread of COVID-19 and semiconductor shortages, overall progress for the year was

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