Summary of Consolidated Financial Results
for the Six Months Ended December 31, 2021 (Japanese GAAP)
February 7, 2022 | |||
Company name: | INTAGE HOLDINGS Inc. | Stock listing: The First Section of the 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: +81-3-5294-7411 |
Planned filing of quarterly report: February 7, 2022 | |
Planned start of dividend payments: - | |
Preparation of supplementary explanations of quarterly financial results: | Yes |
Quarterly financial results presentation held: | Yes (for institutional investors and analysts) |
(Amounts are rounded off to nearest million yen.) |
1. Consolidated Financial Results for the Six Months Ended December 31, 2021 (July 1, 2021, to December 31, 2021)
(1) Consolidated Operating Results (Cumulative) | (Percentages indicate year-on-year changes.) | ||||||||||
Net sales | Operating income | Ordinary income | Net income attributable | ||||||||
to owners of parent | |||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||
29,131 | 6.6 | 2,634 | 39.8 | 2,716 | 20.5 | 1,891 | 17.3 | ||||
December 31, 2021 | |||||||||||
Six months ended | 27,330 | - | 1,885 | - | 2,253 | - | 1,612 | - | |||
December 31, 2020 | |||||||||||
(Note) Comprehensive income: | Six months ended December 31, 2021: ¥1,588 million (16.4%); | ||||||||||
Six months ended December 31, 2020: ¥1,365 million (-%); | |||||||||||
Net income per share | Net income per share | ||||||||||
after dilution | |||||||||||
Six months ended | Yen | Yen | |||||||||
47.50 | - | ||||||||||
December 31, 2021 | |||||||||||
Six months ended | 40.38 | - | |||||||||
December 31, 2020 | |||||||||||
(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) and thus, the cumulative second quarter of the fiscal year covers the period from April 1, 2019, to September | |||||||||||
30, 2019. Since the cumulative second quarter of the fiscal year ended June 30, 2021, covers a period that does not correspond | |||||||||||
to that of the fiscal year ended June 30, 2020, year-on-year changes are not provided. | |||||||||||
(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. |
- Consolidated Financial Position
Total assets | Net assets | Equity ratio | |
Millions of yen | Millions of yen | % | |
As of December 31, 2021 | 43,573 | 29,813 | 67.9 |
As of June 30, 2021 | 45,443 | 30,218 | 66.0 |
(Reference) Total shareholders' equity: As of December 31, 2021: ¥29,595 million; As of June 30, 2021: ¥29,993 million
2. Dividends
Dividends per share | ||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | ||
Yen | Yen | Yen | Yen | Yen | ||
Year ended June 30, 2021 | - | 0.00 | - | 35.00 | 35.00 | |
Year ending June 30, 2022 | - | 0.00 | ||||
Year ending June 30, 2022 | - | 35.00 | 35.00 | |||
(Forecast) | ||||||
(Note) Revisions to the most | recently disclosed | dividend forecasts: | None |
3. Consolidated Earnings Forecasts for the Fiscal Year Ending June 30, 2022 (July 1, 2021, to June 30, 2022) (Percentages indicate year-on-year changes.)
Net sales | Operating income | Ordinary income | Net income attributable | Net income per | ||||||
to owners of parent | share | |||||||||
Full year | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
60,800 | 5.6 | 4,600 | 4.0 | 5,200 | 2.3 | 3,600 | 6.8 | 90.88 | ||
(Note) Revisions to the most recently disclosed earnings forecasts: Yes
- Notes
(1) Changes in significant subsidiaries during the six months under review: None (Changes in specified subsidiaries resulting in change in scope of consolidation) New: - companies (Company name)
Excluded: - companies (Company name)
- Application of Accounting Treatment Specific to the Preparation of Quarterly Consolidated Financial Statements: Yes
- Changes in accounting policies, changes in accounting estimates and restatement of prior period financial statements:
1) | Changes in accounting policies due to revisions to accounting standards and other regulations: Yes | ||||
2) | Changes in accounting policies due to other reasons: | None | |||
3) | Changes in accounting estimates: | None | |||
4) | Restatement of prior period financial statements: | None | |||
(4) Number of shares issued and outstanding (common shares) | |||||
1) | Number of shares issued at the end of the | Six months ended | 40,426,000 | Year ended June 30, | 40,426,000 |
period (including treasury shares) | December 31, 2021 | 2021 | |||
2) | Number of treasury shares at the end of | Six months ended | 812,973 | Year ended June 30, | 461,690 |
the period | December 31, 2021 | 2021 | |||
3) Average number of shares during the | Six months ended | Six months ended | |||
period (cumulative from the beginning of | 39,815,923 | 39,943,926 | |||
December 31, 2021 | December 31, 2020 | ||||
the fiscal year) |
(Note) The number of shares of the Company held in trust for directors' compensation was included in the number of treasury shares at the end of the period as well as in the number of treasury shares, which was to be deducted from the calculation of the average number of shares during the period.
- This quarterly financial results report is outside the scope of quarterly review procedures by certified public accountants or auditing firms.
-
Explanation on the appropriate use of earnings forecasts and other special notes
The forward-looking statements made in this document, including the earnings forecasts, are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual performance and other results may differ materially owing to various factors. For the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof, please refer to section "(3) Explanation of Forward-looking Information, Including Consolidated Earnings Forecasts" of "1. Qualitative Information Regarding the Consolidated Results for the Six Months under Review" on page 4 of the attached material.
INTAGE HOLDINGS Inc. (4326)
Summary of Consolidated Financial Results for the Six Months Ended December 31, 2021
- Table of Contents of the Attached Material
1. Qualitative Information Regarding the Consolidated Results for the Six Months under Review..... | ||
(2) | Explanation of Financial Position ............................................................................................ | 4 |
(3) | Explanation of Forward-looking Information, Including Consolidated Earnings Forecasts .... | 4 |
2. Consolidated Financial Statements and Notes Thereto..................................................................... | 5 | |
(1) | Consolidated Balance Sheet ..................................................................................................... | 5 |
(2) | Consolidated Statements of Income and Consolidated Statements of Comprehensive | |
Income...................................................................................................................................... | 7 | |
(3) | Consolidated Statements of Cash Flows .................................................................................. | 9 |
(4) | Notes to Quarterly Consolidated Financial Statements .......................................................... | 11 |
(Note on assumptions for going concern)............................................................................... | 11 | |
(Note in the event of major change in shareholders' equity).................................................. | 11 | |
(Application of accounting treatment specific to the preparation of quarterly consolidated | ||
financial statements)............................................................................................................... | 11 | |
(Changes in accounting policies)............................................................................................ | 11 | |
(Segment information) ........................................................................................................... | 12 |
- 1 -
INTAGE HOLDINGS Inc. (4326)
Summary of Consolidated Financial Results for the Six Months Ended December 31, 2021
1. Qualitative Information Regarding the Consolidated Results for the Six Months under Review
(1) Explanation of Operating Results
During the six months under review (July 1, 2021, to December 31, 2021), the Japanese economy continued to face a severe situation due to the impact of novel coronavirus infections (COVID-19), but showed some signs of recovery thanks to the effects of various policies, including measures for the promotion of vaccinations. Although it is expected to be picking up gradually thanks to the effects of various policy measures and improvements in overseas economies, we need to continue to pay attention to the downside risks to the economy due to the spread of COVID- 19.
Meanwhile, the economies of the Asian region where the Group operates continue to bounce back, although the situation varies from country to country.
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 been proactively investing in 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 six months under review amounted to ¥29,131 million (up 6.6% from the same period of the previous year), with an operating income of ¥2,634 million (up 39.8%), ordinary income of ¥2,716 million (up 20.5%), and net income attributable to owners of parent of ¥1,891 million (up 17.3%).
The difference between the initial earnings forecast and actual results was mainly due to the favorable performance of the panel survey business, the promotion of online use of the overseas business, the acquisition and efficiency improvement of large-scale projects in the post-marketing surveillance of CRO (contract research organization), the improvement of the profit structure of existing businesses, the delay in the progress of expense planning due to the impact of COVID-19 and the semiconductor shortage.
The results by business segment are described below.
- 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 ¥18,167 million (up 11.6% from the same period of the previous year), with an operating income of ¥1,155 million (up 109.9%).
Panel surveys, the core business of the segment, and custom research business performed well. In addition, overall business performed well owing to the return of customer marketing activities that had been stagnant due to the
- 2 -
INTAGE HOLDINGS Inc. (4326)
Summary of Consolidated Financial Results for the Six Months Ended December 31, 2021
effects of COVID-19, as well as the promotion of sales activities and services that shifted to remote environments.
As for overseas, although some countries continued to be affected by COVID-19, overall sales and profit were on the rise, and dataSpring Inc., which mainly conducts online surveys, performed well.
In terms of investment activities, despite some departure from the first half to the second half due to COVID-19, overall progress has been made as planned, mainly through Research and Innovation Co., Ltd. and dataSpring Inc., which became subsidiaries in May 2021 and March 2020, respectively.
Profits increased due to increased sales in Japan and overseas.
- Marketing Support (Healthcare)
In the Marketing Support (Healthcare) segment, both sales and profit increased; consolidated net sales of the segment amounted to ¥7,506 million (up 2.0% from the same period of the previous year), with an operating income of ¥1,304 million (up 4.1%).
At INTAGE Healthcare Inc., our main research business has fallen below the level of the previous year due to resource reallocation associated with investment activities, but the profitability of the post-marketing surveillance of CRO (contract research organization) has been improving due to the drastic improvement of the overall business. In addition, sales from the data science business were higher than in the same period of the previous fiscal year due to factors such as the high utilization rate of clinical development operations. On the other hand, at KYOWA KIKAKU LTD., sales have been higher than those of the previous year in line with the expansion and sales expansion of the education business, despite continuing struggle in the promotion business (*1) due to the impact of COVID- 19.
Profits increased supported by higher sales and a reduction in unprofitable projects.
- Business Intelligence
In the Business Intelligence segment, sales decreased and profit increased; consolidated net sales of the segment amounted to ¥3,457 million (down 6.3% from the same period of the previous year), with an operating income of ¥174 million (up 113.5%).
At INTAGE TECHNOSPHERE Inc., sales of solutions provided to existing customer industries decreased, due to the impact of COVID-19. On the other hand, Buildsystem Co.,Ltd. and NSK Co.,Ltd. secured higher sales than the previous year due to the acquisition of new projects.
In response to changes in the digital/smart shift environment, we established the DX Co-Creation Center to respond to customers' DX needs to promote sales expansion in new co-creation fields.
Profits increased owing to efforts to reduce costs and expenses, despite a decrease in sales due to the impact of COVID-19.
*1 The promotion business handles healthcare-related advertising media, produces materials for the sales promotion of pharmaceutical products, and holds medical and pharmaceutical conferences.
- 3 -
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Intage Holdings Inc. published this content on 21 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 February 2022 01:10:02 UTC.