Intage : 【Delayed】Summary of Consolidated Financial Results for the Six Months Ended September 30, 2017 (Japanese GAAP)

Summary of Consolidated Financial Results for the Six Months Ended September 30, 2017 (Japanese GAAP)‌‌‌‌‌‌‌‌‌‌‌‌‌

November 10, 2017 Stock listing: The First Section of the Tokyo Stock Exchange

Company name: INTAGE HOLDINGS Inc.

Code number: 4326 URL http://www.intageholdings.co.jp/ Representative: Kenji Miyakubi, President and Representative Director‌

Contact person: Kenji Ikeya, Director Tel: [phone] Planned filing of quarterly report: November 10, 2017 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 September 30, 2017 (April 1, 2017 to September 30, 2017)

2. Consolidated Operating Results (Cumulative) (Percentages indicate year-on-year changes.)

   Net sales		Operating income		Ordinary income		Net income attributable to owners of the Parent
   Six months ended September 30, 2017‌	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   	22,941	7.0	1,270	-7.5	1,469	7.2	1,008	10.3
   Six months ended September 30, 2016	21,448	5.4	1,373	4.1	1,370	2.7	914	29.8

   (Note) Comprehensive income: Six months ended September 30, 2017: ¥937 million (17.4%);

   Six months ended September 30, 2016: ¥798 million (-0.9%)

   Net income per share	Net income per share after dilution
   Six months ended September 30, 2017	Yen	Yen
   	25.25	-
   Six months ended September 30, 2016	22.90	-

   (Notes) The Company implemented a 2-for-1 stock split of its outstanding shares of common stock on October 1, 2017. Net income per share is calculated on the assumption that the said stock split was implemented at the beginning of the previous fiscal year.

   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 stocks, which was to be deducted from the calculation of the average number of shares during the period.

3. Consolidated Financial Position

   Total assets	Net assets	Equity ratio
   As of September 30, 2017	Millions of yen	Millions of yen	%
   	37,731	23,886	62.8
   As of March 31, 2017	39,067	23,771	60.3

   (Reference) Total shareholders' equity: As of September 30, 2017: ¥23,679 million;

   As of March 31, 2017: ¥23,557 million

4. Dividends

   Dividends per share (yen)
   1Q-end	2Q-end	3Q-end	Year-end	Total
   Year ended March 31, 2017(before stock split) (Ref.) Year ended March 31, 2017(after stock split)‌ Year ending March 31, 2018	- - -	0.00	-	35.00	35.00
   		0.00	-	17.50	17.50
   		0.00
   Year ending March 31, 2018 (Forecast)	-	20.00	20.00

   (Notes) Revisions to the most recently disclosed dividend forecasts: None

   The Company implemented a 2-for-1 stock split of its outstanding shares of common stock on October 1, 2017. This stock split is factored into the forecast for the year-end dividend for the fiscal year ending March 31, 2018.

5. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2018 (April 1, 2017 to March 31, 2018)

6. (Percentages indicate year-on-year changes.)

   Net sales		Operating income		Ordinary income		Net income attributable to owners of the Parent		Net income per share
   Full year	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   	51,000	6.3	4,000	-6.3	4,300	-2.1	2,900	1.0	72.60

   (Notes) Revisions to the most recently disclosed earnings forecasts: Yes

   The Company implemented a 2-for-1 stock split of its outstanding shares of common stock on October 1, 2017. This stock split is factored into the per-share net income forecast for the fiscal year ending March 31, 2018.

   *Notes

7. Changes in significant subsidiaries during the six months under review: None (Changes in specified subsidiaries due to changes in the scope of consolidation)

   New: - companies (Company name) Excluded: - companies (Company name)

8. Application of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes

9. Changes in accounting policies, changes in accounting estimates and restatement of prior period financial statements

10. Changes in accounting policies due to revisions to accounting standards and other regulations: None

    2)	Changes in accounting policies due to other reasons:	None
    3)	Changes in accounting estimates:	None
    4)	Restatement of prior period financial statements:	None

    Six months ended September 30, 2017	40,236,000	Year ended March 31, 2017	40,236,000
    Six months ended September 30, 2017	290,120	Year ended March 31, 2017	299,126
    Six months ended September 30, 2017	39,940,954	Six months ended September 30, 2016	39,929,908

11. Number of shares issued and outstanding (Common shares)

12. Number of shares issued at the end of the period (including treasury stocks)

13. Number of treasury stocks at the end of the period

14. Average number of shares during the period (cumulative from the beginning of the fiscal year)

    (Notes) The Company implemented a 2-for-1 stock split of its outstanding shares of common stock on October 1, 2017. The number of shares issued and outstanding (common shares) is calculated on the assumption that the said stock split was implemented at the beginning of the previous fiscal year.

    The number of shares of the Company held in trust for directors' compensation was included in the number of treasury stocks at the end of the period as well as in the number of treasury stocks, 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.

    • Explanation of proper use of earnings forecasts and other special matters

    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 3 of the attached material.

    In addition, as announced in "Notice of Stock Split and Partial Amendment to Articles of Incorporation and Revision of Dividend Forecast Associated with Stock Split" released on August 10, 2017, the Company implemented a 2-for-1 stock split of its outstanding shares of common stock on October 1, 2017. This stock split is factored into net income per share, the forecasts for the year-end dividend as well as the per-share consolidated net income for the fiscal year ending March 31, 2018, and the number of shares issued and outstanding (common shares).

    Table of Contents of the Attached Material

15. Qualitative Information regarding the Consolidated Results for the Six Months under Review 2

16. Explanation of Operating Results 2

17. Explanation of Financial Position 3

18. Explanation of Forward-looking Information, Including Consolidated Earnings

    Forecasts 3

19. Quarterly Consolidated Financial Statements and Notes Thereto 4

20. Consolidated Balance Sheets 4

21. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 6

22. Consolidated Statements of Cash Flows 8

23. Notes to Quarterly Consolidated Financial Statements 10

24. (Note on Assumptions for Going Concern) 10

    (Note in the Event of Major Change in Shareholders' Equity) 10

    (Application of Accounting Treatment Specific to the Preparation of Quarterly Consolidated Financial Statements) 10

    (Segment Information) 10

    (Material Subsequent Events) 11

25. Qualitative Information regarding the Consolidated Results for the Six Months under Review‌

26. Explanation of Operating Results‌

    During the six months under review (April 1, 2017 to September 30, 2017), the Japanese economy saw both corporate earnings and consumer spending continue to follow a moderate recovery path backed 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 remain unstable owing chiefly to 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.

    Under these circumstances, establishing "TAKE THE INITIATIVE, in the field of data-activation" as its basic policy in the 12th Medium-Term Management Plan that has begun in this fiscal year, the INTAGE Group has implemented proactive business investments and R&D activities with the aim of accelerating the development of next-generation services towards further enhancement of its corporate value.

    As a result, the INTAGE Group's consolidated net sales for the six months under review amounted to

    ¥22,941 million (up 7.0% year on year), with operating income of ¥1,270 million (down 7.5%), ordinary income of ¥1,469 million (up 7.2%) and net income attributable to owners of the Parent of ¥1,008 million (up 10.3%).

    The results by business segment are described below.

27. Marketing Support (Consumer Goods & Services)

    In the Marketing Support (Consumer Goods & Services) segment, sales increased, bolstered mainly by the strong performance of existing research studies and Internet surveys of custom research areas as well as public-sector projects. On the other hand, operating income decreased owing to aggressive investments to achieve goals set in the 12th Medium-Term Management Plan, i.e. improvement in data value and expansion of service areas.

    As a result, consolidated net sales of the Marketing Support (Consumer Goods & Services) segment amounted to ¥14,806 million (up 7.1% year on year), with an operating income of ¥460 million (down 15.1%).

28. Marketing Support (Healthcare)

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

    As a result, consolidated net sales of the Marketing Support (Healthcare) segment amounted to ¥5,388 million (up 5.7% year on year), with an operating income of ¥635 million (down 11.2%).

29. Business Intelligence

30. In the Business Intelligence segment, both sales and operating income increased owing to the solid performance of CG&S* in the travel and other industries as well as strong orders for projects from the healthcare industry.

    As a result, consolidated net sales of the Business Intelligence segment amounted to ¥2,746 million (up 8.9% year on year), with an operating income of ¥175 million (up 51.1%).

    * CG&S stands for consumer goods and services.