INTAGE : REPORT 2024

About this update from Intage Holdings Inc.

Know today, Power tomorrow Integrated Report INTAGE GROUP REPORT 2024 Entering the N ext stage of marketing research The INTAGE Group was founded in 1960 as Marketing Intelligence Corporation (MIC). Panel surveys, which we launched in the early days after our founding, continue to grow at present as our core products while expanding target industries, services, and the areas they serve. We have thus established a solid position as a marketing research company in Japan. Developments such as the remarkable progress of information technologies and the utilization of big data and AI have also brought about remarkable changes to consumers. Amid these major shifts in the operating environment, the INTAGE Group's businesses have continued to involve ceaseless renewals of products and services and challenges taken continuously in new business areas, so as to respond to customers' changes. In October 2023, we formed a capital and business alliance with NTT DOCOMO, INC. With the continued extension of data, generation of value from data, and data structuring, we will accelerate initiatives to help customers solve their issues and make full-scale entries into the areas of our marketing activities, which are not limited to research. With these efforts, we will continue growing in the area of data utilization, aiming to evolve from our customers' research/insight partner into their marketing partner. CONTENTS 01 INTRODUCTION P07 P15 P19 P23 PART 1 INTRODUCTION P01 CONTENTS P03 THE PATH WE HAVE FOLLOWED / THE STRENGTHS WE HAVE DEVELOPED P05 OUR CURRENT STATUS PART 2 FUTURE OF THE INTAGE GROUP P07 MANAGEMENT MESSAGE Yoshiya Nishi, President and Representative Director P11 OUR BUSINESS MODEL P13 TOWARD 2030 / P19 FEATURE PART 3 14TH MEDIUM-TERM INFORMATION STRATEGY MANAGEMENT PLAN / CIO MESSAGE THE FUTURE P15 FY2024 BUSINESS PLAN Kazuko Sakai Executive Officer and CIO CFO MESSAGE WE ENVISAGE of Corporate Management in charge of Business Intelligence and President and Representative Director of Toru Takeuchi, Director, CFO in charge INTAGE TECHNOSPHERE Inc. P17 SYNERGIES WITH DOCOMO P21 INTAGE GROUP BUSINESS AREAS P23 SUSTAINABILITY P29 HUMAN RESOURCES PART 4 RESOLVING SOCIAL ISSUES STRATEGY P25 P31 BOARD OF DIRECTORS SUSTAINABILITY THROUGH OUR BUSINESS ACTIVITIES P33 CORPORATE GOVERNANCE P27 ENVIRONMENT PART 5 DATA SECTION P39 FINANCIAL AND NON-FINANCIAL HIGHLIGHTS FOR THE PAST 10 YEARS P41 FINANCIAL STATEMENTS P44 CORPORATE PROFILE INTAGE HOLDINGS Inc.'s website www.intageholdings.co.jp/english/ Editorial Policy We publish this report for the purpose of comprehensively communicating to our stakeholders the approach and initiatives we take for the medium- to long-term enhancement of the INTAGE Group's corporate value and for deepening mutual understanding through dialogue. In this INTAGE GROUP REPORT 2024, we introduce the Group's framework and milestones. At the same time, we place emphasis on gaining our stakeholders' understanding and support for the future we aspire to create, including the new president and the synergy with DOCOMO, which became our parent company. Forward-looking Statements This report contains forward-looking statements concerning the business and future prospects of the INTAGE Group. These statements reflect the information currently available and the Group's current analysis of various trends. Moreover, forward- looking statements are based on the INTAGE Group's assumptions and judgments made in light of currently available information; they contain known and unknown risks, uncertainties and other factors, and may be influenced by these factors. Accordingly, actual performance may differ from the current outlook. INTAGE GROUP REPORT 2024 02 THE PATH WE HAVE FOLLOWED / THE STRENGTHS WE HAVE DEVELOPED 1960 2001 The Founding Marketing From Marketing Intelligence Intelligence Corporation (MIC) Corporation to INTAGE In those days, the universal health insurance system In April 2001, we renamed the company INTAGE, saying goodbye had yet to be introduced. Illnesses and injuries were to the name, Marketing Intelligence Corporation, which had often treated with over-the-counter (OTC) drugs, so been familiar to us for many years. As a species, humans have OTC drugs purchased by consumers at pharmacies experienced remarkable evolution since the Stone Age. Now, our and drug shops occupied a central position among 1960 future depends on how we leverage the wisdom of humanity. The pharmaceuticals. Distribution in Japan involves the coming 21st century was expected to be the Intelligence Age, so wholesaling function, which creates a large gap we adopted the name, INTAGE, with our great ambition to initiate between shipments from manufacturers and actual and lead the new age. demand from final consumers. Consequently, Thereafter, INTAGE continued to grow based on its pharmaceutical manufacturers needed to know understanding of consumers. In 2008, INTAGE was ranked among sales (actual demand) at retail stores. Under these the top ten* marketing research firms in the world in the Top 25 circumstances, the establishment of an institution Global Research Companies 2008, which was announced in a specializing in regular fact-finding surveys of the journal of the American Marketing Association (AMA). We have OTC drug market was planned, and this resulted moved to a holding company structure, and we are now called the in the establishment of Marketing Intelligence INTAGE Group, having many affiliated companies as a result of the Corporation (MIC) in March 1960. Panel surveys, aggressive expansion of business areas and overseas expansion. which are the INTAGE Group's main service and 1970 However, we maintain our intention to continue supporting our which continue to support the marketing activities customers' marketing activities with our solutions, including of many manufacturers at present, were launched panel surveys that we at that time. While the majority of research firms have been running at that time mostly conducted one-shot market since our foundation, surveys or opinion surveys, MIC had sought since and to change the its founding to change the social system through social system through information services. As a marketing research information services. firm, it attached importance to impartiality, public and social interest to uncover facts about markets *Source: AMA, Marketing News, objectively and gain broad trust from society. This August 30, 2009 approach of giving top priority to a neutral stance A sign showing the new company name that was put up at Hibarigaoka Headquarters still forms the foundation of our business today. (now known as Hibarigaoka Office) 1980 2000 Denzuin Building, which was used as the head office at the time of our founding History of attempts and failures Since our founding, we have attempted a number of businesses other than our core marketing research business. They included businesses planned with the intention to expand existing operations, as well as businesses we worked on to open up completely new areas. Some businesses have continued to the present day in different names or forms while others just taught us lessons and disappeared. Among our new business initiatives, those that were unsuccessful far outnumbered those that were successful. It is not wrong to say that the history of the INTAGE Group is a history of attempts and failures. Many of our initiatives stemmed from our passion to understand consumers, and we can say it was this passion that led to the development of our corporate culture of reading trends of the times and continuing to take on new challenges to change society. We launched the distribution business in 1971 to modernize the pharmaceutical distribution process, which involved 03 many issues in those days. However, we were forced to withdraw from this business after four years. Since the founding of Marketing Intelligence Corporation in 1960, we have been supporting customers' marketing activities by reading changes in the times and expanding and evolving various businesses that enable us to learn more about consumers. We can say that the reason why many customers rely on us is that we constantly check market movements and have continued to provide valuable information that helps companies understand consumers' perspectives. Since our founding, we have continued our efforts to understand the market with a neutral stance, without being biased toward specific industries or companies. This has enabled us to build relationships, under which consumers and our partner companies provide us with various data, the source of the INTAGE Group's corporate value. A neutral stance is essential for defining what the INTAGE Group is. INTRODUCTION In our environment, there are no gender differences in employment and treatment, and men and women work on an equal footing as a matter of course. The active participation of women naturally became a reality at an early stage. We also respect diverse values under our diversity policy, driving the development Understanding of workplace environment where anyone can of consumers continue to enjoy working energetically. The INTAGE Group is supported by our policy of emphasizing people, something that has remained unchanged since our foundation. Neutral Emphasis on stance people What we have kept unchanged Our DNA GROUP VISION THE INTAGE GROUP WAY Know today, Power tomorrow We connect our customers to their customers, to create a prosperous society of limitless possibilities. 1 Deliver the best. 2 Focus on quality. Group Companies 3 Be responsible. Conduct Vision and Philosophy Code 4 Be flexible. 5 Enjoy challenges. 2010 2020 INTAGE GROUP REPORT 2024 04 OUR CURRENT STATUS At the INTAGE Group, we collect data that support consumers. Based on a wealth of data, among the largest by volume in Japan, we lead marketing activities in Japan and abroad with our outstanding analytical and handling capabilities. Foundation supporting our understanding of consumers 53 , 600 people SCI ® (Nationwide Consumer Panel Survey) Daily shopping data continually collected from nationwide male and female consumers between the ages of 15 and 79 6 , 000 stores SRI+ ® (Nationwide Retail Store Panel Survey) Retail store sales data collected from supermarkets and other retail stores across Japan 30 , 000 people i-SSP ® (INTAGE Single Source Panel) Data collected on media contact and purchasing behavior under a cross-media environment 3 . 43 As of November 2024 million people Mighty Monitor ® The largest Internet-based survey monitor panel in the marketing research industry 3 . 38 As of June 30, 2024 million CODE members App to collect consumer data through receipts 4 . 99 million television sets Smart TV viewing data Smart TV viewing log data collected from Internet-connected televisions 4 , 200 As of October 31, 2024 stores Cross Fact (dispensing pharmacy) Database for analyses integrating social insurance, dispensing, and DPC* data *DPC stands for Diagnosis Procedure Combination. It is a system for calculating hospitalization expenses per day in such a way that they will be lower. The DPC data mentioned herein refers to data on drugs used under DPC. 62 , 000 Physicians as monitors Membership base exclusively for physicians for market research as the main purpose *Number of monitors that participated in research or updated their profile data within the last year 05 INTRODUCTION Net sales No.1 in Asia among marketing research companies *Based on ESOMAR's Global Top-50 Insights Companies 2024 (in terms of the Group's consolidated net sales) Our current status Net sales have increased for Number of client companies* 2 31st consecutive years. * 1 Number of ¥ 63.2 billion Approx. June 2024 2 , 300 employees Fiscal year ended 3 , 331 Fiscal year ended June 2024 Overseas As of June 30, 2024 expansion* 4 Marketing Support 9 (Consumer Goods & Services) ¥ 41.1 billion 65 % Marketing Support Number of customers 3 Percentage of female (Healthcare) of panel surveys* countries ¥ 14.3 billion 23 % Approx. As of June 30, 2024 employees* 5 As of June 2024 51. 3 % Business Intelligence 400 companies ¥ 7.7 billion 12 % Learn more about our business here P.21 As of June 30, 2024 Net sales (million yen) 68,000 63,279 60,232 61,387 60,000 57,558 40,000 20,000 0 2021/6 2022/6 2023/6 2024/6 2025/6 (Forecast) Operating profit (million yen) 6,000 4,421 4,649 4,000 3,785 3,800 3,289 2,000 0 2021/6 2022/6 2023/6 2024/6 2025/6 (Forecast) Ordinary profit (million yen) 6,000 5,081 4,952 4,000 4,073 3,800 3,543 2,000 0 2021/6 2022/6 2023/6 2024/6 2025/6 (Forecast) *1 In the fiscal year ended June 2020, due to the irregular 15-month accounting period due to a change to the fiscal year, for the period from April 2019 to March 2020 net sales of ¥56,204 million, operating profit of ¥4,554 million and ordinary profit of ¥4,600 million are used. *2 Number of companies posting sales in the fiscal year ended June 2024 (excluding KYOWA KIKAKU LTD., Buildsystem Co., Ltd., NSK Co., Ltd., Research and Innovation Co., Ltd., and the business partners of overseas Group companies) *3 Number of customers with annual (routine) contracts for panel surveys (SRI+ ® / SCI ® ) provided by INTAGE Inc. and INTAGE Healthcare Inc. *4 Sites operated in China, South Korea, Thailand, Vietnam, India, Singapore, Indonesia, the Philippines and the United States. *5 Percentage of employees who are women at domestic consolidated subsidiaries INTAGE GROUP REPORT 2024 06 MA N AGEMEN MESSAGE President and Representative Director Yoshiya Nishi 07 FUTURE OF THE INTAGE GROUP T Changing the style of the business with a commitment to social impact, profit, and enjoyment My name is Yoshiya Nishi. I became the President and Representative Director in July 2024. Since 2000, three consecutive people that joined the company as new graduates have held the top position at the INTAGE Group. I am the first president who came from an acquired company. In this sense, my background may be unprecedented in our history. I formerly belonged to a small company that I established with my colleagues. Since it was acquired by the INTAGE Group, I have been consistently committed to taking on challenges, aiming to achieve things that the small company couldn't achieve and do a job which will impact society by using the wealth of resources and capital of the INTAGE Group. I am very excited to accept this big role at a time when consumers' lifestyles are becoming more diverse and society is about to undergo major change. Management emphasizing diversity and harnessing individuality I spent my early childhood in the United States and returned to Japan at the age of nine unable to speak Japanese at all. What bewildered me more at that time than the language barrier was the cultural difference. Unlike education in Japan, which reinforces homogeneity, education in the United States was oriented to harnessing individuality based on the idea that you should increase the things you are good at because everyone was born different. I vividly remember that I was shocked by this difference as a young child. My underlying ideas are that individuality should be harnessed and that people are good in different ways. I learned this in the United States. As the manager leading the Group, I will pursue a management style in which we leverage people's individuality so that they will achieve personal development, and consequently, the entire company will achieve growth. Emphasizing diversity is my first commitment. Shifting to management that is committed to profit Another thing I have continued to be committed to is profit. I was also committed to profit when I was the president of a Group company. This does not mean making profit by significantly reducing costs. I am committed to providing great value and receiving appropriate compensation that measures up to the value we provide. The competition in our industry is intense. If you focus on immediate profit, you tend to offer a price which is lower than the value you provide. We are confident about our services and are strongly committed to the quality of our services. On the other hand, I feel that our commitment to prices has been weak. Profit will differ completely depending on whether we are aware of the value we provide and the appropriate price for that value. We will shift to management that has a greater commitment to profit than it had previously. Becoming a company which impacts society in good ways. We are one of the companies with the greatest amount of information (data) that can be used for marketing in Japan. We can use our ideas and knowledge to turn this information into great value. Data-driven management used to formulate strategies and make decisions is based on data. It is essential in an era when digitalization is progressing, consumers' ways of thinking are becoming more diverse, and businesses are evolving speedily. Taking advantage of being in this position, we will continue to turn the information that we possess into value to become a company which can continue to impact society in good ways. Increasing the number of employees who enjoy working Our company does not have a physical plant. The services that we provide were all created by people. I think that unless we ourselves, the people who create services and value, enjoy working, our output will not be good and customers will sense that. If we are going to do our jobs anyway, customers and co-workers would prefer to deal with people who enjoy working. While views of work and values have been changing, I think that increasing the number of employees who have job satisfaction and find work enjoyable is also important for impacting society in good ways. I would like to increase the number of employees who enjoy working. INTAGE GROUP REPORT 2024 08 Listening to the opinions of the people working on the front lines and leveraging these opinions when making decisions Going forward, I will implement various reforms and improvements as the top manager of the Group. When working on these, I would like to value the opinions of the people working on the front lines. While people in management positions consider measures based on various information and analyses, I believe that many answers to the roots of problems are found on the front lines. When we take measures to solve an issue or problem, we must ask the people on the front lines what the root of the problem is. If we do not, we may implement the wrong measures. I have already begun to hold townhall meetings, and I plan to visit all of our offices in Japan and other countries. I would like to increase this dialogue with the people on the front lines, gain a good understanding of what is happening there, and use this information when making management decisions. Aiming to increase net sales twofold and profit fourfold by 2030 We have announced our long-term vision, whose goal is 2030. The qualitative target is to continue to be a company that contributes to the realization of a convenient and affluent society free from social loss, and aim for business growth in proportion to our contribution to solving business and social issues. Society is undergoing a major change now. We will take the time like this as an opportunity, make investments, change our business style, and solve the issues that society and customers face. I put my passion into this message, that we should make a leap forward from the existing framework rather than following the same path as before. To do this, we need to change our mindset and think more deeply. I think that our mission is to function as our customers' business partner when they tell us their problems or request things from us, asking how they should respond to the changes of the times or telling us that to change they need evidence. The changes of the times are opportunities to demonstrate the value of data. We have the potential to achieve significant growth by translating opportunities into achievements. In numerical terms, I envision our achievement of net sales of 130.0 to 150.0 billion yen, which is about double the results in FY2022. (CAGR*1 at 10% to 12%), operating profit of 15.0 billion yen, which is four times higher than in FY2022, and return on equity (ROE) of 12% or higher. How should we seize this great opportunity and act while carefully thinking about what we should do? All of us at the INTAGE Group will work together to realize our desire to look ahead and continue growing. Eliminating the invisible boundaries between Group companies As I mentioned above, it is extremely difficult to achieve our long-term vision if we continue to follow the same path we have been on. The key to the achievement of our long- term vision is the All INTAGE idea. Since we transitioned to a holding company structure, we have been increasing the things that we can do (our functions) and the number of colleagues that we have through M&A activities. To date, we have continued to develop the Group by ensuring the independence of the individual companies' functions and expanding their scale. However, to create new opportunities in these significantly changing times, greater comprehensive strength will be necessary because the key points for businesses that we handle are complicated. At present, as many as 28 operating companies belong to the INTAGE Group. Each company has been aiming to achieve its own growth. To compete on comprehensive strength, however, I think we should also consider changing the entire organization so that we can cooperate in businesses and functions beyond the boundaries between companies. I think that having all of the Group companies work as one to solve the issues faced by customers is a major task that we have to do to achieve our vision, and how we do this is an issue that we should address. I will eliminate the invisible boundaries between Group companies and build a structure that enables them to work as one and a culture that promotes this. Accelerating growth through synergy with DOCOMO Another key to our achievement of the vision is the synergy with NTT DOCOMO, INC. (hereafter, "DOCOMO"), with which we have formed a capital and business alliance. Before the increase in the diversity of consumers' values and lifestyles, companies' marketing activities were based on rough targeting and produced a certain degree of effect through what is called mass advertising. However, because the diversity of consumers has increased, it is becoming difficult to respond to their needs using conventional methods. Our collaborations with DOCOMO have the potential to overcome this issue. DOCOMO has a membership base of more than approximately 100 million people.*2 We will create value from data obtained from one of the largest membership bases in Japan, which will enable us to take approaches suited to the increasingly diverse values and lifestyles of consumers. We will be able to learn information on an individual basis, for example, that consumers with a specific profile may potentially purchase a specific product. This alone is a great evolution of marketing, but it is nothing more than saying to our customers that we have analyzed the data to this point, so the rest is up to them. This is not still helpful enough for customers. By teaming up with DOCOMO, we will have access to information about the purchasing behaviors of a huge number of consumers, which will enable us to provide them with highly satisfactory options in their daily purchasing activities and provide ads that they will not 09

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