INTAGE : Summary of Consolidated Financial Results for the Three Months Ended September 30, 2024 (Japanese GAAP)326KB

Published November 6, 2024 at 6:57 a.m. UTC

Source: MarketScreener

Summary of Consolidated Financial Results

for the Three Months Ended September 30, 2024 (Japanese GAAP)

			November 6, 2024
Company name:	INTAGE HOLDINGS Inc.	Stock listing: Tokyo Stock Exchange
Code number:	4326	URL	https://www.intageholdings.co.jp/
Representative:	Yoshiya Nishi, President and Representative Director
Contact person:	Toru Takeuchi, Director	TEL: +81-3-5294-7411

Planned start of dividend payments: -
Preparation of supplementary explanations of financial results:	Yes
Financial results presentation held:	None
	(Amounts are rounded off to nearest million yen.)

1. Consolidated Financial Results for the Three Months Ended September 30, 2024 (July 1, 2024 to September 30, 2024)

(1) Consolidated Operating Results (Cumulative)				(Percentages indicate year-on-year changes.)
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent

	Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen	%

Three months ended		15,057		5.2	187		-5.7	106	-66.1	1,132	653.8
September 30, 2024

Three months ended		14,306		1.3	198		-65.4	314	-65.3	150	-78.3
September 30, 2023

(Note) Comprehensive income:	Three months ended September 30, 2024: ¥1,227 million (278.3%)
		Three months ended September 30, 2023: ¥324 million (-55.6%)

		Profit per share	Profit per share after
		dilution


				Yen			Yen
Three months ended				29.70			-
September 30, 2024

Three months ended				3.95			-
September 30, 2023

(Note) For the purpose of calculating profit 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 September 30, 2024	45,310		32,012		70.1
As of June 30, 2024	45,318		32,439		71.1

(Reference) Total shareholders' equity: As of September 30, 2024: ¥31,780 million
		As of June 30, 2024: ¥32,208 million
2. Dividends
				Dividend per share

		1Q-end		2Q-end	3Q-end	Year-end	Total

			Yen	Yen	Yen		Yen	Yen
Year ended June 30, 2024			-	0.00	-	43.00	43.00
Year ending June 30, 2025			-

Year ending June 30, 2025				22.50	-	22.50	45.00
(Forecast)

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

3. Consolidated Earnings Forecasts for the Fiscal Year Ending June 30, 2025 (July 1, 2024 to June 30, 2025) (Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Profit per share
		owners of parent

	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Interim period	32,500		5.7	1,100	-28.1	1,100	-32.9	2,000	97.0	52.48
(Cumulative)

Full year	68,000		7.5	3,800	15.5	3,800	7.2	3,700	50.6	97.04
(Note) Revisions to the most recently disclosed earnings forecasts: None

* Notes

(1) Significant changes in the scope of consolidation during the period:Yes New consolidated companies: 1 company (Company name) DOCOMO InsightMarketing, INC Excluded: - company (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:	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

(4) Number of shares issued and outstanding (common shares)

Number of shares issued at the end of the period (including treasury shares)
Number of treasury shares at the end of the period
Average number of shares during the period (cumulative from the beginning of the fiscal year)

As of	40,426,000	As of June 30, 2024	40,426,000
September 30, 2024

As of	2,296,620	As of June 30, 2024	2,296,620
September 30, 2024


Three months ended	38,129,380	Three months ended	38,073,166
September 30, 2024		September 30, 2023

Review of the accompanying quarterly consolidated financial statements by a certified public accountant or an auditing corporation: None
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.

INTAGE HOLDINGS Inc. (4326)

Summary of Consolidated Financial Results for the Three Months Ended September 30, 2024

Table of Contents of the Attached Material

1. Overview of Consolidated Financial Results, etc	2
(1)	Overview of Consolidated Financial Results for the First Quarter Ended September 30, 2024	2
(2)	Overview of Financial Position for the First Quarter Ended September 30, 2024	3
2. Consolidated Financial Statements and Notes Thereto	4
(1)	Consolidated Balance Sheet	4
(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive Income	6
(3)	Notes to Quarterly Consolidated Financial Statements	8
	(Application of accounting treatment specific to the preparation of quarterly consolidated
	financial statements)	8
	(Notes on segment information)	8
	(Note in the event of major change in shareholders' equity)	9
	(Note on assumptions for going concern)	9
	(Notes on statement of cash flows)	9

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INTAGE HOLDINGS Inc. (4326)

Summary of Consolidated Financial Results for the Three Months Ended September 30, 2024

1. Overview of Consolidated Financial Results, etc.

Overview of Consolidated Financial Results for the First Quarter Ended September 30, 2024
During the three months under review (July 1, 2024 to September 30, 2024), the Japanese economy was expected to maintain a modest recovery, partly due to various government policies while the employment and income environment improved. However, there is a risk that a downturn in overseas economies, such as the continued high level of interest rates in Europe and the U.S. and the effects associated with the continued stagnation of the real estate market in China, could put downward pressure on the Japanese economy. In addition, it was necessary to pay close attention to the impact of rising commodity prices, situation in the Middle East, changes in the financial and capital markets, and other factors.
The economies of the Asian region where the Group operates are at a standstill.
In the consolidated fiscal year under review, the second year of the 14th Medium-term Management Plan, the Group has adopted the management policy of "Synergy & Optimization" to realize the Group's basic policy, "Towards New Portfolio as a Data + Technology Company - Creation of New Value." We will promote the expansion of business areas with the keyword of "Synergy" and the optimization of the Group's management resources with the keyword of "Optimization."
As described in the Notice of Acquisition of Shares of DOCOMO InsightMarketing, INC (to Make it a Subsidiary) dated April 22, 2024, DOCOMO InsightMarketing, INC, which is a joint venture between NTT DOCOMO, INC. and the Company, became our wholly owned subsidiary as of July 1, 2024.
As described in the Notice of Company Split (Incorporation-Type Company Split) and Transferring Shares of a Newly- Incorporated Company by a Consolidated Subsidiary Company, and Recording of Extraordinary Profit dated June 17, 2024, our consolidated subsidiary, INTAGE Healthcare Inc. transferred its CRO business to Alfresa Holdings Corporation on September 2, 2024.
In the Marketing Support (Consumer Goods & Services) segment, in addition to the growth of existing businesses in Japan, the Company is promoting investments to increase the value provided to customers, to secure profits by implementing price increases, and to revamp SCI. In addition, we will focus on the development of new services and solutions and sales collaboration with NTT DOCOMO, INC. Regarding to overseas, we will strengthen our sales structure through collaboration between domestic and overseas offices.
In the Marketing Support (Healthcare) segment, we will add healthcare consumer awareness and behavior data to factual data obtained through real-world data, etc. to increase understanding of consumers, for the realization of healthcare decision-making partners. We will also continue to promote the enhancement of medical real-world data, including the upgrade of the integrated database (CrossFact) due to the importance of the medical consumer perspective.
In the Business Intelligence segment, we will accelerate business growth by expanding the data integration platform and utilization business, developing solution services to solve common industry issues, and revamping existing client systems that support business transformation as our priority tasks.
The Group's overall performance has been affected by increased investments aimed at expanding the areas in which the
Group continues to work. However, as in the past, we will continue to strengthen our capital policy based on a stable financial base, create businesses through inter-group collaboration, implement measures to increase non-financial capital such as human capital, and strengthen sustainability.
The above-mentioned transfer of the CRO business resulted in the recording of a gain on sale of businesses in extraordinary income. Although the amount of gain on sale of businesses was less than initially expected due to the value of assets and liabilities related to the transferred business and the transfer consideration adjustment at closing, profit attributable to owners of parent was higher than that for the same period last year.
As a result of these efforts, the INTAGE Group's consolidated net sales for the three months under review amounted to ¥15,057 million (up 5.2% from the same period of the previous year), with an operating profit of ¥187 million (down 5.7%), ordinary profit of ¥106 million (down 66.1%), and profit attributable to owners of parent of ¥1,132 million (up 653.8%).
The results by business segment are described below.

1) Marketing Support (Consumer Goods & Services)

In the Marketing Support (Consumer Goods & Services) segment, consolidated net sales for the segment amounted to ¥10,066 million (up 11.7% from the same period of the previous year), with an operating loss of ¥290 million (operating loss of ¥295 million in the same period of the previous year).

In this segment, panel surveys and custom research results maintained the previous year's level. INTAGE Research Inc. and Research and Innovation Co., Ltd. performed well. In addition, DOCOMO InsightMarketing, INC contributed significantly to the increase in sales.

Overseas business also remained at a higher level than the previous year. Investment activities are progressing as planned,

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INTAGE HOLDINGS Inc. (4326)

Summary of Consolidated Financial Results for the Three Months Ended September 30, 2024

including the revamping of SCI.

As for profits, despite the positive effect of increased sales, operating loss was at the same level as the previous year due to investment expenses, personnel expenses, and the impact of prior expenses from the launch of a synergy business with NTT DOCOMO, Inc. aimed at expanding business performance over the medium to long term.

2) Marketing Support (Healthcare)

In the Marketing Support (Healthcare) segment, sales decreased but profit increased; consolidated net sales of the segment amounted to ¥3,184 million (down 5% from the same period of the previous year), with an operating profit of ¥279 million (up 9.8%). Profitability improved significantly despite a decline in sales due to the impact of the sale of the CRO business at INTAGE Healthcare Inc. In this segment, in the research business, the mainstay of INTAGE Healthcare Inc., custom research in the medical field contributed to higher profits as both sales and operating profit increased from the previous year

3) Business Intelligence

In the Business Intelligence segment, consolidated net sales of the segment amounted to ¥1,807 million (down 6.8% from the same period of the previous year), with an operating profit of ¥197 million (down 17.6%). Both sales and operating profit, however, remained at planned levels. In this segment, the data integration platform and utilization business, which INTAGE TECHNOSPHERE Inc. has placed as a priority investment area as a new initiative, remained strong, but sales remained below the level of the previous year, partly due to a reactionary decline from the large-scale projects in the previous fiscal year. As for Buildsystem Co., Ltd., sales remained at a higher level than in the previous year due to strong sales of low-code development projects.

Profits decreased due to a reactionary decline from the large-scale projects in the previous fiscal year as well as sales.

Overview of Financial Position for the First Quarter Ended September 30, 2024
(Assets)
Current assets contracted ¥153 million from the end of the previous fiscal year to ¥27,851 million. This was mainly due to an increase ¥500 million in work in process and decreases of ¥948 million in cash and deposits, and ¥926 million in notes and accounts receivable - trade, and contract assets.
Non-current assets increased ¥145 million from the end of the previous fiscal year to ¥17,458 million. This was mainly due to increases of ¥2,113 million in goodwill, ¥231 million in deferred tax assets, and ¥196 million in retirement benefit asset, despite a decrease of ¥2,406 million in investment securities.
As a result, total assets decreased by ¥8 million to ¥45,310 million. (Liabilities)
Current liabilities rose by ¥416 million from the end of the previous fiscal year to ¥12,306 million. This was mainly due to increases of ¥522 million in income taxes payable and ¥960 million in other, despite decreases of 78 million in accounts payable-trade and ¥980 million in provision for bonuses.
Non-current liabilities increased ¥3 million from the end of the previous fiscal year, to ¥991 million. This was mainly due to a ¥57 million increase in asset retirement obligations, which was partially offset by a ¥22 million decrease in lease obligations and a ¥42 million decrease in provision for share awards.
As a result, total liabilities increased by ¥419 million to ¥13,297 million. (Net assets)
Total net assets decreased by ¥427 million from the end of the previous fiscal year to ¥32,012 million. This was mainly due to decreases of ¥523 million in retained earnings and ¥44 million in valuation difference on available-for-sale securities, despite an increase of ¥145 million in foreign currency translation adjustment.

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INTAGE HOLDINGS Inc. (4326)

Summary of Consolidated Financial Results for the Three Months Ended September 30, 2024

2. Consolidated Financial Statements and Notes Thereto

(1) Consolidated Balance Sheet

						(Thousands of yen)
			Previous consolidated fiscal year		First quarter under review
			(As of June 30, 2024)		(As of September 30, 2024)

Assets
Current assets

Cash and deposits			12,045,279			11,096,810
Notes and accounts receivable - trade, and contract	11,413,813		10,487,770
assets


Merchandise			25,402			26,113
Work in process	1,859,716		2,360,176

Supplies			128,381			116,795
Other	2,538,923		3,770,304

Allowance for doubtful accounts			-6,092			-6,239
Total current assets		28,005,424		27,851,731

Non-current assets
Property, plant and equipment

Net buildings and structures			1,142,896			1,204,544
Net equipment and fixtures	291,810		378,500

Land			1,998,156			1,998,156
Net leased assets	347,606		332,777

Total property, plant and equipment			3,780,470			3,913,979
Intangible assets
Goodwill			711,421			2,824,814
Other	2,801,911		2,845,396

Total intangible assets			3,513,333			5,670,211
Investments and other assets

Investment securities			5,920,277			3,514,212
Deferred tax assets	1,622,811		1,854,051

Retirement benefit assets			688,061			884,683
Other	2,120,386		1,904,416

Allowance for doubtful accounts			-332,260			-282,792
Total investments and other assets		10,019,276		7,874,571

Total non-current assets			17,313,079			17,458,762
Total assets		45,318,504		45,310,493

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INTAGE HOLDINGS Inc. (4326)

Summary of Consolidated Financial Results for the Three Months Ended September 30, 2024

(Thousands of yen)

				Previous consolidated fiscal year	First quarter under review
				(As of June 30, 2024)	(As of September 30, 2024)

Liabilities
Current liabilities

Accounts payable - trade				2,975,988		2,897,813
Lease liabilities				162,711		168,535

Income taxes payable				288,105		810,463
Provision for bonuses				2,199,639		1,219,306

Provision for point card certificates				2,299,060		2,284,928
Other	3,965,143		4,925,777
Total current liabilities				11,890,649		12,306,824
Non-current liabilities

Long-term borrowings			100,000		100,000
Lease liabilities			233,622		211,031

Provision for share awards			161,096		118,678
Retirement benefit liability			315,774		310,167

Asset retirement obligations			104,675		161,983
Other	72,836		89,305

Total non-current liabilities				988,006		991,166
Total liabilities		12,878,655		13,297,991

Net assets
Shareholders' equity

Share capital			2,378,706		2,378,706
Capital surplus			1,796,219		1,796,274

Retained earnings			30,916,440		30,392,794
Treasury shares			-3,381,200		-3,381,200

Total shareholders' equity				31,710,166		31,186,574
Accumulated other comprehensive income

Valuation difference on available-for-sale securities				124,580		80,531
Foreign currency translation adjustment			711,140		856,321

Remeasurements of defined benefit plans				-336,964		-342,840
Total accumulated other comprehensive income		498,756		594,012

Non-controlling interests				230,926		231,915
Total net assets		32,439,848		32,012,502

Total liabilities and net assets			45,318,504		45,310,493

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INTAGE HOLDINGS Inc. (4326)

Summary of Consolidated Financial Results for the Three Months Ended September 30, 2024

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

Consolidated Statements of Income

For the three months ended September

			(Thousands of yen)
	For the three months ended	For the three months ended
	September 2023	September 2024
	(July 1, 2023 to September 30, 2023)	(July 1, 2024 to September 30, 2024)

Net sales	14,306,996		15,057,972
Cost of sales	9,612,566	9,792,868

Gross profit	4,694,430		5,265,104
Selling, general and administrative expenses	4,495,697	5,077,745

Operating profit	198,732		187,358

Non-operating income

Interest income

Dividend income

Share of profit of entities accounted for using equity method

Gain on investments in investment partnerships

5,995		6,710
1,927	30


16,055		3,083

47,944		-

Reversal of allowance for doubtful accounts			-		40,318

Foreign exchange gains			30,089		-

Other			28,117		9,576
Total non-operating income		130,129		59,717

Non-operating expenses
Interest expenses	4,771		2,178

Commission expenses			3,786		3,190
Foreign exchange gains			-		117,845

Provision of allowance for doubtful accounts			4,227		-
Other			1,413		17,070

Total non-operating expenses			14,198		140,285
Ordinary profit		314,663		106,791

Extraordinary income
Gain on sale of businesses			-	1,588,041

Total extraordinary income			-		1,588,041
Profit before income taxes		314,663		1,694,832

Income taxes			160,696		570,799
Profit		153,966		1,124,032

Profit (loss) attributable to non-controlling interests			3,742		-8,336
Profit attributable to owners of parent		150,224		1,132,369

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INTAGE HOLDINGS Inc. (4326)

Summary of Consolidated Financial Results for the Three Months Ended September 30, 2024

Consolidated Statements of Comprehensive Income

For the three months ended September

					(Thousands of yen)
			For the three months ended		For the three months ended
			September 2023		September 2024
			(July 1, 2023 to September 30, 2023)		(July 1, 2024 to September 30, 2024)

Profit			153,966		1,124,032
Other comprehensive income
Valuation difference on available-for-sale			-25,916		-43,660
securities

Foreign currency translation adjustment	178,805	153,300

Remeasurements of defined benefit plans, net of			17,676		-5,875
tax

Total of other comprehensive income		170,566	103,764

Comprehensive income		324,533		1,227,797
Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non- controlling interests

312,312		1,227,624
12,220	172

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INTAGE HOLDINGS Inc. (4326)

Summary of Consolidated Financial Results for the Three Months Ended September 30, 2024

Notes to Quarterly Consolidated Financial Statements
(Application of accounting treatment specific to the preparation of quarterly consolidated financial statements)

(Tax expense calculation)

Tax expenses for the Company and its consolidated subsidiaries are calculated by multiplying income before income taxes by an effective tax rate, which is reasonably estimated by applying tax-effect accounting to estimated income before income taxes for the fiscal year including the three months under review. However, for companies with regard to which the use of the estimated effective tax rate in tax expense calculations gives a noticeably irrational result, the Company uses the statutory effective tax rate, while factoring in significant add-subtract items.

Income taxes - deferred are included in the income taxes.

(Notes on segment information)

Segment information

For the three months ended September 2023 (July 1, 2023 to September 30, 2023) Information on the amounts of net sales and profit by reportable segment

		Reportable segment

	Marketing Support	Marketing Support		Total
	(Consumer Goods &	Business Intelligence
	(Healthcare)	(Thousands of yen)
	Services)	(Thousands of yen)
	(Thousands of yen)
	(Thousands of yen)


Net sales
Net sales to third parties	9,015,160	3,353,476	1,938,360	14,306,996
Intra-group net sales and	-	-	-	-
transfers


Total	9,015,160	3,353,476	1,938,360	14,306,996

Segment income (loss)	-295,880	255,031	239,581	198,732

(Note) The total of the segment income (loss) equals the operating profit reported in the quarterly consolidated statements of income.

For the three months ended September 2024 (July 1, 2024 to September 30, 2024) 1.Information on the amounts of net sales and profit by reportable segment

		Reportable segment
	Marketing Support	Marketing Support	Business	Total
	(Consumer Goods
	(Healthcare)	Intelligence	(Thousands of yen)
	& Services)
	(Thousands of yen)	(Thousands of yen)
	(Thousands of yen)


Net sales
Net sales to third parties	10,066,208	3,184,347	1,807,417	15,057,972
Intra-group net sales and	-	-	-	-
transfers


Total	10,066,208	3,184,347	1,807,417	15,057,972

Segment income (loss)	-290,115	279,983	197,490	187,358

(Note) The total of the segment income (loss) equals the operating profit reported in the quarterly consolidated statements of income.

2.Information on the amounts of impairment loss on fixed assets or goodwill by reportable segment

(Important change on the amount of goodwill)

In the Marketing Support (Consumer Goods & Services) segment, the Group acquired the stock of DOCOMO InsightMarketing, INC, and included them in the scope of consolidation. The increase in goodwill due to this event was 2,198,676 thousand yen for the first quarter of this fiscal year.

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