FY2015 Business Results and Future Growth Strategies

Transcription

1 Presentation meeting for institutional investors and security analysts FY2015 Business Results and Future Growth Strategies FY2015: Fiscal year ended March 31, 2015 FY2016: Fiscal year ending March 31, 2016 May 20, 2015 (TSE 4326) INTAGE HOLDINGS Inc.

2 Contents FY2015 Business Results Review of the 11th Medium-Term Management Plan Business Plan for FY 2016 FY2016 Earnings Forecast (consolidated / by segment) 2

3 Contents FY2015 Business Results Review of the 11th Medium-Term Management Plan Business Plan for FY 2016 FY2016 Earnings Forecast (consolidated / by segment) 3

4 FY2015 Summary of Income Statements Year-on-year gains from net sales through net income (Millions of yen) FY2014 Actual FY2015 Actual (a) Change YoY FY2015 Forecast (b) a/b Net Sales 42,508 43, % Operating Income Ordinary Income 3,505 3, % 3,382 3, % Net Income 1,642 2, % EPS (Yen) ,000 (0.2)% 3,600 (0.8)% 3,500 (1.5)% 2,900 (15.1)% ROE (%) (Notes) 1. Posted extraordinary income of 2,911 million on the sale of subsidiaries and affiliates shares from the transfer of part of the business of ASKLEP Inc. 2. Posted extraordinary losses of 564 million as an impairment loss on the goodwill of INTAGE VIETNAM LIMITED LIABILITY COMPANY. 4

5 Summary of BS and CF Consolidated Balance Sheets FY2014 FY2015 Change Details (Millions of yen) Current assets 21,726 21,560 (165) Non-current assets 12,013 11,740 (272) Decrease in goodwill Total assets 33,740 33,301 (438) Decrease in notes and accounts receivable-trade and work in progress Current liabilities 12,681 10,042 (2,639) Decrease in short-term loans payable Non-current liabilities 3,886 3,342 (544) Decrease in long-term loans payable Total liabilities 16,568 13,384 (3,183) Shareholders equity 16,497 18,489 +1,991 Increases in retained earnings Accumulated other comprehensive income 527 1, Minority interests Total net assets 17,171 19,917 +2,745 Increase in foreign currency translation adjustment and posted net defined benefit retirement assets Consolidated Cash Flows FY2014 FY2015 Change Details Cash flows from operating activities 3,612 2,947 (665) Cash flows from investing activities (1,151) 2,327 +3,479 Increase in payments for extra retirement payments and income taxes paid Posting of proceeds from sales of investment in subsidiaries resulting in change in scope of consolidation Cash flows from financing activities (592) (4,940) (4,348) Posting of repayments of long-term loans payable Effect of exchange rate changes on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year (46) 2, (1,580) 5,906 7,926 +2,020 Cash and cash equivalents at end of year 7,926 8,

6 Net Sales by Segment (Billions of yen) FY2014 FY2015 Change YoY Marketing Research and Consulting % [Panel Data] % [Custom Research] % System Solutions (1.8)% Drug Development Solutions (35.9)% Total % Panel Data: Firm sales at INTAGE Inc. (SCI, i-ssp) and JMIRI (prescription data analysis service) Custom Research: In Web sales, increased contracts at ANTERIO Inc. (healthcare research); in conventional sales, FMCG (Fast Moving Consumer Goods) products at INTAGE Inc. and government orders at INTAGE Research Inc. were favorable Slight decrease due to large, high-profit contracts in the previous fiscal year, but favorable overall Net sales decreased due to a business transfer, but ongoing operations greatly expanded 6

7 Operating Income by Segment (Billions of yen) FY2014 FY2015 Change YoY Marketing Research and Consulting % System Solutions % Drug Development Solutions (0.005 ) Total % Rose with increase in panel data research sales (especially contribution from promotion support services based on panel data) Loss reduced with steady progress in restructuring the business of INTAGE CHINA Maintained pace of prior fiscal year on favorable receipt of orders Improved due to increased EDC system sales EDC: Electronic Data Capturing 7

8 Contents FY2015 Business Results Review of the 11th Medium-Term Management Plan Business Plan for FY 2016 FY2016 Earnings Forecast (consolidated / by segment) 8

9 The 11th Medium-Term Management Plan [Basic Policy] Renovation & Innovation" Toward accelerated growth utilizing our deep insights on people as our greatest asset [Starting Point = Action Principle] 生 Consumers 活 者 起 点 first, with a thorough commitment to intelligence そして 情 報 への 徹 底 的 なこだわり 9

10 The 11th Medium-Term Management Plan [Priority Issues] Reinforcement Boost market value by reinforcing mainline businesses Fruition Challenge & Creation Achieve steady growth in the mobile & single source, global and healthcare fields Seek and establish new business models transcending research Acceleration Strengthen the management of strategic planning and implementation from optimal perspectives 10

11 Progress of the 11th Medium-Term Management Plan Priority Issues Accomplishments and Challenges (April 2014 to March 2015) Reinforcement Boost market value by reinforcing mainline businesses Fruition Achieve steady growth in the mobile & single source, global and healthcare fields While there were signs of slower growth in some areas of panel research, efforts were implemented to boost market value, including the addition of perishables and preprepared food data. Succeeded in winning customers back from competitors. In Custom Research, conventional sales were firm while in Internet Research the results were sharply divided by subsidiary. In mobile and single source, a sequence of new services were released in the media communications business, which is a priority area at INTAGE Inc. Market expectations are high for services based on i-ssp and other original data. Globally, overseas development of research solutions advanced. While improvements were achieved year-on-year, global operations did not achieve profitability overall. In healthcare, part of the business of ASKLEP Inc. was transferred. Targets were largely achieved due to expanded EDC sales. Challenge & Creation Seek and establish new business models transcending research [HD] Implemented capital and business alliance with Kyoto University venture company Kyoto Constella Technologies Co., Ltd. [ITG] Concluded retail panel survey joint sales partnership contract with U.S.research company Nielsen. [TECHNOSPHERE] Formed business alliance with XCompass Ltd. toward provision of corporate services using artificial intelligence information processing technologies Acceleration Strengthen the management of strategic planning and implementation from optimal perspectives Conducted review of Group formation looking to bolster function integration and reinforce expertise 11

12 Contents FY2015 Business Results Review of the 11th Medium-Term Management Plan Business Plan for FY 2016 FY2016 Earnings Forecast (consolidated / by segment) 12

13 INTAGE Group Business Plan for FY2016 Group Basic Policy Further Acceleration of Renovation & Innovation Strategy Focus Introduction of new segments Restructuring of Group formation Strategic investments to realize Group growth Achieving overall profitability in overseas businesses and strengthening governance Steady growth of the media communications business 13

14 Introduction of New Segments [New Segments] Migrate to classification based on industry axis service axis Intage Marketing Support (Consumer Goods & Services) Intage Research Access JP Overseas subsidiaries [Former Segments] Marketing Research and Consulting System Solutions Drug Development Solutions Marketing Support (Healthcare) Business Intelligence ANTERIO ASKLEP Japan Medical Information Research Institute PLAMED INTAGE TECHNOSPHERE Categorized based on services provided Change to new segments is scheduled from 1Q FY

15 Restructuring of Group Formation Marketing Support (Consumer Goods & Services) The operating company INTAGE Inc. concentrates resources in this field. Work toward re-strengthening the research business while expanding the communications business. Also, leverage the establishment of INTAGE CONSULTING Inc. to revitalize efforts to engage with customers management/executive-level teams. Marketing Support (Healthcare) Transfer SDI and other OTC-related services that have been provided by INTAGE Inc. to ANTERIO Inc. Integrate the Group s experts in both OTC and Rx with powerful contents, and aim at establishing a position as the company that knows patients best. Business Intelligence Transfer FMCG, DCG, and medical and healthcare-related IT solution services that have been provided by INTAGE Inc. to INTAGE TECHNOSPHERE Inc. Aim at establishing competitive advantages by giving top priority to strategic planning in the overall business intelligence field and completely improving advanced IT capabilities. 15

16 Strategic Investments to Realize Group Growth Promote incubation using a venture fund that gives priority to healthcare, overseas business, and the business intelligence field. Invest in novel, promising venture businesses expected to manifest synergies with each Group company, and aim at creating business opportunities. Application Investment INTAGE Group companies INTAGE HOLDINGS Examine fields of investment Select new business candidates Formulate processes covering everything from incubation to commercialization, etc. Information sharing / Support Theme progress management/ assessment Environment matching support Information sharing / intellectual property management Various kinds of support Consideration of collaborations, etc. Business matching support Incubation guidance Fostering intrapreneurs, etc. 16

17 Achieving Overall Profitability in Overseas Businesses and Strengthening Governance Formulate and reinforce strategies according to the conditions in each country, and further advance the sharing of solutions, customer information, assets, personnel, etc. Build Foundation for Competitive Overseas Business Strengthen Local Sales Force Secure Sustainable Business Growth Full-scale launch of global solutions Development of new products making full use of mobile technologies Independent planning and research across regions Develop Japanese-affiliated customers through seminars hosted by each local INTAGE affiliate Deeply cultivate automobiles, telecommunications, distribution and other high-potential industries Increase the number of personnel posted from Japan Foster overseas business personnel Dispatch Japanese managers to regions with no Japanese posted Implement thorough governance Seek ties to new business areas Net sales Operating income FY2016 (Plan) 3.98 billion 0.1 billion FY2015 (Actual) 3.59 billion (0.17) billion (Note) Net sales and operating income are simple sums of the plans and actual performance figures of overseas subsidiaries. 17

18 Steady Growth of the Media Communications Business [Number of customers using i-ssp] Increase in Internet advertising expenses to 1,051.9 billion FY2013 Agencies Media Services Manufacturers Information / Telecommunications Restaurants Academia FY2014 Up 170% yearon-year; Spreading into various industries (Billions of yen) 1, YoY +12.1% 1, (From DENTSU INC. materials February 24, 2015) Develop stream of i-ssp based solution tools as supplementary services VOIS Plus3 Consumer insight tools In the Internet advertising industry, by developing services that maximize on the data held by the INTAGE Group (types, quantity, and quality) and the superiority of our research menu, aim at further expanding the communications business to provide measurement and related solutions for the cross-media / cross-platform field. 18

19 Steady Growth of the Media Communications Business Established Nielsen-INTAGE DigitalMetrics Inc. to develop new advertising effectiveness measurement solutions in Japan s cross-platform field Nielsen World s largest digital advertising viewership ratings survey Digital Ad Ratings INTAGE Collection and tracking of multiple types of data on the same individuals SCI / i-ssp Product development based on the solutions of both companies Nielsen-INTAGE DigitalMetrics New services providing broad-reaching analyses of digital advertising reach; attributes include brand ownership, purchase intent, lifestyle and regional information, as well as analysis of the impact of digital advertising on purchasing behavior and brand switching 19

20 Contents FY2015 Business Results Review of the 11th Medium-Term Management Plan Business Plan for FY 2016 FY2016 Earnings Forecast (consolidated / by segment) 20

21 FY2016 Earnings Forecast (consolidated / by segment) Forecast by New Segment Classification (Million of yen) Marketing Support (Consumer Goods & Services) Marketing Support (Healthcare) Business Intelligence Consolidated FY2015 Actual FY2016 Forecast Change YoY Net Sales 28,963 30, % Operating Income 1,916 1, % Net Sales 9,404 9, % Operating Income 1,155 1, % Net Sales 5,557 5,500 (1.0)% Operating Income (7.5)% Net Sales 43,925 46, % Operating Income 3,571 3, % Ordinary Income 3,446 3, % Net income attributable to Parent company shareholders 2,463 2,400 (2.6)% The above performance forecasts were based on information available at the time they were prepared and incorporate various uncertainties, so actual performance may differ materially from these projected figures. 21

22 Basic Policy on Earnings Distribution The INTAGE Group s basic policy is to distribute earnings in consideration of the balance between dividends and retained earnings, based on the consolidated results. INTAGE HOLDINGS considers the return of earnings to shareholders to be one of its highest management priorities. Year-end Dividends ( ) Payout Ratio (Consolidated) (%) DOE (Consolidated) (%) FY FY2016 (Forecast)

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