INTAGE : REPORT 2023

Know today, Power tomorrow

INTAGE GROUP REPORT 2023

The future we envisage

Who we are

Leveraging a leading understanding of consumers to solve customer business issues and help enrich society

Panel surveys, a core product of the INTAGE Group, involve combining carefully designed data provided by consumers, retail outlets and elsewhere with product masters, and providing data that is continually indexed through data analysis and our handling capabilities as a system. This data is used as the industry standard, chiefly among manufacturers of consumer goods. The INTAGE Group also supports the marketing activities of companies across a wide range of industries including consumer goods manufacturers and pharmaceutical companies through the provision of various research and insight informed by the wealth of data the Group maintains.

Along with the rising importance of utilizing the vast troves of data generated by recent advances in digitalization, there is a growing need in business sectors to understand consumers. In an aging society and increasingly diverse environment, understanding changes in consumers is paramount. We see this as our traditional area of expertise, and embrace these environmental changes as opportunities.

Deploying the outstanding ability to understand and handle data related to retail and healthcare consumers it has honed over the years, the INTAGE Group is committed to working closely with corporate customers in their marketing efforts, helping to shape a society that delivers happiness for consumers.

At a Glance

Business Intelligence

¥7.0billion 12%

Marketing Support (Healthcare)

¥14.1billion 23%

Marketing Support (Consumer Goods & Services)

¥40.1billion 65%

Learn more about our business here

Number of client companies*2

Customers in Panel Survey*3

Mighty Monitor® (Internet Survey Monitor)

Approx.

Approx.

Access Panel*4

2,200companies

400companies

3.32million

Fiscal year ended June 2023

Fiscal year ended June 2023

As of November 2023

Number of employees

Overseas expansion*5

Rate of Female Employees*6

3,186

9countries

51.0%

As of June 30, 2023

As of December 2023

As of June 30, 2023

Net sales

Operating profit

Ordinary profit

(million yen)	(million yen)	(million yen)
80,000	5,000	6,000
3,750	4,500
2,500	3,000
1,250	1,500
0	0

2020/6*1 2021/6 2022/6 2023/6 2024/6

2020/6*1 2021/6 2022/6 2023/6 2024/6

2020/6*1 2021/6 2022/6 2023/6 2024/6

(Forecast)

(Forecast)

(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 2023 (excluding clients of KYOWA KIKAKU LTD., Buildsystem Co., Ltd., NSK Co., Ltd., Research and

Innovation Co., Ltd., and 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 Number of monitors that participated in research or updated their profile data within the last year

*5 Sites operated in China, South Korea, Thailand, Vietnam, India, Singapore, Indonesia, the Philippines and the United States.

*6 Percentage of employees who are women at domestic consolidated subsidiaries

Our Business model

We collect, analyze and process a wide array of data, impart it with insight based on the INTAGE Group's unique understanding of consumers, and deliver it to our customers. Then, better goods and services are returned to society through our customers, contributing to a positive cycle.

Contributing to corporate growth and the lives of consumers by utilizing data from consumer perspectives

Our purpose

Create a prosperous society of limitless possibilities

Since our founding, we have remained cognizant of our role as a public institution of society, continuing our business with an adherence to objectivity, neutrality and social responsibility.

As a company handling a wide array of data, we emphasize the need to earn the trust of all stakeholders while balancing business implementation with improvements to the foundations that support it. We also take pride in our role as a public institution of society, and strive to further enhance our corporate value through an interplay of mutual identification, trust, job fulfillment, pride and expectation.

The INTAGE Group will contribute to the

Declaration to Achieve the

SDGs

realization of a healthy, sustainable society through our efforts to maintain the data utilization environment, and to ceaselessly improve data utilization values that connect the viewpoints of our customers with those of consumers.

SCI®

(Nationwide Consumer

Panel Survey)

53,600 monitors

Daily shopping data continually collected from nationwide male and female consumers between the ages of 15 and 79

Mighty Monitor

3.32

million monitors

(As of November 2023*)

The largest Internet-based survey monitor panel in the marketing research industry

Cross Fact

(dispensing pharmacy)

3,522 stores

(As of November 2023)

Research database of social insurance and out-of-hospital dispensing pharmacy health insurance claims

SRI+®

(Nationwide Retail Store

Panel Survey)

6,000 stores

Retail store sales data collected from supermarkets and other retail stores across Japan

CODE members

3.08 million

(As of June 2023)

App to collect consumer data through receipts

i-SSP®

(INTAGE Single Source

Panel)

30,000 monitors

Data collected on media contact and purchasing behavior under a cross-media environment

Smart TV viewing data

4.49 million television sets

Smart TV viewing log data collected from Internet-connected televisions

Dr. Panel

60,000 doctors

Membership base made up exclusively of physicians whose main purpose is to cooperate with market research

* Number of monitors that participated in research or updated their profile data within the last year

INTAGE Group Businesses

INTAGE Group Business Areas

The INTAGE Group's businesses comprise three segments, Marketing Support (Consumer Goods & Services), Marketing Support (Healthcare), and Business Intelligence. As the diagram on the right shows, some of the Group's business areas span multiple segments. With research and the data business at the core of each segment, the Healthcare segment implements CRO and medical advertising functions, while the Business

Intelligence segment functions as a system integrator and also handles overall information infrastructure for the Group.

The Unique Strength of the INTAGE Group

A panel survey is a kind of research that involves securing a certain number of monitors (consumers, stores, etc.), developing mechanisms to periodically collect information from those monitors, and providing research data to customers on a regular basis. The INTAGE Group began panel surveys back when it was first founded in 1960. The panels have undergone repeated redesigns including the

Nationwide Consumer

Panel Survey

Which households and individuals are buying what, where, and for how much?

Dedicated scanners and smartphone apps are used by a nationwide collection of 53,600 male and female panelists between the ages of 15 and 79 to collect purchasing data on foods, beverages, household goods and other products consumed both inside and outside the home. This is Japan's largest consumer panel providing insight based on high-quality data that gives a detailed picture of consumer purchasing behavior.

expansion of their type, size and the range of items covered, as well as improvements to reporting lead time, and today they continue to represent a key pillar of the INTAGE Group. Our data is highly trusted by customers (in the Group's case mainly consumer goods manufacturers) as information that accurately captures actual market conditions, and is used for marketing purposes as the de facto standard.

A wide range of POS data covering foods, beverages, household goods, over-the-counter drugs and other products is collected from approximately 6,000 major retailers nationwide, including supermarkets, convenience stores, drug stores and specialty stores. The data boasts unrivaled strength in this field, and is used as the standard index in various industries.

Marketing Support (Consumer Goods & Services)

Business Outline

The business supports corporate market research activities primarily through INTAGE Inc. Marketing research refers to scientific research and analysis that supports effective decision making for all manner of marketing issues that companies face. Panel research, the core product of the business based on INTAGE's proprietary collection of consumer purchase and retail store sales data, has been adopted by roughly 400 consumer goods manufactures. We also perform analysis and processing that leverages panel data, various research methods and our unique analysis capabilities to provide proprietary insight in the form of custom research that is used by a wide range of manufacturers, not only in the consumer goods sector.

Marketing Support (Healthcare)

Business Outline

Net Sales and Operating Profit

Net sales (million yen)Operating profit (million yen)

2,300

1,643 40,153

38,503

35,572

2021/6

2022/6

Major Customers

Manufacturers of consumer goods (food, beverages, household goods) / durable consumer goods (automobiles, home appliances, apparel, etc.) / finance / communications / advertising / IT / government offices, etc.

Net Sales and Operating Profit

Net sales (million yen)Operating profit (million yen)

This business, working primarily through INTAGE Healthcare 2,197 Inc., provides pharmaceutical companies with support for 2,264

marketing research activities, CRO (Contract Research 14,714 14,552 Organization) services, promotion, analysis of prescription information, and other services.

For over-the-counter (OTC) drugs, we provide custom research in addition to data from retail stores such aspharmacies and drug stores, and consumer data obtained from purchase histories. For prescription drugs, we also support pharmaceutical companies with a wealth of solutions and tools. These include surveys of physicians' actual drug treatment and prescribing practices, surveys of medical consumers and patients, and the evaluation of promotional activities surrounding pharmaceuticals.

Business Intelligence

Business Outline

This business is operated primarily through INTAGE TECHNOSPHERE Inc., and involves the provision of system development and operation, BPO, data center operation, and industry-specific solutions.

In recent years, we have leveraged the strengths we have honed engaging in data-related businesses over the years to support corporate DX efforts through AI and data handling. This business also supports the IT needs of the entire INTAGE Group, including the building, operation and maintenance of infrastructure, and assistance in the area of software supporting business implementation.

2023/6

Ayumi Higaki

Director in charge of Marketing Support (Consumer Goods and Services) Domestic Business

14,153

2021/6

2022/6

2023/6

Major Customers

Pharmaceutical (OTC and prescription drugs) companies / medical device manufacturers, etc.

Net Sales and Operating Profit

Net sales (million yen)Operating profit (million yen)

350

7,271

151 7,177

7,080

2021/6

Major Customers

Keita Murai

Senior Executive Officer in charge of Marketing Support

(Healthcare)

Kazuko Sakai

Executive Officer and CIO in charge of Business

Intelligence

2022/6

2023/6

Pharmaceutical companies / transportation / travel and tourism / publishing / others (provision of healthcare management services regardless of industry)

To coincide with our 55th anniversary,

"THE INTAGE WAY," which represents our vision and code of conduct as a Group, was refashioned into "THE INTAGE GROUP WAY."

THE INTAGE GROUP WAY

The newly revised version expresses the Group's vision and how each employee should conduct themselves in more concrete terms for the further growth of the Group.

Know today, Power tomorrow

We connect our customers to their customers, to create a prosperous society of limitless possibilities.

INTAGE Group

Vision and Philosophy

Contents

Who we are at the INTAGE Group

• 01 Who we are / At a Glance

• 03 Our Business model

• 05 INTAGE Group Businesses

• 07 THE INTAGE GROUP WAY

The future we envision

09 13

Management Message

Noriaki Ishizuka, President and Representative Director

Management Message

Yoshiya Nishi,

Representative Director and Executive Vice President

15 Partnership with DOCOMO

17

Toward 2030

Toward a new portfolio as a Data+Technology company

19 14th Medium-Term Management Plan CFO Message

23

Toru Takeuchi,

Director, CFO in charge of Internal Controls

INTAGE HOLDINGS Inc.'s website

www.intageholdings.co.jp/english/

Contributing to a sustainable society

25

27

29

31

33

35

Sustainability

Resolving social issues through our business activities

Environment Social

Board of Directors Governance

DATA section

41 43 45 48

Growth trajectory and reasons for growth

Financial and non-financial highlights for the past 10 years

Financial data Corporate profile

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. These 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.

Management

Message

*1 CX Marketing Platform

In the INTAGE Group's 14th Medium-Term Management Plan, we have been working to redesign SCI (Nationwide Consumer Panel Survey), one of the core panel research products of the INTAGE Group. By harnessing the revamped data with data from the CODE shopping app operated by Research and Innovation Co., Ltd., we are building a platform that will help our corporate clients improve the customer experience (CX). (SeeP.21 )

*2 CRM

An acronym for "Customer Relationship Management," describing the process of accurately ascertaining customer information for the purpose of maintaining and improving good relationships with customers in order to expand business.

Aiming to create demonstrations of new value as a Data + Technologycompany

Achieved 30th consecutive period of increased net sales despite a decline in operating profit due to up-front investment

In the fiscal year ended June 2023, consumer values, their behavioral patterns and the processes for their purchasing behavior and other factors underwent significant changes due to the spread of COVID-19, and the demand for market research to understand these changes has continued to boom. However, with sharply rising raw material and fuel costs triggered by Russia's invasion of Ukraine in February 2022, compounded by the depreciation of the Japanese yen, consumer goods manufacturers, our mainstay clients, prioritized the short-term issue of dealing with price hikes in their own products, and demand for research temporarily declined as a result.

Even under this difficult business environment, businesses and services that were positioned as key growth strategies, including our mainstay domestic panel research and custom research businesses, Asian countries on the recovery track from the COVID-19 pandemic and Research and Innovation Co., Ltd. which joined the Group in 2021, posted results that surpassed those of the previous year.

We are currently working to revamp our SCI (Nationwide Consumer Panel Survey) product in order to build a CX Marketing Platform*1 as an evolved form of CRM*2 that links consumers, retail and manufacturers with purchase data. As it is important to ascertain trends showing how data fluctuates chronologically over the long term, when switching data we must not stop using the previous data and immediately use the new data. A process is needed so that customers can view the old and new data, and confirm that trends are not changing and that it is safe to switch to the new data. For this reason, we retain back data going back at least two years before releasing the new data. Although dual costs are incurred to operate the existing SCI and redesigned SCI

President and Representative Director

Noriaki Ishizuka

in parallel, these costs are expected to peak in FY2023 and significantly decline in FY2025 when only the new SCI will be in operation.

In the fiscal year ended June 2023 we also evolved our human resource strategy and stepped up our investments in staff. To date, our basic hiring strategy was to recruit around 50 new graduates while acquiring people with research experience as mid-career hires in line with our growth. However, the research industry itself has never been large, limiting the pool of candidates with experience. We have also seen a trend of experienced researchers flowing into other industries. With the expectation that demand for research will grow in the medium-to long-term, we shifted our focus to the hiring of new graduates ahead of our competitors, in order to mitigate the risk of staffing shortages in the future. In April 2023, we hired 141 new graduates (56.7% of whom were women), three times the usual number. In addition to boosting the skills of junior employees, we will increase base salaries while improving retention rates. We will also implement multi-faceted measures to enhance human resources as the source of value creation, including efficiency improvements with the use of technology, and opening the door to accepting former employees who have transferred to other industries.

We originally planned to cover proactive investment in our CX Marketing Platform and investment in human resources with booming research demand, but due to the harsh short-term business environment described above, we posted net sales of ¥61.3 billion (up 1.9% year on year), operating profit of ¥3.7 billion (down 18.6%), and profit attributable to owners of parent of ¥3.5 billion (up 2.5%).

Our next theme is how to connect each sprout of growth as with cultivate it