23

CFO
Message

As we enter a new stage, we will aim
to enhance corporate value in themedium- to long-term with growthfocused financial management
the old and new SCI products in parallel. While we
expect this will have an effect on profits in the fiscal
years ending June 2024 and June 2025, the costissues associated with these parallel operations will
be eliminated in the fiscal year ending June 2026,
when we expect to achieve significant profit growth.

Dividends during the 14thMedium-Term Management Plan
will be progressive as we aim
for growth with an awareness ofcapital efficiency

Director
CFO in charge ofInternal Controls

Toru Takeuchi

We have long seen the return of profits toshareholders as one of the most importantmanagement issues, and our basic policy is
to ensure a distribution of profits that balances
dividends with growth investment based

Continuing to invest in growth
despite increased sales anddeclining profit in the fiscal year
ended June 2023

on consolidated financial performance thatIn the fiscal year ended June 2023, sales from our40%, but in the fiscal year ended June 2023

domestic operations fell short of forecasts, in part

we increased dividends from ¥38 to ¥42 perdue to reduced demand from consumer goods

share (a dividend payout ratio of 46%), and have

manufacturers and other customers impacted bymanaged to constantly maintain a level exceeding

sharply rising raw material costs and other factors,

40%. Recognizing that we had strengthened

but across the entire Group, sales improved in ourour financial status and managed to allocate

overseas business and other units, resulting in higher

sufficient funds for growth investment, in August

net sales overall. However, personnel expenses and2023 we made changes to our basic policy

other costs associated with structural improvementson the allocation of profits in order to further

in each business rose, leading to a decline instrengthen the return of profits to shareholders.

operating profit. Even so, in part due to a reduced

Dividends over the course of the 14th Medium-tax burden from the restructuring of our overseas

Term Management Plan will be progressive, withsite structure, profit attributable to owners of parent

the aim of hitting a consolidated dividend payout

still increased. During this period we also continued

ratio of 50% in the fiscal year ending June 2026,

to invest in future growth, and assess that we havethe final year of the plan. We have also targeted amade steady progress with our investment plans.

return on equity (ROE) of 12%.

represents the results of Group management.
In the previous Medium-Term Management
Plan, we set a target dividend payout ratio ofAdditionally, in August 2023 we announced our14th Medium-Term Management Plan (FY2024/6 toFY2026/6). In connection with our SCI product where
we plan to expand the sample size and make otherimprovements to provide new value to customers,
we are incurring duplicate cost burdens to operate

We will enhance investor
engagement and make our caseregarding our growth strategies
including the alliance withDOCOMOINTAGE GROUP REPORT 2023

In September 2023, we announced a capital andChange in Business Results Over the Past Ten Years

business alliance with DOCOMO as part of theINTAGE Group’s medium- to long-term growth(100 million yen)strategy. We have launched multiple project800

Net sales (left axis)

teams within the Group which are currently in theprocess of seriously discussing their respective

600

business plans.
To coincide with the announcement of the400

8.2
425

8.1

8.5

439

454

Operating profit (left axis)

668

8.9
479

575
7.7

8.0

539

504

7.9

new Medium-Term Management Plan, we alsoannounced “Towards 2030,” which indicatedOperating margin (right axis)

(%)
12613

602

9

7.7
6.2

6

5.7
3

200

the direction the INTAGE Group will pursue
in the medium- and long-term to realize its0vision. We believe that the recent capital andbusiness alliance will increase the speed at35352014

2015

384242402016 2017 2018 2019
End of March each year

3744463702020 2021 2022 2023
End of June each year

which that vision will be reached, and raise the(Note) T he fiscal year ended June 2020 is an irregular 15-month period due to a change inthe fiscal period.

likelihood of success. To gain the understanding

Visualization of Changes in Investment and Expensesof shareholders and investors regarding theseFixed costs - Existing SCIpoints, we will be further stepping up engagement

Fixed costs - New SCI

Investment - New SCI

Fixed costs - CXMPF

Investment - CXMPF

activities, including timely explanations of the newbusiness plans we will determine in the future andthe directions we will pursue.

Maintaining a sound financial basewhile taking on the challenge of a
new growth stage
Due to the nature of our business (from theperspective of maintaining the neutrality andFiscal year
ended June2023

independence of a research business), we havealways seen it as important to maintain a soundfinancial base. We have managed to maintain

Fiscal year
ended June
2024

Fiscal year
ended June
2025

Fiscal year
ended June
2026

Excerpt from “Explanation Materials for Consolidated Financial Results for the Year Ended
June 30, 2023” released on August 25, 2023

this sound financial footing while incorporating

Basic Policy on Profit Allocation During the14th Medium-Term Management Plan

objective perspectives from outside bodies suchas by obtaining a rating from R&I (Rating andInvestment Information, Inc.).

Final year
(fiscal year
ending June2026) targets

Our current capital policy is to emphasize capitalefficiency (an ROE of 12%) based on this soundfinancial base while allocating end profits to growth

Dividend payout ratio 50%

ROE (Return on equity) 12%
Progressive dividend increases

investment and shareholder return.
To achieve medium- to long-term growthin particular, we plan to continue with baseinvestments to maintain and strengthen our current
business foundations and strategic investments

Consolidated payout ratio / dividends per share
60
71.4

aimed at co-creation-driven value expansion suchas M&A and alliances for further growth. Through(%)
80(Yen)Dividends per share (yen) (left axis)

45

Consolidated payout ratio (%) (right axis)

these growth investments we will take on thegreatest challenge of enhancing corporate value.

30

Through the recent capital and business alliance1524.5

with DOCOMO, we at the INTAGE Group will entera new stage. We will continue making every effort
to enhance corporate value, and appreciate thesupport of our valued stakeholders underpinnedby their high hopes for the INTAGE Group.

30.0
33.7

13.75

28.1

24.3

26.3

17.5

20.0

16.25
15.0

42.038.0
35.0
44.0
46.0
41.5

6040

31.7
22.0

2000
2014

2015

2016 2017 2018 2019
End of March each year

2020 2021 2022 2023
End of June each year(Note) T he fiscal year ended June 2020 is an irregular 15-month period due to a change inthe fiscal period.

24