business results for the fiscal year ended march 31, 2005 and...

18 May 2005

THE　INTELLIGENCE　PROVIDERhttp://www.intage.co.jp/

Copyright © 2005 INTAGE Inc. All rights reserved.

Business Results for the Fiscal Year Ended March 31, 2005 and Future Outlook

Plans, expectations, and strategies included in this document that are not historical facts are forward-looking statements related to INTAGE Inc. or the INTAGE Group decided by management based on currently available information. Accordingly, the reader should avoid placing undue reliance on these forward-looking statements. INTAGE cautions that a number of factors affecting the business could cause actual results to differ materially from these forward-looking statements. These include, but are not limited to, general economic conditions and changes or reforms in the industries in which our clients operate.

18 May 2005



A b o u t I N T A G E

3Copyright © 2005 INTAGE Inc. All rights reserved.

18 May 2005

THE INTELLIGENCE PROVIDER

INTAGE Company Profile

Combining “IntIntelligenceelligence” with “AgeAge”Origin of company name

http://www.intage.co.jp/Website

¥23.0 billion (¥26.6 billion consolidated)2005 Annual sales

March 1960Established

¥1.6814 billion *At March 31, 2005Capitalization

844 (1,411 INTAGE Group) *At March 31, 2005　Number of employees

Norio TaoriPresident & Representative Director

INTAGE Inc. Name

* FY endedMar 31, 2005


18 May 2005


Company History


18 May 2005


Sales Turnover & Milestones

0

50

100

150

200

250

300

1960 1970 1980 1990 2000

(Hundred millions of yen)

Sales reach ¥10 billion.

FY ended March 31, 1987

Sales of ¥26.6 billion


Sales reach ¥20.0 billion.


Sales reach ¥5 billion.


Note: Figures for the fiscal year ended March 2000 and subsequent years are consolidated sales.


18 May 2005


Scope of Services

Marketing Research and Consulting

INTAGE is one of Japan’s largest marketing research firms. The leader in Japan for Panel servicesINTAGE Ranks 17th in sales worldwide among global marketing research firms (AMA study)

S y s t e m S o l u t i o n s

Wide rage of solutions ranging from system development, operation and maintenance to the construction of data usage models and other customized tools

M e d i c a l S o l u t i o n s

Full-Service CRO and Site Management Services

Sales Contribution by Business Segment (Year ended March, 31 2005)

Medical Solutions 　12%

System Solutions 28%Marketing Research and Consulting

　60%


18 May 2005


The INTAGE Corporate Vision

The Intelligence ProviderThe Intelligence Provider　We define intelligence as the aggregation of the techniques, expertise,

knowledge, and wisdom necessary for the collection, evaluation, analysis, use and systematization of data and the valuable information achieved thereby.

コンサルティン力Research techniques Consulting skills Systemization techniques

Industry and business process knowledge

Marketing know-how and expertise

●Integration and analysis of disparate data●Construction of a framework for data

analysis and provision that meets user needs

●Greater speed in information distribution realized ●Construction of a framework for continuous

data utilization


18 May 2005


INTAGE Group & INTAGE Inc. - Organization

President

M a r k e t i n g D i v i s i o n

S o l u t i o n s D i v i s i o n

T e c h n o l o g y D i v i s i o n

S t a f f i n g D e p a r t m e n t

INTAGE, Inc. Organization

　　　　　Clients

INTAGE, Inc.①②③

ASKLEP Inc.③（CRO）

INTAGE Nagano, Inc.①②（Systems development and operation, research）INTAGE Marketing Consulting(Shanghai) Co., Ltd. ①（Marketing research in China）INTAGE Interactive, Inc.①（Online marketing research）

INTAGE Research, Inc.①（Research data collection）

INTAGE Links, Inc.①②③（Temporary staffing for

Group companies)

　　　Flow of services and data

① Marketing Research and Consulting② System Solutions③ Medical Solutions

18 May 2005



F i n a n c i a l R e s u l t s


18 May 2005


Financial Highlights (Consolidated) — Record High Earnings Achieved

S a l e s O p e r a t i n g I n c o m e

234.9 238.9266.1

0

100

200

300

03/3 04/3 05/3

18.217.0

21.8

0

10

20

30

03/3 04/3 05/3

7.26.6

9.9

0

5

10

15

03/3 04/3 05/3

18.016.5

21.6

0

10

20

30

03/3 04/3 05/3

O r d i n a r y I n c o m e N e t I n c o m e

(Hundred millions of yen) (Hundred

millions of yen)




18 May 2005


Profit and Loss Summary for the Fiscal Year Ended March 2005　

EPS

Net income

Ordinary income

Operating income

Sales

EPS

Net income

Ordinary income

Operating income

Sales

＋38.7% 633602456

＋18.0% 1,427ー1,209

¥59.65¥43.10

＋49.8% 997790665

¥94.13¥63.33

＋14.9% 1,4551,4531,258

＋8.0% 23,00822,59221,312

＋31.1% 2,1651,8851,651

＋28.0%2,1861,9401,708

+11.4%26,61925,88023,899

Year-on-year change

Year ended 3/05Actual

Year ended 3/05Initial forecast

Year ended 3/04Actual

(Millions of yen)

Consolidated

Non-C

onsolidated


18 May 2005


Balance Sheet Summary for the Fiscal Year Ended March 2004 　

ー

Increase in retained earnings

INTAGE Interactive (equity participation: INTAGE 51%, Yahoo 49%) profit increaseー

Reclassification of corporate bonds (with maturity dates within one year)Increase in bank loans, reclassification of corporate bonds (with maturity dates within one year)

ー

Increase in guarantee money paid (Akihabara office) Increase in leasehold improvement (Data Center), othersー

Increase in cash and deposits, increase in accounts receivable — trade

Remarks

1,25011,0199,769Total liabilities

2,17317,36415,191Total liabilities, minority interest, and shareholders’ equity

8716,2385,366Shareholders’ equity

5110655Minority interests

2741,9891,715Investments and other assets

5094,7324,222Tangible and intangible assets

7831,39010,6429,252Current assets

2,17317,3641,5,191Total assets

1,5627,6066,044Current liabilities

6,7215,938Fixed assets

△3113,4123,724Fixed liabilities

VarianceYear ended 3/05

Year ended 3/04

Balance sheet summary (Consolidated)(Millions of yen)

ー

ー

ー

ー

Increase in proceeds from long-term bank loansIncrease in payments for purchases of property and equipmentIncrease in net income before income taxes

Remarks

2,5952,348Cash and cash equivalents at the end of year

2,3481,667Cash and cash equivalents at the beginning of year

246681Net increase in cash and cash equivalents

7△6Effect of exchange rate changes on cash and cash equivalents

66797Cash flows from financing activities

△1,652△376Cash flows from investing activities

1,230967Cash flows from operating activities

Year ended 3/05

Year ended 3/04

Consolidated cash flows summary(Millions of yen)


18 May 2005


Segment Information

60%28%

12%

Marketing Researchand Consulting

System Solutins

Medical Solutions

S a l e s

04/3 　 05/3

Marketing Research and Consulting　　 60% → 60%

System Solutions 30% → 28%

Medical Solutions　　 10% → 12%

Revenues increased across all segments. No major change in segment contributions occurred.

78%

10%

12%

Marketing Researchand ConsultingSystem Solutins

Medical Solutins

O p e r a t i n g I n c o m e

04/3　 05/3

Marketing Research and Consulting 　　 88% → 78%

System Solutions 8% → 10%

Medical Solutions 　　 4% → 12%

Operating income increased in all segments. Increase in profitability in the Medical Solutions business resulted in a change in segment contributions.


18 May 2005


Segment Information — Marketing Research and Consulting


(Hundred millions of yen)S a l e s Operating Income

141.8159.3

0

50

100

150

200

04/3 05/3

15.017.1

0

5

10

15

20

04/3 05/3

Sales increased sharply.Sales in all major panel services increased except SCI which saw a slight drop.Sales in Online Research nearly doubled helping drive a solid sales performance in Customized Research

Operating income also showed favorable results.Noticeable profit improvements in Customized Research. Profits rose despite up-front investment in the new individual panel (Personal Eye) and as well as SCI upgrades. Discontinuation of SSJ （Single Source Japan).


18 May 2005


3-Year Sales & Client Trend for Principal Syndicated Panel Services

(Hundred millions of yen, companies)

(470)(290)(240)No. of clients *

45.034.031.4SalesCustomized Research

32

7.0146

29.2

72

12.7182

50.4

Year ended 3/05

48.141.8SalesSRI

No. of clients

Sales

No. of clients

Sales

No. of clients

Sales

No. of clients 186165Nationwide Retail Panel

12.312.1SDI

Nationwide Female Consumer Panel

SLI

National Household Panel

SCI

Nationwide Pharmacy and Drugstore panel

31

6.4141

30.2

69

Year ended 3/04

34

6.5147

30.4

75

Year ended 3/03

* The figures are approximate owing to potential overlap with subsidiaries in online research and other areas.


18 May 2005


Segment Information — System Solutions

S a l e s(Hundred millions of yen)


72.3 75.4

0

50

100

04/3 05/3

2.1

1.3

0

1

2

3

04/3 05/3

System sales increased for the first time in four years. Withdrawal from unprofitable businesses was completed.

Aggressive marketing strategy focused on Business Intelligence (BI) projects was implemented and executed.Leveraged research strengths for aggressive cross-functional sales for BI projects. Business relationships with panel survey clients were cultivated.

Operat ing Income

Operating income increased by 53%. Favorable sales result through capacity maximization and a shift toward high-end value-added businesses.


18 May 2005


Segment Information — Medical Solutions


(Hundred millions of yen)S a l e s

31.324.8

0

10

20

30

40

04/3 05/3

O p e r a t i n g I n c o m e

2.5

0.6

0

1

2

3

04/3 05/3

CRO operations saw sales from clinical monitoring and data management and biostatistical analysis increase significantly. Strategic measures to increase profitability bore fruit, and higher capacity utilization brought a sharp increase in profits. Results from the SMO business less favorable. It will take time for the business to reach the point of viability.


18 May 2005


Overview of the Seventh Medium-Term Business Plan（3/03 to 3/05) (Consolidated)

28.0

280.0Year ended 3/05

22.0


242.2 S a l e s

17.1

Year ended 3/03

Operating income

Initial plan （announced at the Business Results Briefing on May 22, 2002) (Hundred millions of yen)

26.6


20.1


－S a l e s

－

Year ended 3/03

Operating income

Revised plan （announced at the Business Results Briefing on May 21, 2003) (Hundred millions of yen)

21.8


17.0


234.9S a l e s

18.0

Year ended 3/03

Operating income

Actual results (Hundred millions of yen)

The initial plan was revised due to a change in policy for the systems business and unfavorable performance from new businesses.

In the final year of the plan, the revised sales target was achieved. The operating income target was not achieved owing to a shift in sales to custom research, a business in which expenses increase along with sales, and an increase in the number of new investment projects.

18 May 2005



Business Strategy (Eighth Medium-Term Business Plan)


18 May 2005


Segment Information — Milestones Reached in the Seventh Medium-Term Management Plan

System SolutionsMilestone: Offer differentiated, high-value-added servicesIssue: The nature of the business makes it difficult to establish owing to partial optimization and the pursuit of short-term profit resulting from the business unit structure.Action point: Create solutions integrating research with systems

Medical Solutions (Healthcare Sector)Milestone: The INTAGE Group has diversity and uniqueness unmatched in the healthcare sector.Issue: INTAGE lacks the speed of the two previously established players.Action point: Develop systems that enable deployment of the Group’s collective strength.

Marketing Research and ConsultingMilestone: Successful transformation into a comprehensive full-service marketing intelligence services providerIssue: Market share of principle panel surveys has reached the saturation point.Action point: Pursue “actionable insights” that lie beyond conventional research and progress to a new stage


18 May 2005


The Eighth Medium-Term Management Plan (April 2005 to March 2008)

Basic Policy“Team INTAGE” Intelligence ProviderRaising the bar in client satisfaction through business partnering

Key Priorities1. Implementation of an organizational structure best suited for

IP (intelligence provider) business2. Centralization of business activities starting with office

relocation to Central Tokyo. The incorporation of a new work-style (I-Style)

3. Active investment in strategic new business sectors4. Strengthen all areas of human resources including

recruitment, professional development, evaluation, and retention programs.

5. Proactive development and integration of management systems for group-level management.


18 May 2005


Sales Targets for the Eighth Medium-Term Management Plan

（Hundreds of million yen）

32.527.723.8Operating incomeSales 349.8311.5283.0

Fiscal year ending 3/08



Absorb costs of new office relocation and continue the trend of higher revenues and higher earnings.Key growth drivers will come from the cultivation of businesses that will replace SRI as well as increasing efficiencies across the board for other panel services.


18 May 2005


A New Organizational Structure to Realize the Intelligence Provider Business

Elimination of the dual business units (System/Research) structure that has been in place since the beginning to a Specialized Division based structure. Total Solution Provider for Clients, encompassing the seamless integration of sophisticated research with system solutions.

Marketing DivisionClient acquisition, Retention, Service, Solutions

Marketing DivisionClient acquisition, Retention, Service, Solutions

Solutions DivisionIntegration of INTAGE products, Value Adding

Solutions DivisionIntegration of INTAGE products, Value Adding

Technology DivisionOverall optimization, standardization, quality maintenance & low cost

Technology DivisionOverall optimization, standardization, quality maintenance & low cost

Staffing DepartmentStaffing Department

Change fromself-contained business unitsto a structure

based on functionalspecialization

Marketing Intelligence D

ivision

Business Intelligence D

ivision


18 May 2005


A New Organizational Structure to Realize the Intelligence Provider Business

Toward the provision of total solutions and realization of an IP businessTarget FMCG clients and engage in panel data-driven sales force automation in the broad sense of the word.Provide non-FMCG clients with marketing solutions based on a CRM approach.

Marketing Division / Solutions Division / Technology Division / Staffing Department

Total solutions provisionTotal solutions provision Realization of the IP businessRealization of the IP business

Information analysis capabilities

Industry and business process knowledge

Systemization techniques

Marketing understanding and expertise

Modeling techniques

Data handling techniques

Differentiation andsustained growth

Research and information gathering expertise

INTAGE core competenciesINTAGE core competencies

Clients


18 May 2005


Office Relocation and Organization Integration

The INTAGE Group is set to relocate to new offices in Akihabara, November 2005

Accommodate the new organization (functionally specialized divisions)Greatly reduce the physical distance and time spent traveling to & from clientsAn office environment that allows for future growthI-Style (new workstyle)The I-Style concept is an optimal working environment conducive to proactive thinking, creativity, progressiveness & flexibility sparking innovative & intelligent solutions for our clients

Artist’s perspective


18 May 2005


Priority Investment Areas

1. Greater shift to online research across services2. Healthcare, medical marketing, others…3. Integrated solutions in Customer Relationship

Management (CRM), Supply Chain Management (SCM), Sales Force Automation (SFA), and Database Management (DBM)

4. Business viability for Personal Eye and the renewal/upgrading of consumer panels

5. Investigate business opportunities globally and continue to develop business in China out of the Shanghai office


18 May 2005


The Shift to Online ResearchPosition online research as the driver for growth and the base for future business development for the INTAGE Group. Aggressively invest in the business which carries the highest priority in the Eighth Medium-Term Management Plan.The shift towards online research

Shift to online research not merely to secure growth in Customized Research business, but also:

As a means for establishing CRM and database marketing businessesAs a growth factor in the medical and healthcare sectorsAs an impetus for new business development in China & other markets

Internet Research — Medium-Term Sales Plan (Hundred millions of yen)

Internet Research — Three-Year Sales Results (Hundred millions of yen)

05/3

6015

4010

205

00 06/3 07/3 08/303/3 04/3 05/3


18 May 2005


The Online Research Strategy

Market PerceptionThe market continues to grow by about 150% each year. In the near future online research is expected to become the principle method of customized/ad hoc research. Market segments are (1) Conversion Market – involves the switching from conventional research methods to online methods (2) Expansion Market - that cultivates the advantageous characteristics of online research: speed and low cost. The former segment involves many comparatively complex, high-volume studies, while the latter segment involves many comparatively simple studies. INTAGE Group is considered the market leader in the conversion market. Niche online research companies have the lead in the expansion segment.


18 May 2005


Online Research － The Current Approach

The Service Concept　Quality　— By ensuring reproducibility and market reflectivity, inform correct decision making on the part of clients. Valuable — Pursue applicability to complex studies that require traditional research methods and the added value possible from conducting research online.

ValuableGenuine research

High-value-added research

The INTAGE business domain

Conversion market

Speed & Cost“First past the post” research

QualityRespondent quality Response rate (fixed-period research)

Simple& StandardizedProvision of services involving standardization of simple studies

New market formed due to speed and low cost


18 May 2005


Quality — Market Reflectivity and Reproducibility

Critical considerations in conducting marketing research are market reflectivity and reproducibility. These attributes of good research cannot be guaranteed with research involving “first past the post”sampling. This sampling method, by which a study is closed once the target number of respondents is reached, results in skewed research. INTAGE recommends “fixed-term research,” the mainstream research method in the conversion market.

職業　回答者全体と初期回答者比較

0.0

10.0

20.0

30.0

40.0

50.0

60.0

TOTAL（N＝491）

Initial stage respondents（ｎ＝100）

Case Example: Differences in Occupation Composition Between All Respondents and Initial Stage Respondents (in First Past the Post Research)Nationwide Survey Conducted Among Males and Females Age 20 and Above Excluding Students

0.012.08.016.011.011.05.037.0Initial stage respondents（n=100)

0.4

Unknown

7.9

Other

6.3

Unemployed, retired

11.8

Fulltime housewives

12.4

Part-time or temporary workers

7.1

Self-employed, SOHO

5.7

Public servants,NPO employees

48.3

Companyemployees

TOTAL（N＝491）


18 May 2005


The Online Research Market — Future Outlook　

Future StrategyFull-scale deployment in a segment where speed and cost are the business drivers. Win share from established players by providing products and services with competitive advantage in speed, price, and quality.

For INTAGE, differentiation begins with research expertise. Emphasis on the research process and quality results . Even in research where speed and cost drive the business.

Appropriate research process in products where speed is important. Online provision of research theme-based packages and corresponding reference value databases resulting from INTAGE’s accumulated data and expertise. Enhancement of the human support structure.

To build and maintain the top position in the conversion segment, high quality and high value research expertise will be the norm . Through active product introduction and marketing, establish strongholds in CRM, Area Marketing, Medical, and other sectors, where synergies can be brought to bear.


18 May 2005


The Online Research Market — Future Outlook

Speed, Cost& Quality

Only Speed &Cost

ValuableGenuine researchHigh-value-added

research

Conversion market

New market base Drivers, speed and low cost

Expansion of the INTAGE online business: build competitive advantage via differentiation in both segments

Establishment of a strong position through the pursuit of

added value

Application of research expertise to fast, low-cost, simple studies

Distancing of INTAGE from specialty Internet business companies

Medical

Area Marketing

CRM

Establishment of strongholds

New client development using existing client assets → Growth and development of research demand from the new clients

Simple& Standardized

Provision of services involving standardization

of simple studies


18 May 2005


Future Strategy Issues

Develop and maintain strongholds through industry and client specializationDevelopment of high-value-added research analysis and models that work with research conducted online Expand physician and patient panels

Build a network of physicians in private practice in collaboration with iMobile Inc. Build a network of staff physicians in collaboration with PLAMED Inc.

Greatly increase the core monitor network from the current 350,000 participants to 600,000 by March 2008 and develop a separate large-scale monitor networkExpanded utilization of current client assets

Provide services that generate repeat demand.Pursue horizontal approaches to new users within existing clientcompanies.

System augmentation and service level enhancementIncrease efficiency in research processesEnhance service provision systems.

Establishment of systems of related products and brands


18 May 2005


The INTAGE Group’s Medical and Healthcare Strategy

ASKLEP (CRO), INTAGE SMO, Medical Marketing Research, healthcare-related systems, and SDI (OTC Drug Panel) – Total Medical Service SolutionRepTrack (MR Detailing system) to be launched in October

Research and Development

Production, Logistics Marketing Post-Marketing

CRO・Monitoring・DM, BS・Biostatistical Analysis・EDC (electronic data capture)

SMO・Clinical trial support service・ CRC dispatching・ Clinical trials system support

Medical Research

・Market studies ・Concept studies ・Sales forecasting・Promotion

Planning Support

・Production planning & support

Market Analysis, Product Databases・MR detailing & activity index (RepTrack)・Diabetes Web-based panel・OTC POS-Data sales index (SDI)・By-store-attribute shelf allocation data (INTAGE real POS)・OTC products databases (OTC-DI, JSM-DB)

GPSP and GVP Support・Early post-marketing studies, post-marketing studies・ Post-marketing utilizing EDC (CapToolA-sol)・Safety information collection and communication

Health Promotion Support

・ Health promotionsupport(Sukoyaka Support 21)

Marketing Information・Sales performance 　・Sales planning support・Budget and results management ・Master control

MR Activities Support・Customer targeting （incaster）・Total MR detailing support:: SFA・Area analysis, strategy allocation support (AreaManager)

SCM・Demand forecasting (EPOCH)・Production plan simulation・Delivery center review


18 May 2005


ASKLEP Strategy Issues

The quest to be bestThe quest to be best--inin--classclass—— When the ASKLEP standard becomes the industry goal When the ASKLEP standard becomes the industry goal ——

Evolution toward group-level activities

Business structure establishment－ Shift from a business execution model to cross-organizational management model－Strengthening of operational control and business development

Business process optimization－ Minimization of the impact of structuralrisk in the CRO business－Optimal allocation & deployment of limited but competent staff

Engage in new businesses－CRA/CRC dispatch business－EDC business


18 May 2005


　Involvement with EDC　Electronic Data Capture (EDC)Development and introduction of CapTool A-sol., an EDC tool

Web-based, EDC Post-Marketing Surveillance systemSystem design that is easy to use for physician end users

●　Contract information

●　Progress management

●　Data fixing

●　Affixation of seal and collection of fixed questionnaire

●　Management of adverse event cases

InstitutionsInstitutions

Pharmaceutical Pharmaceutical manufacturermanufacturer

A医療機関 ●　Case registration

●　Questionnaire input

●　Health desk●　ID, password issuance●　Data management●　Statistical analysis

Registration dataRegistration data

Questionnaire dataQuestionnaire data

FollowFollow--up questionnaire up questionnaire datadata

FollowFollow--up questionnaire up questionnaire requestrequest

Adverse event mailAdverse event mail

Progress Progress confirmationconfirmation

Data fixing Data fixing instructioninstruction

Delivery (data, forms)Delivery (data, forms)

InquiriesInquiries

Data CenterData CenterData accumulation


18 May 2005


Rep Track MR Detailing Evaluation Index

A nationwide network of 1,500 private practice physician monitors (in collaboration with iMobile Inc.)

Collaboration has iMobile running physician monitor management, and INTAGE handling survey design, tabulation, analysis, and data provision.

Daily tracking of MR detailing activities via online surveys.


18 May 2005


Moving Forward with Integrated Solutions

By adopting an innovative organizational structure demonstrates the uniqueness of INTAGE as it charts a course to achieve further business growth across all divisions.

Research assets × Systems construction capabilitiesINTAGE Database Management: (client DB + research data + analysis ) × IT toolsSales Force Automation: (POS Data + panel data + product masters) × system development

Strategic strongholds: Database Management (DBM), Customer Relationship Management (CRM), Frequent Shopper Programs (FSP), Supply Chain Management (SCM), and Sales Force Automation (SFA)Database marketing strategy issues

Establishment of strongholds by means of industry specialization (automotive, banking and finance, etc.) and client specializationEnhancement of IT products and construction of a comprehensive CRM monitor network

SFA strategy issuesTargeting of panel survey clients in the FMCG and pharmaceuticals industriesLeveraging chain store POS analysis system to break through in the sectorDevelopment of a system to support manufacturer marketing activities


18 May 2005


Outlook for the Fiscal Year Ending March 31, 2006 (Consolidated)

23.8　283.0　

Total

2.2　74.8　

System Solutions

　3.0　34.7　

Medical Solutions

173.4　S a l e s18.5　

Marketing Research and

Consulting

Operating income


Online research is expected to continue to grow sharply and drive increased revenues for the Group.

Panel services and Customized Research are also expected to perform well.

Implementing the new organization structure will activate integrated solutions.

The CRO business will develop favorably from factors including orders for long-term monitoring. INTAGE will sustain the uptrend in sales and profit, absorbing office relocation costs and new project investments.

Net income will increase sharply in the absence of the charge for transition obligation at the time of a change in accounting standards for retirement benefits（an extraordinary loss of about ¥400 million).


18 May 2005


Factors That May Affect Future Business Performance

Market share expansion in the online research market fails to occur as anticipated due to intensification of competition, and INTAGE struggles to secure dominance in the market. Time is required for establishment of new products such as Personal Eye and Rep Track and recovery of investment is delayed. Dulling of growth in SRI at a time of share saturation and cannibalization of other panel surveys occur. The business in China is destabilized due to increased anti-Japanese sentiment intensifies.The marketing research industry becomes entangled in global realignment. INTAGE fails to keep up with expansion of the CRO and SMO markets.The number of clients decreases due to corporate mergers, or revenues fall due to cost cutting pressure.

Risk FactorsINTAGE succeeds in increasing its share of the online research market and achieves a sharp sales increase alongside market growth. INTAGE creates new demand as establishment of the market for Personal Eye and attainment of synergy with SCI make it possible to provide new value.INTAGE’s integrated solutions are recognized by clients, INTAGE acquires a clear position in the industry, and a trend toward higher revenue takes shape. INTAGE achieves continued growth in the medical solutions business as growth in the CRO market and SMO market continues and commercialization of business in related areas progresses.

Upside Factors

Plans, expectations, and strategies included in this document that are not historical facts are forward-looking statements related to INTAGE Inc. or the INTAGE Group decided by management based on currently available information. Accordingly, the reader should avoid placing undue reliance on these forward-looking statements. INTAGE cautions that a number of factors affecting the business could cause actual results to differ materially from these forward-looking statements. These include, but are not limited to, general economic conditions and changes or reforms in the industries in which our clients operate.

business results for the fiscal year ended march 31, 2005 and...

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