Financial Results Briefing for FY03/2020
Infocom Corporation
April 28, 2020

Copyright © 2020

INFOCOM CORPORATION. All rights reserved.

We extend our heartfelt condolences to those who have been affected by the passing offriends, neighbors, or relatives due to COVID-19.
We also extend wishes for a rapid recovery to those suffering from COVID-19 symptoms.

Copyright © 2020

INFOCOM CORPORATION. All rights reserved.

1

Contents
01

Financial Results for FY03/20
02

Earnings Forecast for FY03/21
03

Initiatives for FY03/21
Copyright © 2020

INFOCOM CORPORATION. All rights reserved.

2

01

Financial Results for FY03/20

Copyright © 2020

INFOCOM CORPORATION. All rights reserved.

3

FY03/20 Results (Consolidated)
Record-high net sales and profits due to strong e-comic and health IT performance
Net sales(Billion yen)

＋12.8%

Profit attributableto owners of parent

Operating profit(Billion yen)70

＋19.2%(Billion yen)

+15.9%

15

15

58.3

60

51.7
50

10

8.2

10

6.8
40
5

5

0

0

4.7

5.5

30
20

FY03/19 FY03/20
Copyright © 2020

INFOCOM CORPORATION. All rights reserved.

FY03/19

FY03/20

FY03/19 FY03/20
4

FY03/20 Results (Consolidated)(Billion yen,%)

FY03/19

FY03/20

51.7
6.8

58.3
8.2

(13.3)(14.1)EBITDA

8.0

Ordinary profit

6.8

9.3
8.2

Profit attributableto owners of parent

4.7

5.5

87.46
15.7

101.32
16.2

Net sales
Operating profit(Operating margin)

Net income per share (yen)ROE(%)
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INFOCOM CORPORATION. All rights reserved.

YoY
Change

％

+6.6

+12.8

+1.3

+19.2

+1.3

+17.3

+1.3

+20.3

+0.7

+15.9

+13.86

+15.8

+0.5
5

Business Areas and Segment Structure
Digital Entertainment
Group

Business Solution Group

Health IT

Business SoftwareEnterprise Service Management

Digital Entertainment

Package services
for medical
institutions

ERP・RPABusiness package
cloud services

System integration
for major companies

E-comic・Hospitals
・Pharmaceutical companies
・Nursing-care companies
・Health industry

Copyright © 2020・Companies
・ERP
GRANDIT®
・Government
offices
・緊急連絡/安否確認
・Local governments
・文書管理
・RPA

INFOCOM CORPORATION. All rights reserved.

・Textile manufacturers
・Trading companies
・Pharmaceutical wholesalers
・Mobile phone companies

・General consumers

6Business Solution Results (Consolidated)
Net sales(Billion yen)(Billion yen)

30

6

24.2

(Billion yen,%)Operating profit
FY03/19
30%

25.3
4

20

20%

3.2
2.4

9.8

10%
10.3%

10.7

12.8%

0

0

FY03/19 FY03/20

0%FY03/19FY03/20

Health IT
Copyright © 2020

YoY
Change%Net sales

24.2

25.3

+1.1

+4.8

Health IT

9.8

10.7

+0.9

+10.0

Operating profit

2.4

3.2

+0.7

+30.7

(Operating margin)(10.3)(12.8)Net sales210FY03/20

INFOCOM CORPORATION. All rights reserved.

・Higher sales driven by strong performance in sales to hospitals
・Stronger leveling tendency than most years(consumption taxes? labor shortages?)

Operating profit
・Significantly higher profits due to strong license sales tohospitals and corporations
7

Digital Entertainment Results (Consolidated)(Billion yen,%)Operating profit

Net sales(Billion yen)(Billion yen)

40

10

FY03/19
40%

32.9
30

27.4

20

8

32.6

5

4.3

%

27.4

32.9

+5.4

+20.0

E-comic

26.6

32.6

+5.9

+22.4

Operating profit

4.3

4.9

+0.5

+12.7

(Operating margin)(16.0)(15.0)Net sales

16.0%

10

3

0

0

15.0%

10%

0%

FY03/19FY03/20

E-comic
Copyright © 2020

Change20%

26.6

FY03/19FY03/20

YoY

Net sales30%

4.9

FY03/20

INFOCOM CORPORATION. All rights reserved.

・Revenues higher in excess of 20% due to optimized advertisingbased on data analysis and contribution of strong performancefrom free series and original comics

Operating profit

・Higher profits as we were able to absorb advertising andinfrastructure upgrade costs
・Added content and made additional investment in advertisingin anticipation of demand increase in Q4
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FY03/20 Results of E-Comic Distribution Service(Billion yen)
9

7

5

3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY03/17
Copyright © 2020

FY03/18

INFOCOM CORPORATION. All rights reserved.

FY03/19

FY03/20
9

[Reference] E-Comic Distribution Service Total Subscribers（million）
12

10

Total subscribers topped 10 million due to market tactics
based on data analysis, free series, an other measures
8

6

Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar.
FY03/19

FY03/20

Total Subscribers: Combined total of free and paid members

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INFOCOM CORPORATION. All rights reserved.

10

Investments(Billion yen)
R&D

CapitalEquityBus.Development(Billion yen)

4

3.6

2

1.8

New business planning, research,demonstration tests, etc.

0.3

EquityInvestment

Korean e-comic distribution Company
Nursing professional recruitment company
VC fund specializing in the Asian healthcare
field ... etc.

1.9

1.9

0.3

E-comic(App development, Enhancement of server
facilities, etc.）

CapitalInvestment

0.4
1

0

Copyright © 2020

0.7

1.0

0.1

0.1

FY03/19

FY03/20

AmountBusiness
Development

0.3
3Main Details

Category

Health IT

1.0

GRANDITOther

INFOCOM CORPORATION. All rights reserved.

R&D
Investment

AI, new technology research, etc.

0.1
11

Balance Sheets (Consolidated)(Billion yen,%)

FY03/19
AmountFY03/20

Composition
Ratio

AmountComposition
Ratio

YoY

Major Change Factors

Current assets

32.4

74.3

36.4

75.8

Fixed assets

11.2

25.7

11.6

24.2

・Cash and deposits +3.3
+3.9 ・Notes and accounts receivable +0.8
・Goodwill +1.1
+0.4 ・Investment securities -1.0

43.6

100.0

48.0

100.0

+4.4

24.5
0.3

・Accounts payable-trade +0.4
+1.1 ・Income taxes payable +0.3
・Provision for bonuses +0.1
(0.1)

Total assets
Current liabilities
Non-current liabilities

10.6
0.2

0.7

11.8
0.1

24.4

Total liabilities

10.9

25.1

11.9

24.8

+0.9

Total net assets

32.7

74.9

36.1

75.2

+3.4

Total liabilities and net assets

43.6

100.0

48.0

100.0

+4.4

Shareholders’ equity ratio

74.6%

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INFOCOM CORPORATION. All rights reserved.

・Retained earnings +4.0

74.4%
12

Cash Flows (Consolidated)(Billion yen)(Billion yen)

30

・Profit before income taxes
・ Depreciation
・ Income taxes

・ Purchase of intangible fixed assets
・Purchase of PPE・ Purchase of investment securities

・ Dividends

(2.4)

25

+7.3

23.4

20.1

10

Beginning
FY19
FY03/20

Operating Investing
営業…
投資…
CF
CF

Financing
財務…
CF

Cash andEquivalents

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INFOCOM CORPORATION. All rights reserved.

FY19
FY03/20
Cash andEquivalents

FY03/20

ChangeOperating CF

5.6

7.3

+1.6

Investing CF

(1.0)

(2.4)

(1.4)

Free CF

4.6

4.8

+0.2

Financing CF

(1.1)

(1.5)

(0.4)

0.0

(0.0)

(0.0)

3.5

3.3

(0.2)

Cash and cash equivalents,
beginning of period

16.6

20.1

+3.5

Cash and cash equivalents,
end of period

20.1

23.4

+3.3

(1.5)

20

15

FY03/19

Effects of exchange ratechanges on cash and cash
equivalents
Change in cash and cash
equivalents

13

02

Earnings Forecast for FY03/21

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Earnings Forecast for FY03/21 (Consolidated)(Billion yen,%)
FY03/20 Results

FY03/21 Forecast

YoY

Change

%

1H

2H

FY

1H

2H

FY

Net sales

27.6

30.6

58.3

30.5

36.5

67.0

+8.6

+14.8

Operating profit

3.8

4.3

8.2

3.4

5.3

8.7

+0.4

+6.0

(Operating margin)(14.0)(14.2)(14.1)(11.1)(14.5)(13.0)EBITDA

4.4

4.9

9.3

4.1

6.0

10.1

+0.7

+7.5

Ordinary income

3.8

4.3

8.2

3.4

5.3

8.7

+0.4

+5.2

Profit attributable toowners of the parent

2.5

2.9

5.5

2.2

3.5

5.7

+0.1

+2.8

104.18
15.1

+2.86

+2.8

Net income per share(yen)ROE(%)
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INFOCOM CORPORATION. All rights reserved.

101.32
16.2

(1.1)
15

Impact of COVID-19 on Financial Results◆ Assuming impact of COVID-19 continues through the fiscal first half
１Q

２Q

３Q

４Q

Nearly recovered

Significant recovery, including
rush demand at the end of the
fiscal year

Domestic Economic
Activity

Infocom Business
Solution Group

Infocom DigitalEntertainmentGroup

Copyright © 2020

Weakness due to COVID-19

Signs of limited recovery

Suspension of productadoptions;lower sales and profits

Ongoing project delays, evenafter recommencement ofsales activities

Continued increase in demand
due to stay-at-home requests

INFOCOM CORPORATION. All rights reserved.

Positive rebound effect from the first half;significant recovery in results

Steady stream of new subscribers fromthe first half and continued high growth16Business Solution Group Earnings Forecast (Consolidated)(Billion yen,%)

1H
FY03/20
Results

2H

FY03/21
Forecast

YoY(%)

FY03/20
Results

FY

FY03/21
Forecast

YoY(%)

FY03/20
Results

FY03/21
Forecast

YoY(%)Net sales

11.6

9.5

(18.3%)

13.7

14.5

+5.4%

25.3

24.0

(5.5%)

Health IT

4.8

4.3

(8.7%)

5.9

6.1

+3.3%

10.7

10.5

(2.1%)

Operating profit

1.3

0.2

(84.9%)

1.9

2.0

+3.7%

3.2

2.2

(32.3%)(Operating margin)(11.4)(2.1)(14.0)(13.8)(12.8)(9.2)

Net salesFirst Half: Lower sales stemming from weak sales activities due to COVID-19
Second Half: Higher sales as product purchases consolidate in the second half

Operating profit
First Half: Lower profit due to lower sales
Second Half: Higher profit as projects concentrate in the second half, including delayed first-half sales
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INFOCOM CORPORATION. All rights reserved.

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Digital Entertainment Group Earnings Forecast (Consolidated)(Billion yen,%)

1H
FY03/20
Results

2H

FY03/21
Forecast

YoY(%)

FY03/20
Results

FY

FY03/21
Forecast

YoY(%)

FY03/20
Results

FY03/21
Forecast

YoY(%)Net sales

16.0

21.0

+30.9%

16.9

22.0+29.9%

32.9

43.0+30.4%

E-comic

15.8

20.8

+31.5%

16.7

21.8+30.2%

32.6

42.7+30.8%

Operating profit

2.5

3.2

+26.5%

2.4

3.3+36.3%

4.9

6.5+31.3%(Operating margin)(15.8)(15.2)(14.3)(15.0)(15.0)(15.2)Net salesFirst Half: Higher sales due to ongoing demand growth due to stay-at-home requests
Second Half: Higher e-comic sales (Over 30% year on year) as we maintain strong performance

Operating profit
First Half: Higher profit due to higher sales
Second Half: Higher profit as we absorb costs for adding content, full-scale app publishing,
and additional advertising
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Earnings Forecast of E-Comic Distribution Service(Billion yen)

25Earnings Forecast of E-Comic Distribution Service

20

15

10

5

1H

2H

FY03/18
Copyright © 2020

1H

2H

FY03/19

INFOCOM CORPORATION. All rights reserved.

1H

2H

FY03/20

1H

2H

FY03/21(Forecast)19

Investments(Billion yen)

2.5

R%D

Capital(Billion yen)Bus. Development
Main Details

Category

2.0

2.0

1.6
1.5

Business
Development

0.4

1.1

CapitalInvestment

1.1

Other

0.5

Copyright © 2020

Health IT

GRANDIT

1.0

0.0

0.4

E-comic distribution service

0.3

1.0

New business planning, research,demonstration tests, etc.

AmountAI, community-based comprehensive care,

0.1

0.4

R&D
Investment

new technology research, etc.

0.4

Other

FY03/20

FY03/21

Results(Forecast)

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20

Shareholder Returns（Yen）

Annual dividends per share

40
31.0

31.0

30
22.0
19.0

20
12.5
10

0

Net income
per share
(yen)

21.0

(Year-End)
＊

7.5

14.0

21.0

（Year-End）

17.0◆Dividends
Forecast FYE March 2021 interim dividendof 10 yen, year-end dividend of 21 yen forannual dividend of 31 yen per share(29.8% payout ratio)◆Shareholder benefits(Year-End)(Year-End)(Year-End)

10.0(Interim)

10.0(Interim)

5.0(Interim)

5.0(Interim)

5.0(Interim)

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21
FY03/21

59.64

84.85

87.46

101.32104.18Implement for shareholders of record as of
September 30, 2020 who own at least one
trading unit

＊ Scheduled for agenda
at shareholders meeting （Forecast）

Note : Dividends per share and net income per share reflect stock split performed on March 1, 2019
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INFOCOM CORPORATION. All rights reserved.

21

03

Initiatives for FY03/21
E-comic
Health IT* We intend to share more details related to our initiatives when we announce our medium-term management plan (April 2020 to March 2023)
Copyright © 2020

INFOCOM CORPORATION. All rights reserved.

22

Initiatives for FY03/21 [E-comic]◼ Maximize Meccha Comics income

・Stronger marketing via data analysis, AI・Exclusive distribution
・More original comics
・Improved image quality (5G)
Total Meccha Comics
・Full-scale app publishing
Subscribers
・Complete re-releases
約Approx. 11.7 million
・Stronger promotions（as of March 31, 2020）（million） E-Comic Distribution Service Total Subscribers
12

Paid Members

108Free Members◼ Other・ Overseas expansion(Korea distribution business, etc.)
・M&A

Latent Customers（E-Comic Market/ Paper Publishing Market / Smartphone Game Market ）6
Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar.

FY03/19

E-Comic Market
FY2019/¥323.6B
amutus forecast

Copyright © 2020

INFOCOM CORPORATION. All rights reserved.

Paper
PublishingMarket2018/¥1,292.1B
AJPEA Survey

FY03/20

Smartphone Game
Market
FY2019/¥1,100.0B
Yano Research Instituteforecast

23

Initiatives for FY03/21 [Health IT]
Current Fields

Medical

Nursing

Radiology

Nursing Management

Clinical Information

Surgery Management
Drug Information

Domestic

Hospital Staff Management(CWS)

Employee(B to E)New Fields

Health◼ Launch of CWS Nursing professional employment management service

Pharmaceutical

Employer(B to B)

Focus Fields◼ Strengthen sales for Carestyle career change support service for care workers

IT! For Nursing Care
Care Record

Health Diagnosis

Care Staff
Management(CWS)

Health Analysis

Career Change Support

Digital Health Connect

User(B to C)

✓ Solasto✓ SOMPO etc

Personal Health Service◼ Roll Out WELSA Health Management Support Service

Overseas

Asia Healthcare

Employer(B to B)

Drug Information
Clinical Information
Radiology

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INFOCOM CORPORATION. All rights reserved.

◼ Expand existing products in Southeast Asia
(drug information management, medical information, radiation)◼ Develop new businesses with HealthXCapital (VC specializing in healthcare)24

Contact

Infocom Corporation
Corporate Communications Office
TEL：+81-3-6866-3160

Email：pr＠infocom.co.jp

This document is provided for the purpose of providing information about the Company and its performance, not for the solicitation of investments insecurities issued by the Company. In addition, because yen figures in this document are stated in billions of yen and rounded off after the first decimal
place, management indicators, year-on-year changes, and percentage changes are approximate. With certain exceptions, this document is based on data
as of March 31, 2020.
The names of the companies, services, and products stated in this document are trademarks or registered trademarks of their respective companies.
The opinions and forecasts included in this document are judgments of the Company as of the date this document was prepared. The Company does notguarantee the accuracy or completeness of information contained herein, which might change as new data becomes available.
Copyright © 2020

INFOCOM CORPORATION. All rights reserved.

25