(English Translation)
This English translation is an abridged version of the original document in Japanese. In the event of any discrepancy, the Japanese version prevails

Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending
March 31, 2021 [Japanese GAAP]
January 27, 2021
Listed company name:
Infocom Corporation
Securities code:
4348
Representative: (Position) President and CEO
Contact: (Position) Head of Corporate Communications Office
Scheduled date to file securities report: February 9, 2021
Preparation of supplementary materials on financial results: Yes
Holding of financial results briefing: No

Listed on: Tokyo Stock Exchange
URL https://www.infocom.co.jp/(Name) Norihiro Takehara(Name) Shinya Tanaka(TEL) +81-3-6866-3160
Scheduled date to commence dividend payments: -(Amounts less than one million yen are rounded down)

1. Consolidated Business Results for the Third Quarter of the Fiscal Year Ending March 31, 2021 (April 1, 2020 to December 31,
2020)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year increases.)

Net sales
Nine months ended
December 31, 2020
December 31, 2019

Operating profit

Million yen%

48,914
41,200

Profit attributableto owners of parent

Ordinary profit

Million yen%

Million yen%

Million yen

%

7,110
5,827

22.0
53.2

7,213
5,842

23.5
51.8

4,925
3,976

23.9
46.4

18.7
16.0

(Note) Comprehensive income: Third quarter of the fiscal year ending March 31, 2021 : ¥6,282 million (64.1%); Third quarter of the fiscal year ended March 31,2020: ¥3,828 million (23.8%)

Earnings per share
Nine months ended
December 31, 2020
December 31, 2019

Diluted earnings per share

Yen
89.96
72.68

Yen
89.56
72.35

(2) Consolidated financial position
Total assets
As ofDecember 31, 2020
March 31, 2020

Net assets

Shareholders’ equity ratio

Million yen

Million yen%

53,10548,08740,90536,15976.3
74.4(Reference) Shareholders’ equity: Third quarter of the fiscal year ending March 31, 2021: ¥40,351 million; Third quarter of The fiscal year
ended March 31, 2020: ¥35,786 million

2. Dividends
Dividends per share
End-Q1End-Q2
Yen－－

Fiscal year ended March 31, 2020
Fiscal year ending March 31, 2021

End-Q3
Yen
10.00
10.00

Year-end
Yen－－

Fiscal year ending
March 31, 2021 (forecast)(Note) Adjustment for the most recent forecasts of dividends: Yes

Annual

Yen
21.00

Yen
31.00

27.00

37.00

3. Forecast of Consolidated Business Results for the Fiscal Year Ending March 31, 2021
(Percent figures indicate the rate of changes from the previous fiscal year)

Net sales
Million yen

Operating profit%

Million yen

Full-year
70,50020.8
10,500(Note) Adjustment for the most recent forecasts of dividends: None

Profit attributable toEarnings per shareowners of the parent

Ordinary profit%

Million yen%

Million yen

%

Yen

27.9

10,500

27.0

6,700

20.9

122.37- 1 -.* Statements regarding the proper use of financial forecasts and other special remarks- Forward-looking statements that include forecasts of business results are based on the information currently available and certain assumptions judged
to be rational. Actual business results may differ substantially because of various factors. For the matters to be noted when using the financial
forecasts and the assumptions behind these forecasts, please see “(3) Explanation of consolidated earnings forecasts and other forward-looking
information” under “1. Qualitative information on the results for the current quarter” on page 3 of the attached materials.

- 2 -1. Qualitative information on the results for the current quarter(1) Overview of business results
During the cumulative consolidated third quarter of the current fiscal year, the Japanese economy experienced the severely
negative global impact of COVID-19, while the future outlook remained uncertain.
The IT-related markets were affected negatively by temporary suspensions of corporate capital investment due to theslowdown in economic activity. Meanwhile, we have seen a recovery in software demand related to work-style reform andlabor shortages during the COVID-19 pandemic.
The e-book market continues its upward trajectory, driven by a growing user base and the emergence of new lifestyles in the
new normal resulting from stay-at-home requests.
In this operating environment, the Infocom Group medium-term management plan (April 2020 to March 2023) emphasized
two fundamental policies: (1) pursue growth and (2) continue strengthening our management foundation to support growth. To
this end, we have identified e-comics and healthcare as priority businesses. In these areas, we pursued continued growth, a shift
toward services, and co-creation (M&A, overseas expansion).
As a result, during the nine months ended December 31, 2020, the Infocom Group generated net sales of ¥48,914 million, up
18.7% year on year. Operating profit rose 22.0%, to ¥7,110 million; ordinary profit grew 23.5%, to ¥7,213 million; and net
income attributable to owners of parent increased 23.9%, to ¥4,925 million.

(i) Digital Entertainment Group
During the consolidated third quarter, our Digital Entertainment Group recorded sales of ¥33,102 million (+37.0% year on year),and operating profit of ¥5,815 million (+47.9%).
Our e-comic distribution service reported successful measures based on data analysis of Mecha Comics (free series, exclusive
first-run distributions, original comics, etc.). Further, voluntary restraints on travel outside the home drove demand higher. The
combination of these factors resulted in sales for the cumulative consolidated third quarter exceeding sales for the entire
twelve months of the prior fiscal year.

(ii) Business Solution Group
During the consolidated third quarter, our Business Solution Group recorded sales of ¥15,811 million (-7.2% year on year),and operating profit of ¥1,287 million(-31.8%).
Our Health IT business saw a decline in sales to hospitals due to a negative rebound from special demand in the prior year
(change in the imperial era, consumption tax hike) and COVID-19. On the other hand, sales to companies progressed in line with
plan.
(2) Explanation of financial condition
Total assets increased ¥5,018 million compared with the end of the previous consolidated fiscal year, to ¥53,105 million
because of increase in cash and deposits and increase in investments and other assets due to increase in valuation of securities,
while trade receivables decreased. Total liabilities increased ¥272 million, to ¥12,200 million due to increase in trade payables
while provision for bonuses decreased. Net assets were up ¥4,745 million, compared with the end of the previous consolidated
fiscal year, to ¥40,905 million.
Because of the above, the equity ratio rose to 76.3% from 74.4% at the end of the previous consolidated fiscal year.

(3) Explanation of consolidated earnings forecasts and other forward-looking information
As of the release of this document, we have not made any revisions to the consolidated earnings forecasts as detailed in
Notice Regarding Revised Earnings Forecasts, published on October 28, 2020.
Please note that the above forecasts are based on information available as of the publication date of this material, so actual
results may differ from forecasts due to various factors in the future.

- 3 -2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: million yen)
As of March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investments and other assets
Allowance for doubtful accounts
Total investment and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Provision for bonuses
Other provision
Other
Total current liabilities
Non-current liabilities
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 4 -As of December 31, 2020

23,491
11,459
392
1,099
(6)
36,43628,211
9,209
559
1,680
(4)
39,655

965

1,024

1,585
1,195
36
2,818

1,553
1,023
72
2,648

7,999
(132)
7,867
11,651
48,087

9,903
(127)
9,776
13,44953,105

4,564
1,346
1,411
69
4,412
11,804

4,626
1,313
505
－
4,864
11,310

8
114
123
11,92714876
890
12,2001,590
1,456
32,900(805)
35,1401,590
1,556
36,128(795)
38,479

740
0
(94)
646
177
194
36,15948,087

2,228
－
(176)
2,052
228
145
40,905
53,105

(2)Quarterly consolidated statement of income and comprehensive income
Quarterly Consolidated Statements of Income
Third Quarter(Unit: million yen)
For the nine months ended
December, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Partnership losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of shares of subsidiaries andassociates
Loss on valuation of investment securities
Provision of allowance for doubtful accounts
Bad debts expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent- 5 -For the nine months ended
December 31, 2020

41,20021,05920,14014,312
5,827

48,914
24,95923,955
16,844
7,110

72

101

1

7

－
3
77

0
18
127

1
2
58
0
62
5,842

0
－
23
0
24
7,213

2
2

－
－

2

1

20

－

－
56
2
0
82
5,762
1,796
3,966
(10)
3,976

2
－
1
0
5
7,208
2,324
4,883
(42)
4,925

Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Third Quarter(Unit: million yen)
For the nine months ended
December 31, 2019
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests- 6 -For the nine months ended
December 31, 2020

3,966

4,883

(28)
(1)
(107)
(137)
3,828

1,488
(0)
(89)
1,398
6,282

3,852

6,331

(24)

(49)

(3) Quarterly Consolidated Statements of Cash Flow
(Unit: Million yen)
For the nine months ended
December 31, 2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Share-based remuneration expenses
Amortization of goodwill
Increase (decrease) in provisionInterest and dividend income
Interest expenses
Loss on valuation of shares of subsidiaries andassociates
Loss (gain) on sales of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of lease obligations
Dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 7 -For the nine months ended
December 31, 2020

5,762
771
40
102
(839)
(72)
1

7,208
761
68
153
(975)
(101)
0

20

－

－
3,192
(381)
(474)
406
8,531
72
(1)
(2,649)
5,953

2
2,247
(166)
64
289
9,552
103
(0)
(2,365)
7,289

(205)
(527)
(252)
5

(107)
(527)
(179)
－

(1,092)－(69)(2,141)

17
(797)

(47)
(1,477)(4)(1,528)(41)(1,697)(5)(1,744)

(49)

(27)

2,234
20,17722,411

4,719
23,491
28,211

(4) Notes on the Quarterly Consolidated Financial Statements(Note on going concern assumption)
Not applicable(Note in case of significant changes in shareholders’ equity)
Not applicable(Segment information)[Segment information]

I. Nine months ended December 31, 2019
1. Information on net sales and profit or loss for each reporting segment
Reportable segment

Adjustments(Note)1

Total(Unit: million yen)Amounts stated in thequarterly consolidated
statements of income(Note) 2

Business solution

Digitalentertainment

17,034

24,165

41,200－41,200

74

0

74

(74)

－

Total

17,10824,16541,274(74)

41,200

Segment profit(loss)

1,887

3,933

5,820

7

5,827

Net sales
Sales to external customers
Intersegment sales or transfers(Notes)1. The ¥7 million adjustment in segment profit or loss is due to the elimination of intersegment transactions and corporate expenses.
2. Segment profit or loss is adjusted with operating profit in the quarterly consolidated statements of income.

II. Nine months ended December 31, 2020
1. Information on net sales and profit or loss for each reporting segment
Reportable segment

Adjustments(Note)1

Total(Unit: million yen)Amounts stated in thequarterly consolidated
statements of income(Note) 2

Business solution

Digitalentertainment

Sales to external customers

15,811

33,102

48,914－

48,914

Intersegment sales or transfers

129

0

129

(129)

－

Total

15,941

33,102

49,044(129)

48,914

1,287

5,815

7,103

7

7,110

Net sales

Segment profit(Notes)1. The ¥7 million adjustment in segment profit is due to the elimination of intersegment transactions and corporate expenses.
2. Segment profit is adjusted with operating profit in the quarterly consolidated statements of income.

- 8 -