Financial Results Briefing for Q2 FY03/2022

INFOCOM CORPORATION

2021.10.27

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

Contents
Financial Results for Q2 FY03/22

Earnings Forecast for FY03/22

Initiatives in Key Businesses
E-Comic
Health IT

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

Results

Financial Results for Q2 FY03/22

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

Q2 FY03/22 Results (Consolidated)
Business performance was nearly level year on year, despite the negative impactof pirate sites on the e-comic business and decline in special demand stemmingfrom voluntary restraints on unnecessary travel
Net sales

Operating profit

Profit attributable toowners of the parent

＋1.6%

＋2.0%

-2.3%

(Billion yen)(Billion yen)(Billion yen)

40

10

10

30

7.5

7.5

20

5

33.2

32.4
4.9

4.9

5

10

2.5

2.5

0

0

0

FY03/21

FY03/22
Digital Entertainment

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

FY03/21
Business Solution

3

FY03/223.3

3.4

FY03/21

FY03/22

Management Performance (Consolidated)(Billion yen)

Net sales

YoY

FY03/21Q2

FY03/22
Q2

Change

33.2

32.4

(0.7)

-2.3%

5.2

+0.3

＋7.1%

+0.0

＋1.6%

Operating profit

4.9(Operating margin)(14.8%)%(16.2%)
Cost of HQ relocation (0.2)

4.9(15.4%)EBITDA

5.5

5.6

+0.1

＋3.0%

Ordinary profit

4.9

5.0

+0.1

＋2.1%

Profit attributable toowners of the parent

3.3

3.4

+0.0

＋2.0%

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4

Business Areas and Segment Structure
Digital Entertainment
Group

Business Solution Group

DigitalEntertainment

Health IT

E-comic

Package services
for medical
institutions

・General consumers

・Hospitals
・Pharmaceutical companies
・Nursing care companies
・Health industry

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5

Business
SoftwareEnterprise Service
Management

ERP
Business package
cloud services

System integration
for major companies

・Companies
・Government offices
・Local governments

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

Digital Entertainment Results (Consolidated)(Billion yen)

Net sales(Billion yen)(Billion yen)
10

25

22.3

100%

21.3

20

8

80%

15

6

60%

10

FY03/21
Q2

Operating profit

4

3.8

FY03/22
Q2

YoY

Change

%

22.2

21.3

(0.8)

-3.8%

Operating profit

3.8

4.1

+0.3

＋8.4%

(Operating margin)(17.2%)(19.4%)Net sales

Net sales・ Negative impact of pirate sites

4.1
40%

・ More intense competitive environment
・ Decline in special demand stemming from voluntary
restraints on unnecessary travel in the previous year

5

2

20%

Operating profit

19.4%
17.2%
0

0

FY03/21 FY03/22
Q2
Q2

Optimized advertising based on data analysis

0%

FY03/21 FY03/22
Q2
Q2

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6

Digital Entertainment Results (Quarterly)(Billion yen)
Special demand due to voluntary
restraints on unnecessary travel

12.5

10
CAGR
+20%

7.5

5

2.5

0

Q1
FY03/18
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Q2
FY03/19Q3
FY03/207

FY03/21Q4
FY03/22

Business Solution Results (Consolidated)(Billion yen)

Net sales

Operating profit(Billion yen)(Billion yen)

4

20

80%

3

15

60%

FY03/21Q2

FY03/22
Q2

YoY
Change%Net sales

10.9

11.0

+0.0

+0.7%

Health IT

4.4

4.4

+0.0

+0.5%

Operating profit

1.0

1.1

+0.0

＋2.6%

(Operating margin)(9.9%)(10.1%)
Excluding HQ relocation costs (0.2)

10.9

11.0

10

Net sales
2

40%

1.0
5

1.1

1

20%
9.9%

4.4

10.1%

Operating profit

4.4

0

0

FY03/21 FY03/22
Q2
Q2

Solid performance in hospital and corporate sales,
despite the negative impact of COVID-19

0%

Higher profits due to higher sales

FY03/21 FY03/22
Q2
Q2

Health IT
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8

Investments(Billion yen)(Billion yen)

Main Details

Category

Amount1.5

Business
Development

New business planning, research,demonstration tests, etc.

0.21

EquityInvestment

Business alliance with company developing asocial media platform service for doctors inSoutheast Asia, alliance with company
developing a fitness app business, etc.

0.40

1.16
0.21

1.0

0.86
0.21

E-comic(Systems development, etc.)

0.40

Health IT

CapitalInvestment

0.15
0.5

(radiology systems, pharmaceutical company
sales, etc.)

0.46

GRANDIT miraimil development
0.38

0.46
R&D
Investment

0.11

0.07

FY03/21Q2

FY03/22
Q2

0.0

R&D

Capital

Other

EquityBus. Development

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9AI, new technology research, etc.

0.07

Balance Sheets (Consolidated)(Billion yen,%)

FY03/22Q2

FY03/21
AmountComposition
Ratio

AmountComposition
Ratio

ChangeCurrent assets

43.9

77.9

43.3

77.8

(0.5)

Fixed assets

12.4

22.1

12.3

22.2

(0.0)

56.4

100.0

55.7

100.0

(0.6)

14.2

25.2

12.8

23.0

(1.4)

0.3

0.6

0.2

0.4

(0.1)

14.5

25.9

13.0

23.5

(1.5)

Total assets
Current liabilities
Non-current liabilities

Total liabilities

Major Change Factors

・Income taxes payable (1.2)

Total net assets

41.8

74.1

42.6

76.5

・Retained earnings +1.1
・Valuation of available-for-salesecurities (0.3)+0.8

Total liabilities and net assets

56.4

100.0

55.7

100.0

(0.6)

Shareholders’ equity ratio

73.5%

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76.0%
10

Cash Flows (Consolidated)(Billion yen)(Billion yen)・Profit before income taxes
・Change in notes and accounts
receivable-trade and contract
assets

FY03/21
Q2

・Purchase of intangible assets
・Purchase of investment securities

・Dividends

FY03/22
Q2

ChangeOperating CF

4.4

3.1

(1.3)

Investing CF

(0.5)

(0.8)

(0.3)

Free CF

3.9

2.2

(1.7)

Financing CF

(1.1)

(1.4)

(0.2)

Effects of exchange ratechanges on cash andcash equivalents

(0.0)

0.0

+0.0

Change in cash and cash
equivalents

2.7

0.7

(1.9)

Cash and cash equivalents,
beginning of period

23.4

29.9

+6.4

Cash and cash equivalents,
end of quarter

26.2

30.7

+4.5

(0.8)
+3.1

(1.4)

30

30.7

29.9

20

Beginning Operating
FY03/22
CF

InvestingCF

Cash andEquivalents
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Financing
CF

FY03/22
Q2
Cash andEquivalents

11Forecast

Earnings Forecast for FY03/22

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Earnings Forecast for FY03/22 (Consolidated)
Comparison vs. Initial Forecast(Billion yen)
FY03/21
Results

Net sales

FY03/22
Initial Forecast*

68.0

Operating profit

10.8(Operating margin)(15.9%)

FY03/22
Revised Forecast

77.0

70.0

12.0

11.8

(15.6%)(17.0%)

Cost of HQ relocation (0.1)

Revision
Vs.
Initial Forecast(7.0)

Change

+1.9

+1.0

(0.8)

11.0

11.0

(14.3%)(15.7%)±0+0.1

EBITDA

12.1

12.5

12.5

±0

+0.4

Ordinary profit

10.9

11.0

11.0

±0

+0.0

Profit attributable toowners of the parent
Net income pershare (yen)

6.2

7.3

7.3

±0

+1.0

114.61133.31133.28-0.0+18.67

ROE

16.2%

16.6%

16.6%

±0

+0.3

◆ Revision based on E-comic business outlook
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* Announced April 27, 2021
13

Earnings Forecast for FY03/22 (Consolidated)(Billion yen)
FY03/21 Results

Net sales

FY03/22

1H

2H

FY

1H

33.2

34.8

68.0

32.4

YoY (%)

2H(Forecast) FY (Forecast)

37.5

70.0

1H

2H

FY

-2.3%

＋7.8%

＋2.9%

11.8
Operating profit(Operating margin)

4.9

5.8

10.8

(14.8%)(16.9%)(15.9%)＋9.8%(17.0%)
Cost of HQ relocation (0.8)

4.9

6.0

(15.4%)(16.0%)

11.0

＋1.6%

＋1.9%

＋1.7%

(15.7%)EBITDA

5.5

6.6

12.1

5.6

6.9

12.5

＋2.9%

＋3.8%

＋3.4%

Ordinary profit

4.9

5.9

10.9

5.0

5.9

11.0

＋2.1%

-0.7%

＋0.6%

Profit attributable toowners of the parent

3.3

2.8

6.2

3.4

3.8

7.3

＋2.0%

＋33.0%＋16.3%Net income pershare (yen)114.61133.28＋16.3%

ROE

16.2%

16.6%

ー

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14

Segment Earnings Forecast (Consolidated)[Digital Entertainment]Group]
FY03/21 Results
1H

Net sales

FY03/22FY

YoY (%)

2H
FY(Forecast) (Forecast)

1H

1H

2H

FY

22.2

21.7

44.0

21.3

23.6

45.0

-3.8%

+8.3%

+2.2%

3.8

4.0

7.9

4.1

4.3

8.5

+8.4%

+6.6%

+7.5%

(17.2%)(18.7%)(18.0%)(19.4%)(18.4%)(18.9%)

Operating profit(Operating margin)

2H(Billion yen)

◆ While assuming the impact of pirate sites will continue in the second half, we expect sales
and profits to increase compared to the previous year based on measures we intend to
implement[Business Solution]
Group](Billion yen)
FY03/21 Results
1H

Net sales
Health IT
Operating profit(Operating margin)

2H

FY03/22FY

YoY (%)

2H
FY(Forecast) (Forecast)

1H

1H

2H

FY

10.9

13.0

24.0

11.0

13.9

25.0

＋0.7%

＋6.8%

+4.0%

4.4

5.3

9.7

4.4

6.2

10.7

+0.5%

＋18.5%+10.3%

1.0

1.8

2.8

1.1

2.2

3.3

+2.6%

＋24.9%+16.5%(9.9%)(13.8%)(12.0%)(10.1%)(16.2%)(13.5%)

Excluding HQ relocation costs (-0.8)

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15

Shareholder Returns
Annual dividends per share

(Yen)

40

40.0

37.0
31.0

30
27.0

22.0
20

19.0

14.0

27.0
21.0

17.0

10

5.0

5.0

FY03/18

FY03/19

10.0

10.0

FY03/20

FY03/210Interim
Net income
per share (yen) 84.85

87.46

13.0

FY3/22
FY03/22(Forecast)Year-End101.32114.61133.28◆ Dividends
Resolved to set the interim FY03/22
dividend at 13 yen per share
Projecting a year-end dividend of 27
yen per share for a total 40 yen per
share annual dividend(30.0% payout ratio)◆ Shareholder Benefits
Providing shareholder benefits toshareholders owning at least one
trading unit per the register ofshareholders as of September 30,
2021 (Announcement planned for theend of November)*Dividends per share and net income per share reflect stock split performed on March 1, 2019
Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

16

New Market Classification Selection

Resolved to apply for the new Prime Market
classification in the Tokyo Stock Exchange
2022
2018

Prime Market

2004

TSE
First Section

2002

JASDAQ
1983

OTC
Registration
Company Founded◼ Proactive dialogue with investors

Pursuit of growth and improved◼ Stronger corporate governancecorporate value

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17

Strategy

Initiatives in Key Businesses
E-Comic
Health IT

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

E-Comic

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

E-Comic Business GrowthContent
Acquisition

Overseas

U.S.

E-Comic Distribution

Korea

Authors(Amateur)

Authors(Pro)

Asia
Original
ComicsMarket Growth

Domestic
Publishers

Webtoon(Korea)M&A

DeeperCollaboration

Comic
Adaptation

DramasNovelsCopyright © 2021 INFOCOM CORPORATION. All rights reserved.

Business Field
Expansion

Live Action
Drama
Animation

Original Comics to Other Media⚫ Move forward with dramatizations of original Mecha Comic titles, create
comic adaptations of dramas, etc.
⚫ Planning to dramatize exclusive first-run titles, aiming for eight productions
per year
Dramatization of original
comicsCollaborations with dramas

RISKY

WOWOW Drama

MBS Special Drama Time Slot,
TSUTAYA TV, etc.

ENJIYA

Dramatization

Original
ComicsAttract Site
Visitors

AuthorRecognition

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21

Brand
Enhancement

Mecha Comic Original Title

Strengthen Systems Foundation
Combine the latest technologies to provide services that meetcustomer needs⚫ Research and adopt technologies specific to the e-book business⚫ As a first step, redesign the Mecha Comic viewer (ongoing technical cooperation from CELSYS, Inc.)

Established
AmuLink Corporation

Providing Pleasant
Moments

Solving World Problems
Through Technology

E-Comic Distribution

Platform Business
Smartphone App
Development and Operations

Viewer Development
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22

Content Expansions

Expand content through diverse
production and acquisition methods
Overseas

Domestic

Produce

Original Comics
Joint/Direct
Production

Authors (Pro)
Authors(Amateur)
Dramas, Novels

Manga
Submission Site

Joint Production(Korea)Specialization

AcquireExclusive First-Run Distributions

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Collaborations With Publishers
Exclusive Agreements for Outstanding Works,
Collaboration for Visualizations, Contests

23

Collaborations With
Publishers (Korea)
WebtoonStrengthen Marketing

Strengthen measures to reactivate members
and conventional marketing aimed at member
acquisition
Increase visitors

Increase number of visits

Promote brands and titles

Increase reading volume

WebadvertisingTVcommercials

Increase numberof free titles

Utilize AI

Daily free series

Recommendations

Promotional comics

Social media

One-to-one email
marketing

Bonus points

Dramatizations

Installing, logging inStronger UI/UX
New viewer

Gamification

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24

Personalization

Health IT

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Health IT FY03/2022 Initiatives
Nursing

MedicalClinicalInformation

Nursing
Management
Surgery
Management
Drug
Information

Care Staff Management (CWS)

Sales
SupportRadiology

Pharmaceutical

Asian expansion

Business alliancewith Docquity

EmployerBusiness alliancewith BeatFit(fitness app)

IT! For Nursing
Care
Care Records

HealthDiagnosis
HealthAnalysis
Expand WELSA features

Career Change
SupportCentral management ofvaccine status

Digital Health Connect✓ Solasto✓ SOMPOetc.

(Social media for doctors)

Overseas

WELSA

Care Staff
Management (CWS)

User

Domestic

Option sales

Employee

Employer

Hospitals

Online sales support for MR

Work-style reformfor doctors

HealthPersonal HealthService forindividuals

Asia Healthcare

DigiProDrug Information
Clinical Information
Radiology

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Strengthen integrated email
management function

26

Advance Health IT Project in Asia
Ally with local businesses and offer Infocom packaged services
Cloud services

Domestic

PackagedRadiology
Information

Care Staff
Management

Drug Information

Infocom

ClinicalInformation

Overseas
expansion・Localization

・Begin trials in hospitals

2. Drug Information System
・Sign agreements with local
HIS vendors
Preparing version forIndonesia

Expand inJapan
Health Tech Companies

Medical IT Vendors

Overseas (Asia)

1. Medical Imaging System

Teracorp
Medical Imaging
System (PACS)

Drug Information
System (DI)Indonesia

Philippines
Indonesia

Local
expansion

Local
expansion
Expand toother countries

・Form alliances with social
media for doctors
Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

WELSA

27

Alliances

Docquity

HomageSocial media for
doctors Platform

Care Staff Matching
Platform

Singapore

Singapore

CWS Employment Management System SupportingWork-Style Reform for Doctors
CWS

Background

Attendance management, scheduling, and overtime management

Work-Style Reform for Doctors
・February 2021: Bill passed to revise Medical Care Act
・Shortening work hours in preparation for the adoptionof a maximum work-hour rule (beginning April 2024)

Smart CWS
Attendance record confirmation,
automatic generation of work status

System Overview

Smart CWS

(employment management option for doctors)
Main Featuresa.
b.

Obtain doctor’s activity history by linking
contactless devices and electronic medical records
Support for creating doctor work hour reduction plan

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28

IC card reader

AccessFacial recognition device / BEACON
Link to electronic medical records

Transition to Services
Begin offering GRANDIT miraimil (integrated ERP for SMBs)[October 2021 - ]Features✓ Cloud service✓ Implementation is as little as three months, reduced implementation costs✓ No maintenance or operating costs for hardware or software

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29

Becoming a services company thatdelivers new value through the co-creationof ICT and real-world businesses<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 in securities 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 September 30, 2021. The names of the companies, services, and products stated in this document are trademarks or registered trademarks of theirrespective 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 not guarantee the accuracy or completeness of
information contained herein, which might change as new data becomes available.
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