INFOCOM CORPORATION

Financial Results Briefing
for Q2 FY03/2024

October 31, 2023

Security code: 4348

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

AgendaFinancial Results for Q2 FY03/24
Earnings Forecast for FY03/24
Initiatives in Key Businesses

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2

Financial Results for Q2 FY03/24

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3

Q2 FY03/24 Financial Results

Consolidated Financial Results for Q2 FY03/24⚫ Strong e-comics led to increase in sales and profit⚫ Continuing to strengthen marketing

Net sales

Operating profit

Profit attributable toowners of the parent¥40.0 billion¥4.1 billion¥2.8 billion+21.2% YoY+12.6% YoY+65.3% YoY

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4

Management Performance(Billion yen)

FY03/23Q2

FY03/24
Q2

YoY
Change

%

33.0

40.0

+7.0

+21.2%

3.7

4.1(11.2%)(10.4%)+0.4+12.6%EBITDA

4.2

4.7

+0.5

+11.9％

Ordinary profit

3.7

4.2

+0.4

+11.9%

Profit attributable toowners of the parent*

1.7

2.8

+1.1

+65.3%Net sales

Operating profit(Operating margin)*We recorded an extraordinary loss in the previous consolidated fiscal year due to goodwill impairment related to a consolidated subsidiary

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5

Segment Structure

FY03/23 Result

Digital Entertainment

Business Solution

E-comic

Health IT

E-Comic Distribution Service

Package services
for medical institutions

34%

Business Software
Net sales ratio

66%

ERP
Cloud services
Business package

Enterprise Service
Management
System integration
for major companies

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6

Digital Entertainment Results
Pay-as-you-go courses are performing well; effective marketing is keeping the segment on a growth path

Net sales

Operating profit(Billion yen)(Billion yen)

+6.2

+0.9

(+28.5%)(+33.8%)

28.1
21.9

FY03/23
Q2

3.6
2.7

FY03/24Q2

FY03/23Q2

FY03/24
Q2
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7

E-Comic Business Results
Change inAdvertising Strategy(Billion yen)

Start of Pay-asYou-Go Course

Net sales

14.6

150

125

⚫ Effective advertising

investments

100⚫ Impact of pay-as-you-go

75⚫ Promotions for ongoing
50

usage

25

0

0

Q1

Q2

Q3

FY03/21

Q4

Q1

Q2

Q3

FY03/22

Q4

Q1

Q2

Q3

FY03/23

Q4

Q1

Q2

FY03/24
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8

Business Solution Results
Solid performance in hospital and corporate software sales
Decrease in profit due to sales composition difference and up-front investments to create service
Net sales(Billion yen)

Operating profit

Health IT(Billion yen)

+0.7(+7.0%)-0.4(-45.5%)

11.9

11.1

0.9
+0.7

0.5

(+18.0%)4.3

5.0

FY03/232022年度Q2
2Q

FY03/24
2023年度Q2
2Q

FY03/23Q2

FY03/24
Q2

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9

Investments(Billion yen)

4.1

Business
Development

New business planning, research, etc.

M&A

0.2

• Health IT (made radiology department systems company J-MAC SYSTEM
a subsidiary)

EquityInvestment

Investments and business alliances• Health IT (increased equity in nursing care staffing business Staffplus)• Evolving into a services-oriented business (business alliance with AI
crisis management services company Spectee)*

2.8

E-Comic (improved functions, etc.)

1.3

CapitalInvestment

0.2
0.4

0.0

FY03/23Q2

FY03/24
Q2

GRANDIT miraimil (Cloud ERP) function improvements
Other (existing services)

0.9
0.5
0.0

Health IT (developed new version of MR support system, etc.)

R&D
Investment

Generative AI, new technology research, etc.

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10Balance Sheets(Billion yen)

FY03/24Q2

FY03/23

ChangeMajor Change Factors

Current assets

49.1

49.4

+0.2

• Cash and deposits

Fixed assets

11.1

13.8

+2.6

• Goodwill, Investment securities

60.2

63.2

+2.9

14.6

15.9

+1.3

0.4

0.8

+0.3

Total liabilities

15.0

16.7

+1.6

Total net assets

45.1

46.4

+1.2

Total liabilities andnet assets

60.2

63.2

+2.9

74.3%

73.0%

-

Total assets
Current liabilities
Non-current liabilities

Shareholders’ equity
ratio• Retained earnings

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11

Cash Flows• Profit before income taxes(Billion yen)

FY03/23Q2

FY03/24
Q2

ChangeOperating CF

4.3

4.6

+0.2

Investing CF

(0.3)

(2.7)

(2.3)

3.9

1.8

(2.0)

Free CF

(2.0)

(1.7)

+0.2

Effects of exchange ratechanges on cash and cash
equivalents

0.0

0.0

(0.0)

Change in cash and cash
equivalents Change

1.9

0.1

(1.7)

Cash and cash equivalents,
beginning of period

31.7

35.5

+3.8

Financing CF

Cash and cash equivalents, endof quarter

33.6

35.7

+2.0

• Acquired shares of consolidated
subsidiary• Purchase of intangible assets• Purchase of investment securities(Billion yen)

+4.6
35.5

Beginning
FY03/24• Dividends-2.7

OperatingCF

Cash and Equivalents

Investing
CF

35.7
-1.7

Financing
CF

FY03/24
Q2
Cash and Equivalents

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12

Earnings Forecast for FY03/24

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13

Earnings Forecast for FY03/24
No changes to the earnings forecasts as published on July 31, 2023
FY03/23 Results(Billion yen)

Net sales

FY03/24 Forecast

Difference

1H

2H

FY

1H

2H

FY

Change

%

33.0

37.3

70.3

40.0

42.4

82.5

+12.1

+17.3％+1.4+17.3％(Operating margin)

3.7

4.8

8.5

4.1

5.8

10.0

(11.2%)(12.9%)(12.1%)(10.4%)(13.7%)(12.1%)EBITDA

4.2

5.3

9.5

4.7

6.2

11.0

+1.4

+14.7%

Ordinary profit

3.7

4.8

8.5

4.2

5.7

10.0

+1.4

+16.3%

Profit attributable toowners of theparent

1.7

1.8

3.5

2.8

3.8

6.7

+3.1

+87.6%

65.20

122.28+57.0+87.5%

8.0%

14.3%

+6.3pt-Operating profit

Net income per share
(yen)

ROE

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14

Earnings Forecast by Segment
Digital Entertainment
FY03/23 Results(Billion yen)

Net sales

1H

21.9

Operating profit(Operating margin)

2H

FY03/24
1H(Results)

FY

24.3

46.2

28.1

Difference

2H(Forecast)

FY(Forecast)

29.3

57.5

+11.2

+24.3%+1.4+24.1%

2.7

3.2

6.0

3.6

3.8

7.5

(12.6%)(13.5%)(13.1%)(13.1%)(13.0%)(13.0%)

Change%Business Solution
FY03/23 Results(Billion yen)

Net sales
Health IT
Operating profit(Operating margin)

1H

2H

11.1
4.3

FY03/24
1H(Results)

FY

12.9
5.5

24.0
9.8

11.9
5.0

Difference

2H(Forecast)

FY(Forecast)

13.0
5.9

25.0
11.0

+0.9
+1.1

+3.7%
+11.2%

+0.0

+0.7%

0.9

1.5

2.4

0.5

1.9

2.5

(8.6%)(11.8%)(10.3%)(4.4%)(15.1%)(10.0%)

Change%Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

15

Shareholder Returns
In addition to stable dividends, we strive to increase dividends in line with improved
business performance and to maintain a dividend payout ratio of 30%

Dividends

FY03/24 Forecast

Annual Dividends Per Share
Interim(Yen)

Year-End

Commemorative Dividend

Annual Dividends
Per Share

50

¥45

10

31
22
2

Dividend Payout Ratio

27

45

27

27

18

18

10

10

13

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24(Forecast)

25.2%

30.6%

32.3%

39.6%

76.7%

36.8%

5

Dividend
Payout Ratio

5

27

15

36.8%

Shareholder
Benefits

21

37

50

We plan to provide shareholder benefits to shareholders owning at least one trading unit per theregister of shareholders as of September 30, 2023 (announcement planned for late November)
Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

16

Initiatives in Key Businesses
E-comic

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17

E-Comic Business Initiatives
Net Sales(Billion yen)

1

Profitable Growth in Domestic
Distribution BusinessNet sales

60
600⚫ Aggressive and effective advertising investments⚫ Attract pay-as-you-go members and encourage

50
500

service usage⚫ Improve quality of original titles

40
400

2 Market Growth (Overseas Expansion)⚫ Further growth of Peanutoon in South Korea

30300⚫ Put U.S. distribution business on growth trajectory
20
200

3 Business Field Expansion⚫ IP development

10100⚫ Investigate opportunities (including M&A) in

peripheral fields

0FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24(Forecast)

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18

E-Comic Initiatives

1 Profitable Growth in Domestic Distribution Business⚫ Aggressive and effective advertising investments
1. Engage in appropriate promotional measures for target users
2. Acquire light users through pay-as-you-go system
3. Attract users through original and exclusive distribution of hit content

User Attributes

Comprehensive Promotions Based on Data Analysis and Experience
Mass Media Advertising

Offline Ads

OnlineSocial MediaMonthly
Membership

Pay-as-YouGo Members
Free Subscribers

Indifferent Users

Free Subscribers

Indifferent

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19

E-Comic Initiatives

1 Profitable Growth in Domestic Distribution Business⚫ Attract pay-as-you-go members and encourage service usage‒ Pay-as-you-go system lowers the hurdle to becoming a paying member and increases the number of active users

Offer rate structures tailored to customer usage scenarios
Conversion to
loyal customers

Monthly
Membership
Pay-as-You-Go
Members

Convert to paid
subscribers

Use a fixed amount each month. Give points for purchases.
Encourage regular use of service and convert users tomonthly members or heavy users

Recommend pay-as-you-go memberships for thequick and easy purchase of comics

Monthly
Membership
Pay-as-You-Go
Members

Expandpotential
customer base

Increase free membership through online advertising,
TV commercials, and brand enhancement (throughsports sponsorships, etc.)

Free Subscribers
Indifferent(E-book market / paper publishing market /smartphone game market)

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20

E-Comic Initiatives

1 Profitable Growth in Domestic Distribution Business⚫ Attract pay-as-you-go members and encourage service usage‒ Encourage continued use of the system through measures aimed at turning users into loyal customers

Quest Function

Gift Certificate
Function

Site Visit

Expectations andContinued Use

Function Awarenessand UseBenefits Earned/
Satisfaction

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21

E-Comic Initiatives

1 Profitable Growth in Domestic Distribution Business⚫ Improve quality of original titles‒ Pursue division of labor to improve production quality and expand production scope to more popular genres

Romance
Konya, Uchi ni Oide.
Reitetsu Joushi no Risei ga
Toketara
Imeri Tsubakino

HistoricalOtoko Tomodachi ga
Gekiama Kareshi ni
Narimashita

Otherworldly Fantasy

Rien haItashikanemasu!

Outaishi no
Hanayome

Megumi Yamaguchi

Shima Kurage/Kumasaburou

Hato Okachimachi

Mecha Comic
September Ranking
No.2 Overall

Iyashi no Otonarisan
ni ha
Himitsu ga Aru

Manga Adaptations (Novels, Etc.)

Sumire no Yoridokoro
Shu Fujikura

Ro Shimafuku/Natsuko
Umezawa

Taki Inase/Michifumu

Mecha Comic
April Ranking
No.6 Overall

Manga Adaptations(Novels, Etc.)

TV Dramatizations

Oboro no Hanayome
Karisome no Konyaku
ha, Aoku, Amaku
Mecha Comic
June Ranking
No.8 Overall

Submission Service Works

Manga Adaptations (Novels, Etc.)

Kouhi Sama no
Ikujiron
Nidome ha Shippai
Itashimasen!
Anne/Steak/Jaha

Manga Adaptations (Novels, Etc.)

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22

E-Comic Initiatives
2

2Market Growth(Overseas Expansion)

Market Growth (Overseas Expansion)

Korea

3 Business Field Expansion

3

Business Field Expansion

Growth through differentiation by genre of expertise⚫ Strengthen purchase promotions by activating point

discounts and other measures within the site
⚫ Growth slowed due to intensifying competition for⚫ Discussions are underway with TWIN

ENGINE to develop a film project⚫ Dramatization of original comics

content; strengthening original works

U.S.

Measures targeting the younger generation of users⚫ Understand user preferences acrossgenres of comics⚫ Measures to promote usage(login bonuses, etc.)

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23

Initiatives in Key Businesses
Health IT

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24

Health IT Initiatives
Medical1 Expand Domestic Hospital Business1⚫ Redesigned radiology system products

Nursing

Department Support

Pharmaceutical
Sales Support⚫ Converted J-MAC SYSTEM to subsidiaryRadiology, Pharmaceutical,
Surgery, Nursing, Clinical
Information

HealthDiagnosis
Health Analysis

2 Expand Care Staff Management (CWS) System⚫ Expanding and diversify sales channels⚫ Offering cloud services for nursing care

M&A

Domestic⚫ Released products offering rapid deployment

Health

2021

2
Large
Hospitals

2023

companies

Transition to
Cloud Service
CWS forHospitals

Personal HealthService(Staff Management)

Medium-Sized
Hospitals

3 Expand Into Other Fields Overseas⚫ Accelerating the spread of digital healthcare

CWS forNursing Care
Companies

Small Hospitals(Staff Management)in Asia⚫ Resuming collaborative ventures with local

4 Establish Foundation for New Businesses⚫ Full-scale entry into foreign national nursing

Overseascompanies

4
3

Drug Information
Clinical Information
Radiology

Malaysia

Indonesia

Singapore
Career Change
Support forOverseas
Professionals

Southeast Asia

care staffing service
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25

Health IT Initiatives

1 Expand Domestic Hospital Business⚫ Redesigned radiology information‒ Cloud-enabled for easier adoption bysmall- and medium-sized hospitals⚫ Converted J-MAC SYSTEM to

Drug
Information

CWS Care Staff
Management

Surgery

Medical
Records
Companies

Clinical Information
Management

Medical Create

J-MAC SYSTEMRadiology
Information

Radiology
Information

Dose
Management

Image
Management
Cloud Service⚫ Strengthen and expand

collaborations with electronic
medical records providers and sales
agents in each region

Business
Alliances‒ Offices in six major cities in Japan

Medium-Sized
Hospitals‒ Provide solutions for small- andmedium-sized hospitals and clinics‒ Installed in more than 500 facilities

Collaborations

Radiology
Information

subsidiary

Small Hospitals

Major Initiatives

system products

Large Hospitals⚫ Expanding medical IT service fields through M&A, business alliances, and product redesigns

Regional
Sales
AgentsSecurity
Businesses,
Etc.

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26

Health IT Initiatives
For Hospitals

MarketFor Nursing Care

2 Expand Care Staff Management (CWS) System

No. of business discussions: +60% year on year
New version released to meet the needs of more customers⚫ Beginning of maximum work-hour rules for physicians has

Target Markets for Care Staff
Management System (for Hospitals)

increased interest in adoption of the system
Medium to Large
Large Hospitals Represent
Beds-ScaleTarget Market
or More Hospitals

400⚫ Expand product offerings

For Hospitals‒ Launched rapidly deployable physician-specialized packages (April)

750 Facilities

Major Initiatives‒ Introduced interval check option (April)⚫ Expand sales channels

200
For Hospitals‒ Began collaborating with a wide range of businesses, including access
control and security businesses

Beds
or MoreMedium-Sized
Hospitals

1,700 Facilities‒ Expanding sales and installation systems to meet increasing demand⚫ Expand products offerings

For Nursing Care

‒ Released a new version of the product as a cloud service

Small Hospitals

5,700 Facilities‒ Meeting the needs of an even wider range of nursing care companies
Source: 2021 Survey of Medical Facilities (Ministry of Health, Labour and Welfare)
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27

Health IT Initiatives

3 Expand Into Other Fields Overseas⚫ Advance Asia Healthcare Project‒ Focus on Indonesia, which is advancing digital medicine as a national strategy‒ Collaborate with local partners to pursue overseas sales of products developed in Japan for domestic hospitals

Indonesia⚫ Increased healthcare costs in‒ Per capita health care costs have morethan tripled in the past 20 years⚫ Indonesia is pursuing digital

medicine as a national strategy

Alliances andCollaborations

MarketSoutheast Asia
Network of more than 8,000
medical institutions inIndonesia and Malaysia

Started collaboration with hospitals and clinics toexpand sales channels for the Health IT Drug
Information System product (DI)In addition to medical imaging system products for
hospitals, we also initiated a sales alliance for DI

hospitals⚫ Form equity alliances with health IT

companies

Results⚫ Localize products and services forStrengthen

Major Initiatives

Hospital information
systems vendors

Jakarta Heart Center adopted our DI
Future expansion to group hospitals, etc.

Strengthen local offices for collaborations andactivities with local partners in Indonesia
PT. Infocom Global Indonesia

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28

Health IT Initiatives

4 Establish Foundation for New Businesses⚫ Full-scale entry into foreign national nursing care staffing service‒ Full-scale entry of Group company Staffplus entering foreign national nursing care staffing business‒ Features include staffing of highly qualified and educated nursing care workers from overseas and detailed online training
and lifestyle support services‒ Planning to accept 3,000 specified skilled foreign nursing care workers by fiscal 2027
Foreign National Nursing Care
Staffing Service Framework
Nursing
Care Worker
Recruitment

Overseas
Staffing Agency
Indonesia・・・Specified
Skilled Worker(Nursing Care)
Staffing

Nursing
Care Worker
Recruitment

No. of Foreign Specified Skilled
Worker (i; Nursing Care)
Maximum Limit on
Specified Skilled Worker(Nursing Care)(People)Domestic
Nursing Care
Facilities

70,00060,00060,000Future50,00040,000

Employment

30,00021,915

Staffplus
High-Quality
Nursing Care
Worker

20,000
Education(Japanese
Language, Etc.)
and LifestyleSupportSpecified Skilled
WorkerForeign National

10,411
10,0000June 2022

June 2023

2026-2027*Prepared from data published by the Immigration and Naturalization Service

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29

Other Business Initiatives

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30

Expansion of Crisis Management Business Service Areas Evolve Services⚫ Capital and business alliance with disaster prevention Tech Venture Spectee (June 2023)
Alliance with existing service that collects a company’s disaster information and provides a broad overview of external conditions

Develop Total Crisis Management Service

Disaster-RelatedInformation for People
and Goods⚫ Employee Safety Information⚫ Information on Damage toFacilities and Equipment

Employee Safety

Risk Visualization Acrossthe Entire Supply Chain

Rapid and Accurate Crisis Management Response

External Information
AI Real-Time Analysis⚫ Social Media Post Information
Weather Data
⚫ Road and River Camera
Information, Etc.

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31

Becoming a services company

that delivers new value through the co-creation of ICT
and real-world businesses
Contact

INFOCOM CORPORATION
Corporate Communications Office

03-6866-3160

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 theCompany. 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, 2023. 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 not guarantee the accuracy orcompleteness of information contained herein, which might change as new data becomes available.

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32