Financial Results Briefing for Q３ FY03/2023

INFOCOM CORPORATION

January 31,2023

Copyright © 202３ INFOCOM CORPORATION. All rights reserved.

Q3 FY03/23 Results (Consolidated)
Stronger marketing continues to drive favorable E-comic business growth
Net sales

Operating profit

Profit attributable toowners of the parent＋6.1%-17.8％-61.7％(Billion yen)(Billion yen)(Billion yen)60

101047.4

50.3

45

7.5

7.5

7.0

5.8

30

5515

2.5

2.5

000

FY03/22 FY03/23
Digital Entertainment
Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

FY03/22
Business Solution

1FY03/23

4.8

1.8

*

FY03/22 FY03/23*Recorded extraordinary loss (2.1 billion yen)
Impairment loss on goodwill and loss on valuation of investment
securities related to consolidated subsidiaries, etc.

Management Performance (Consolidated)(Billion yen)

YoY

FY03/22Q3

FY03/23
Q3Change

47.4

50.3+2.9+6.1％

Operating profit

7.0

5.8(1.2)-17.8％(Operating margin)（14.9％）（11.5％）EBITDA

8.1

6.6(1.5)-18.6％

Ordinary profit

7.1

5.9(1.2)-17.7％

Profit attributable toowners of the parent

4.8

1.8(3.0)-61.7％Net sales

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

2%

Business Areas and Segment Structure
Digital EntertainmentGroup

Business Solution GroupDigitalEntertainment

Health IT

E-comic

Package services
for medicalinstitutions

・General consumers

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

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

3

BusinessSoftwareEnterprise ServiceManagement

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

FY03/22
Q3

Operating profit(Billion yen)(Billion yen)40

10100%

33.6
30.880%FY03/23
Q3YoY

Change%30.8

33.6+2.7＋8.9%

Operating profit

6.0

4.3

(1.7)

-28.1％(Operating margin)（19.7％）（13.0%）Net sales

7.530

6.060%

4.3520Net sales
・Expanded content and strengthened marketing40%

・Several medium-sized hits for original content⇒ New record-high for quarterly sales

102.520%
19.7%Operating profit
13.0%

00

FY03/22 FY03/23
Q3
Q30%

Cost increase due to strengthened marketing

FY03/22 FY03/23
Q3Q3Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

4

E-Comic50(Billion yen)

Sales

Operating profit
12.4

125

New record-high forquarterly sales

45

11.7

11.6 Peak

40
100

3530
75
25
2.0Peak

2.1

・Aggressive and effective advertising
investments
In addition to the existing flat-rate
subscription (monthly course)...

・Increasing membership numbers
through a pay-as-you-go system

20

1.650

15

In combination with sales growth...
1025

On track for profit growth

50Q1Q2Q3

FY03/21

Q4Q1Q2Q3

FY03/22

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Q4Q1

Q20Q4 (Forecast)

Q3

FY03/235

Business Solution Results (Consolidated)(Billion yen)

Net sales(Billion yen)(Billion yen)

20200

416.6

FY03/22
Q3

Operating profit

80%

16.7
3

YoY
Change%Net sales

16.6

16.7+0.1＋1.0%

Operating profit

0.9

1.4+0.4＋47.3%（5.9%）（8.6%）(Operating margin)15150

FY03/23
Q360%

Net sales
10010240%

・Project for hospitals delayed due to COVID-19
and slow hardware delivery

1.455010.9

・Corporate business remained strong

20%

Operating profit

8.6%
5.9%

・Higher profits due to higher sales
00

0FY03/22FY21Q33Q

FY03/23FY22Q3
3Q0%

FY03/22 FY03/23
Q3
Q3

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

・Cost controls

6Earnings Forecast for FY03/23 (Consolidated)
Comparison vs. Initial Forecast
FY03/２２Results

FY03/23
Initial Forecast*

FY03/23
Revised Forecast(Billion yen)
RevisionVs.
Initial Forecast

ChangeNet sales

64.5

71.0

71.0

±0+6.4

Operating profit

10.0

10.5

9.5(1.0)(0.5)(15.6%)(14.8%)(13.4％)EBITDA

11.4

11.8

10.8(1.0)(0.6)

Ordinary profit

10.1

10.5

9.5

(1.0)

(0.6)

Profit attributable toowners of the parent

6.9

6.1

4.3

(1.8)

(2.6)

Net income pershare (yen)126.20111.3578.49(32.86)(47.71)

ROE

16.1%

13.4%

9.6%(３.8)(6.6)(Operating margin)* Announced October 28, 2022

◆ Revision based on the future outlook for the E-comic and Health IT businesses, as well as extraordinary losses
Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

7

Earnings Forecast for FY03/23 (Consolidated)(Billion yen)
FY03/22 Results
1H

2H

FY03/23FY

1H

2H(Forecast)YoY
FY (Forecast)

Change%

+6.4

+9.9％

(0.5)

-5.9％

32.4

32.1

64.5

33.0

37.9

71.0

4.9

5.0

10.0

3.7

5.7

9.5

(15.4％)（15.9％）（15.6％）（11.2％）（15.3％）（13.4％）EBITDA

5.65.7

11.4

4.2

6.5

10.8(0.6)-5.3％

Ordinary profit

5.05.1

10.1

3.7

5.7

9.5(6.9)-6.8％

Profit attributableto owners of theparent

3.4

3.4

6.9

1.7

2.5

4.3(2.6)-37.8％(47.71)-37.8％Net sales
Operating profit(Operating margin)

Net income pershare (yen)126.20

78.49

ROE

16.1%

9.6%

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

8(6.6)

Segment Earnings Forecast (Consolidated)[Digital Entertainment](Billion yen)
FY03/22 Results

1H

Net sales◆◆FY

YoY (%)2H
FY(Forecast) (Forecast)

1H

1H

2H

FY

21.3

19.1

40.5

21.9

24.046.0+2.4%+25.9%+13.5%

4.1

3.6

7.7

2.7

3.7

6.5

-33.5%+3.6%-16.2%(19.4%)(18.9%)(19.1%)(12.6%)(15.5%)(14.1%)

Operating profit(Operating margin)

2H

FY03/23

Revised forecasts for sales (+1.0 billion) and operating profit (-0.5 billion) based on to continued strengtheningof marketing initiatives
We plan to increase sales and operating profit in 2H (vs. previous year), aiming for record-high quarterly sales andprofit in Q4[Business Solution](Billion yen)
FY03/22 Results
1HNet sales
Health ITOperating profit(Operating margin)◆2H

FY03/23FY

YoY (%)

2HFY(Forecast) (Forecast)

1H

1H

2H

FY

11.0

12.9

24.0

11.1

13.8

25.0

＋0.6%

＋6.7%

+3.9%

4.4

5.8

10.2

4.3

6.1

10.5

-2.8%

＋5.6%

+2.0%

0.8

1.4

2.3

0.9

2.0

3.0

+12.7%＋38.0%+28.8%(7.7%)(11.4%)(9.7%)(8.6%)(14.7%)(12.0%)

While corporate sales remained steady, we revised sales (-1.0 billion yen) and operating profit (-0.5 billion yen)
due to delays in the start-up period of the hospital business, etc.

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

9Shareholder Returns
Annual dividends per share(Yen)50

50

10 YenCommemorative
Dividend50
5 Yen
Commemorative
Dividend◆ Year-end dividend (increased)

40

40

37

31

27

30

20

2 Yen
Commemorative
Dividend20

27 yen

Revised forecast

32 yen(40th anniversary commemorative divided: 5 yen)27

22

Initial forecast

2721◆ Dividend payout ratio

15101810

10

FY03/20

FY03/21

135

Initial forecast

35.2%

Revised forecast

63.7%

0
FY03/19InterimNet incomeper share (yen)87.46

101.32

FY03/22

FY03/23
FY03/23(Forecast)Year-End114.61

126.2078.49*Dividends per share and net income per share reflect stock split performed on March 1, 2019
Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

10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 December 31, 2022. 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.
Copyright © 2023 INFOCOM CORPORATION. All rights reserved.