(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 First Quarter of the Fiscal Year Ending March
31, 2020 [Japanese GAAP]
July 30, 2019
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: August 7, 2019
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(Amounts less than one million yen are rounded down)

1. Consolidated Business Results for the First Quarter of the Fiscal Year Ending March 31, 2020 (April 1, 2019 to June 30, 2019)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year increases.)

Net sales
Three months ended
June 30, 2019
June 30, 2018

Operating profit

Million yen%

12,687
10,464

Profit attributableto owners of parent

Ordinary profit

Million yen%

Million yen%

Million yen

%

1,240
677

83.1
3.9

1,268
720

76.1
6.3

859
479

79.4
11.4

21.2
5.2

(Note) Comprehensive income: First quarter of the fiscal year ending March 31, 2020 : ¥109 million (-84.7%); First quarter of the fiscal year ended March 31, 2019:¥718 million (105.3%)

Earnings per share
Three months ended
June 30, 2019
June 30, 2018

Diluted earnings per share

Yen
15.71
8.76

Yen
15.64
8.72

Infocom Corporation conducted a two-for-one stock split effective March 1, 2019.Beginning balances for net income per share and diluted net income pershare in the previous consolidated fiscal year have been adjusted assuming this stock split.

(2) Consolidated financial position
Total assets
As ofJune 30, 2019
March 31, 2019

Net assets

Shareholders’ equity ratio

Million yen

Million yen%

41,98943,64932,14332,70775.6
74.6(Reference) Shareholders’ equity: First quarter of the fiscal year ending March 31, 2020: ¥31,734 million; First quarter of the fiscal year
ended March 31, 2019: ¥32,547 million

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

Fiscal year ended March 31, 2019
Fiscal year ending March 31, 2020

Fiscal year ending
March 31, 2020 (forecast)(Note) Adjustment for the most recent forecasts of dividends: None

End-Q3Year-end

Annual

Yen
10.00

Yen
－

Yen
17.00

Yen
－

10.00

－

19.00

29.00

Infocom Corporation conducted a two-for-one stock split effective March 1, 2019. Dividends per share for the fiscal year ended March 31, 2019 reflect the impact of
this stock split, presented here as － under the annual total. When calculated based on post-split standards, dividends per share for the fiscal year ended March 31,
2019 amounted to ¥22 per share.

3. Forecast of Consolidated Business Results for the Fiscal Year Ending March 31, 2020
(Percent figures indicate the rate of changes from the previous fiscal year)

Net sales
Million yen

Operating profit%

Million yen

For the six months ending
27,00016.7
3,300
September 30 2019
Full-year
57,00010.2
7,800(Note) Adjustment for the most recent forecasts of dividends: Yes

Profit attributable toEarnings per shareowners of the parent

Ordinary profit%

Million yen%

Million yen

%

Yen

27.1

3,300

26.1

2,250

19.8

41.14

13.2

7,800

13.5

5,200

8.7

95.07

See Announcement Concerning Revisions to Earning Forecasts (Japanese only), published on July 30, 2019, for more concerning consolidated earnings forecasts.
.* 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 4 of the attached materials.

1. Qualitative information on the results for the current quarter(1) Overview of business results
Despite a rebound in consumer spending in Japan’s economy during the consolidated first quarter, concerns about the impact of
global trade friction have resulted in ongoing uncertainties about the future direction of the world economy.
Overall IT-related market demand was be robust throughout the period. Factors included the accelerating use of cloud services
via smartphones, tablets, and other mobile devices; expanding business applications for the internet of things (IoT), artificial
intelligence (AI), and other technologies; and the use of robotic process automation (RPA) to achieve the type of work-stylereforms promoted by the Japanese government.
The e-book market continued to grow as smartphone-based reading has become more popular, broadening the e-book user base.
In this operating environment, the Infocom Group’s medium-term management plan (April 2016 to March 2020) emphasized
two fundamental policies: pursue growth and continue strengthening the management foundation to support growth. To thisend, we have identified e-comics and healthcare as priority businesses. In these areas, we proactively pursued M&A andsought to develop businesses leveraging AI and IoT.
As a result, during the three months ended June 30, 2019, the Infocom Group generated net sales of ¥12,687 million, up 21.2%
year on year. Operating profit rose 83.1%, to ¥1,240 million; ordinary profit grew 76.1%, to ¥1,268 million; and net income
attributable to owners of parent increased 79.4%, to ¥859 million.
The Group’s sales and profit tend to be relatively low in the first and third quarters of the fiscal year, but be concentrated on the
fourth quarter. This trend stems from the concentration of deliveries of products and services for companies and hospitals in
March, at fiscal year-end.

(i) Business Solution Group
During the consolidated first quarter, our Business Solution Group recorded sales of ¥4,863 million (+8.9% year on year),driven by steady performance in IT services for hospitals. Operating profit amounted to ¥168 million, compared to a ¥282
million operating loss in the same period of the previous fiscal year.
Our Health IT subsegment reported growth in sales of employment management systems, which support efforts to comply withwork-style reform and are effective in managing complicated work schedules in hospitals. In the community-based
comprehensive care field, we began offering an appointment management service customized for short-stay* treatment offices.
Also, we made Staffplus (career change support service) a consolidated subsidiary to improve the matching accuracy of ourCarestyle career change support service for care workers.
In corporate IT services, we improved our MyQuick document management system, providing links to electronic contract
services, adding compatibility with AI-based automated input, and otherwise making the system more efficient.
*Short-stay: Patient enters the facility and receives nursing/support services over a short period of time.

(ii) Digital Entertainment Group
Segment sales were ¥7,823 million (+30.4% year on year), supported by strong performance in our e-comics distribution business.
Operating profit amounted to ¥1,069 million (+11.7%), as we absorbed cost increases related to investments in advertising,overseas expansion, and data analysis.
As part of bolstering advertising for this service, we ran our first-ever TV commercials in June and bought seat advertising in the
Meiji Jingu Stadium (baseball stadium). In addition, we sponsored a second edition of the Meccha Bookstore, featuring popular
Meccha Comics products for sale at physical bookstores. As part of our overseas expansion, we made Korean e-comic distributor
Peanutoon a consolidated subsidiary. Further, we announced a new company formed through a joint investment between Amutus
Corp. and Papyless Co., Ltd. to conduct business overseas.

(2) Explanation of financial condition(i) Consolidated financial condition
Total assets decreased ¥1,660 million compared with the end of the previous consolidated fiscal year, to ¥41,989 million due toa decrease in notes and accounts receivable. Total liabilities fell ¥1,095 million, to ¥9,846 million due to declines in provision
for bonuses and income taxes payable. Net assets were down ¥564 million, compared with the end of the previous
consolidated fiscal year, to ¥32,143 million.
Because of the above, the equity ratio rose to 75.6% from 74.6% at the end of the previous consolidated fiscal year.
(ii) Consolidated cash flow
Cash and cash equivalents as of June 30, 2019, amounted to ¥19,980 million, down ¥196 million from the end of the previous
consolidated fiscal year.
[Cash flows from operating activities]
Net cash provided by operating activities amounted to ¥2,069million (¥1,242 million in the same quarter of the previous fiscal
year). Principal sources of cash were profit before income taxes of ¥1,271 million (¥720 million) and a decrease in notes andaccounts receivable of ¥2,763 million (¥3,268 million). The reason for this decline was a ¥789 million decrease in provision(¥769 million) and income taxes paid of ¥1,775 million (¥1,682 million).
[Cash flow from investing activities]
Net cash used in investing activities amounted to ¥1,321 million (compared to ¥551 million in the same quarter of the previous
fiscal year). This result was mainly due to cash outlays of ¥151 million in acquisition of software and other intangible fixed
assets (versus ¥164 million in the year-ago period) and outlays of ¥1,092 million stemming from the acquisition of subsidiarystock in connection with a change in the scope of consolidation (no such outlays in the year-ago period).
[Cash flows from financing activities]
Net cash used in financing activities amounted to ¥940 million (¥781 million in the same quarter of previous fiscal year),mainly due to cash dividends paid of ¥929 million (¥765 million).

(3) Explanation of consolidated earnings forecasts and other forward-looking information
Given our performance for the consolidated first quarter and recent performance trends, we have made an upward revision to
the consolidated earnings forecasts for the cumulative consolidated second quarter announced originally on April 25, 2019.
While we project strong performance in our core businesses (health IT and e-comics), many uncertainties exist as present.
Accordingly, we have not made changes to the consolidated fiscal year earnings forecast announced originally on April 25,
2019. For more information, see “Notice on Revision to Earnings Forecasts,” published on July 30, 2019.
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.

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: million yen)
As of March 31, 2019
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

As of June 30, 201920,173
10,576
558
1,142
(4)
32,445

19,976
7,861
953
1,641
(4)
30,428

892

855

1,700
－
38
1,738

1,652
1,372
38
3,063

8,697
(124)
8,573
11,204
43,649

7,719
(77)
7,642
11,561
41,989

4,159
1,472
1,222
170
3,620
10,645

3,868
325
452
164
4,848
9,659

－
296
296
10,941

8
177
186
9,846

1,590
1,447
28,833(816)
31,054

1,590
1,452
28,763(810)
30,995

1,549
1
(58)
1,492
157
2
32,70743,649

792
0
(52)
739
186
222
32,143
41,989

(2)Quarterly consolidated statement of income and comprehensive income
Quarterly Consolidated Statements of Income
First Quarter(Unit: million yen)
For the three months ended
June 30, 2018
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
methodOther
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
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

For the three months ended
June 30, 201910,464
5,619
4,845
4,168
677

12,687
6,587
6,099
4,859
1,240

56

43

4

1

0
60

2
47

0
0
15
0
17
720

0
0
18
0
18
1,268

－
－
－

2
0
2

0
0
720
241
478
(0)
479

0
0
1,271
411
859
(0)
859

Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
First Quarter(Unit: million yen)
For the three months ended
June 30, 2018
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

For the three months ended
June 30, 2019

478

859

299
1
(61)
239
718

(756)
(1)
8
(749)
109

719

106

(0)

3

(3) Quarterly Consolidated Statements of Cash Flow
(Unit: Million yen)
For the three months ended
June 30, 2018
Cash flows from operating activities
Profit before income taxes
Depreciation
Share-based remuneration expenses
Increase (decrease) in provisionInterest and dividend income
Interest expenses
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

For the three months ended
June 30, 2019

720
259
29
(769)
(56)
0
－
3,268
(491)
(337)
246
2,869
55
(0)
(1,682)
1,242

1,271
277
40
(789)
(43)
0
(2)
2,763
(395)
(288)
970
3,803
42
(0)
(1,775)
2,069

(137)
(164)
(279)
30

(20)
(151)
(64)
5

－

(1,092)

(0)
(551)

2
(1,321)

(15)
(765)
(0)
(781)

(10)
(929)
0
(940)

1

(5)

(88)
16,630
16,541(196)
20,177
19,980(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. Three months ended June 30, 2018
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

4,466

5,997

10,464－

10,464

Intersegment sales or transfers

21

0

22

(22)

－

Total

4,488

5,998

10,487(22)

10,464

Segment profit(loss)

(282)

957

674

2

677

Net sales(Notes)1. The ¥2 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. Three months ended June 30, 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

Sales to external customers

4,863

7,823

12,687－

12,687

Intersegment sales or transfers

24

0

24

(24)

－

Total

4,887

7,823

12,711(24)

12,687

168

1,069

1,237

2

1,240

Net sales

Segment profit(Notes)1. The ¥2 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.