(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, 2021 [Japanese GAAP]
July 31, 2020
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, 2020
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, 2021 (April 1, 2020 to June 30, 2020)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year increases.)

Net sales
Three months ended
June 30, 2020
June 30, 2019

Operating profit

Million yen%

15,58912,687

Profit attributableto owners of parent

Ordinary profit

Million yen%

Million yen%

Million yen%

2,091
1,240

68.6
83.1

2,126
1,268

67.6
76.1

1,441
859

67.7
79.4

22.9
21.2

(Note) Comprehensive income: First quarter of the fiscal year ending March 31, 2021 : ¥2,008 million (-%); First quarter of the fiscal year ended March 31, 2020:¥109 million (-84.7%)

Earnings per share
Three months ended
June 30, 2020
June 30, 2019

Diluted earnings per share

Yen
26.33
15.71

Yen
26.22
15.64

(2) Consolidated financial position
Total assets
As ofJune 30, 2020
March 31, 2020

Net assets

Shareholders’ equity ratio

Million yen

Million yen%

48,33448,08737,06936,15975.9
74.4(Reference) Shareholders’ equity: First quarter of the fiscal year ending March 31, 2021: ¥36,669 million; 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

Fiscal year ending
March 31, 2021 (forecast)(Note) Adjustment for the most recent forecasts of dividends: None

End-Q3Year-end

AnnualYen
10.00

Yen－Yen
21.00

Yen
31.00

10.00

－21.0031.00

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

For the six months ending
32,00015.6
4,200
September 30 2020
Full-year
69,00018.2
10,100(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

8.7

4,200

8.3

2,700

4.849.33

23.0

10,100

22.2

6,600

19.1

120.58See Announcement Concerning Revisions to Earning Forecasts (Japanese version only), published on July 31, 2020, 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 financialforecasts 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
During the first quarter of the current fiscal year, the Japanese economy was impacted severely by the global spread of COVID19. We have seen signs of a moderate recovery with the resumption of economic activity subsequent to the cancellation of thedeclaration of a state of emergency. However, there are concerns about a prolonged economic stagnation, and the future outlook
remains 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, the start of new lifestyles in this newnormal, and voluntary restraints on non-essential travel outside the home.
In this operating environment, the Infocom Group medium-term management plan (April 2016 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 three months ended June 30, 2020, the Infocom Group generated net sales of ¥15,589 million, up 22.9%
year on year. Operating profit rose 68.6%, to ¥2,091 million; ordinary profit grew 67.6%, to ¥2,126 million; and net income
attributable to owners of parent increased 67.7%, to ¥1,441 million.

(i) Digital Entertainment Group
During the consolidated first quarter, our Digital Entertainment Group recorded sales of ¥10,603 million (+35.5% year on year),and operating profit of ¥1,931 million (+80.7%).
Our e-comic distribution service provided free series, exclusive first-run distributions, expanded original comic titles, andengaged in stronger marketing via data analysis and AI technology. In addition, we saw increased demand due to voluntary
restraints on non-essential travel outside the home. These factors resulted in the segment exceeding first quarter sales of ¥100
million for the first time since we launched this service.

(ii) Business Solution Group
During the consolidated first quarter, our Business Solution Group recorded sales of ¥4,986 million (+2.5% year on year), andoperating profit of ¥157 million(-6.6%).
Despite some challenges to our sales activities, the impact of COVID-19 was somewhat less than we expected initially. Sales tohospitals and existing corporate customers progress in line with plan.

(2) Explanation of financial condition
Total assets increased ¥247 million compared with the end of the previous consolidated fiscal year, to ¥48,334 million because
of increase in investments and other assets due to increase in valuation of securities. Total liabilities fell ¥662 million, to¥11,265 million due to declines in provision for bonuses and income taxes payable. Net assets were up ¥909 million,compared with the end of the previous consolidated fiscal year, to ¥37,069 million because of an increase in retained earnings
and an increase in valuation difference on available-for-sale securities.
Because of the above, the equity ratio rose to 75.9% from 74.4% at the end of the previous consolidated fiscal year.

(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 and the full-year consolidated forecasts
announced originally on April 27, 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.

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
OtherAllowance for doubtful accounts
Total current assetsNon-current assets
Property, plant and equipment
Intangible assets
SoftwareGoodwill
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 stockCapital 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, 2020

23,491
11,459
392
1,099
(6)
36,43623,80910,098
562
1,880
(7)
36,343

965

902

1,585
1,195
36
2,818

1,558
1,118
35
2,712

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

8,506
(131)
8,375
11,991
48,334

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

4,700
568
464
36
5,385
11,1568
114
123
11,92710
98
109
11,2651,590
1,456
32,900(805)35,1401,590
1,456
33,192(805)
35,432

740
0(94)
646
177
194
36,15948,0871,3810(145)
1,236
228
171
37,06948,334

(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, 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
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
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

For the three months ended
June 30, 2020

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

15,589
7,909
7,680
5,589
2,091

43

37

12－
2
47

00
41

0
0
18
0
18
1,268

0－
50
6
2,126

2
02－－－

0－－－
0
1,271
411
859(0)
859

03
1
0
5
2,121
692
1,428(12)1,441Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
First Quarter(Unit: million yen)
For the three months ended
June 30, 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 ofparent
Comprehensive income attributable to non-controllinginterests

For the three months ended
June 30, 2020

859

1,428(756)(1)
8(749)
109

641
(0)
(61)
579
2,008

106

2,0313(23)(3) Quarterly Consolidated Statements of Cash Flow
(Unit: Million yen)
For the three months ended
June 30, 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 (gain) on sales of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
OtherSubtotal
Interest 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 cashequivalents
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, 2020

1,271
277
40
－
(789)
(43)
0－
2,763
(395)
(288)
967
3,803
42(0)
(1,775)
2,069

2,121
228
50
50
(977)
(37)
0
3
1,358
(169)
138
540
3,307
41(0)
(1,696)
1,651

(20)
(151)
(64)
5(16)
(122)
－－

(1,092)－2(1,321)

(0)
(139)

(10)
(929)
0(940)(14)(1,149)(2)(1,166)

(5)

(27)

(196)
20,17719,980

318
23,491
23,809(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, 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

7,82312,687－

12,687

Intersegment sales or transfers

24024(24)－Total

4,887

7,823

12,711(24)12,687

Segment profit(loss)

168

1,069

1,237

2

1,240

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, 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

4,986

10,603

15,589－15,589Intersegment sales or transfers

33－

33

(33)

－

Total

5,019

10,603

15,623(33)

15,589

157

1,931

2,088

2

2,091

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.