INFOCOM CORPORATION

Financial Results Briefing
for FY03/2024

April 25th, 2024 Security code： 4348
Copyright © 2024 INFOCOM CORPORATION. All rights reserved.

AgendaFinancial Results for FY03/24
Earnings Forecast for FY03/25
Initiatives in Key Businesses

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2

Financial Results for FY03/24

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3

FY03/24 Financial Results

FY03/24
Consolidated Earnings Results⚫ Strong e-comics and healthcare performance led toincrease in sales and profit⚫ M&A transactions for business related to hospitals

Net sales

Operating profit

Profit attributable toowners of the parent¥84.4 billion¥9.7 billion¥6.6 billion+20.1% YoY+14.8% YoY+85.0% YoY

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4

Management Performance（Billion yen）

Net sales

FY03/2370.3

FY03/24

YoY
Change

%

84.4

+14.1

+20.1％+1.2+14.8％

8.5

9.7（12.1％）（11.6％）EBITDA

9.5

11.0

+1.4

+15.6％

Ordinary profit

8.5

9.8

+1.2

+15.1％

Profit attributable toowners of the parent*

3.5

6.6

+3.0

+85.0％

65.20

120.50+55.30+84.8％

8.0%

14.1%

+6.1pt-Operating profit(Operating margin)

Net income
per share (yen)ROE* In FY03/23, extraordinary loss (2.2 billion yen) was recorded for impairment loss on goodwill related to consolidated subsidiaries and loss on valuation of investment securities.

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5

Segment Structure

FY03/24 Result

Digital Entertainment

Business Solution

E-comic

Health IT

E-Comic Distribution Service

Package services
for medical institutions

32%

Business Software
Net sales ratio

68%

ERP
Cloud services
Business package

Enterprise Service
Management
System integration
for major companies

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6

Digital Entertainment Results
Increased activity for pay-as-you-go courses
Hit titles led to increase in sales and profit
Net sales

Operating profit(Billion yen)(Billion yen)

+10.8

+1.5

(+23.5%)(+24.9%)

57.1
46.2

FY03/23

7.5
6.0

FY03/24

FY03/23

FY03/24

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E-Comic Business Results(Billion yen)

Change inAdvertising Strategy

Net sales

Start of Pay-asYou-Go Course
50

15.0
150
49.8

125

49.6

49.4

100

49.2

75

Progress according to plan;maintaining growth vector

49
50
48.8

25

48.6

0

48.4

Q1

Q2

Q3

FY03/21

Q4

Q1

Q2

Q3

FY03/22

Q4

Q1

Q2

Q3

FY03/23

Q4

Q1

Q2

Q3

Q4

FY03/24
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8

Business Solution Results
Sales increase due to firm performance in products and services for hospitals and M&A
Decrease in profit due to sales composition differences and up-front investments to create services

Net sales(Billion yen)

Operating profit

Health IT(Billion yen)

+3.2

-0.1

(+13.4%)(-6.8%)

27.3

24.0

2.4

2.3

FY03/23

FY03/24+3.1（+32.2％）9.8
FY03/232022年度13.0

FY03/24
2023年度Copyright © 2024 INFOCOM CORPORATION. All rights reserved.

9

Investments
Business
Development(Billion yen)

6.4

M&A

0.5

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

Investments and business alliances• E-Comic (capital and business alliance with Korean startup BeRapt)• 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)

4.0

2.7

E-Comic (linked web and app ID, functional improvements, etc.)

0.4
CapitalInvestment

0.9

1.2

New business planning, research, etc.

Health IT (development of mProbe for regional medical collaboration,
development of CWS for nursing care, etc.)
GRANDIT miraimil function improvements
Other (existing services)

1.6

0.1

0.2

FY03/23

FY03/24

R&D
Investment

AI, new technology research, etc.

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10Balance Sheets（Billion yen）

FY03/23

FY03/24

YoY

Major Change Factors

Current assets

49.1

53.0

+3.8

• Cash and deposits

Fixed assets

11.1

14.3

+3.1

• Investment securities, Goodwill

60.2

67.3

+7.0

14.6

17.4

+2.7

Non-current
liabilities

0.4

0.7

+0.2

Total liabilities

15.0

18.1

+3.0

Total net assets

45.1

49.1

+3.9

Total liabilities andnet assets

60.2

67.3

+7.0

74.3%

72.4%

-

Total assets
Current liabilities

Shareholders’equity ratio• Accounts payable – trade,
Income taxes payable• Retained earnings

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11

Cash Flows(Billion yen)

FY03/23

FY03/24

Operating CF

8.1

9.1

+1.0

Investing CF

(1.2)

(3.9)

-2.7

6.9

5.2

-1.6

(3.0)

(2.9)

+0.1

FCF

Financing CF
Effects of exchange ratechanges on cash and cash
equivalents

0.0

0.0

-0.0

Change in cash and cash
equivalents

3.8

2.3

-1.5

Cash and cash equivalents,
beginning of period

31.7

35.5

+3.8

Cash and cash equivalents,
end of quarter

35.5

37.8

• Profit before income taxes• Depreciation

YoY

+2.3

• Outlays for purchases of stock in subsidiaries• Purchase of intangible assets• Purchase of investment securities(Billion yen)

+9.1
• Dividends

-3.9
35.5

Beginning
FY03/24

37.8-2.9

OperatingCF

Cash and Equivalents

InvestingCF

Financing
CFEnd
FY03/24

Cash and Equivalents

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12

Earnings Forecast for FY03/25

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13

Earnings Forecast for FY03/25

FY03/24 Results(Billion yen)

Net sales

FY03/25 Forecast

Difference

1H

2H

FY

1H

2H

FY

Change

%

40.0

44.4

84.4

44.5

49.5

94.0

+9.5

+11.3％+1.2+12.4％

4.1

5.6

9.7

4.3

6.7

11.0

（10.4％）（12.6％）（11.6％）（9.7％）（13.5％）（11.7％）EBITDA

4.7

6.3

11.0

5.1

7.5

12.6

+1.5 +13.6％

Ordinary profit

4.2

5.6

9.8

4.3

6.7

11.0

+1.1

+11.2％

Profit attributable toowners of theparent

2.8

3.7

6.6

2.9

4.4

7.3

+0.6

+10.4％

Operating profit(Operating margin)

Net income per share(yen)

120.50133.09+12.59 +10.4％

ROE

14.1%

14.3%

+0.1pt-Copyright © 2024 INFOCOM CORPORATION. All rights reserved.

14

Digital Entertainment Earnings Forecast
Aim for continued double-digit growth outperforming market forecasts

Net sales(Billion yen)

Operating profit(Billion yen)

+7.8

+0.9
(+12.6％)(+13.8%)

65.0

8.5

57.1
7.5

FY03/24

FY03/25(Reference) Market forecast for the fiscal year 2024: YoY increase of +7.0%
Source: Impress Corporation E-book Business Research Report 2023

FY03/24

FY03/25
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15

Business Solution Earnings Forecast
Steady growth, mainly in Health IT

Net sales(Billion yen)

Operating profit

Health IT(Billion yen)

+1.6

+0.1

(+6.1%)(+7.9%)

29.0

27.3

2.3

2.5

+1.4
(+10.9%)

13.0

14.5

FY03/24
2023年度

FY03/25
2024年度

FY03/24

FY03/25
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16

Investment Plan

(Billion yen)

2.3
0.5

Business
Development

1.8

New business planning, research, etc.

E-Comic

0.2
CapitalInvestment

1.6

Other (to evolve into a services-oriented business)

1.5
R&D
Investment

0.2

0.1

FY03/24

FY03/25(Forecast)

Health IT

AI, new technology research, etc.

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17

Shareholder Returns
Strive for stable dividends and aim to maintain a dividend payout ratio of 30%

Dividends

FY03/25 Forecast

Annual Dividends Per Share（Yen）

Annual Dividends
Per Share

InterimYear-End

Commemorative Dividend

50

¥45

31
21

37
27

10

Dividend
payout ratio

Shareholder
Benefits

5

45

27

27

18

18

45

27

Dividend payout ratio

33.8%

50

10

10

13

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24

FY03/25(Forecast)

30.6%

32.3%

39.6%

76.7%

37.3%

33.8%

We plan to provide shareholder benefits to shareholders owning at least one trading unit per theregister of shareholders as of September 30, 2024
Copyright © 2024 INFOCOM CORPORATION. All rights reserved.

18

Initiatives in Key Businesses
E-comic

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19

E-Comic Initiatives

Net sales
1

Profitable Growth in the Domestic
Distribution Business⚫

Increase customer satisfaction through improved UX⚫

Encourage pay-as-you-go member service usage⚫

Strengthen content through a diverse range of titles(Billion yen)
70

Net sales

60

50

2

Market Growth (Overseas Expansion)⚫

Strengthen content of Peanutoon business in Korea⚫

Put U.S. distribution business on growth trajectory

40

30

20

3

Business Field Expansion
10⚫

IP development⚫

Investigate opportunities (M&A, etc.) in adjacent sectors

0FY03/18

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24

FY03/25(Forecast)

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20

Profitable growth in the domestic
1 distribution business

E-Comic Initiatives⚫ Increase customer satisfaction through improved UX‒ Increase usage further through improved UX (page support, web/app linkage, etc.) for encourage retention and usage.

Page Support (Reading Methods)

Link Web/App

WEB

App

Share
bookshelves

タップ読み

ページ読み
スクロール読み

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21

E-Comic Initiatives

Profitable growth in the domestic
1 distribution business⚫ Encourage pay-as-you-go member service usage‒ Encourage pay-as-you-go members to use site, capturing follow-on purchases

Encourage Site Visits

Quest Function

Quest Function

Foster Habitual Site Visits

Gift Certificate Function

Encourage return
visits throughincentives

Use free daily
serialized titles toencourage visits

Push Policy

Expand selection of freedaily serialized titles

Push works andgiveaways on LINEand in newsletters

Mecha Comic Pay-As-You-Go
Membership Sales

Gift Certificate
Function

Foster habitual use ofservices
Points for site visits
Incentives for site
visits
FY03/23 FY03/24 FY03/24 FY03/24 FY03/24
Q4
Q1
Q2
Q3
Q4

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22

E-Comic Initiatives

Profitable growth in the domestic
1 distribution business⚫ Extensive lineup of differentiated content

Romance
Original First-Run

Fantasy
Original First-Run

WebtoonOriginal

Itsuwari no Ai

Migawari no Kekkon

Oak no Ki no Shita

Keita Kanamori / Riko
Ueno

Reigu Sareta Imouto wa
Amai Jouai wo Ukeru

Seomal namu P Kim Suji

Kiki Harumura

2 Yrs.
Mecha Comic
Annual Ranking

Mecha Comic
Annual Ranking

No.1 Overall

No.5 Overall

TP/Tae Suzushiro

Record-Breaking
Month
10M Downloads
Distributed Across
170 Countries

Mecha Comic
Annual Ranking

No.10 Overall

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

Ruko Miyama

No.4 Overall

Mystery

Original
Giso Kareshi ni Ai
SareteShimaimashita

Mecha Comic
Annual Ranking

Fukushuu wa Rikonno Ato deOriginal

Original

Oboro noHanayome

Kokumin Botan

Karisome no Konyaku
ha, Aoku, Amaku

Daishiro Suzuki
Fuuka Kusunoki

Taki Inase/Michifumu
Mecha Comic
Annual Ranking

No.7 Overall

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23

E-Comic Initiatives

2

Market Growth(Overseas Expansion)⚫ Strengthen content of Peanutoon business in Korea‒ Intensifying competition for content in the Korean market‒ Decrease in sales year on year due to lack of hit titles‒ Recover growth trajectory through original titles and improved advertising effectivenessStrengthen the Peanutoon Production
Structure Through Capital Alliances

Overseas Business Sales(Millions of Yen)

Strengthen Relationships With
Artist and Artist Communities

1,400

Entered into a capital and business alliance with Be Rapt,
operator of a fan community for webtoon artists

1,200

1,000

Strengthen Relationships With
Production Companies

800

Entered into capital and business alliancewith CRACK Entertainment, a webtoon
production company

600

400

200

Secure outstanding artists
Strengthen original titles

Enter into more coproductions with leading
production companies

0

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24

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24

E-Comic Initiatives

3 Business Field Expansion⚫ Locate and nurture artists (Mecha Comic Creators)

No. of registered artists 1,300‒ Search for aspiring manga artists to debut on Mecha Comic and provide support to locate and nurture these artists

Joint planning

Publishing

Selection

Debut

A variety of monthly contests,
inviting a wide range ofartwork submissions

Easily submit work from PC,
smartphone, or tablet

Selections made by Amutus
Corporation editorial department.
Selected works supported
by our company, aiming
for an eventual debut.

Became a paid serialized artists
within Mecha Comic

24 times/year

1,312 works/year

Total 2,733 works⚫ Debut works: 11 in preparation for debut

15 Works
Debut

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25

Mecha Comic

User Attributes
Male:Female = 2:8 Mainly Women Aged 30s to 40s

General comics at 70%

Other
1%

Male

Female

20s

20s

30s
40s
50s

User Ratio
By Age

60s +

30s
40s
50s

Shounen/Seinen
29%

DL Ratio
By Genre

60s +Shoujo/Josei

70%*Total for web services only (excluding apps)
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26

Initiatives in Key Businesses
Health IT

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27

Health IT Initiatives

Medical1

Business for large-scale hospitals

1
Department Support

Smooth rollout to new version of radiology system⚫

AI-based support functions included standard in
products

2
⚫

⚫

⚫

3

New businesses for hospitals
Extend on a group-wide basis into products andservices for small- and medium-sized hospitals

Pharmaceutical
Sales Support

Radiology, Pharmaceutical,
Surgery, Nursing, Clinical
Information

Domestic⚫

Nursing2

Bolster Care Staff Management (CWS) for physician
work-style reform

M&A
2021

Large
Hospitals

2023

Medium-Sized
Hospitals

Hospital CWS(Staff Management
System)mProbeNew service: mProbe cloud for regional medical
collaboration

Small Hospitals

Cloud
Service

CWS for Nursing
Care Companies(Staff Management)

Overseas expansion
Expand the number of foreign national nursing
care workers⚫

Advance Asia Healthcare ProjectOverseas

3⚫

Indonesia

Drug Information
Clinical Information
Radiology

Singapore

Malaysia

Career Change
Support forOverseas
Professionals

Southeast Asia

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28

Health IT Initiatives

1 Business for large-scale hospitals

2 New businesses for hospitals⚫ Extend market share through three-party collaboration with Infocom, J-MAC SYSTEM, and Medical Create⚫ Began shipping Ver. 10 of our cloud-based radiology information system⚫ Planning to provide AI functions as a standard feature in Image Inspection System in July 2024

Infocom GroupRadiology Information
System Market Share

Company
B
16%⚫ Support doctor’s radiographic image interpretation of chest

radiography images using AI processing

Other
17%

CompanyC
8%Image Inspection System (iRad-QA)

CompanyA
31%

New Function Concept

RIS
Installations
1,794 Facilities
Infocom Group

28%*Source: 2023 Edition: Future Outlook of the Medical Information Systems (EMR/HER) Market,
Yano Research Institute

Photographic
Equipment

Automated image processing to reduce ribcage shadows‒ Automated AI measurement of the maximum heart and rib cage width tocalculate the cardiothoracic ratio (CTR)‒ Future functional enhancements planned

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29

Health IT Initiatives

2 New businesses for hospitals⚫ Expand services to meet the needs of hospitals and provide of new services to meet the needs ofregional hospital collaboration
Grow Sales Care Staff Management (CWS) System

Launch of mProbe cloud for regional medical collaboration⚫ Apply functions for shift management and staff

management systems to work management for physicians

Clinics

Hospitals⚫ Market expansion triggered by physician work-style

Electronic
medicalrecords

SystemsreformClinical information
integration system

Employment Management System Sales

Patient
referrals

Public data

Enhancefunctions forphysician work
management

Non-public data

‒ Clinic information‒ Hospital information‒ Location, etc.

‒ Referral data, etc.

Help hospitals solve management issues–––

FY03/22

FY03/23

FY03/24

Improve hospital profitability
Improve bed occupancy rate
Provide appropriate medical care to patients

FY03/25(Forecast)

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30

Health IT Initiatives

3 Overseas expansion⚫ Expand Foreign National Nursing Care

⚫ Advance Asia Healthcare Project

Staffing Service‒ Growth of Staffplus foreign national nursing carestaffing business‒ Staffing of highly qualified and educated nursing care
workers from overseas and detailed online training
and lifestyle support services‒ Focus on Indonesia, which is advancing digital medicine
as a national strategy‒ Cooperated with local partners to launch sales of a
medical imaging system followed by a drug information
systemNo. of Specified Skilled Foreign Nursing Care
Workers and Cumulative Orders Received

Orders Up by MoreThan 4x vs FY03/23

Cloud-based Clinic
Management System (CMS)
used in over 2,000 clinics inIndonesia

Localizing Japanese DICS
(drug information system) for
use in Indonesia

The Klink Pintar CMS incorporates our drug information system,
used in over 500 clinics

FY03/23Q4

FY03/24Q1

FY03/24Q2

FY03/24Q3

FY03/24
Q4

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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 March 31, 2024. 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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