Medium-Term Management Plan
2020-2022

INFOCOM CORPORATION
2020.06.04

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Contents
Prior Medium-Term
Management Plan Review
2017-2019

New Medium-Term
Management Plan
2020-2022
Our External Environment
Basic Policies
Earnings Targets
Value Co-Creation
Growth Strategies
Evolve Into a Services-Oriented Business

Growth Driver Strategies
E-comic
Heath IT

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Review

Prior Medium-Term Management Plan Review
2017-2019

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Earnings Targets vs. Actual Performance⚫ Essentially achieved targets, owing in part to significant growth in E-comic (core business)(Billion yen, %)FY03/20
TargetGrowthFY03/20
Results

Achievement
ratio(%)

Net sales

60.0～80.0

58.3

97.3

EBITDA（*１）

7.0～10.0

9.3

134.1

Ratio ofcore businesses

70%

74.4%

106.3

16.2%

162.2

30.6%

102.0

（*２）

Profitability

ROE

Shareholder
Returns

Payout ratio

10%
and over30%(*1) EBITDA = Operating income + depreciation and amortization(*2) Share of net sales represented by priority businesses (E-Comics, Health IT)
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

3

Basic Policies and Initiatives

Net sales（Billion yen）

60

１．Pursue Growth⚫ Pursue growth driven by e-comic and health IT businesses✓E-comics broke above ¥30 billion✓Health IT exceeded ¥10 billion⚫ Pursue M&A opportunities✓Convert Korean e-comics distribution business andnursing professional recruitment business to subsidiaries✓Continue large-scale M&A⚫ Develop businesses leveraging AI and IoT✓Use AI to build an advanced e-comic recommendation engine✓Use IoT for nursing care support, food temperature management
services

２． Continue to Build a Strong Foundation to Support Growth

4

Health IT

Operating profit（Billion yen）

12

11th Consecutive Yearof Revenue Growth
50

10

40

8

30

6

20

4

⚫ Strengthen quality control and use IT to improve service quality⚫ Generate efficiencies through business process reform and encourage
cooperative ventures with society
10✓ Offer a more robust telework environment and utilize RPA✓ Co-create with IT ventures through Digital Health Connect and GnB⚫ Strengthen human resource talents in business and technology✓Implement training programs to foster employee skills in data use and AI 0
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

E-comic
Operating profit

20
FY03/13 FY03/14 FY03/15 FY03/16 FY03/17 FY03/18 FY03/19 FY03/20

New Medium-Term Management Plan

New Plan
2020-2022

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Japanese IT Market

Our External Environment (＊Impact of COVID-19)⚫ While the cloud market is driving expansion, traditional IT businesses have contracted gradually and the market isundergoing a structural transition⚫ The shortage in IT personnel is expected to grow from 220,000 in 2018 to 450,000 by 2030
⚫ Acceleration in digital transformation (DX)*E-comic⚫ In addition to the digitalization of the paper-based market, we forecast the new comic app market, driven mainly by

younger readers, to grow an annual 11.9% (2020-2022)→We revised our expectation for even higher growth*⚫ Advancing alliances among distributors⚫ New lifestyles have created a new custom of reading comics online/via apps*

Heath IT⚫ The healthcare IT market continues to grow steadily; will online treatment and online medication counseling become a
new norm?*⚫ The healthcare IT market is growing rapidly in connection with greater needs for nursing care
→Shortage in nursing care providers (shortage of 430,000 by the year 2025)→Increase in unemployment will result in temporary shift of labor to the nursing care field*

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

6

E-Comic Market Forecast
New lifestyles likely to increase
the number of readers(Unit : Billion yen)464

App Market

CAGR

Web Market

11.9％

415
370
323

332

Infocom forecast• Increase in young readers• Growth in app market

350

308

281
239

CAGR

Impress forecast

6.6％

185
162

*Infocom compilation based on E-Book Business Survey Report 2019,
July 2019, Impress Corporation

128
102
73

FY03/14 FY03/15 FY03/16 FY03/17 FY03/18 FY03/19 FY03/20 FY03/21 FY03/22 FY03/23
Forecast Forecast Forecast

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

7

Basic Policies
SloganUnited Innovation Value Co-Creation
1.Pursue GrowthPursue growth driven by E-comic and Health IT businesses
Evolve into a services-oriented business
Pursue co-creation (M&A, overseas growth)

2.Continue to Build a Strong Foundation to Support Growth
Use IT to strengthen quality control and improve service quality
Advance through AI and data
Improve quality management
Encourage work-style reform
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

8

Earnings Targets
Aiming for High Growth and Profitability(Billion yen, %)FY03/23
TargetFY03/20
Results

Net Sales

85.0～115.0

58.3

EBITDA

13.0～16.0

9.3

Growth(*1)

Profitability

15.0%

ROE

and over(*1) EBITDA = Operating income + depreciation and amortization

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

9

16.2%

Value Co-Creation -An Ideal InfocomBecoming a services company that delivers new value
through the co-creation of ICT and real-world businesses
Real-world
businesses

ICT
Academic
Institutes

Value Co-Creation
Dealers

Crowd

HealthInfocom

General Companies
Hospitals

SafetyBig Data

IT
Ventures

End Customer

AI
Analytics

IT Companies

Entertainment

IoT
Convenience

Co-Creaton
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

10

Employees
Consumers

Growth Strategies
115.0
～85.0
(Unit : Billion yen)

1.Persue growth⚫ Sustained growth in core businesses

M&A• E-comic
Secure a solid position as an e-comics brand• Heath IT
Launch new services in the nursing care andhealth fields

60.0
58.3

E-comic

32.6⚫ Evolve into a services-oriented business

10.7
14.6
FY03/20
Results
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

• Increase services sales to 80% and overof total sales

15.0

Heath IT

15.0

⚫ M&A activities

SI, Service• Set a strategic investment budget of ¥30
billion

FY03/23
Target11

Evolve Into a Services-Oriented Business

Increase services sales to 80% and over of total sales
FY03/23

FY03/20

Ratio of Services Sales
Digital Entertainment
Group

About

Digital Entertainment
Group

Business Solution
Group

60%

About

58.3

80

90.0

(Unit : Billion yen)

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Business Solution
Group

12

%

Growth Driver Strategies

Strategy
E-comic

Health IT

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Growth Driver Strategies [E-comic]
Aiming for CAGR in excess of 20%, outperforming market growth
Net sales （Billion yen）

70

1. Maximize Mecha Comic Income•••

Expand offerings of original comics
Use data analysis and AI to strengthen marketing
Strengthen initial exclusive distributions

50

42.7
40

2. Build infrastructure for business expansion
•
•
•

32.6
30

Complete redesign for mobile app
Shift delivery system completely to the cloud
5G compatibility

20
10

3. Open new markets••

0Overseas expansion
M&A

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

60.0

60

FY03/17 FY03/18 FY03/19 FY03/20 FY03/21 FY03/22 FY03/23
TargetForecast
14

Growth Driver Strategies [E-comic]
１． Expand offerings of original comics

Cumulative Titles
Surpass

2009

2016

Service
LaunchData
Analysis

2018

2019

1,000 titles

2020

2021

2022

⚫ Improve quality and volume throughstronger production system⚫ Expand sales channels for hit titles(repurpose as dramas, overseas
markets)
RISKY ranked No.2 for the year,
owing to data analysis at theplanning stages

Aoshima Kun ha ijiwaru iscurrent best-seller

２． Complete redesign for mobile app[FY03/21 Initiatives]⚫ Capture younger user segment⚫ Complete redesign⚫ Strengthen promotions
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

⚫ Grow income in the app market
15⚫ Support products
through AI(medium-, long-term)Growth Driver Strategies [E-comic]
３． Initial exclusive distributions⚫ Capture customers through initial exclusive distributions
Only available through Mecha Comic → Capture readers⚫ Expand titles on offer[Initial Exclusives

No. of Titles]

2500[Initial Exclusive Distribiution Mechanism]

2000

Newest titles
exclusive distribution

Begin distribution via
other e-comic services
1500

Start comic series[独占先行配信
提供作品数]
Sell
stand-alone comics
1000⚫ Create new content with publishers
500

Co-create content with 50-plus publishers, working mainly with major firms
Advantages of initial exclusives for publishers

0

FY03/17 FY03/18 FY03/19 FY03/20 FY03/21• Advanced promotions ensure awareness for satisfactorysales for initial stand-alone product• Demand leads to sales through other e-comic services• Online strategy can be changed based on reception
during initial exclusive
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

• Offered interesting titles across a wide range of genres tosurpass 1,000 titles in the two years after launch in FY03/17• Continuing to expand offerings of titles from major publishers
16

Growth Driver Strategies [Health IT]
New Fields

２． Overseas expansion

care-related fields

Expand career change support,
IT! for Nursing Care,employee management systems

４． Introduce online services
・Online sales support for MR
・Online medical treatment Other
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Overseas

Remote Field

Radiology
Drug Information
Clinical Information
Nursing Management
Surgery Management
Hospital Staff
Management（CWS)

User

Existing Fields

Employer

３． Expand businesses in nursing

Domestic

Roll out systems for hospitals in Southeast
Asia Launch new services

Employee

Employer

Launch corporate and individual healthrelated services

IT! For Nursing Care
Care Record
Care Staff
Management（CWS)

Drug Information
Clinical Information
Radiology
17

Health Diagnosis
Health Analysis

Career Change
Support
Digital Health Connect✓ Solast✓ SOMPO
etc

Asia Healthcare

HealthPharmaceutical

Sales Support

Hospital

Online sales support for MR

１．Launch business in health-related fields

Focus Businesses

Nursing

MedicalPersonal HealthServiceGrowth Driver Strategies [Health IT] Launch Business in Health-Related Fields
Introduced WELSA, Corporate Health Management Service
Integrated employee health management that also provides analyses, forecasts, andsuggested solutions related employee health risks and lifestyle-related diseases, etc.
⇒ Aiming for 500 companies and 500,000 individuals within three years of launch
Health IT
Platform

WELSA
mobile app

１．Data collection•••

Medical checkups
Stress checks
Attendance

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Medicalexam data

HealthsurveyStresschecksSteps,
sleep data

２．Analysis, Prediction• Health management
reports• Stress checks, group
analysis report• Disease risk projections

18⚫ App allows individuals to take their information
with them, allowing lifetime service

３．Measures• Health seminars, programs-Sports trainers-Nutritionists-Chiropractors-Counselors-Physicians

Growth Driver Strategies [Health IT] Overseas Expansion
Asia Healthcare
Populations, no. of hospitals in target countries• Roll out systems for hospitals in Southeast Asia
(Drug information management, Clinical information, Radiology)

Thailand
Populations : 70 millions
No. of hospitals : 1,229
Vietnam
Populations : 90 millions
No. of hospitals : 1,124

Malaysia
Populations : 30 millions
No. of hospitals : 340✓ Roll out in Indonesia or the Philippines, where IT isadvancingPhilippines
Populations : 100 millions
No. of hospitals : 1,195• Launch new services using individual medical data
✓ Work with HealthXCapital and engage in local
marketing, conduct proof-of-concept tests at hospitals
and engage in M&A

Singapore
Populations : 5 millions
No. of hospitals : 17
Indonesia
Populations : 260 millions
No. of hospitals : 2,461

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

19

Growth Driver Strategies [Health IT] Sales Support for Pharma Companies
DigiProRemote technologies*June 2020 release

Online sales support for MR

Sales support tools for MR
Pharma Company Sales Staff

Documents

Medical Staff

Remote information sharing activities(detailing)

Browsing
Logs<Functions>
・Provide only documents approved by the company
Compliance with national Guidelines for MR Activities
・Central document management
・Monitor medical interviews
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

20

Growth Driver Strategies [Health IT] Online Medical Initiatives
Online medical Services

Remote technologies

Information linked to in-hospital systems（ studying potential commercialization ）[Outside of hospitals][In-hospital]

Hospital systems

Online medical treatment

Infocom Systems

Online medication instruction

Online ICU
MedicalimagesLink

Charts/vitalsPrescription
historyLink

NOALON （AIR WATER INC.）NOALON Client

Link
Electronic chart system
Ordering system
Medical administration system

NOALON Client
NOALON Satellite
Development: AIR WATAR BIO DESIGN INC.
Technical Support : INFOCOM CORPORATION

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

21

Resource Investments and Shareholder Return Policies
Give weight to growth investment in priority businesses and offer appropriate shareholder returns,
assuming we have secured a stable financial foundation

Financial Soundness•

Secure financial soundness based on the characteristics of business and risk,
while at the same time using appropriate financial leverage and engaging in
growth investment

Growth Investment••

Invest to maintain and accelerate growth, mainly in priority businesses
M&A Investment: Established ¥30 billion budget for strategic investment

Shareholder Returns•

In addition to stable dividends, strive to increase dividends linked to performance;
aim to maintain a 30% payout ratio

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

22

[ Reference ]Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

[Reference] Ratio of Services Sales to Total IT Services Sales

Business Solution Services
OthersServices

OthersServices

Health IT Health
About

10

%

35

Nursing

30.0

Pharma

About

25.3

%

Carestyle , Carecari
CWS、Mimamoa

Business ERP(Unit : Billion yen)

WELSADigiPro
GRANDIT

Document MyQuick、ecoDeliver
Risk
Management EMC、BCPortal

OthersCopyright © 2020 INFOCOM CORPORATION. All rights reserved.

24

atscoreOur Value Creation Story

Sustainability～Toward Value Co-Creation～

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

What Value Creation Means to Infocom

The Infocom Group works toward sustainable societies, evolving ahead of changes

in markets and technologies, offering high-quality, innovative services that create
new ways of using information and communications technology.

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

26

Value Creation Story [Our History to Date]

Digital Entertainment

Business Solution

During the early period of mobile phones, we anticipated thecreation of new markets and pursued new ways to use this invention

Release new packaged software products to the market based on
expertise developed through contract development work

Early
Period ofMobilePhonesRing Tones

FeaturePhonesCopyright © 2020 INFOCOM CORPORATION. All rights reserved.

E-comic

Smartphones

Department
Systemsfor Hospitals

Services for
Nursing Care
Facilities

HealthServices

Change to the cloud service
Work Process
Packages for
Companies

SafetyConfirmation
ServicestoB

Risk
Management
Services
toE/C

27

For Companies

Content for
Carriers

Contract
Development

toC

Health IT

The Infocom Group contributes to society,creating new ways of using information and communications technology

Value Creation Story [E-comic]
Providing an Enjoyable Respite to the Daily Routine
E-Comic Business Stakeholder and Value Map
Shared…
Enjoyment
Stress relief
New discoveries
Consumers Concerns

Overseas

Publishers
Expand sales opportunities

Creators

Spread of manga culture

E-comic
Business

Environment
Reduce footprint (greenhouse gas)
via digitalization

Create workspaces
Offer space for expression
Shareholders

Employees
Increase self-esteem
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Corporate value improvement28

Value Creation Story [Health IT]
Improve Medical and Nursing Care to Contribute to Human Happiness and Health
Health IT Business Stakeholder and Value Map

Improve efficiency, convenience⇒Improved medical care quality

National

Improve medical care quality and reduce costs

Regional

Ensure and improve regional medical carethrough sustained hospitals

Medical Nursing Care
Institutes Providers
Patients,
etc.

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

29

Facilities・・・Resolve labor shortages
Staff・・・Provide better environment⇒Improved nursing care quality

Personal/family health and happinessValue Creation Story [Risk Management Services]
Provide Individual Security and Safety via Companies, Etc.
Risk Management Services Business Stakeholder and Value Map

Local Community(Citizens)
Public Institutes, Hospitals(Staff)Company(Employees)

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

30

Information and coordination during emergencies

Staff safety confirmation
Priority operations during emergencies
Continuity of community medical care

Employee safety confirmation
Business Continuity Plan (BCP)Value Creation Story [Iwanuma Minna no ie]
Contribute to Communities Through Disaster Recovery Support Businesses
Established a Recovery Support Base for the Tohoku Region in Iwanuma City, Miyagi Prefecture, Affectedby the Great East Japan Earthquake and Tsunami, to Create New Businesses in Tourism and Agriculture

2013

2015

Open Iwanuma minna no ie

Iwanuma Reconstruction Agritourism

Minna no nogyo IT!

⚫ Established recovery support basefor Tohoku⚫ Providing regional and community
functions through regular events⚫ Highlight the attraction of Iwanuma through farm experience
tours creating a sense of unification with local citizens⚫ Selected as a new Tohoku leadership model business by the
Reconstruction Agency⚫ Study the usage of IT and e-commerce increating 6th industries⚫ Provide local industry goods to shareholders
as shareholder benefits

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

2019

31

Minna no E-commerce⚫ Sell agricultural goods via e-commerce⚫ Offer return gifts in return for hometown tax
donation for Iwanuma City

Relationship Between Infocom Businesses and the SDGs
Our Services

Corresponding 17 Global Goals

Digital
E-Comic
Entertainment Offer a daily enjoyable respite through digital content

Life on landInformation Management Systems for Hospitals
Digitalize medical and medical imaging information to improve medical care quality

Health IT

Provide nursing care facility support and nursing career change support

Good health and well-being
Decent work and economic growth

Health management Services

Good health and well-being

Serivices for Nusing Care Facilities

Analyze and forecast employee health risks for disease prevention and health maintenanceRisk Management Services
Integrated management of safety information during disasters, offering safety and security

Business Management System (ERP)For
Companies

Process digitalization for improved management speed, contributing to greater corporate growth

Digital Archive
Create an academic database available to all, promoting the use of academic materials

Document Management Services
Infocom fund , Digital Health Connect
Co-create with Japanese and Asian venture firms to create new businesses

Iwanuma Minna no ie
Promote recovery support businesses in the agriculture and tourism sectors,
making a contribution to disaster areas

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Sustainable cities and communities
Decent work and economic growth
Quality education
Life on land

Digitize paper documents to encourage move to paperless

OthersGood health and well-being

32

Industry, innovation, infrastructurePartnerships for the goals

Industry, innovation, infrastructureLife on landBecoming a services company thatdelivers new value through the co-creationof ICT and real-world businesses

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 or completeness of information contained herein, which might change as new data becomes available.
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.