INFOCOM CORPORATION

Financial Results Briefingfor FY03/2023

April 27th, 2023

Security code：4348

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

AgendaFinancial Results for FY03/23

Earnings Forecast for FY03/24

Initiatives in Key Businesses

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Financial Results for FY03/23

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FY03/23 Financial Results

FY03/23 Consolidated Earnings Results⚫ Sales increased year on year, reaching a new record high⚫ Strengthened marketing to restore growth⚫ Recorded extraordinary losses (impairment on goodwill related toconsolidated subsidiaries and loss on valuation of investmentsecurities)

Net sales

Operating profit

Profit attributable toowners of the parent¥70.3 billion¥8.5 billion¥3.5 billion+8.9% YoY

-15.6% YoY-48.3% YoY

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

4

Management Performance(Billion yen)

FY03/22

FY03/23

YoY
Change%

70.3

+5.7

+8.9％

10.0

8.5

（15.6％）（12.1％）(1.5)-15.6％EBITDA

11.4

9.5

(1.8)

-16.3％

Ordinary profit

10.1

8.5(1.6)-15.7％

6.9

3.5(3.3)- 48.3％126.2065.20(61.00)- 48.3％

16.1%

8.0%

-8.1pt-Net sales

64.5

Operating profit(Operating margin)

Profitattributable to owners of
the parent*

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.
Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

5Segment StructureDigital EntertainmentE-comic

FY03/23 Result

Net sales¥70.3bn

E-Comic Distribution Service

Operating profit¥8.5 bn

Business Solution

Health IT
Package services
for medical institutions

Business Software
ERP
Cloud services
Business package

Enterprise ServiceManagement
System integration
for major companies

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Digital Entertainment Results
Record-high sales due to expanded content, stronger marketing, and several hits in original e-comic titles
Return to growth trajectory, despite cost increases due to stepped-up marketing

Net sales

Operating profit(Billion yen)(Billion yen)

+5.7
- 1.7（+14.1%）（- 22.1%）

46.2

7.7

40.5

FY03/226.0

FY03/23

FY03/22

FY03/23
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E-Comic Business Results

Change in Advertising Strategy

12.6

Net sales(Billion yen)

125

100

⚫ Strategic advertising investments
In addition to the existing flat-rate
subscription (monthly course)...

75⚫ Increasing membershipnumbers through a pay-asyou-go system

50

2500

Q1

Q2

FY03/21

Q3

Q4

Q1

Q2

Q3

FY03/22

Q4

Q1

Q2

Q3

Record-High Sales

Q4

FY03/23

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Business Solution Results
Higher sales and profit supported by firm corporate software sales, despite cooling investment sentiment due to theCOVID-19 pandemic and delays in hardware delivery that caused hospital-related projects to be postponed

Net sales(Billion yen)

Operating profit(Billion yen)

Health IT+0.0（+0.2%）+0.1（+6.6%）

24.0

24.0

2.3

2.4

FY03/22

FY03/23- 0.4（- 3.9%）

10.2

9.8

FY03/22

FY03/23

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Investments(Billion yen)

Business
Development

4.2

Investments and business alliances

0.3• E-Comic business (equity and business alliance with anime production house

EquityInvestment

2.0 *New business planning, research, etc.

2.7

• Health IT business (increased investment in Staffplus nursing professional
recruitment company)• Overseas expansion (business alliance with HealthMetrics Sdn Bhd, an
employee health insurance management service in Southeast Asia)

0.4

E-Comics (overseas site compatibility, operating system
upgrades, etc.)

0.9
CapitalInvestment

1.6

TWIN ENGINE Inc.)

Health IT (radiology system, development of CWS for nursing
care, etc.)
GRANDIT miraimil function improvements

1.2
Other (existing services)

0.1

0.1

FY03/22

FY03/23

R&DInvestment

AI, new technology research, etc.

*Creation of a subsidiary to support a shift to services, capital increase for South Korean e-comics distribution business, etc.
Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

10Balance Sheets

End of FY03/22

End of FY03/22

Current assets

45.1

49.1

+3.9

Fixed assets

12.3

11.1

-1.1

57.5

60.2

+2.7

12.4

14.6

+2.1

0.5

0.4

-0.0

Total liabilities

12.9

15.0

+2.1

Total net assets

44.5

45.1

+0.6

Total liabilities andnet assets

57.5

60.2

+2.7

76.8%

74.3%

-（Billion yen）

Total assets
Current liabilities
Non-current liabilities

Shareholders’ equity
ratio

YoY

Major Change Factors• Cash and deposits• Goodwill, Investment securities• Retained earnings

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Cash Flows(Billion yen)

FY03/22

FY03/22

ChangeOperating CF

7.1

8.1

+0.9

Investing CF

(3.2)

(1.2)

+1.9

3.9

6.9+2.9(2.2)

(3.0)

-0.8

Effects of exchange ratechanges on cash andcash equivalents

0.0

0.0+0.0

Change in cash and cash
equivalents

1.7

3.8+2.1

Cash and cash equivalents,
beginning of period

29.9

31.7

+1.7

FCF
Financing CF

Cash and cash equivalents,
end of quarter

31.7

35.5

• Profit before income taxes• Loss on valuation of
investment securities+3.8• Purchase of intangible assets• Purchase of investment securities• Proceeds from refund of guarantee
deposits(Billion yen)

• Dividends

+8.1
-1.2

-3.0

31.7Beginning
FY03/23
Cash and Equivalents

35.5

Operating
CFInvesting
CFFinancing
CFEnd
FY03/23

Cash and Equivalents

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Earnings Forecast for FY03/24

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Earnings Forecast for FY03/24

FY03/23 Results(Billion yen)

Net sales

FY03/24 Forecast

YoY%

1H

2H

FY

1H

2H

FY

33.0

37.3

70.3

37.0

41.0

78.0

+7.6 +10.9％

Change

3.7

4.8

8.5

3.8

5.7

9.5

（11.2％）（12.9％）（12.1％）（10.3％）（13.9％）（12.2％）+0.9+11.4％

EBITDA

4.2

5.3

9.5

4.4

6.1

10.5+0.9+9.5％

Ordinary profit

3.7

4.8

8.5

3.8

5.7

9.5+0.9+10.5％

1.7

1.8

3.5

2.6

3.8

6.4+2.8+79.2％

Operating profit(Operating margin)

Profitattributable to owners ofthe parent

Net income
per share (yen)65.20

116.82+51.62 +79.2％

ROE

8.0%

13.7%+5.7pt-Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

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Digital Entertainment Earnings Forecast

Continued Double-Digit Growth Outperforming Market Forecasts, Aiming for Profitable Growth

Net sales

Operating profit(Billion yen)(Billion yen)

+6.7+0.9（+15.8%）（+14.6%）

53.0
46.2

FY03/23

7.0
6.0

FY03/24(Reference) Market forecast for the fiscal year 2023: YoY increase of 8.6%
Source: Impress Corporation E-book Business Research Report 2022

FY03/23

FY03/24
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Business Solution Earnings Forecast
Solid performance in hospital and enterprise sales, despite uncertain futures

Net sales(Billion yen)

Operating profit(Billion yen)

Health IT+0.9（+3.7%）+0.0（+0.7%）

25.024.0

2.4

2.5+0.2（+2.1%）

9.8

10.1

FY03/23

FY03/24

FY03/23

FY03/24
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Investment Plan(Billion yen)

3.0
0.3

BusinessDevelopment

1.8

New business planning, research, etc.
E-Comic business (including IP development)

0.4
2.5
CapitalInvestment

Health IT
GRANDIT miraimil additional development

1.2
Other

0.1

0.1

FY03/23

FY03/24(Forecast)

R&D
Investment

AI, new technology research, etc.

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Shareholder Returns
Strive for stable dividends and dividend increases in line with improved business performance;
aim to maintain a dividend payout ratio of 30%
FY03/24 Forecast
Annual dividends
per share

Annual Dividends Per Share(Yen)

InterimYear-end

Commemorative
dividend

¥45

76.7%

39.6%
30.6%

Dividend Payout Ratio

Dividend payout ratio

25.2%

38.5%

50
3122221

37

10550
5

4527

2727

15
FY03/19

38.5%

32.3%

101013

FY03/20

FY03/21

FY03/2218
FY03/23

FY03/24(Forecast)

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18Initiatives in Key Businesses

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E-Comic Business Initiatives

Net Sales
1

Profitable Growth in Domestic
Distribution Business⚫

Aggressive and effective advertising investments⚫

Attract pay-as-you-go members and encourage
service usage⚫

Improve quality of original titles

Net sales(Billion yen)
60

50

40

2

Market Growth (Overseas Expansion)
30⚫

Further growth of Peanutoon in South Korea⚫

Put U.S. distribution business on growth trajectory
20

3Business Field Expansion⚫

IP development⚫

Investigate opportunities (including M&A) inperipheral fields

100
FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24(Forecast)

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E-comic

Growth in Domestic Distribution Business

Leverage pay-as-you-go system to broaden base of paying members; induce members to become loyal customers

Conversion toloyal customers

Recommend money-saving monthly memberships to more
active members

MonthlyMembership
Convert to paid
subscribers

Recommend pay-as-you-go paid memberships for thequick and easy purchase of comics

Pay-as-You-GoMembers

Expandpotential
customer base

Increase free membership through online advertising,
TV commercials, and brand enhancement (through sportssponsorships, etc.)

Free Subscribers
Indifferent(E-book market / paper publishing market /smartphone game market)

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E-comicMarket Growth (Overseas Expansion)

Expand steadily overseas

Overseas Business Sales

Korea Growth Through Differentiation of Our Strengths⚫ Conduct effective advertising investments(Billion yen)

⚫ Increase number of original titles

1.6U.S.

1.4

Target Younger Users Through Various Tactics⚫ Content, advertising, etc.

Net sales

1.2

1.0

0.8

0.6

0.4

0.2

0.0
FY03/20

FY03/21

FY03/22

FY03/23

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Health IT Business Initiatives
Medical⚫

2
⚫

⚫

3
⚫

1 Department Support

Gradual growth in sales to large-sizedhospitals

Greater activity for system installations
at small- and medium-sized hospitals
Expand business fields (including M&A)

Expand Care Staff Management(CWS) SystemWe expect demand to increase ahead ofregulations capping overtime forphysicians

22021
Large
Hospitals

Medium-Sized
Hospitals

Begin sales of cloud-based CWS for
nursing care companies

CWS forHospitals

3Malaysia

Drug Information
Clinical Information
Radiology

Transition toCloud Service(StaffManagement)

Personal HealthService

CWS forNursing Care
Companies

Small Hospitals

Expand Into Other Fields Overseas
Increase local activities andcommercialization, since the impact of
COVID-19 has subsided

HealthDiagnosis
Health Analysis

M&A

2023

HealthPharmaceutical
Sales Support

Radiology, Pharmaceutical,Surgery, Nursing, Clinical
Information

Domestic⚫

Expand Domestic Business for
Hospitals

Overseas

1Nursing(StaffManagement)

Singapore

Career Change
Support forOverseas
Professionals

Southeast Asia
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Expand CWS for Hospitals

Market Environment

Implement as many CWS installations as possible to meet increased demand resulting from the start of caps on overtime for physicians

12

Overtime caps for physicians to begin inApril 2024
Managing physician work hours is adifficult challenge

Adoption of Staff Management System
Approximately 10% of medium- to large-sized hospitals thatneed to comply have already adopted systems (our estimate)• Complicated work schedules with overnight shifts

and side or concurrent work
Large
Hospitals

Infocom Initiatives

approx.

750 facilities

Provide functions that comply with maximum
hours and encourage adoption⚫

Special physician package installable inthree months

400
beds

Medium-Sized
Hospitals
approx.

1,700

facilities

Available April 2023

⚫ Work-interval check option

200 beds

Small Hospitals

Available April 2023
approx.

5,700 facilities⚫ Prepare system for sales and installation*Source: 2021 Survey on Health Care Facilities(Ministry of Health, Labour and Welfare)
Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

24Evolve ERP Business Into a Service⚫ COVID-19 accelerated the shift toERP Market

Cloud Computing
Ratio of cloud users exceeded 50% by 2021

⚫ Boosted by IT adoption subsidies
Ministry of Economy, Trade and Industry subsidizes part of
the IT adoption costs for SMEs

License Sales

Market Environment

Shift to Sales Expansion Mode for Cloud ERP GRANDIT miraimil

Ratio of on-premise and cloudcomputing reversed in 2021
On-Premises

50%overCloud201920202021

2022(Forecast)*Yano ResearchInstitute Ltd. survey

Infocom Initiatives⚫ Expand Targets to SMEs
Target Customers

Cloud-based ERP package GRANDIT developed in-house⚫ Differentiate from other ERP vendors

Integrated
Versionthrough an integrated version
Provide solution for entire enterprise in one package, rather
than covering specific departments⚫ Introduce DX for enterprises throughpublic/private sector approach
Break away from legacy systems and eliminate the DX gap
based on company size

Shift toCloud

Produced in Japan,
Completely Online

Large
Enterprises
Large Enterprises¥100 billion

Medium-SizedEnterprises¥10 billion

SMEsCopyright © 2023 INFOCOM CORPORATION. All rights reserved.

25

Becoming a services company

that delivers new value through the co-creation of ICTand 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, 2023. 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.

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

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