(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 Second Quarter of the Fiscal Year Ending
March 31, 2020 [Japanese GAAP]
October 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: November 8, 2019
Preparation of supplementary materials on financial results: Yes
Holding of financial results briefing: Yes

Listed on: Tokyo Stock Exchange
URL https://www.infocom.co.jp/(Name) Norihiro Takehara(Name) Shinya Tanaka(TEL) +81-3-6866-3160
Scheduled date to commence dividend payments: November 26, 2019

(Amounts less than one million yen are rounded down)

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

Net sales
Six months ended
September 30, 2019
September 30, 2018

Operating profit

Million yen%

27,67923,128

Profit attributableto owners of parent

Ordinary profit

Million yen%

Million yen%

Million yen

%

3,863
2,596

48.8
9.8

3,876
2,616

48.1
(0.7)

2,575
1,877

37.2
(27.1)

19.7
9.1(Note) Comprehensive income: Second quarter of the fiscal year ending March 31, 2020 : ¥2,226 million (-33.2%); Second quarter of the fiscal year ended March 31,2019: ¥3,331 million (14.9%)

Earnings per share
Six months ended
September 30, 2019
September 30, 2018

Diluted earnings per share

Yen
47.08
34.32

Yen
46.87
34.17

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 of
September 30, 2019
March 31, 2019

Net assets

Shareholders’ equity ratio

Million yen

Million yen%

43,864
43,64934,26032,70777.2
74.6(Reference) Shareholders’ equity: Second quarter of the fiscal year ending March 31, 2020: ¥33,866 million; 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

End-Q3
Yen
10.00
10.00

Year-end

Annual

Yen
－

Yen
17.00

Yen
－

－

19.00

29.00

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

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%

Profit attributable toEarnings per shareowners of the parent

Ordinary profit

Million yen%

Million yen%

Million yen%

Yen

Full-year
58,50013.1
8,200(Note) Adjustment for the most recent forecasts of dividends: Yes

19.0

8,200

19.3

5,500

15.0

100.53See Announcement Concerning Revisions to Earning Forecasts (Japanese version only), published on October 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 six months ended September 30, 2019, the Infocom Group generated net sales of ¥27,679 million, up
19.7% year on year. Operating profit rose 48.8%, to ¥3,863 million; ordinary profit grew 48.1%, to ¥3,876 million; and net
income attributable to owners of parent increased 37.2%, to ¥2,575 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 second quarter, our Business Solution Group recorded sales of ¥11,632 million (+12.9% year on year),and operating profit amounted to ¥1,321 million (+227.6%), driven by steady performance in IT services for hospitals andcompanies.
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 addition, we unveiled a dashboard
function for our surgery department systems at a recent trade show. This extended function provides information during
disasters. In the community-based comprehensive care field, we made Staffplus (career change support service) a consolidated
subsidiary to improve the matching accuracy of our Carestyle 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.
In addition, we launched a new service that combines our integrated business management software package GRANDIT withcloud frameworks*.
*Cloud framework: IT infrastructure service utilizing virtualization technology (Microsoft Azure, Amazon Web Services, etc.)(ii) Digital Entertainment Group
Segment sales were ¥16,047 million (+25.1% year on year), and operating profit amounted to ¥2,536 million(+15.9%), supported
by strong performance in our e-comics distribution business.
As one measure to boost advertising for this service, we expanded the broadcast period for TV commercials and served as leadsponsor for the Yakult Swallows (professional baseball) Meccha Comics Day. We also implemented a second edition of the
Meccha Bookstore, featuring popular Meccha Comics products for sale at physical bookstores. To grow our user base, welaunched a mobile app version of Meccha Comics to target a younger user segment.
As part of our overseas expansion, we made Korean e-comic distributor Peanutoon a consolidated subsidiary. Further, weannounced a new company formed through a joint investment between Amutus Corp. and Papyless Co., Ltd. to conduct businessoverseas.

(2) Explanation of financial condition(i) Consolidated financial condition
Total assets amounted to ¥43,864 million, an increase of ¥214 million compared to the end of the prior consolidated fiscal
year. This increase was mainly due to increases in cash and deposits and goodwill, which more than offset decreases in notes
and accounts receivable. Total liabilities fell ¥1,337 million, to ¥9,604 million due to declines in provision for bonuses andincome taxes payable. Net assets were up ¥1,552 million, compared with the end of the previous consolidated fiscal year, to¥34,260 million.
Because of the above, the equity ratio rose to 77.2% from 74.6% at the end of the previous consolidated fiscal year.
(ii) Consolidated cash flow
Cash and cash equivalents as of September 30, 2019, amounted to ¥20,519 million, up ¥342 million from the end of theprevious consolidated fiscal year.
[Cash flows from operating activities]
Net cash provided by operating activities amounted to ¥3,001million (¥2,018 million in the same quarter of the previous fiscal
year). Principal sources of cash were profit before income taxes of ¥3,806 million (¥2,726 million) and a decrease in notes andaccounts receivable of ¥1,199 million (¥1,809 million). The reason for this decline was a ¥401 million decrease in provision(¥322 million) and income taxes paid of ¥1,790 million (¥1,687 million).
[Cash flow from investing activities]
Net cash used in investing activities amounted to ¥1,660 million (compared to ¥686 million in the same quarter of the previous
fiscal year). This result was mainly due to outlays of ¥1,092 million stemming from the acquisition of subsidiary stock inconnection with a change in the scope of consolidation (no such outlays in the year-ago period), as well as ¥338 million inoutlays intangible fixed assets (¥314 million in the year-ago period).
[Cash flows from financing activities]
Net cash used in financing activities amounted to ¥964 million (¥796 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 second quarter and recent performance trends, we have made an upward revision
to the consolidated fiscal year earnings forecast announced originally on April 25, 2019. For more information, see “Notice on
Revision to Earnings Forecasts” (Japanese version only), published on October 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 September 30, 201920,173
10,576
558
1,142
(4)
32,445

20,515
9,424
528
1,379
(6)
31,842

892

914

1,700
－
38
1,738

1,644
1,293
37
2,975

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

8,257
(124)
8,132
12,022
43,864

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

3,959
1,038
907
46
3,436
9,389

－
296
296
10,941

8
207
215
9,604

1,590
1,447
28,833(816)
31,0541,590
1,452
30,479(810)
32,711

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

1,282
0
(128)
1,154
186
207
34,26043,864

(2)Quarterly consolidated statement of income and comprehensive income
Quarterly Consolidated Statements of Income
Second Quarter(Unit: million yen)
For the six months ended
September 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
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of shares of subsidiaries andassociates
Provision of allowance for doubtful accounts
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

For the six months ended
September 30, 201923,12812,07011,0588,461
2,596

27,67914,262
13,416
9,553
3,863

58

45

5

1

0
63

2
49

0
0
41
0
43
2,616

0
0
34
0
35
3,876

114
114

2
2

1

0

－

20

－
3
4
2,726
841
1,884
6
1,877

49
2
72
3,806
1,234
2,571
(4)
2,575

Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Second Quarter(Unit: million yen)
For the six months ended
September 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 six months ended
September 30, 2019

1,884

2,571

1,457
(0)
(9)
1,447
3,331

(266)
(1)
(76)
(344)
2,226

3,325

2,237

6

(10)

(3) Quarterly Consolidated Statements of Cash Flow
(Unit: Million yen)
For the six months ended
September 30, 2018
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
Loss on valuation of shares of subsidiaries andassociates
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 six months ended
September 30, 2019

2,726
540
29
－
(322)
(58)
0
(114)

3,806
539
40
52
(401)
(45)
0
(2)

－

20

1,809
(579)
112
(500)
3,642
63
(0)
(1,687)
2,018

1,199
29
(198)
(295)
4,745
47
(0)
(1,790)
3,001

(173)
(314)
(429)
231

(145)
(338)
(96)
5

－

(1,092)0(686)

7(1,660)

(31)
(765)
0
(796)

(31)
(929)
(2)
(964)

6

(34)

542
16,63017,172342
20,177
20,519(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. Six months ended September 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

10,29912,82823,128－23,128

49

1

50

(50)

－

Total

10,34912,82923,179(50)

23,128Segment profit(loss)

403

2,188

2,591

5

2,596

Net sales
Sales to external customers
Intersegment sales or transfers(Notes)1. The ¥5 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. Six months ended September 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

11,632

16,047

27,679－27,679

50

0

50

(50)

－

11,682

16,047

27,730(50)

27,679

1,321

2,536

3,858

4

3,863

Net sales
Sales to external customers
Intersegment sales or transfers
Total
Segment profit(Notes)1. The ¥4 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.