INFOCOM CORPORATION

Medium-Term
Management Plan
FY03/24-FY03/26
2023.5.16

Securities Code: 4348

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

Agenda目次
Contents

1. Previous Medium-Term Management Plan Review
2. New Medium-Term Management Plan
Basic Policy
Growth Strategies
Key Businesses
E-Comic

Health IT

Priority Businesses
Evolve Into a Services-Oriented Business

Sustainability Materialities
Strengthen Human Capital
Resource Investments and Shareholder Return Policies

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

2

Previous Medium-Term Management Plan Review
FY03/21-FY03/23

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

3

Previous Medium-Term Management Plan

Review

Missed targets due to piracy sites and COVID-19(Billion yen)

FY03/23
Plan Targets

FY03/23
Results

Achievement ratio (%)

Net sales

85.0～115.0

70.3

82.7%

EBITDA

13.0～16.0

9.5

73.8%

15% or higher

8.0%

53.0%

ROE

*EBITDA = Operating income + depreciation and amortization
ROE = Current year net income ÷ shareholders’ equity

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

4

Previous Medium-Term Management Plan
⚫ Pursue Growth
Continued Growth in
Key Businesses

Evolve Into a
Services-Oriented
Business

Co-Creation
M&A

Basic Policies and Initiatives

Digital Entertainment

Business Solution

E-Comic⚫ Negatively impacted by piracy, but returned to a growthtrajectory in response to stronger marketing

Health IT⚫ Delays in overseas expansion and new business start-ups dueto the impact of COVID-19 and disruptions in the supply chain

Services as a percentage of total sales shifted from 60% to 70%• Reached only 14% vs. segment target of 30%

Executed 4.2 billion yen in capital investments (M&A, capital and business alliance)• Joint venture company: AmuLink Corp
• Capital and business alliance: TWIN ENGINE Inc.

• Subsidiary: Alterbooth Inc., Medical Create Co., Ltd.
• Capital and business alliances: Docquity Holdings, Homage,

HealthMetrics, Aristol⚫ Continue to Build a Strong Foundation to Support Growth
Foster human capital
capable ofvalue creation

Work-style reform

Governance⚫ Cultivated cloud engineers → Established CCoE system, trained engineers, and provided development support⚫ Implemented talent management system to visualize human capital information⚫ Relocated headquarters, introduced a hybrid work system that combines remote work and work from home
⚫ Launched the Empowering Women Task Force⚫ Established the Basic Sustainability Policy⚫ Established various committees consisting of outside directors as members
Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

5

Previous Medium-Term Management Plan Review
FY03/24-FY03/26

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

6

Basic Policy
New Plan (2023～2025)
Previous Medium-Term Plan (2020～2022)

United Innovation
Value Co-Creation

United Innovation
Value Co-Creation and Beyond⚫ Contribute solutions to social issues throughBuild a Strong
Management
Foundation

Pursue Growthco-creation⚫ Pursue growth driven by E-Comic and Health⚫ Continue growth and overseas expansion in

IT businesses⚫ Evolve into a services-oriented business⚫ Pursue co-creation

E-Comic and Health IT⚫ Continue evolution into a services-oriented
business⚫ Focus resources in growth areas⚫ Foster human capital capable of value creation⚫ Strengthen human capital⚫ Advance through AI and data

• Foster human capital capable of business creation and development⚫ Improve quality management• Strengthen competitiveness through AI and data

⚫ Encourage work-style reform• Optimize assignments of human capital according to skills,

experience, and career aspirations• Improve engagement of human capital across the group
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7

Co-Creating Value - An Ideal Company
Becoming a services company that delivers new value through the co-creation of ICT and real-world businesses

HealthSafetyCo-Creation⚫ Academic⚫ Companies

Institutes⚫ Hospitals⚫ IT Companies⚫ IT Ventures

Convenience

Co-CreationAI

Big Data

New Value⚫ Public

Organizations⚫ Employees⚫ Consumers⚫ Outside

Human Capital
Analytics

ICT

IoT

Entertainment

Real-World Businesses

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8

Financial Targets

100.0

Net sales

Billion yen

100.0 billion yen

78.0

70.3

Billion yen

EBITDA

Billion yen

65.0

E-Comic15.0 billion yen

53.0

46.2

ROE

17.0
9.9

10.1

14.2

14.9

18.0

Health IT

Business Solution(Other)

FY03/23 Results

FY03/24
Forecast

FY03/26 Target

15% or higher*EBITDA = Operating income + depreciation and amortization
ROE = Current year net income ÷ shareholders’ equity(Disclosed April 27, 2023)
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9

Continue Evolution Into a Services-Oriented Business
Raise ratio of services sales to 75% of total sales

Ratio of Services Sales
FY03/23 Results

FY03/26 Target

Non-Services Business(Business Solution)

70.1%
70.3

75%
100.0

billion yen

billion yen

Services BusinessBusiness Solution

Digital Entertainment

Growth in Each Business

Raise Services to

30% of Business Solution⚫ Health IT⚫ Cloud ERP (GRANDIT miraimil)⚫ Crisis management services

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10Strategies in Key Businesses

E-Comic

Japan E-Comic Market Forecast

Infocom Sales

CAGR

CAGR

Impress Forecast*

Sales Target+7.6％+12.1％(2022-2025)(2022-25)

The External Environment

The E-Comic Market
Market Changes⚫ Continued growth, but at a declining rate
⚫ Increasing polarization with a widening gap between theuse of large and small bookstores

Declining impact of piracy sites(Billion yen)

641.1

(Billion yen)

65.0

514.0

⚫ E-book industry-wide efforts to expose site operators

46.2⚫ Increase in pirate sites, but lack of scale due to high ratesof launch and failure

Seeds sprouting in overseas e-comics market⚫ South Korea: Continued market expansion and overseas

distribution via Webtoon⚫ U.S.: Market growth and expansion into English-speaking

markets (including EU)⚫ Other: Rise of Chinese and Southeast Asian markets

2018 2019 2020 2021 2022 2023 2024 2025
Forecast

2018 2019 2020 2021 2022 2023 2024 2025
TargetResults*Prepared by Infocom based on E-book Business Research
Report 2022 (2022.8), Impress Corporation
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11

Strategies in Key Businesses

E-Comic

Expand market and business fields, focusing on domestic distribution
1

Profitable Growth in Domestic
Distribution Business

E-Comic Distribution⚫ Aggressive and effective advertising⚫ Secure paid subscribers and create

loyal customers(Overseas Expansion)⚫ Domestic and overseas

Japan

Genres Produced• No. 1 in Sales Capacity

Mecha Comic Original Title Sales

distribution of animatedand live-action works• No. 1 in Number of Titles

Domestic2

and strengthen product lineups
throughwith publishers
Marketcollaboration
GrowthExpand Fields Technology⚫ Wider Range of⚫ No.1 E-Bookstore in

investments⚫ Expand range of original comic genres

Original Comics• No. 1 in Customer

Satisfaction
0

17

18

19

20

21

22

23

24

25

（fiscal year）⚫ Further growth of Peanutoon in South

Korea⚫ Image processing

technology development⚫ Production support via
generative AI⚫ Growth in U.S. distribution business⚫ M&A

countries
3 Business Field Expansion⚫ Animation and live-action adaptationsof original comics

Overseas⚫ Seek expansion in English-speaking

Expand investment fields and broaden business domains⚫ U.S. Distribution• Business growthand expansion into
English-speaking
countries⚫ Korea Distribution• Further business growth and distribution of

Korean original titles in Japan and the U.S.

⚫ Capital and business alliances inperipheral areas

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12Strategies in Key Businesses

E-Comic

Growth in Domestic Distribution Business
Strengthen links between web and apps to raise Mecha Comic customer satisfaction
Mecha ComicWEB

Mecha Comic
Apps
Strengthen Linkage With Services
Strengthen linkage among basic functions
Purchase history, points, IDs, etc.

Make more effective use of assets
User comments, user needs, etc.

Share Proprietary Sales Methods
Linkage to SNS, gamification, etc.

Link of Data Analysis
Streamline Through Systems Integration

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13

Strategies in Key Businesses

E-Comic

Market Growth (Overseas Expansion)
Further Growth of Peanutoon in South Korea

Overseas Business Sales⚫ Establishing position as a Webtoon service forTargetwomen

4.0 billion⚫ Strengthen original comic titles through co-creation with leading artists⚫ Expand sales of original comics in Japan and1.4
billionoverseas

Grow U.S. Distribution and Expand Into
English-Speaking Countries⚫ Expand the number of distributed titles andstrengthen marketing in the U.S.
⚫ Leverage U.S. distribution assets and expand into

English-speaking countries

Search for New Overseas Markets to Develop⚫ Research and test in Europe and Southeast Asia

2019

2020

2021

2022

2025

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14

Strategies in Key Businesses

E-Comic

Business Field Expansion
Expand business fields through various business and capital alliances

Content

E-Comics
Production
Companies

Distribution

Domestic

E-Comic

Publishers

Anime, Dramas

Movies

Games

Movie
Companies

Game
Companies

Production
Companies

Content
ExpandIP Business
Expansion

TV
Broadcasters

E-Book Stores

ExpandShare

Streaming Platforms

PAPYLESS

Expand Sales Channels

Distribution

Overseas

AAG*
U.S.

Korea

PeanutoonOverseas Content Distributors*ALDO AGENCY GLOBAL CO., LTD.

Investments

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15

Strategies in Key Businesses

Health IT

Medical IT Market (2021-2024)

The External Environment

Medical IT Market

CAGR
部門システム
Systems⚫ Medical IT market will grow moderately⚫ Adoption of electronic medical records

and shift to cloud computing
progressing at small- and medium-sized
medical institutions

174.6

177.5

179.0

181.4

1.3％

59.0

61.0

62.5

64.0

2.7％

40.8

41.0

40.5

40.0

- 0.7％

2021

2022

2023

2024

Results

Results

Forecast

Electronic
Medical Records
電子カルテ(Small and（中小規模）
Medium Scale)Electronic

電子カルテ
Medical Records（大規模）(Large Scale)*Source: Medical Information Systems (EMR/EHR) Market 2022, Yano Keizai

Supply and Demand for Nursing Care Workers (2019-2025)

The External Environment

Nursing Care Market
32⚫ Insufficient number of nursing care

22

workers⚫ Government support for ICT adoption

Nursing Care Worker Gap

不足数
Insufficiency

211

211

211

2019

2023

2025

Results

Forecast

2023

2025

220,000

320,000

供給数
Supply*The Number of Long-Term Care Workers Needed Based on the Eighth Long-Term Care Insurance
Business Plan (published July 2021), Ministry of Health, Labour and Welfare
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16

Strategies in Key Businesses

Health IT

Expand existing domestic businesses, expand and launch new businesses overseas through service businesses
1

Expand Domestic Business for
Hospitals

Medical1 Department Support⚫ Expand business through M&A and expand

into small- and medium-sized hospitals

3 Expand Into Other Fields Overseas

2023

Small Hospitals⚫ Develop career change support service for

non-Japanese human resources

Overseas

Establish Foundation for New
Businesses

management service

Large
Hospitals

Medium-Sized
Hospitals⚫ Create new businesses⚫ Expand sales of WELSA health

2

2021

⚫ Expand hospital systems in Southeast Asia

4

4

M&A

Domestic

versions for hospitals and nursing careproviders

3

Malaysia

Drug Information
Clinical Information
Radiology

HealthPharmaceutical
Sales Support

Radiology, Pharmaceutical,
Surgery, Nursing, Clinical
Information

Expand Care Staff Management
2(CWS) System⚫ Expand sales of CWS cloud service

Nursing

CWS forHospitals(Staff
Management)

CWS forNursing Care
Companies(Staff
Management)

HealthDiagnosis
Health Analysis

Personal HealthService

Transition to
Cloud Service

Singapore

Career Change
Support forOverseas
Professionals

Southeast Asia
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17

Strategies in Key Businesses

Health IT

Expand Domestic Business for Hospitals

by technology

Large
Hospitals⚫ Medical market expansion driven⚫ Expand product lineup
Expand product lineup and business regions through
M&A, etc.
⚫ Branding
Leverage Recognition of Top-Share Products⚫ Strengthen Sales Channels
Strengthen alliances with regional sales companies

Medium-Sized
Hospitals

Accelerating IT in small- and medium-sized institutions

Radiology
Information

Drug
Information

CWS Care Staff
Management

MedicalCreateSurgery

Clinical Information
Management

J-MAC
SYSTEM
Medical IT
Companies

To Other
Departments

Business
Alliances
M&A

Small
Hospitals

Strategy, Actions

Business
Environment

Expand medical IT service fields through M&A and business alliances

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18

Strategies in Key Businesses

Health IT

Hospital CWS (Staff Management System)

Nursing Care CWS (Staff Management System)
Expand cloud service version for small- and mediumsized nursing care companies

Strategy, Actions

Business
Environment

Secure top share of staff management systems for
medical institutions⚫ Overtime caps for physicians (beginning April 2024)⚫ Leverage ICT and digital transformation to make up for nursing care

⚫ Roughly 10% of medium-sized or larger hospitals have adopted

worker shortages⚫ Government support for ICT adoption

work management systems⚫ Add features to handle complicated personnel assignment standards⚫ Add compatibility with overtime regulations for physicians

and additional requirements⚫ Expand sales routes⚫ Expand cloud service (SaaS)⚫ Improve profits through more efficient installations and⚫ Raise recognition via online marketing

maintenance⚫ Aim to expand functionality from shift/attendance to peripheral areas

TargetTarget(No. of Facilities)

500

LargeSized

750

In-HomeInstallations

400 beds

Medium-Sized
Hospitals

10,0001,700

110No. of Nursing Care Facilities

200 beds

In-Facility

Home-Visit
Services

Outpatient
Services

Inpatient
Services

48,00070,00060,000

Facilities Targeted for Nursing Care CWS

Small Hospitals
2022

2023

2024

2025

5,700

*Summary of 2021 Survey of Long-Term Care Service Facilities andEstablishments, Ministry of Health, Labour and Welfare
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19

Strategies in Key Businesses

Health IT

Expansion of Overseas Business Domains
Collaborate with local partners for overseas sales of products used in Japanese hospitals⚫ Localize products and services for hospitals⚫ Enter capital and business alliances withhealthcare IT companies

MedicalImagingPharmaceuticals(DI)⚫ National strategy to promote digital healthcare

Sell products for Japanesehospitals overseas⚫ Healthcare expenditures increasing in ASEAN
Per-capita healthcare spending has more than tripled in
the past 20 years

Create New
Businesses

Strategy, Actions

Business Environment

2022

2023

2024

2025

Leverage Terakorp
to expand to hospitals in Indonesia? Companies Further collaboration
Sales channel cooperation(Expand sales channels utilizing a networkof more than 8,000 medical institutions)Start PoC to link SNS and drug information(Social Media Platform for Physicians)

Support the Development ofMatching Services in Japan
Singapore(nursing care worker matchingcompany)

Consider overseas CWS expansion

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20

Priority Businesses Strategies

Evolve Into a Services-Oriented Business

Integrated Cloud ERP (miraimil)

Business
Environment

Gain a foothold toward the top share of the ERP market for small- and medium-sized enterprises

Target Market⚫ Cloud computing is advancing due to ashortage of IT personnel⚫ IT implementation subsidies will encourage

SMEs to pursue digital transformation

Customer
Scale(Sales)Trading
Information andCompanies,
Service Manufacturing Construction Retail
Telecommunications
Wholesalers

Major

Strategy, Actions(100 billion yen
and up)⚫ Focus on sales to familiar industries⚫ Make aggressive investments in

Medium-Sized(100 to 10 billion yen)advertising⚫ Automate sales and implementation

Medium/Small(1-10 billion yen)process

No. of Target Companies: 50,000

TargetSmall(~ 1 billion yen)

⚫ Installation target: 400 companies

cumulative
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21

Sustainability Materialities
We established six materialities as important issues for the Group
1. Inspire people 2. Create healthy and 3. Create safe, secure,prosperous societies and convenientsocieties

Materiality
1. Inspire people⚫ Deliver a customer experience that exceeds expectations across adiversifying customer base

2. Create healthy and prosperous societies⚫ Contributing to health and happiness through services that improve the

Co-Creation

Innovation

quality of medical care and nursing care

3. Create safe, secure, and convenient societies⚫ Contribute to the sustainable advancement of society and corporate

activities through safe, secure, and convenient services

4. Strengthen our ability to create value sustainably

Human Capital⚫ Create services through the use of new technologies and co-creation⚫ Address local community issues and contribute to community

revitalization

5. Enhance job satisfaction and human capital growth⚫ Support the growth of the Group human capital and expand diversity

4. Enhance Value Creation Capabilities Sustainably
5. Enhance job satisfaction and human capital growth
6. Maintain and strengthen sound corporate management⚫ Encourage work-style transformation

6. Maintain and strengthen sound corporate management⚫ Maintain a highly transparent governance structure⚫ Provide high-quality products and services

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22

Strengthen Human Capital

Existing Measures

Focus on human capital development to strengthen our management foundation

New Measures

1

2

3

Foster human capital capable ofbusiness creation and development

Optimize assignments of humancapital according to skills, experience,and career aspirations

Improve engagement ofgroup human capital

Professional Skills Evaluation System(EDISON)

Mission Group System

Employee Awareness Survey

Define IT skills and career paths for each job
category

Role-based compensation system

Periodic engagement survey

Train cloud engineers

Talent Management System

Work-Style Transformation

Develop support and engineer training througha CCoE system

Visualize individual skills

Foster Human Capital Capable ofBusiness Creation

Optimize Assignments of Human
Capital

Select candidates based on competency
assessment andpractical experience

Select candidates that match strategies andbusiness needs

・Hybrid work system
・Head office incorporating ABWCreate Workplaces Where Women andSeniors Play Active Roles
Formulate and Evangelize Mission
Vision Value
Plan and Carry Out Corporate Branding

4

Strengthen competitiveness through AI and data
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23

Resource Investments and Shareholder Return Policies
Prioritize growth investments in priority businesses and provide appropriate shareholder returns
conditioned on a secure and stable financial baseFinancial Soundness⚫ Ensure financial soundness based on business characteristics

and risks, as well as appropriate financial leverage andinvestment for growth⚫ Investments to maintain and accelerate growth, focusing on key

businesses

30 billion yen set aside for strategic investment⚫ Capital investment: 4.1 billion yen over 3 years⚫ R&D investment: 600 million yen over 3 years, concentrating on⚫ M&A investment:

Growth Investment

applicable technologies (e.g., AI and IoT)

⚫ In addition to stable dividends, we will strive to increase

Shareholder Returns

dividends in line with improved business performance, aiming tomaintain a dividend payout ratio of 30%.

Copyright © 2023 INFOCOM CORPORATION. All rights reserved.

24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

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 © 2023 INFOCOM CORPORATION. All rights reserved.

25