Financial Results Briefing for Q２ FY03/2021

INFOCOM CORPORATION

2020.10.28

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Contents
Financial Results for Q2 FY03/21

Earnings Forecast for FY03/２１

Initiatives for FY03/21
E-Comic
Health IT

1Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Results

Financial Results for Q2 FY03/21

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Q2 FY03/21 Results (Consolidated)Significantly higher sales and profits,
driven by strong e-comic performance
Net sales

Operating profit

Profit attributable toowners of parent＋20.0%＋27.4%＋31.1%(Billion yen)(Billion yen)(Billion yen)
6.0

6.040

33.230

4.9
4.5

4.5

27.6

3.8

3.320

3.0

3.0

10

1.5

1.50

0.00.0FY03/20

FY03/21
Digital Entertainment

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

FY03/20
Business Solution

3

FY03/212.5

FY03/20

FY03/21

Q２ FY03/21 Results (Consolidated)(Billion yen)

Q2
FY03/20Q2
FY03/21

YoY
Change％27.6

33.2+5.5+20.0%

Operating profit

3.8

4.9+1.0+27.4%（Operating margin）(9.8％)(13.4％)EBITDA

4.4

5.5+1.0+23.6%

Ordinary profit

3.8

4.9+1.0+27.7%

Profit attributableto owners of parent

2.53.3+0.8+31.1%

Net Sales

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

4

Business Areas and Segment Structure
Digital EntertainmentGroup

Business Solution Group

Digital Entertainment

Health IT

Business SoftwareEnterprise ServiceManagement

E-comicPackage services
for medical
institutions

ERP
Business package
cloud services

System integration
for major companies

・Companies
・Government offices
・Local governments

・Textile manufacturers
・Trading companies
・Pharmaceutical wholesalers
・Mobile phone companies

・General consumers

・Hospitals
・Pharmaceutical companies
・Nursing-care companies
・Health industry

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

5

Digital Entertainment Results (Consolidated)
Net sales(Billion yen)

Operating profit
Q2
FY03/20

22.2(Billion yen)(Billion yen)

3.8

4

YoY

Change%Net Sales

16.0

22.2+6.1+38.6%

E-comic

15.8

22.1+6.3+39.8%

Operating profit

2.5

3.8+1.2+50.9%(Operating margin)(15.8％)(17.2％)

80%

20

16.0
3Q2
FY03/2160%

152.5

Net Sales
22.1
10240%

120%

15.8

517.2%

Operating profit

15.8%

00Q2Q2
FY03/20 FY03/210%

Q2Q2
FY03/20 FY03/21

Significantly higher sales, driven by successful measures
based on data analysis (free series, exclusive first-run
distributions , original comics, etc.) and increased demand due
to stay-at-home requests.

・Higher profits due to higher sales
・Hit original comic titles with high profit margins

E-comic
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

6

Q２ FY03/21 Results of E-Comic Distribution Service(Billion yen)

12.5+42.9%+36.9%

1010.07.5５.０52.50Q1

Q2

Q3

FY03/18
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Q4

Q1

Q2

Q3

Q4

FY03/19

Q1

Q2

Q3

FY03/20
7Q4

Q1

Q2

FY03/21

YoY Growth Rate

Business Solution Results (Consolidated)(Billion yen)

Net Sales(Billion yen)

Operating profit

Q2
FY03/20Q2
FY03/21

YoY
Change%(Billion yen)

20

4

1580%

3

11.6

60%

240%

1.3
51.0

14.8

4.4

011.4%

20%

10.9（0.6）（5.6%）

Health IT

4.8

4.4（0.4）（8.5%）

Operating profit

1.3

1.0（0.2）（17.6%）（Operating margin）(11.4％)(9.9％)

0%

Q2
Q2
FY03/20 FY03/21

Decrease in sales to hospitals as a reaction to the special
demand in the previous year (prior to the tax code revision andconsumption tax hike) and the impact of the COVID-19
pandemic, sales were firm in response to stronger sales
activities and other measures on our part.

Operating profit

9.9%

0

Q2
Q2
FY03/20 FY03/21

11.6

Net sales

10.910Net Sales

Lower profits due to lower sales

Health IT
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Sales and profits outperformed first-half plan

1H Plan*

Net Sales

10.0

Operating profit

0.3（Operating margin）（3.0%）*Announced July 31, 20208

Investments（Billion yen）
（Billion yen）

Main Details

Category

3

2.5

AmountBusinessDevelopment

New business planning, research,demonstration tests, etc.

0.2

EquityInvestment

Business partnership with company
operating HR matching service fornursing professionals in Singapore, etc.

0.1

0.1

2E-comic（App development, Enhancement of server
facilities, etc.）

1.8 ※

0.8

1

GRANDIT

0.1Other0.1

Q2
FY03/20Q2
FY03/21

Capital（Drug Information, Clinical Information,Nursing Care, etc）

0.2

0.0

R&D

Health IT
0.3

0.3

0.4
0

CapitalInvestment

EquityBus. Development

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

R&D
Investment

AI, new technology research,DX, etc.

*Converted to consolidated subsidiary(e-comic distributor in Korea, nursing professional recruiter)
90.1

Balance Sheets (Consolidated)(Billion yen,%)

FY03/20
AmountCurrent Assets

36.4

2Q FY03/21

Composition
Ratio

75.8

Amount38.9

Compositon
Ratio

Major Change Factors
YoY・Cash and deposits +2.7
・Notes and accounts receivable – trade （0.7）

74.3

+2.5

11.6

24.2

13.4

25.7

・Goodwill （0.1）+1.8 ・Investments and other assets +2.0

48.0

100.0

52.4

100.0

+4.3

11.8

24.5

11.8

22.5

+0.0 ・Provision for bonuses （0.4）

0.1

0.3

0.6

1.3

+0.5

Total liabilities

11.9

24.8

12.4

23.8

+0.5

Total net assets

36.1

75.2

39.9

76.2

+3.8

Total liabilities and net assets

48.0

100.0５２.4

100.0

+4.3

Fixed Assets

Total AssetsCurrent liabilities
Non-current liabilities

Shareholders’ equity ratio

77.2%

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75.5%1010・Accounts payable - trade +0.3

・Retained earnings+2.2

Cash Flows (Consolidated)(Billion yen)(Billion yen)

30

・Profit before income taxes
・Depreciation
・Income taxes paid

2Q
FY03/20

・Purchase of intangible assets
・Purchase of investment securities

・Dividends

(0.5)

2Q
FY03/21

ChangeOperating CF

3.0

4.4

+1.4

Investing CF

(1.6)

(0.5)

+1.1

Free CF

1.3

3.9+2.6(0.9)

(1.1)

(0.2)

(0.0)

(0.0)

+0.0

0.3

2.7

+2.3

20.1

23.4

+3.3

20.5

26.2

+5.7(1.1)+4.4
25

Financing CF

20

26.2

Effects of exchange ratechanges on cash and cash
Equivalents

23.4

Change in cash and cash

15

Equivalents
Cash and cash equivalents,
beginning of period

10

Cash and cash equivalents,

Beginning Operating
FY03/21
CFInvestingCF

Cash andEquivalents
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Financing
CFQ2
FY03/21end of quarter

Cash andEquivalents

11ForecastEarnings Forecast for FY03/２１Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Earnings Forecast for FY03/21 (Consolidated)(Billion yen)

FY03/20 Results

H1

H2

FY03/21 ForecastFY

H1H2

YoY(%)
FY

H1

H1

FY

27.6

30.6

58.3

33.2

37.2

70.5

+20.0%+21.5%+20.8%

3.8

4.3

8.2

4.9

5.5

10.5

+27.4%+28.3%+27.9%(14.0%)(14.2%)(14.1%)(14.8%)(15.0%)EBITDA

4.4

4.9

9.3

5.5

5.9

11.5

+23.6%+21.4%+22.4％

Ordinary income

3.8

4.3

8.2

4.9

5.5

10.5+27.7%+26.4%+27.0%

Profit attributable toowners of the parent

2.5

2.9

5.5

3.3

3.3

6.7

+31.1%+11.9%+20.9%Net Sales
Operating profit（Operating margin）(14.9%)Net income pershare(yen)101.32

122.37+20.8%

ROE

16.2%

17.1％

+5.7％

◆ Upward revision based on first-half results and outlook for core businesses
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

13

Earnings Forecast for FY03/21 (Consolidated) [Comparison with initial forecast](Billion yen)

FY03/20Results

FY03/21
Initial Forecast＊

FY03/21
New ForcastChange

IntialForecast

FY03/20

58.3

69.0

70.5+1.5+12.1

8.2

10.1

10.5+0.4+2.2(14.1%)(14.6%)(14.9%)EBITDA

9.3

11.5

11.5±0+2.1

Ordinary income

8.2

10.1

10.5+0.4+2.2

Profit attributable toowners of the parent

5.5

6.6

6.7+0.1+1.1

101.32120.58122.37+1.79+21.06

16.2%

17.1%

17.1%

+0.0％

+0.9%

Net Sales
Operating profit（Operating margin）

Net income pershare(yen)ROE＊ Disclosure on July 31, 2020
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

14Earnings Forecast for FY03/21 by segment (Consolidated)[Digital Entertainment](Billion yen)

FY03/20 Results
H1H2

FY03/21 ForecastFYH1H2

YoY(%)FY

H1H2FYNet Sales

16.0

16.9

32.9

22.2

23.7

46.0

+38.6%+40.3%+39.5%

E-comic

15.8

16.7

32.6

22.1

23.5

45.7

+39.8%+40.2%+40.0%

Operating profit

2.5

2.4

4.9

3.8

4.1

8.0

+50.9%+72.8%+61.6%（Operating margin）(15.8%)(14.3%)(15.0%)(17.2%)(17.6%)（17.4％）◆ Continued strong performance in the second half based on increased memberships in the first half[Business Solution](Billion yen)

FY03/20 Results
H1H2

FY03/21 Forecast
FY

H1H2

YoY(%)FY

H1H2FYNet Sales

11.6

13.7

25.3

10.9

13.5

24.5

（5.6%）（1.7%）（3.5％）

Health IT

4.8

5.9

10.7

4.4

5.7

10.1

（8.5%）（4.6%）（6.3%）

Operating profit

1.3

1.9

3.2

1.0

1.4

2.5

（17.6%）（26.8％）（23.1％）（Operating margin）(11.4％)(14.0%)(12.8%)(9.9％)(10.4％)(10.2%)◆ Lead time for hospital projects are expected to take longer, resulting in heavier weighting to Q4 than innormal years. Progress as normal in main business for radiation departments.
◆ Capture IT demand and generate firm sales through corporate web conferences, online seminars, etc.
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

15

Shareholder Returns(Yen)Annual dividends per share40◆Dividends
31.0

31.0

30

Implement FY20 interim dividend of 10 yen per share
Implement year-end dividend of 21 yen, resulting in a

projected full-year dividend of 31 yen (dividend payout

22.0
19.02021.0

12.5◆Shareholder Benefits

17.0

14.0

10ratio of 25.3%)

21.0

Provided to shareholders owning at least one trading unit

7.5
10.0

5.0

5.0

5.0

FY03/17

FY03/18

FY03/19

per the register of shareholders as of September 30, 2020

10.0

(announcement scheduled for November 30)

0Interim
Net income
per share(yen)

59.64

84.85

FY03/20

Year-End
87.46

101.32

FY20
FY03/21（Forecast）

122.37＊ Dividends per share and net income per share reflect stock split performed on March 1, 2019
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

16

Strategy

Initiatives for FY03/21
E-Comic
Health IT

Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

Growth Driver Strategies [E-comic]

1. Marketing measures• New free daily series releases attract morecustomers• Improve accuracy of recommendations using
data analysis, AI

２. Expanded content• Expand exclusive first-run distributions,(Unit: 10 thousandｓ)[ Mecha Comic Memberships ]

1,400

1,200

1,000

original comic titles

３. Improve infrastructure forbusiness growth800• Full app redesign
600
Mar. June Sep. Dec. Mar. June Sep. Dec. Mar. June Sep.

４. Develop new markets

FY03/19• Overseas expansion

FY03/21

Total members: Combination of paid and free members• M&A
Copyright © 2020 INFOCOM CORPORATION. All rights reserved.

FY03/2018

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

User

Existing Fields

Employer

３． Expand businesses in nursing

DomesticRoll 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
19

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Becoming a services company thatdelivers new value through the co-creationof ICT and real-world businesses＜ Contact ＞
Infocom Corporation
Corporate Communications Office
TEL：+81-3-6866-3160 Email：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 the Company. 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 September 30, 2020.
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.