Financial Results Briefing for FY03/2021

INFOCOM CORPORATION

2021.04.27

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

Contents
Financial Results for FY03/21

Earnings Forecast for FY03/22

Initiatives in Key Businesses
E-Comic
Health IT

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

Results

Financial Results for FY03/21

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

FY03/21 Results (Consolidated)
E-comic sales drove record-high net sales and profits
Net sales

Operating profit

Profit attributable toowners of the parent＋16.6%＋31.7%＋13.2%(Billion yen)

60

68.0

58.3

(Billion yen)(Billion yen)

15

15

10.8
40

10

10

8.2

20

5

5

0

0

0

FY03/20

FY03/21
Digital Entertainment

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

FY03/20
Business Solution

3

FY03/215.5

6.2

FY03/20

FY03/21

Management Performance (Consolidated)(Billion yen)

YoY

FY03/20

FY03/21

58.3

68.0

+9.6

+16.6%

Operating profit

8.2

10.8

+2.6

+31.7%(Operating margin)(14.1%)Net sales

Change%(15.9%)EBITDA

9.3

12.1

+2.7

+29.5%

Ordinary profit

8.2

10.9

+2.6

+32.3%

Profit attributable toowners of the parent

5.5

6.2

+0.7

+13.2%

101.32114.61+13.29+13.1%

16.2

16.2

+0.0

Net income per share (yen)ROE (%)

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

4

Business Areas and Segment Structure
Digital Entertainment
Group

Business Solution Group

DigitalEntertainment

Health IT

E-comic

Package services
for medical
institutions

・General consumers

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

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5

Business
SoftwareEnterprise Service
Management

ERP
Business package
cloud services

System integration
for major companies

・Companies
・Government offices
・Local governments

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

Digital Entertainment Group Results (Consolidated)(Billion yen)

Net sales

YoY

Operating profit

44.0

FY03/20

FY03/21Net sales

32.9

E-comic

Change

%

44.0

+11.0

+33.5%

32.6

43.9

+11.2

+34.5%

Operating profit

4.9

7.9

+2.9

+59.7%(Operating margin)(15.0%)(18.0%)(Billion yen)(Billion yen)
40

80%

32.9

7.9

8.5
30

60%

Net sales
43.9

6.0

4.9

20

40%

Significantly higher sales, driven by strong
e-comic distribution service performance

32.6(Emerging impact of pirate sites in Q4)
3.5

10

20%

Operating profit

18.0%
15.0%
0

1.0

FY03/20 FY03/21

0%

FY03/20 FY03/21

Higher profits due to higher sales
Contribution of optimized advertising

E-comic
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6

Results of E-Comic Distribution Service(Billion yen)
12.5

10.0
10.0

7.5

5.0
5.0

2.5

0.0

Q1

Q2

Q3

Q4

FY03/18
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Q1

Q2

Q3

Q4

Q1

FY03/19Q2

Q3

FY03/20
7

Q4

Q1

Q2

Q3

FY03/21

Q4

Business Solution Group Results (Consolidated)(Billion yen)
YoY

Net sales(Billion yen)(Billion yen)

30

6

25.3

FY03/20

Operating profit

60%

24.0
4

40%

3.2

2.8
10

2

20%

Change%Net sales

25.3

24.0

(1.3)

(5.4%)

Health IT

10.7

9.7

(1.0)

(10.0%)

Operating profit

3.2

2.8

(0.3)

(11.０%)(12.8%)(12.0%)(Operating margin)20

FY03/21Net sales
・Sales to hospitals during the first half were impacted by anegative rebound from special demand in the prior year
(change in imperial era, consumption tax hike). However,
we saw a recovery in performance during the second half
toward the end of the fiscal year
・Sales to companies were level with the prior year, owing
to increased efforts in sales activities, etc.

10.7

12.8%

9.7

12.0%

Operating profit
Decrease in profits due to decrease in sales

00FY03/20 FY03/21

0%

FY03/20 FY03/21

Health IT
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8

Investments(Billion yen)(Billion yen)

Main Details

Category

4

Amount3.65
0.39

Business
Development

New business planning, research,demonstration tests, etc.

0.4４

EquityInvestment

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

0.1７

3

1.99 *
2

1.79

E-comic(App and systems development, etc.)

0.44

Health IT

0.17
1CapitalInvestment

0.90

1.00

(radiology systems, drug information
systems, pharmaceutical company sales,
etc.)

0.9０

GRANDIT
Other

0.19

0.26

FY03/20

FY03/210

R&D

CapitalEquityBus. Development

Copyright © 2021 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)
9

0.2６

Balance Sheets (Consolidated)(Billion yen,%)

FY03/20
AmountCurrent assets

36.4

FY03/21

Composition
Ratio

75.8

Amount43.9

Composition
Ratio

77.9

Major Change Factors
YoY
・Cash and deposits +6.4
+7.5 ・Notes and accounts receivable-trade +1.0
・Purchase of investment securities +1.5
・Goodwill (1.1)

11.6

24.2

12.4

22.1

+0.8

48.0

100.0

56.4

100.0

+8.3

11.8

24.5

14.2

25.2

+2.4

0.1

0.3

0.3

0.6

+0.2

Total liabilities

11.9

24.8

14.5

25.9

+2.6

Total net assets

36.1

75.2

41.8

74.1

+5.6

Total liabilities and net assets

48.0

100.0

56.4

100.0

+8.3

Fixed assets
Total assets
Current liabilities
Non-current liabilities

Shareholders’ equity ratio
Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

74.4%

73.5%
10

・Income taxes paid +1.3

・Retained earnings +4.5

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

40

・Profit before income taxes
・Depreciation
・Impairment loss

FY03/20

・Purchase of intangible assets
・Guarantee deposits for relocations

FY03/21

ChangeOperating CF

7.3

9.8

+2.5

Investing CF

(2.4)

(1.6)

+0.8

Free CF

4.8

8.2

+3.3

Financing CF

(1.5)

(1.7)

(0.2)

Effects of exchange ratechanges on cash andcash equivalents

(0.0)

(0.0)

+0.0

Change in cash and cash
equivalents

3.3

6.4

+3.1

Cash and cash equivalents,
beginning of period

20.1

23.4

+3.3

Cash and cash equivalents,
end of quarter

23.4

29.9

+6.4

・Dividends

(1.6)
(1.7)

30
+9.8

20

29.9
23.4

10

0
Beginning
FY03/21

OperatingCF

InvestingCF

Cash andEquivalents
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Financing
CFEnd
FY03/21
Cash andEquivalents

11Forecast

Earnings Forecast for FY03/22

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Management Indicators (Consolidated)(Billion yen)
FY03/21 Results

Net sales

FY03/22 Forecast

YoY

1H

2H

FY

1H

2H

FY

Change

%

33.2

34.8

68.0

35.0

42.0

77.0

+8.9

+13.1%

12.0+1.1+11.0%

+0.1

+1.7%

(15.6%)

Operating profit

4.9

5.8

10.8

(Operating margin)(14.8%)(16.9%)(15.9%)

Cost of HQ relocation (1.0)

4.8

6.2

(13.7%)(14.8%)

11.0(14.3%)EBITDA

5.5

6.6

12.1

5.5

7.0

12.5

+0.4

+3.4%

Ordinary profit

4.9

5.9

10.9

4.8

6.2

11.0

+0.0

+0.6%

Profit attributable toowners of the parent

3.3

2.8

6.2

3.2

4.0

7.3

+1.0

+16.3%+16.3%Net income pershare (yen)114.61133.31+1８.７０

ROE

16.2%

16.6%

+0.3

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13

Digital Entertainment Group Earnings Forecast (Consolidated)(Billion yen)

Net sales(Billion yen)

FY03/21
Results

YoY

FY03/22
Forecast

Change

44.0

52.0

+7.9

+18.1%

Operating profit

7.9

9.0

+1.0

+13.8%(Operating margin)(18.0%)(17.3%)

Operating profit%(Billion yen)
15

60

60%

52.0
44.0
40

10

9.0

Net sales **Individual sales categories have been consolidated, as
e-comic sales now equal sales of the entire segment

40%

Net sales

7.9

Sales increased due to the expansion of content (original comics,
Korea Webtoon) and stronger data utilization, etc.
20

5

20%

18.0%

(We assume that the impact of pirate sites will be contained in thefirst half of the year)

17.3%

Operating profit
00FY03/21 FY03/22(Forecast)

0%
FY03/21

Higher profits due to higher sales

FY03/22(Forecast)

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14

Business Solution Group Earnings Forecast (Consolidated)(Billion yen)

Net sales(Billion yen)(Billion yen)

30

6

24.0

FY03/21
Results

Operating profit
60%

25.0

YoY

FY03/22
Forecast

Change%Net sales

24.0

25.0

+0.9

+4.0%

Health IT

9.7

10.7

+0.9

+10.3%

Operating profit

2.8

3.0

+0.1

+6.2%

Steady recovery from the impact of COVID-19,(Operating margin)(12.0%)(12.3%)
mainly in our HealthIT business

20

4

Excluding HQ
relocation costs

40%

2.8

3.0

Net sales
Higher sales due to gradual decrease in the impact of COVID-19,
mainly in our Health IT business, over the second half

10

2

9.7

10.7

20%

12.3%

12.0%

Operating profit
Higher profits due to higher sales

00FY03/21

FY03/22(Forecast)

0%
FY03/21

FY03/22(Forecast)

Health IT
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15

Investment Plan
(Billion yen)
3

(Billion yen)

Category

Main Details

Business
Development

New business planning, research,demonstration tests, etc.

Amount

2.47
0.40
2

0.4０

E-comic

1.61*
0.44
1.69

CapitalInvestment

1

Health IT(hospital sales, community-based
comprehensive care,pharmaceutical company sales,
etc.)

1.6９

GRANDIT

0.90

Other (HQ relocation, etc.)

0.26

0.38

0

FY03/21

R&D
Investment

FY03/22
Forecast

R&D Investment Capital Investment Business Development
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16

AI, new technology research,DX, etc.

0.3８

Shareholder Returns(Yen)

Annual dividends per share

40

40.0

◆Dividends
We project a FY03/22 interim
dividend of 13 yen per share andyear-end dividend of 27 yen per
share for total 40 yen per shareannual dividend(30.0% payout ratio)

37.0
31.0

30
27.0

22.0
20

19.0

14.0

27.0
21.0

*

17.0

10
10.0
5.0

5.0

FY03/18

FY03/190

Net income
per share (yen) 84.85

FY03/20

InterimYear-End

87.46

101.3210.0

13.0

FY03/22
FY03/22(Forecast)*Planning to propose
FY03/21

before the general
meeting ofshareholders

114.61◆Shareholder Benefits
We plan to provide shareholder
benefits to shareholders owning atleast one trading unit per the registerof shareholders as of September 30,
2021

133.31*Dividends per share and net income per share reflect stock split performed on March 1, 2019
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17

HQ Relocation[Background]◆ Pursuing Work-Style Reform[Concept]

Activity-Based Working

・Improve and expand work system, IT environment, workplaces, etc.
[Overview]
1. New location: Minato-ku, Tokyo
2. Timing: November - December 2021 (tentative)

3. Impact:(1) Cost savings through 40% reduction in floor space(We expect to recover the cost of HQ relocation over five years)(2) Improve the communication environment by consolidating 10 floors
to one floor(3) Develop and enhance an IT environment that allows employees towork without restrictions on time and place(4) Improve employee QOL through flexible work styles anda well-designed environment
Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

18

Strategy

Initiatives in Key Businesses
E-Comic
Health IT

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

E-Comic

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

FY03/21 Initiatives
Hit original comics
and dramatizations
Aoshima Kun wa Ijiwaru
Surpassed 1 million downloads

New free daily series releases
to attract more customers⚫
⚫

Dramatization of Toshinosakon
and RISKY

Launched free daily series in
November 2019
Increased to two episodes per
day in December 2020

No. of Daily Free Series
Episodes Released

Q3 Q4 Q1 Q2 Q3 Q4Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

21

Expanded use of
Mecha Comic app⚫
⚫

Complete redesign in Q1
Surpassed 4.5 million total
downloads

Mecha Comic App
Installations(Cumulative)

Q2 Q3 Q4 Q1 Q2 Q3 Q4

E-comic Sales
Expanded user demographics, accelerated growth(Billion yen)%: YoY Growth

60

1,800
Total Subscribers(Unit: 10 thousands)

Sales
Total Subscribers

50

1,500

+34％

0

0

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

22

2022

300

2021

10

2020

600

2019

20

2018

900

2017

30

2016

1,200

2015

40

FY03/22 Initiatives

1 Expand Content Offerings
・Bolster production system for original comics
・Import and sales of Korean Webtoon titles

・Strengthen collaboration with publishers

2 Strengthen Marketing
Paid
Subscribers

Free
Subscribers

・Dramatization of original comics
・Marketing via TV ads, online video ads, social media, special
campaigns, etc.

3 Strengthen Growth Businesses
・App: Expand application-specific functions and improve userinterface・Overseas: Business expansion through promotion of Peautoon

Latent Customers(E-book market / paper publishing market /smartphone game market)

4 Strengthen Systems Foundation
・Transition gradually to full cloud operations

・Develop and improve image processing, data compression,browsers/viewers, etc.
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23

Expand Content and Strengthen Marketing
Sales

Production

Korea

Domestic

Bolster production systemfor original comics

Dramatization

Promotions
Strengthen collaboration
with publishers

Exclusive first-run distributions
Daily free series

Webtoon title import and sales

Promotions
Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

IP Management24

Health IT

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Health IT FY03/2022 Initiatives
New Fields

3. Expand businesses in nursing
care related fields
Launch cloud-based nursing CWS andClinicalInformation

Nursing
Management
Surgery
Management
Drug
Information

Hospital Staff Management (CWS)

Expand professional recruitment business

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

Employer

4. Introduce online services

Overseas

Remote Field

User

Existing Fields

Sales
Support

Employer
Domestic

Advance health IT project in Asia

Employee

2. Overseas expansion

Radiology

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

Drug Information
Clinical Information
Radiology
26

HealthDiagnosis
HealthAnalysis

Career Change
Support

Digital Health Connect✓ Solasto✓ SOMPO
etc

Asia Healthcare

HealthPharmaceutical

Online sales support for MR

Hospitals

Launch health business

Focus Businesses

Nursing

Medical1. Launch business in health related fields

Personal
HealthServiceAdvanced Health IT Project in Asia
Cloud Services

Packaged

FY03/21Begin overseas expansion(1) Original packaged sales
Indonesia, the Philippines(2) Ally with health techDomestic

Infocom

Overseas (Asia)(1) Expand PACS in Indonesia(2) Create businesses
around DI

Drug Information

Care Staff
Management

Expand inJapan

Medical IT Vendors

Health Tech Companies

Medical Imaging
System (PACS)

Drug Information
System (DI)Care Staff
Matching Platform

Teracorp(Indonesia)(The Philippines)

Homage(Singapore)

Multi-Country Expansion

27

MedicalInformation Service

CreateBusinesses

Expansion

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

WELSA

ClinicalInformation

Business andequity tie-up

companies
HomageFY03/22

Radiology
Information

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 March 31, 2021. 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 © 2021 INFOCOM CORPORATION. All rights reserved.

Reference

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

Ratio of Services Sales
Ratio of businesssolution sales

Ratio to total sales
58.3
billion22%

68.0
billion25.3
billion24.0
billion30.0
billionHealth IT

16%

16%

18%

90.0
billion

13%

Care

CareStyle,
CareCareer

50%

CWS, MIMAMOA
Pharmaceuticals
DigiPro4%
Business

57%

WELSA

45%

4%

65%

HealthERP

GRANDIT

Documents

MyQuick,
ecoDeliver

67%

Risk Management
EMC, BCPortal

45%

41%

Other

atscore.

35%
Business Solution Products
2019

2020

2022

Digital Entertainment

IT (Services)

IT (Stock)

IT (Flow)

Copyright © 2021 INFOCOM CORPORATION. All rights reserved.

9%

10%

2019

2020

2022

IT (Services) IT (Stock) IT (Flow)30