Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between
the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Year Ended March 31, 2022
[Japanese GAAP]
April 27, 2022
Company name: INFOCOM CORPORATION
Stock exchange listing: Tokyo
Code number: 4348
URL: https://www.infocom.co.jp/
Representative: Norihiro Takehara
President and CEO
Contact: Shinya Tanaka
Head of Corporate Communications Office
Phone: 03-6866-3160
Scheduled date of Annual General Meeting of Shareholders: June 14, 2022
Scheduled date of commencing dividend payments: June 16, 2022
Scheduled date of filing annual securities report: June 15, 2022
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
March 31, 2022
64,586(5.1)
10,098(6.6)
10,196
(6.8)
6,912
10.1
March 31, 2021
68,055
16.6
10,812
31.7
10,936
32.3
6,276
13.2
(Note) Comprehensive income:Fiscal year ended March 31, 2022:¥
5,666 million [(21.5) %]Fiscal year ended March 31, 2021:¥
7,216 million [54.4%]
Basic earnings per Diluted earnings per Rate of return on
share
share
equityOrdinary profit tototal assets ratio

Yen
Yen
%
Fiscal year ended
March 31, 2022
126.20125.65
16.1
March 31, 2021
114.61
114.10
16.2(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2022:
Fiscal year ended March 31, 2021:

Operating profit to
net sales ratio

%

%

17.9
20.9
¥
¥

15.6
15.9
11 million
8 million(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2022
March 31, 2021
(Reference) Equity:

Net assets

Million yen

Million yen

57,531
56,435
As of March 31, 2022:
As of March 31, 2021:

Capital adequacy ratio

44,57941,83944,185 million
41,503 million¥¥

Net assets per share

%

Yen

76.8
73.5

806.59757.76(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2022
March 31, 2021

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

7,148
9,871

(3,225)(1,643)(2,217)(1,761)

31,70029,956―1―

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Payoutratio

Total
dividends

Total(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen%%

March 31, 2021

-

10.00

-

27.00

37.00

2,026

32.3

5.2

March 31, 2022

-

13.00

-

37.00

50.00

2,738

39.6

6.4

-

18.00

-

27.00

45.00

Fiscal year ending
March 31, 2023

35.2

(Forecast)(Note) Breakdown of the year-end dividend for the fiscal year ended March 31, 2022 :Commemorative dividend- yenSpecial dividend- yen
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 01, 2022 to March 31, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable Basic earnings per
Net sales
Operating profit
Ordinary profit
to owners of parent
share
Six months ended
September 30, 2022
Full year

Million yen%

Million yen%

33,00070,000Million yen%

Million yen

%

1.7

4,000

8.4

10,500Yen(20.0)

4,000(20.9)

2,700(21.6)

49.29

4.0

10,500

3.0

7,000

1.3

127.80* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No
New(Company name:)
Exclusion:(Company name:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2022:
57,600,000 shares
March 31, 2021:
57,600,000 shares2) Total number of treasury shares at the end of the period:
March 31, 2022:
2,819,167 shares
March 31, 2021:
2,829,423 shares
3) Average number of shares during the period:
Fiscal Year ended March 31, 2022:
Fiscal Year ended March 31, 2021:

54,774,659 shares
54,759,562 shares―2―

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 01, 2021 to March 31, 2022)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2022
March 31, 2021

Operating profit

Ordinary profit

Net income

Million yen%

Million yen%

Million yen%

Million yen%

20,78820,783

0.0
(9.9)

1,827
2,198

(16.9)(19.1)

4,803
4,222

13.7
(11.8)

4,080
2,579

58.2
(32.2)

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2022
March 31, 2021

Yen

Yen

74.50
47.10

74.18
46.90

(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2022
March 31, 2021
(Reference) Equity:

Net assets

Million yen

46,26545,078
As of March 31, 2022:
As of March 31, 2021:

Capital adequacy ratio

Million yen

¥
¥

―3―

26,132
25,671
25,911 million
25,442 million

Net assets per share

%

Yen

56.0
56.4

473.01464.53

1. Analysis of Business Results1) Overview of Business Results during the Year under Review
During the consolidated fiscal year under review, the Japanese economy continued to face uncertainties, impacted by the
prolonged COVID-19 pandemic and geopolitical risks.
The e-book market grew further with an increase in users, even as the impact of pirate sites has expanded.
The IT-related markets showed signs of recovery for IT investment, which had been limited due to the moderate nature of therecovery in economic activities, which had been stagnant in the wake of the COVID-19 pandemic.
In this operating environment, the Infocom Group medium-term management plan (April 2020 to March 2023) emphasized two
fundamental policies: (1) pursue growth and (2) continue strengthening our management foundation to support growth. To thisend, we identified e-comics and healthcare as priority businesses. In these areas, we pursued continued growth,endeavored to evolve into a services-oriented business, and engaged in co-creation (M&A, overseas expansion).
In addition, we completed the relocation of our headquarters, undertaken to pursue work-style reform, on schedule.
As a result, the Infocom Group generated net sales of ¥64,586 million, down 5.1% compared to the previous fiscal year. This
result was mainly due to firm IT services performance, despite sluggish growth in e-comic sales. Operating profit amounted to¥10,098 million, down 6.6%, mainly due to cost increases associated with our headquarters relocation. Ordinary income was¥10,196 million, down 6.8%, and profit attributable to owners of the parent amounted to 6,912 million yen, up 10.1% andrepresenting a new record high.
The following paragraphs describe our results by segment.
(i) Digital Entertainment GroupOur Digital Entertainment Group recorded sales of ¥40,530 million (-7.9% year on year). This result was mainly due to ourcurbing advertising in our e-comic distribution service owing to the impact of pirate sites and declining effectiveness ofadvertising. A decline in special demand associated with voluntary restraints on travel outside the home and the lack of major
hits in original content also contributed to this result. Despite the impact of lower sales, operating profit amounted to ¥7,760
million (-1.9%), mainly as a result of cost reductions from reduced advertising.
In our Mecha Comic business, we bolstered the production of original comics and pursued measures to expand our businessfields, including advancing the dramatization of our titles. In addition to measures for the Japanese market, we madepreparations for the launch of services in the U.S. Market.
Amutus Corporation is the consolidated subsidiary that operates Mecha Comic. During the period, the company endeavored toacquire content, expand its business fields, and grow the market. To improve usability, we created AmuLink Corporation as ameans to strengthen our systems infrastructure. AmuLink is responsible for planning and developing systems for our e-comic
distribution service in collaboration with Link-U.
(ii) Business Solution Group
Despite the impact of COVID-19, sales remained steady, amounting to ¥24,055 million and up 0.1% compared with theprevious year. While the aforementioned advancements in work-style reform contributed to higher operating margin, operating
profit fell 19.5% to ¥2,329 million, mainly due to the recording of ¥850 million yen in headquarters relocation expenses.
Sales of radiology systems and work management systems for hospitals in our Health IT business remained strong throughout
the year. Overseas, we entered into a business alliance with Docquity, a provider of social media platforms for doctors, to―4―expand sales of our products in Southeast Asia.
In terms of enterprise sales, we began offering GRANDIT miraimil, a cloud service for the integrated ERP GRANDIT software
package.
In addition, we made MEDICAL CREATE a subsidiary to expand the scale of sales in the Health IT business and to improve
service quality. We also converted Alterbooth to a subsidiary, aiming to advance our services-oriented business and improve
development technology for cloud and other services.
2) Overview of Financial Position for the Current Fiscal Year
Total assets increased ¥1,095 million from the end of the previous fiscal year to ¥57,531 million. This result was mainly due toan increase in cash and deposits and goodwill resulting from the acquisition of MEDICAL CREATE and Alterbooth asconsolidated subsidiaries. This increase was offset in part by a decrease in the market value of investment securities.
Total liabilities amounted to ¥12,951 million, down ¥1,644 million compared with the end of the previous fiscal year. This
result was mainly due to decrease in accounts payable-trade and income taxes payable, offset in part by contractual liabilities
stemming from the adoption of Accounting Standard for Revenue Recognition.
Net assets rose ¥2,740 million compared with the end of the previous consolidated fiscal year to ¥44,579 million. This result
was mainly due to the posting of profit attributable to owners of the parent, offset in part by a decrease in retained earnings at
the beginning of the period in connection with the adoption of Accounting Standard for Revenue Recognition and dividend
payments.
3) Overview of Cash Flows for the Current Fiscal Year
Cash and cash equivalents as of March 31, 2022 amounted to ¥31,700 million, up ¥1,744 million from one year earlier. The
following paragraphs describe cash flows and reasons for major changes in cash flows.
[Cash flows from operating activities]
Net cash provided by operating activities amounted to ¥7,148 million (¥9,871 million in the previous fiscal year). This result
was mainly due to increases stemming from profit before income taxes of ¥10,050 million (¥9,721 million in the previous
fiscal year), depreciation (non-cash item) of ¥1,333 million (¥1,142 million), and decreases in accounts receivable-trade andcontract assets of ¥1,789 million (¥1,045 million increase in the previous fiscal year). These increases were offset in part by adecrease stemming from ¥4,661 million in income taxes paid (¥2,370 million in the previous fiscal year).
[Cash flows from investing activities]
Net cash used in investing activities amounted to ¥3,225 million (¥1,643 million in the previous fiscal year). This result was
mainly due to purchases of property, plant and equipment of ¥735 million (¥244 million in the previous fiscal year), purchasesof software and other intangible assets of ¥989 million (¥767 million), and purchase of shares of MEDICAL CREATE andAlterbooth, both becoming consolidated subsidiaries, of ¥1,055 million (no similar transactions in the previous fiscal year).
[Cash flows from financing activities]
Net cash used in financing activities amounted to ¥2,217 million (¥1,761 million in the previous fiscal year). This result was
mainly due to cash dividends paid of ¥2,190 million (compared to ¥1,697 million in the previous fiscal year).
4) Outlook for the Next Fiscal Year
The Japanese economy is expected to gradually recover with the greater adoption of measures to prevent the spread of COVID19. However, the future remains uncertain due to the impact of geopolitical risks and other factors.

―5―

The e-book market is projected to continue trending larger, backed by factors that include a growing user base in connection
with in-home demand.
The IT-related market should see a recovery in IT demand, spurred by increased use of cloud services as investments, which
stagnated during the COVID-19 pandemic, recovers.
In this environment, the Infocom Group medium-term management plan (April 2020 to March 2023) emphasizes two
fundamental policies: (1) pursue growth and (2) continue strengthening our management foundation to support growth. To thisend, we have identified e-comics and healthcare as priority businesses.
For the fiscal year ending March 31, 2023, we forecast net sales of ¥70,000 million (+8.4% year on year), operating profit of¥10,500 million (+4.0%), ordinary profit of ¥10,500 million (+3.0%), and profit attributable to owners of parent of ¥7,000
million (+1.3%).
The above-stated performance forecasts are based on information as of the date these materials were released. Accordingly,
actual results may differ materially from these forecasts, due to a variety of future factors.
2. Basic Perspective on Selection of Accounting Standards
Our company applies Japanese standards.
We are preparing for the application of IFRS, and to this end we are developing a Group settlement system and in-house
manual. We are also considering the timing for the application of IFRS.

―6―Consolidated Financial Statements
Consolidated Balance Sheets(Million yen)
As of March 31,2021

As of March 31,2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade29,956
12,502

31,700--14
10,744

167

155
86

Other
Allowance for doubtful accounts

1,345
(7)

2,472
(7)

Total current assets

43,96445,166

Notes receivable - trade
Accounts receivable - trade
Contract assets
Inventories

Non-current assets
Property, plant and equipment
Buildings and structures

1,023

767

Accumulated depreciation

(541)

(121)

Buildings and structures, net

481

645

Machinery, equipment and vehicles

1

6

Accumulated depreciation

(1)

(5)

Machinery, equipment and vehicles, net

01

Tools, furniture and fixtures

1,548

1,517

(1,049)

(945)

499

571

365
(291)

335
(295)

Leased assets, net

7340

Construction in progress

0

0

1,054

1,259

1,592
-

1,894
1,169

47

34

Total intangible assets

1,639

3,097

Investments and other assets
Investment securities

7,494

5,744

242
686

53
1,421

1,551
(198)

789
(1)

Accumulated depreciation
Tools, furniture and fixtures, net
Leased assets
Accumulated depreciation

Total property, plant and equipment
Intangible assets
Software
Goodwill
Other

Shares of subsidiaries and associates
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

―7―

9,776

8,007

12,471

12,36456,43557,531

(Million yen)
As of March 31,2021

As of March 31,2022

Liabilities
Current liabilities
Accounts payable - trade
Lease liabilities

4,975
48

4,377
25

Accounts payable - other
Income taxes payable

1,768
2,729

1,303
1,298

Accrued consumption taxes
Contract liabilities

1,189
-

683
2,725

Advances received
Provision for bonuses

901
1,402

1,336

Other

1,225

681

Total current liabilities

14,241

12,432

32

19

16
235

48
-

Other

70

451

Total non-current liabilities

355

519

14,596

12,951

Share capital
Capital surplus

1,590
1,556

1,590
1,480

Retained earnings
Treasury shares

37,479(795)

41,402(792)

Total shareholders' equity

39,82943,680

1,827

512

(153)

(6)

1,673

505

228

220

Non-current liabilities
Lease liabilities
Retirement benefit liability
Deferred tax liabilities

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

―8―

107

173

41,83944,57956,43557,531

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31,2021

For the fiscal year
ended March 31,2022

Net sales
Cost of sales

68,05534,34764,58633,226Gross profit

33,70831,359Selling, general and administrative expenses

22,896

21,261

Operating profit

10,812

10,098

102

144

8

11

18

4

130

161

1

0

Foreign exchange losses
Partnership loss

1
3

5
52

Other

0

4

Total non-operating expenses

562

10,936

10,196053

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

Ordinary profit
Extraordinary income
Gain on sale of investment securities
Other

-

0

Total extraordinary income

0

53

1,002
14

43
11

Loss on valuation of investment securities
Loss on sale of shares of subsidiaries and associates

23
-

95
46

Provision of allowance for doubtful accounts
Other

172
3

2

Extraordinary losses
Impairment losses
Loss on retirement of non-current assets

1,215

199

Profit before income taxes

Total extraordinary losses

9,721

10,050

Income taxes - current

3,705

3,233

Income taxes - deferred

(171)

(13)

Total income taxes

3,533

3,219

Profit

6,188

6,831

(88)

(81)

6,276

6,912

Profit attributable to non-controlling interests
Profit attributable to owners of parent―9―Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31,2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

For the fiscal year
ended March 31,2022

6,188

6,831

1,086
(0)

(1,315)
-

(58)

150

1,028

(1,164)Comprehensive income

7,216

5,666

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

7,303

5,744

(87)

(78)

Total other comprehensive income―10―Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31,2021(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Restricted stockcompensation
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period1,590

CapitalsurplusRetainedearnings

1,456

32,900Treasuryshares(805)

Total
shareholders'equity35,140(1,697)(1,697)

6,276

6,276

99

10

109

-

99

4,578

10

4,688

1,590

1,556

37,479(795)

39,829

Accumulated other comprehensive income
Total
Share
Valuation
Foreign
Deferred gains
accumulated acquisitiondifference on
currency
or losses on
otherrightsavailable-fortranslation
hedgescomprehensiv
sale securities
adjustmente income
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Restricted stockcompensation
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

740

0

(94)

646

177

Noncontrollinginterests

194

Total net
assets36,159(1,697)
6,276
109
1,086

(0)

(58)

1,027

50

(86)

991

1,086

(0)

(58)

1,027

50

(86)

5,679

1,827

-

(153)

1,673

228

107

41,839―11―

For the fiscal year ended March 31,2022(Million yen)
Shareholders' equity
Share capital
Balance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesRestricted stockcompensation
Capital increase of
consolidated
subsidiaries
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period1,590

CapitalsurplusRetainedearnings

1,556

37,479Total
shareholders'equityTreasuryshares
(795)

(798)
1,590

1,556

36,68039,829
(798)

(795)

39,030(2,190)(2,190)

6,912

6,912
(0)

(0)

4

3

7

1

0

1

(81)

(81)

-

(75)

4,721

3

4,649

1,590

1,480

41,402(792)

43,680―12―

Accumulated other comprehensive income
Total
Share
Valuation
Foreignaccumulated acquisitiondifference on
currency
otherrightsavailable-for- translation
comprehensiv
sale securities adjustmente income
Balance at beginningof period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesRestricted stockcompensation
Capital increase of
consolidated
subsidiaries
Net changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

1,827

(153)

1,673

228

Noncontrollinginterests

107

Total net
assets41,839
(798)

1,827

(153)

1,673

228

107

41,040(2,190)
6,912
(0)
7
1
(81)
(1,315)147(1,167)(7)

65(1,110)(1,315)147(1,167)

(7)

65

3,539

512

(6)

505

220

173

44,579―13―

Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31,2021
Cash flows from operating activities
Profit before income taxes

For the fiscal year
ended March 31,2022

9,721

10,050

1,142
1,002

1,333
43

Share-based payment expenses
Amortization of goodwill

77
210

36
25

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on orders
received
Interest and dividend income

172
(8)

(0)
(83)

(69)

-

(102)

(144)

23
(0)

95
(53)

-

46

(1,045)

1,789

224

74

Decrease (increase) in other assets
Increase (decrease) in trade payables

(196)
413

(259)
(587)

Increase (decrease) in other liabilities

572

(704)

12,137

11,661

105
(1)

148
(0)

Income taxes paid

(2,370)(4,661)

Net cash provided by (used in) operating activities

9,871

7,148

Purchase of property, plant and equipment
Purchase of intangible assets

(244)
(767)

(735)
(989)

Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from sale of shares of subsidiaries andassociates
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Payments of guarantee deposits

(178)
6

(430)
99

-

150

-

(1,055)

(478)

(3)

2
16

2
(262)

(1,643)(3,225)(54)(1,697)(46)(2,190)Depreciation
Impairment losses

Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities
Loss (gain) on sale of shares of subsidiaries andassociates
Decrease (increase) in trade receivables and contract
assetsDecrease (increase) in inventories

SubtotalInterest and dividends received
Interest paid

Cash flows from investing activities

Proceeds from refund of guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of lease liabilities
Dividends paid
Other, net

(9)

19

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(1,761)(2,217)

(1)

38

6,465

1,744

Cash and cash equivalents at beginning of period

23,491

29,956

Cash and cash equivalents at end of period

29,95631,700―14―