(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 Fiscal Year Ended March 31, 2020 [Japanese
GAAP]
April 27, 2020
Listed company name:
Infocom Corporation
Listed on: Tokyo Stock Exchange
Securities code:
4348
URL https://www.infocom.co.jp/
Representative: (Position) President and CEO(Name) Norihiro Takehara
Contact: (Position) Head of Corporate Communications Office(Name) Shinya Tanaka(TEL) +81-3-6866-3160
Scheduled date of Annual General Shareholders’ Meeting: June 16, 2020 Scheduled date to commence dividend payments: June 18, 2020
Scheduled date to file Securities Report:
June 17, 2020
Preparation of supplementary materials on financial results: Yes
Holding of financial results briefing:No(Amounts less than one million yen are rounded down.)

1. Consolidated Business Results for the fiscal year ended March 31, 2020
(1) Consolidated operating results
Net sales
Fiscal year ended(Percentages indicate year-on-year increases.)
Net income attributable toOrdinary profit
owners of parent

Operating profit

Million yen%

Million yen

58,37551,728

12.8
13.0

8,211
6,889

%

Million yen%

Million yen

%

19.2
8,268
20.3
5,543
15.9
March 31, 2019
18.2
6,875
14.9
4,783
3.1
(Note) Comprehensive income: Year ended March 31, 2020: ¥4,673 million（-12.8%）; Year ended March 31, 2019: ¥5,360 million（0.2%）
March 31, 2020

Diluted earnings per
share

Earnings per share
Fiscal year ended
March 31, 2020
March 31, 2019

Return on
shareholders’ equity

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

Yen

Yen

%

%

%

101.3287.46

100.86
87.07

16.2
15.7

18.0
16.8

14.1
13.3

(Reference) Equity in earnings (losses) of affiliates: Year ended March 31, 2020: ¥ -1 million; Year ended March 31, 2019: ¥ 2 million(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

Net assets

Million yen

Million yen

48,08743,64936,15932,707

Net assets per share

%

Yen

74.4
As of March 31, 2019
74.6
(Reference) Shareholders’ equity: Year ended March 31, 2020: ¥35,786 million; Year ended March 31, 2019: ¥32,547 million
As of March 31, 2020

(3) Consolidated cash flows
Cash flows from operating
activities
Fiscal year ended
March 31, 2020
March 31, 2019

Cash flows from investing
activities

Cash flows from financing
activities

653.82595.05

Cash and cash equivalents at
the end of the fiscal year

Million yen

Million yen

Million yen

Million yen

7,355
5,671

(2,472)(1,024)(1,546)(1,105)23,491
20,177

2. Dividends
Dividends per share
Q1

Q2

Q3

Year-end

Total

Total dividends
paid(Annual)Dividend
payout ratio(Consolidated)

Dividend on
equity ratio(Consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen%%

March 31, 2019

-

10.00

－

17.00

－

1,203

25.2

4.0

March 31, 2020

-

10.00

－

21.00

31.00

1,696

30.6

5.0

Fiscal year ending
March 31, 2021(forecasts)

-

10.00

－

21.00

31.00

29.8

（note）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.

－

1

－

3. Forecasts of Consolidated Business Results for the fiscal year ending March 31, 2021
Net salesFirst half
Full-year

Operating profit(Percentages indicate year-on-year increases.)
Net income attributable
Earnings per shareto owners of parent

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

Yen

30,50067,000

10.2
14.8

3,400
8,700

(12.0)
6.0

3,400
8,700

(12.3)
5.2

2,200
5,700

(14.6)
2.8

40.21
104.18(Reference) Overview of individual business results
1. Individual Business Results for the fiscal year ended March 31, 2020
(1) Individual operating results(Percentages indicate year-on-year increases.)
Net sales

Operating profit

Ordinary profit

Net income

Fiscal year ended

Million yen%

Million yen%

Million yen%

Million yen%

March 31, 2020

23,07022,038

4.7
(1.0)

2,716
2,008

35.3
(3.7)

4,789
3,361

42.5
6.8

3,804
2,609

45.8
(7.0)

March 31, 2019

Diluted earnings per
share

Earnings per share
Fiscal year ended
March 31, 2020
March 31, 2019

Yen

Yen

69.54
47.71

69.23
47.50

(2) Individual financial position
Total assets
As of March 31, 2020
As of March 31, 2019

Shareholders’ equity ratio

Net assets

Net assets per share

Million yen

Million yen%

Yen37,51135,86523,78422,22562.9
61.5

431.29403.45(Reference) Shareholders’ equity: As of March 31, 2020 : ¥23,606 million; As of March 31, 2019: ¥22,067 million* Explanation regarding the appropriate use of financial forecasts and other special remarks(Cautions concerning forward-looking statements)
Forward-looking statements, including forecasts of business results, are based on the information currently available and certain
assumptions judged to be rational. Actual business results may differ substantially due to various factors. For the matters to be notedwhen using the financial forecasts and the assumptions behind these forecasts, please refer to “1. Analysis of Business Results, 4)Outlook for the Next Fiscal Year,” on page 4 of the attached materials.

－

2

－

1. Analysis of Business Results1) Overview of Business Results during the Year under Review
The Japanese economy saw the negative impact of consumption tax increases on corporate and consumer activity during theconsolidated fiscal year. Further, concerns emerged during second half of fiscal year about the impact of COVID-19 on economic
activities in Japan and overseas.
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 has been executing a medium-term management plan (April 2017 to March
2020) emphasizing two fundamental policies: (1) pursue growth and (2) continue strengthening our management foundation to
support growth. To this end, we have identified e-comics and healthcare as priority businesses. In these areas, we pursued M&A
opportunities actively while also developing businesses that leverage AI and IoT.
As a result, the Infocom Group generated net sales of ¥58,375 million for current consolidated fiscal year, up 12.8% compared tothe previous fiscal year. Operating profit rose 19.2% to ¥8,211 million and ordinary profit rose 20.3% to ¥8,268 million. Profit
attributable to owners of the parent increased 15.9% to ¥5,543 million.
(i) Business Solution Group
Our Business Solution Group recorded sales of ¥25,391 million for the consolidated fiscal year (+4.8% year on year) and operating
profit of ¥3,250 million (+30.7%), driven by steady performance in sales to hospitals stemming from an imperial era change andconsumption tax increases.
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. We also signed a venture capital agreement with an entity specializing in healthcare as we broaden our vision to IT
services for the hospital markets in Asia. In addition, we launched WELSA, a service for integrated employee health managementthat also provides analysis and projections related health risks and lifestyle-related diseases, etc
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 with cloud frameworks*.
*Cloud framework: IT infrastructure service utilizing virtualization technology (Microsoft Azure, Amazon Web Services, etc.)(ii) Digital Entertainment GroupOur Digital Entertainment Group recorded sales of ¥32,983 million +20.0% year on year) and operating profit of ¥4,951 million(+12.7%). These results were supported by optimized advertising data analysis in our e-comics distribution service, as well as thecontribution of strong results in free series and original comic titles.
Measures to strengthen advertising for this service included an extended broadcast period for TV commercials and serving as a leadsponsor for the Tokyo Yakult Swallows (professional baseball) Meccha Comics Day. We also signed a club sponsorship agreementwith FC Tokyo and held Meccha Bookstores in May and November featuring popular Meccha Comics products for sale at physicalbookstores. To expand our user base, we released the Meccha Comic app targeting younger readers. We also upgraded functions on
our website and launched a Daily Free Reading Series. As a result, sales exceeded ¥30 billion for the first time since the service waslaunched.
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 business－3－

overseas.
2) Overview of Financial Position for the Current Fiscal Year
Total assets increased ¥4,437 million compared with the end of the previous consolidated fiscal year, amounting to ¥48,087 million.
This result was mainly due to an increase in cash and cash deposits. Total liabilities rose ¥986 million to ¥11,927 million due to anincrease in accounts payable-trade and accounts payable-other. Net assets grew ¥3,451 million year on year to ¥36,159 million.
3) Overview of Cash Flows for the Current Fiscal Year
Cash and cash equivalents as of March 31, 2020, amounted to ¥23,491 million, up ¥3,313 million from one year earlier.
[Cash flows from operating activities]
Net cash provided by operating activities amounted to ¥7,355 million (¥5,671million in the previous fiscal year). This result was
mainly due to increases stemming from profit before income taxes of ¥8,040 million (¥6,799 million) and depreciation of ¥1,023
million (¥1,118 million) and decreases stemming from income taxes paid of ¥2,653 million (¥2,307 million).
[Cash flows from investing activities]
Net cash used in investing activities amounted to ¥2,472 million (¥1,024 million in the previous fiscal year). This result was mainly
due to outlays of ¥1,092 million stemming from the acquisition of subsidiary stock in connection with the change in the scope of
consolidation (no such outlays in the year-ago period), as well as ¥691 million (¥615 million) in outlays for the purchase of softwareand other intangible fixed assets.
[Cash flows from financing activities]
Net cash used in financing activities amounted to ¥1,546 million (¥1,105 million in the previous fiscal year), mainly due to cash
dividends paid of ¥1,476 million (¥1,039 million).
(Reference) Changes in cash flow indicators
3/20163/20173/20183/20193/2020Equity ratio (%)

66.5

72.2

73.8

74.6

74.4

Equity ratio based on market value (%)

135.8

161.4

158.1

230.7

280.8

－

－

－

－

－

3,545.3

1,643.9

3,239.6

3,390.9

4,406.2

Interest-bearing debt to cash flow ratio (year)
Interest coverage ratio(Notes) Equity ratio: Equity / total assets
Equity ratio based on market value: Total market capitalization / total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt / operating cash flow
Interest coverage ratio: Operating cash flow / interest payments
Indicators are calculated based on consolidated financial figures.
Stock market capitalization is calculated by multiplying the closing stock price by the total number of issued sharesat the end of the fiscal year (excluding treasury shares).
Operating cash flow uses cash flows from operating activities in the consolidated statements of cash flows.
Interest-bearing debt includes all interest-bearing liabilities recorded on the consolidated balance sheet. Interest
payments refers to the amount of interest paid per the consolidated statement of cash flows.

－

4

－

4) Outlook for the Next Fiscal Year
The Japanese economy is expected to experience a significant impact on corporations and consumer activities due to the spread of
COVID-19.
The IT-related market is seeing a rise in demand for new technologies to rethink operating processes against the backdrop of theincreased reliance on cloud services for smartphones, tablets, and other mobile devices, advanced applications of AI in businesses,
and work-style reform initiatives, including measures to fight the spread of pandemics. The impact of COVID-19 is expected tosubside during the second half of the fiscal year with a recovery in demand.
The e-book market is experiencing greater use by a more diverse customer base as more consumers use smartphones for reading.
Further, we expect the market to continue to grow due to the impact of voluntary restraints in unnecessary travel outside the home
and the spread of 5G-compatible mobile phones, factors which are likely to make the use of e-books even more pervasive.
And responses environment, the Infocom Group created a new medium-term management plan covering April 2020 through March
2023. This new plan defines three basic policies: (1) Create continued growth through focus on e-comic and health IT as priority
businesses; (2) Pursue business restructuring through shift to services; and (3) Actively pursue co-creation (M&A, overseas
expansion).
For the fiscal year ending March 31, 2021, we anticipate net sales of ¥67,000 million (+14.8% year on year), operating profit of¥8,700 million (+6.0%), ordinary profit of ¥8,700 million (+5.2%), and net income attributable to owners of parent of ¥5,700
million (+2.8%).
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.
5) Basic Policy on Distribution of Profit and Dividends for the Fiscal Years to March 31, 2019 and 2020
We consider the stable return of profits an important management priority for raising shareholder value. Balancing demands for
cash, we strive to maintain a sound financial structure and prioritize investments to expand our businesses over the medium to longterm. At the same time, we aim to provide stable dividends, targeting a dividend payout ratio of 30% and raising dividends in linewith increases in operating performance.
The fiscal year ended March 31, 2020, we plan to propose a dividend of ¥21 per share at the 38th Ordinary General Meeting of
Shareholders.
For the fiscal year ending March 31, 2021, we plan to pay an annual dividend of ¥31 per share, consisting of an interim dividend of¥10 yen per share and a year-end dividend of ¥21 per share.

－

5

－

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

－

3．Consolidated Financial Statements and Major Notes
1) 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

As of March 31, 2020

20,173
10,576
558
1,142
(4)
32,44523,491
11,459
392
1,099
(6)
36,436

Total tangible fixed assets

645
(393)
252
10
(9)
1
1,249
(797)
451
401
(219)
182
5
892

684
(428)
256
1
(1)
0
1,484
(920)
564
382
(255)
127
18
965

Intangible assets
Software

1,700
－

1,585
1,195

38
1,738

36
2,818

7,034
230
520
912
(124)
8,573
11,204
43,649

5,964
237
758
1,037
(132)
7,867
11,651
48,087

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Leased asset
Accumulated depreciation
Leased asset (net)
Construction in progress

Goodwill
Other
Total intangible assets
Investment and other assets
Investment securities
Shares of subsidiaries and associates
Deferred tax assets
Other
Allowance for doubtful accounts
Total investment and other assets
Total non-current assets
Total assets

－

7

－

(Unit: million yen)
As of March 31, 2019
Liabilities
Current liabilities
Accounts payable-trade
Lease obligations
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Provision for loss on order received
Other

As of March 31, 2020

Total current liabilities

4,159
66
1,345
1,472
716
693
1,222
158
811
10,645

4,564
59
1,851
1,346
868
759
1,411
69
873
11,804Non-current liabilities
Lease obligations
Retirement benefit liability

135－

Deferred tax liabilities

135

81
8
－

26
296
10,941

32
123
11,9271,590
1,447
28,833(816)
31,054

1,590
1,456
32,900(805)
35,140

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

740
0
(94)
646
177
194
36,15948,087

Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
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

－

8

－

2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit

Fiscal year ended
March 31, 2019
51,72827,121
24,606
17,717
6,889(Unit: million yen)
Fiscal year ended
March 31, 2020
58,37530,10328,271
20,060
8,211

85

79

2

－

2
90

3
83

1
0

1
3

－

1

101
0
103
6,875

20
0
26
8,268

171
171

2
2

55
5

94
8

45

21

106
18
15
247
6,799
2,246
(230)
2,016
4,783
(0)
4,783

40
63
3
230
8,040
2,522
(5)
2,516
5,523
(20)
5,543

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
Share of loss of entities accounted for using equity
methodPartnership losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on retirement of non-current assets
Loss on valuation of shares of subsidiaries andassociates
Loss on valuation of investment securities
Provision of allowance for doubtful accounts
Other
Total extraordinary losses
Profit before income taxes
Income taxes – current
Income taxes - deferred
Total income tax
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

－

9

－

Consolidated Statement of Comprehensive Income

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

Fiscal year ended
March 31, 2019
4,783

(Unit: million yen)
Fiscal year ended
March 31, 2020
5,523

584
1
(8)
577
5,360

(808)
(1)
(40)
(850)
4,673

5,361

4,696

(0)

(23)

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

－

10

－

3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2019 (Unit: million yen)
Shareholders' equity
Share capital

Capital surplus

1,590

1,449

Balance at beginning of period
Changes in items during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Purchase of shares of consolidated
subsidiaries
Net changes in items other thanshareholders' equity
Total changes in items during period
Balance at end of period

Retainedearnings

Total
shareholders’equityTreasuryshares25,089(816)

27,312(1,039)(1,039)

4,783

4,783
(0)

(0)

(2)

(2)

(2)

－
1,590

3,744
28,833

1,447

(0)
(816)

3,741
31,054

Accumulated other comprehensive income
Valuation
Total
Share
Nondifference
DeferredForeignaccumulatedacquisition controllingongains orcurrency
otherrightsinterests
availablelosses on translation
comprehenfor-salehedgesadjustment
sive income
securities
Balance at beginning of period
Changes in items during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Purchase of shares of consolidated
subsidiaries
Net changes in items other thanshareholders' equity
Total changes in items during period
Balance at end of period

964

0

(49)

915

128

4

Total net
assets28,360(1,039)
4,783
(0)
(2)

584

1

(8)

577

29

(1)

605

584
1,549

1
1

(8)
(58)

577
1,492

29
157

(1)
2

4,346
32,707－

11－

Fiscal year ended March 31, 2020 (Unit: million yen)
Shareholders' equity
Capital stock

Capital surplus

1,590

1,447

Balance at beginning of period
Changes in items during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders' equity
Total changes in items during period

Retainedearnings

Treasuryshares28,833

(816)

9
1,456

－
1,590

(1,477)

5,543

5,543

4,066
32,900

Accumulated other comprehensive income
Valuation
Total
Share
DeferredForeigndifference
accumulatedacquisition
gains orcurrency
on availableotherrightslosses ontranslation
for-salecomprehenhedges
adjustment
securities
sive income
Balance at beginning of period
Changes in items during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders' equity
Total changes in items during period
Balance at end of period

1,549

1

(58)

31,054(1,477)

9

Balance at end of period

Totalshareholders’equity

1,492

157

(0)
10

(0)
20

10
(805)

4,086
35,140Noncontrollinginterests

Total net
assets2

32,707(1,477)
5,543
(0)
20

(808)

(1)

(36)

(846)

20

191

(634)

(808)
740

(1)
0

(36)
(94)

(846)
646

20
177

191
194

3,451
36,159－12－4) Consolidated Statement of Cash Flows(Unit: million yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Share-based remuneration expenses
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for loss on order
received
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sales of investment securities
Loss on valuation of shares of subsidiaries and associates
Loss (gain) on valuation of investment securities
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in other liabilities
SubtotalInterest and dividend income received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investment activitie
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 inscope of consolidation
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Other, net
Net cash used in investing activities

－

13

－

6,799
1,118
55
29
－
23
10
－

8,040
1,023
94
40
157
62
184
0

158

(88)

(85)
1

(79)
1

(2)

1

(171)
45
106
0
5
(868)
(287)
(2)
702
252
7,891
88
(1)
(2,307)
5,671

(2)
21
40
0
8
(834)
165
71
406
615
9,931
79
(1)
(2,653)
7,355

(252)
(615)
(496)
313

(349)
(691)
(275)
14

－

(1,092)(3)
19
10(1,024)(90)
7
4(2,472)

Fiscal year ended
March 31, 2019
Cash flows from financing activities
Repayment of lease obligations
Dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Other, net
Net cash 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

－

14

－

Fiscal year ended
March 31, 2020

(62)
(1,039)(3)(62)(1,476)
(0)

(2)

―

1
(1,105)(7)(1,546)

5

(23)

3,547
16,63020,177

3,313
20,17723,491

(5) Notes on the consolidated financial statements(Note on going concern assumption)
Not applicable(Segment information)
1. Overview of reportable segments
Infocom Group reportable segments are business units of the group for which discrete financial information is available andwhose operating results are regularly reviewed by the board of directors, which makes decisions about resources to be allocated tothe segment and assesses segment performance.
The Group has two reportable segments: the Business Solution segment and the Digital Entertainment segment.
The Business Solution segment provides IT services such as planning, development, operation and management of information
systems. This segment sells services to companies, pharmaceutical and medical institutions, care providers, public research
institutes, and educational research facilities.
The Digital Entertainment segment offers BtoC e-comic distribution services for smartphones and mobile devices.
2. Method of calculating sales, profit or loss, assets, liabilities, and other items by reportable segment
Reportable segment profits are based on operating profit. Intersegment sales or transfers are based on prevailing market prices.
3. Information related to sales, profits or losses, assets, liabilities, and other items by reportable segment
Fiscal year ended March 31, 2019
(Unit: million yen)
Adjustments(Note 1)

Amount recorded in the
consolidated financial
statements(Note 2)

51,728－51,728

6

102

(102)

－

27,49851,830(102)

51,728Business Solution

DigitalEntertainment

24,23527,49295

Total
Segment profit

24,331
2,487

4,391

6,879

9

6,889

Segment assets

17,267

16,835

34,102

9,547

43,649

1,075

43

1,118

－

1,118

－

2

2

－

2

－

189

189

－

189

692

80

773

－

773

Total

Net sales
Sales to external customers
Intersegment sales or transfers

Other items
Depreciation
Share of profit of entities
accounted for using equity
methodInvestment in entities accounted
for using equity method
Increase in property, plant andequipment and intangible assets(Notes)1. Adjustment amounts are as follows.
(1) The segment profit adjustment of ¥9 million is for the elimination of intersegment transactions and corporate
expenses.
(2) The segment asset adjustment of ¥9,547 million includes ¥8,712 million for the elimination of receivables from theheadquarters management department and ¥18,260 million corporate assets not allocated to individual reportablesegments. Corporate assets are mainly cash and cash equivalents at the Company, and assets related to theadministration department.
2. Segment profit is adjusted in operating profit in the consolidated income statement.

－

15

－

Fiscal year ended March 31, 2020
(Unit: million yen)
Business
Solution

DigitalEntertainment

Amount recorded in the
consolidated financial
statements(Note 2)Adjustments(Note 1)Total

Net sales
Sales to external customers

25,391

32,98358,375－58,375Intersegment sales or transfers

101

0

102

(102)

－

Total

25,49332,98358,477(102)

58,375

Segment profit

3,250

4,951

8,201

9

8,211

Segment assets

17,386

19,45636,843

11,24448,087

Depreciation

958

65

1,023

－

1,023

Amortization of goodwill

76

80

157

－

157

－

(1)

(1)

－

(1)

－

184

184

－

184

843

226

1,069

－

1,069

Other items

Share of profit of entities
accounted for using equity
methodInvestment in entities accounted
for using equity method
Increase in property, plant andequipment and intangible assets(Notes)1. Adjustment amounts are as follows.
(1) The segment profit adjustment of ¥9 million is for the elimination of intersegment transactions and corporate expenses.
(2) The segment asset adjustment of ¥11,244 million includes ¥8,886 million for the elimination of receivables from the headquarters
management department and ¥20,130 million corporate assets not allocated to individual reportable segments. Corporate assets aremainly cash and cash equivalents at the Company, and assets related to the administration department.
2. Segment profit is adjusted in operating profit in the consolidated income statement.

－

16

－

(Per share information)(Unit: yen)

Fiscal year ended
March 31, 2019595.0587.46
87.07

Net assets per share
Net income per share
Diluted net income per share

Fiscal year ended
March 31, 2020
653.82101.32100.86(Note 1). The basis for calculating net income per share and diluted net income per share is as follows.
(Unit: million yen)
Fiscal year ended
March 31,2020

Fiscal year ended
March 31,2019
Net income per share
Net income attributable to owners of parent
Net income not attributable to owners of parent
Net income attributable to owners of parent related to common stock
Average number of common shares during the period
Diluted net income per share
Adjusted net income attributable to owners of parent
Increase in common stock(Of which, share acquisition rights)
Overview of potential shares not included in the calculation of diluted
net income per share as they have no dilutive effect

4,783
－
4,783
54,696,893

5,543
－
5,543
54,714,477－
245,213(245,213)－
245,931(245,931)－－(Note 2). The basis for calculating net assets per share is as follows.
(Unit: million yen)

Total net assets
Deductions from total net assets(Of which, share acquisition rights)(Of which, non-controlling interests)
Net assets at the end of the fiscal year related to ordinary shares
Number of common shares at the end of the fiscal year used to
calculate net assets per share

As of March 31,2019

As of March 31,2020

32,707
160
(157)
(2)
32,54736,159
372
(177)
(194)
35,78654,696,858

54,734,777(Important subsequent events)
At the Board of Directors meeting held on April 27, 2020, our company reviewed the executive compensation system and resolved
to introduce the stock compensation system with transfer restrictions. We have resolved to submit a proposal regarding the
introduction of this system to the 38th Ordinary General Meeting of Shareholders scheduled to be held on June 16, 2020.
For details, please refer to “Notice Regarding Introduction of Restricted Stock Compensation Plan(Japanese only)” announced April
27, 2020.

－

17－