(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 Third Quarter of the Fiscal Year Ending March
31, 2019 [Japanese GAAP]
January 31, 2019
Listed company name:
Infocom Corporation
Securities code:
4348
Representative: (Position) President and CEO
Contact: (Position) Head of Corporate Communications Office
Scheduled date to file quarterly securities report: February 7, 2019
Preparation of supplementary materials on financial results: Yes
Holding of financial results briefing: No

Listed on: Tokyo Stock Exchange
URL https://www.infocom.co.jp/(Name) Norihiro Takehara(Name) Shinya Tanaka(TEL) +81-3-6866-3160
Scheduled date to commence dividend payments: -(Amounts less than one million yen are rounded down)

1. Consolidated Business Results for the Third Quarter of FY2018 (April 1, 2018 to September 30, 2018)(1) Consolidated operating results (cumulative)(% of change from previous year)

Net sales

Operating profit

Million yen%

35,50931,418

Third quarter of FY2018
Third quarter of FY2017

Million yen

13.0
8.1

%

3,804
3,402

Profit attributableto owners of parent

Ordinary profit
Million yen

11.8
33.6

3,849
3,702

%

Million yen

4.0
42.1

2,715
3,351

%

(19.0)
98.8(Note) Comprehensive income: Third quarter of FY2018: ¥3,092 million (-20.7%); Third quarter of FY2017: ¥3,899 million (172.2%)

Earnings per share

Third quarter of FY2018
Third quarter of FY2017

Diluted earnings per share

Yen

Yen

99.31
122.5598.86
122.05(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

Net assets

Million yen

Million yen%

39,277
38,23730,44228,36077.1
73.8

Third quarter of FY2018
FY2017(Reference) Shareholders’ equity: Third quarter of FY2018: ¥30,271 million; FY2017: ¥28,227 million

2. Dividends
End-Q1FY2017FY2018FY2018 (forecasts)

End-Q2

Dividends per share
End-Q3Year-end

Annual

Yen

Yen

Yen

Yen

Yen

－

10.00

－

28.00

38.00

－

10.00

－

17.00

－

－

(Note) Adjustment for the most recent forecasts of dividends: None
Dividend Forecast for FY2018
Regular Dividend: ¥15.00
Commemorative Dividend: ¥2.00
At a meeting held January 21, 2019, the Infocom Corporation board of directors approved a two-for-one share stock split with the effective dateof March 1, 2019. Forecasted dividends per share for FY2018 reflect this stock split, presented here as － under the annual total. When ignoring
the impact of the aforementioned stock split, forecasted dividends per-share for FY2018 amount to ¥34 for the year-end and ¥44 in total for theyear.

3. Forecasts of Consolidated Business Results for FY2018 (April 1, 2018 to March 31, 2019)(Percent figures indicate the rate of changes from the previous fiscal year)

Net sales
Million yen

Full-year

51,500%12.5

Operating profit

Ordinary profit

Million yen

Million yen

6,700

%

14.9

6,700

%

12.0

Profit attributable toEarnings per shareowners of the parent
Million yen

4,600

%

(0.9)

Yen

84.10

(Note) Adjustment for the most recent forecasts of dividends: Yes

At a meeting held January 21, 2019, the Infocom Corporation board of directors approved a two-for-one share stock split withthe effective date of March 1, 2019. Forecasted net income per share for FY2018 reflects this stock split.
－1 －* Statements regarding the proper use of financial forecasts and other special remarks- Forward-looking statements that include forecasts of business results are based on the information currently available and certain assumptions judged
to be rational. Actual business results may differ substantially because of various factors. For the matters to be noted when using the financial
forecasts and the assumptions behind these forecasts, please see “(3) Explanation of consolidated earnings forecasts and other forward-looking
information” under “1.Qualitative information on quarterly business results” on page 3 of the attached materials.

Post-Split Dividends and Consolidated Business Results Forecast
At a meeting held February 21, 2019, the Infocom Corporation board of directors approved a two-for-one share stock split with the effective date ofMarch 1, 2019. Forecasted dividends and earnings for FY2018 prior to said stock split are presented below:

1. FY2018 Dividend Forecast
Dividend per ShareQ2 ¥10.00 (Note 1)
2. FY2018 Consolidated Business Results Forecast
FY2018 net income per share¥168.20

Year-End ¥34.00 (Note 2)(Note 1) Dividends for the second quarter have been paid based on pre-split ratios.
(Note 2) Dividend amount calculated prior to stock split.
(Note 3) FY2018 annual dividend (prior to stock split) is ¥44.00.

－

2 －1. Qualitative information on quarterly business results(1) Overview of business results
The Japanese economy during the cumulative consolidated third quarter showed signs of a rebound in consumer spending, driven
by steadily improving corporate earnings, employment, and payrolls. At the same time, growing U.S.-China trade friction and slowing
in the global economy have given rise to concerns, causing greater uncertainties in the future direction of the world economy.
Overall IT-related market demand was robust throughout the period. Factors included the rising 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-style reforms promoted by
the Japanese government.
The e-book market returned to a growth phase due to the waning impact of pirate sites, which had risen sharply August 2017.
In this operating environment, the Infocom Group medium-term management plan (April 2016 to March 2020) emphasized 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, whiledeveloping businesses that leverage AI and IoT.
As a result, the Infocom Group generated net sales of ¥35,509 million for the three months ended December 31, 2018, up 13.0%
year on year. Operating profit rose 11.8% to ¥3,804 million, ordinary profit rose 4.0% to ¥3,849 million. Profit attributable to ownersof the parent decreased 19.0% to ¥2,715 million.
* The decrease in profit attributable to owners of the parent for the cumulative consolidated third quarter was mainly due to the gain on sale of non-current
assets associated with the sale of a data center during the second quarter of the prior fiscal year.

Group sales and profit tend to be relatively low during the first and third quarters of the fiscal year, concentrated mainly in the
fourth quarter. This trend stems from the concentration product and service deliveries to companies and hospitals in March during
Japan’s fiscal year-end.

(i) Business Solution Group
During the cumulative consolidated third quarter, our Business solution group recorded sales of ¥15,575 million (0.5% increase
year on year), driven by steady performance in services for hospitals. Meanwhile, operating profit amounted to ¥534 million (33.8%
decrease) due to declining profitability in a major systems integration project.
Our Health IT subsegment strengthened existing sales promotions on services for hospitals and pharmaceutical companies. At thesame time, the subsegment experienced increased sales of clinical information management systems in connection with medical
treatment fee revisions. Sales of employment management systems (for tracking employee work hours effectively) were strong as
hospitals and other healthcare organizations began implementing work-style reforms. We launched a new version of mima-more, amonitoring support service for the nursing care industry. This software represents one of our efforts in the area of community-based
comprehensive care. Also this period, we unveiled Carestyle, a career change support service which specializes in care workers.
In corporate IT services, we introduced a new version of the company's integrated business management software package,
GRANDIT3.0, and an optional RPA Solution product for GRANDIT. We also, expanded support services for new users of RPA
through partner companies. Other new services introduced during the period include at score, an AI-based deferred payment service,
and a food temperature management IoT service that improves the efficiency of food hygiene management. Our company also begansales of Visual IVR, an automated response system for call centers combining voice and video.
(ii) Digital Entertainment Group
Segment sales were ¥19,933 million (+25.2% year on year). Operating profit for the segment was ¥3,262 million (+26.0%). The
e-comics distribution business continued to post strong returns with both increased sales and profits.
We strengthened collaborations with publishers in our e-comics distribution business. These include a bimonthly publication ofGrand Jump Meccha, a crossover publication with Shueisha, Inc., sales of Meccha Comics fufu with Futabasha Publishers Ltd.,
expanded content for initial exclusive distribution through Meccha Comics. We also opereated Meccha Bookstore, a venture to
introduce popular Meccha Comics products for sale at physical bookstores. Further, we ran television advertising for the first timein Q3 and displayed the Meccha Comics official character Meccha Dog throughout the Christmas period. In addition to thesemeasures, we increased the effectiveness of our advertising through more sophisticated data analysis, and set a new record for Q3
sales, eliminating the normal seasonality of earnings in Q3. In an effort to combat pirate sites and promote a healthy market, ourconsolidated subsidiary Amutus Corporation established the Japan E-Bookstore in April 2018 in cooperation with four e-bookstores.
In August 2018, we received certification under the White Mark System and adopted the Stop Piracy Campaign.
－

3 －On November 28, 2018, Infocom Corporation changed our stock listing from the JASDAQ (standard) market of the Tokyo Stock
Exchange to the First Section.
(2) Explanation of financial condition(i) Consolidated financial condition
Total assets amounted to ¥39,277 million, an increase of ¥1,039 million compared to the end of the prior consolidated fiscal year.
This increase was mainly due to acquisition of investment securities and increases in inventories, offsetting decreases in notes andaccounts receivable-trade.
Total liabilities fell ¥1,041 million to ¥8,834 million, mainly due to declines in provision for bonuses and income taxes payable. Net
assets were up ¥2,081 million compared with the end of the previous consolidated fiscal year, reaching ¥30,442 million.
As a result, our equity ratio rose to 77.1% from 73.8% at the end of the previous consolidated fiscal year.
(ii)Consolidated cash flows
Cash and cash equivalents as of December 31, 2019, amounted to ¥17,981 million, up ¥1,351 million compared to the end of theprevious consolidated fiscal year.
[Cash flows from operating activities]
Net cash provided by operating activities amounted to ¥3,277million (compared to ¥3,613 million in the same quarter of the previous
fiscal year). Principal sources of cash were profit before income taxes of ¥ 3,958million (compared to ¥4,901 million) and a decreasein notes and accounts receivable of ¥2,100 million (compared to ¥2,213million). The reason for this decrease was a ¥908 million
increase in inventories (compared to ¥647million) and income taxes paid of ¥2,302 million (compared to ¥1,523 million).
[Cash flows from investing activities]
Net cash used in investing activities amounted to ¥852 million (compared to ¥1,646 million income in the same quarter of the previous
fiscal year). This result was mainly due to cash outlays of ¥438 million in acquisition of software and other intangible fixed assets(versus ¥597 million in the year-ago period) and outlays of ¥467 million for investment securities (versus ¥129 million in the year-ago
period)[Cash flows from financing activities]
Net cash used in financing activities amounted to ¥1,086 million (compared to ¥726million in the same quarter of previous fiscal
year), mainly due to cash dividends paid of ¥1,039 million (compared to ¥683 million).

(3) Explanation of consolidated earnings forecasts and other forward-looking information
Given our performance for the cumulative consolidated third quarter and the performance of our e-comics distribution business, wehave made an upward revision to our forecast for net sales as originally published on October 29, 2018.
Please note that the above forecasts are based on information available as of the publication date of this document. Actual results
may differ from forecasts due to various factors in the future.

－

4 －2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheet(Unit: million yen)
As of March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Provision for bonuses
Other provision
Other
Total current liabilities
Non-current liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Total accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets－

5 －As of December 31, 2018

16,625
9,707
270
1,033
(0)
27,636

17,976
7,607
1,179
1,502
-2
28,263

1,004

926

1,968
42
2,010

1,797
39
1,836

7,693
(107)
7,586
10,601
38,237

8,359
-107
8,251
11,014
39,277

3,457
1,539
1,211
－
3,460
9,667

3,827
521
475
78
3,562
8,465

209
209
9,876

368
368
8,834

1,590
1,449
25,089(816)
27,312

1,590
1,447
26,766-816
28,986

964
0
(49)
915
128
4
28,36038,237

1,310
－
-26
1,284
157
13
30,442
39,277

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Third Quarter(Unit: million yen)
For the nine months ended
December 31, 2017
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Partnership gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Partnership losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent－

6 －For the nine months ended
December 31, 2018

31,41816,565
14,853
11,4503,402

35,50918,813
16,695
12,891
3,804

72

82

9

5

1
215
2
301

－
－
0
89

1
－
－
0
1
3,702

1
0
41
0
43
3,849

1,138
61
48
1,248

－
114
－
114

2
8
39
50
4,901
1,549
3,351
0
3,351

－
1
3
4
3,958
1,236
2,722
7
2,715

Quarterly Consolidated Statements of Comprehensive Income
Second Quarter(Unit: million yen)
For the nine months ended
December 31, 2018

For the nine months ended
December 31, 2017
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

－

7 －

3,351

2,722

589
0
(42)
547
3,899

345
(0)
23
369
3,092

3,899

3,085

(0)

7

(3) Quarterly Consolidated Statements of Cash Flow
(Unit: Million yen)
For the nine months ended
December 31, 2018

For the nine months ended
December 31, 2017
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Share-based compensation expenses
Amortization of goodwill
Increase (decrease) in provisionInterest and dividend income

4,901
838
2
34
7
(729)
(72)

Interest expenses
Loss (gain) on sales of investment securities
Loss (gain) on sales of non-current assets
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Other
SubtotalInterest and dividend income received
Interest expenses paid
Payments for business restructuring
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of lease obligations
Cash dividends paid
Proceeds from share issuance to non-controllingshareholders
Other
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
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

－

8 －

3,958
816
－
29
－
(655)
(82)

1

1

(61)
(1,138)

(114)
－

2,213

2,100

(647)

(908)

(186)

370

(17)
5,145
67
(1)
(346)
(1,523)
270
3,613

(22)
5,493
87
(1)
－
(2,302)
－
3,277

(136)
(597)
2,433
(129)
112
(48)
9
2
1,646

(209)
(438)
－
(467)
235
(2)
19
10
(852)

(43)
(683)

(46)
(1,039)

1

2

(0)
(726)

(2)
(1,086)

(2)

12

4,530
12,40816,938

1,351
16,63017,981

(4) Notes on the Quarterly Consolidated Financial Statements(Note on going concern assumption)
Not applicable(Note in case of significant changes in shareholders’ equity)
Not applicable(Segment information)[Segment information]
I. Third quarter of FY2017 (from April 1, 2017 to December 31, 2017)
1. Information on net sales and profit or loss for each reporting segment(Unit: million yen)Amounts stated in thequarterly consolidated
statements of income(Notes) 2

Reportable segment
Adjustments(Notes) 1

Total
Business solution

Digital entertainment

Sales to external customers

15,502

15,916

31,418－31,418Intersegment sales or transfers

434

4

438

(438)

－

15,93615,92031,857(438)

31,418

806

2,589

3,395

7

3,402

Net sales

Total
Segment profit(Notes)1. The ¥7 million adjustment in segment profit is due to the elimination of intersegment transactions and corporate expenses.
2. Segment profit is adjusted with operating profit in the quarterly consolidated statements of income
II. Third quarter of FY2018 (from April 1, 2018 to December 31, 2018)
1. Information on net sales and profit or loss for each reporting segment(Unit: million yen)Amounts stated in thequarterly consolidated
statements of income(Notes) 2

Reportable segment
Adjustments(Notes) 1

Total
Business solution

Digital entertainment

15,575

19,93335,509－35,509

72

4

76

(76)

－

15,64819,93735,585(76)

35,509

534

3,262

3,796

7

3,804

Net sales
Sales to external customers
Intersegment sales or transfers
Total
Segment profit(Notes)1. The ¥7 million adjustment in segment profit is due to the elimination of intersegment transactions and corporate expenses.
2. Segment profit is adjusted with operating profit in the quarterly consolidated statements of income. .

－9 －