(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, 2020 [Japanese GAAP]
January 30, 2020
Listed company name: Infocom Corporation
Securities code: 4348
Representative: (Position) President and CEO
Contact: (Position) Head of Corporate Communications Office
Scheduled date to file securities report: February 7, 2020
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 the Fiscal Year Ending March 31, 2020 (April 1, 2019 to December 31,
2019)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year increases.)

Net sales
Nine months ended
December 31, 2019
December 31, 2018

Operating profit

Million yen%

41,20035,509Profit attributableto owners of parent

Ordinary profit

Million yen%

Million yen%

Million yen

%

5,827
3,804

53.2
11.8

5,842
3,849

51.8
4.0

3,976
2,715

46.4
(19.0)

16.0
13.0(Note) Comprehensive income: Third quarter of the fiscal year ending March 31, 2020 : ¥3,828 million (23.8%); Third quarter of the fiscal year ended March 31,2019: ¥3,092 million (-20.7%)

Earnings per share
Nine months ended
December 31, 2019
December 31, 2018

Diluted earnings per share

Yen
72.68
49.65

Yen
72.35
49.43

Infocom Corporation conducted a two-for-one stock split effective March 1, 2019.Beginning balances for net income per share and diluted net income pershare in the previous consolidated fiscal year have been adjusted assuming this stock split.

(2) Consolidated financial position
Total assets
As ofDecember 31, 2019
March 31, 2019

Net assets

Shareholders’ equity ratio

Million yen

Million yen%

44,511
43,64935,31532,707

78.5
74.6(Reference) Shareholders’ equity: Third quarter of the fiscal year ending March 31, 2020: ¥34,933 million; The fiscal year ended March 31,
2019: ¥32,547 million

2. Dividends
Dividends per share
End-Q1End-Q2
Yen－－

Fiscal year ended March 31, 2019
Fiscal year ending March 31, 2020

End-Q3
Yen
10.00
10.00

Year-end

Annual

Yen
－

Yen
17.00

Yen
－

－

21.00

31.00

Fiscal year ending
March 31, 2020 (forecast)(Note) Adjustment for the most recent forecasts of dividends: Yes

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.

3. Forecast of Consolidated Business Results for the Fiscal Year Ending March 31, 2020
(Percent figures indicate the rate of changes from the previous fiscal year)

Net sales
Million yen

Operating profit%

Million yen

Full-year
58,50013.1
8,200(Note) Adjustment for the most recent forecasts of dividends: None

Profit attributable toEarnings per shareowners of the parent

Ordinary profit%

Million yen%

Million yen

%

Yen

19.0

8,200

19.3

5,500

15.0

100.53

.* 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 the results for the current quarter” on page 4 of the attached materials.

1. Qualitative information on the results for the current quarter(1) Overview of business results
The Japanese economy saw the negative impact of consumption tax increases on corporate and consumer activity during theconsolidated third quarter. Concerns about the impact of global trade friction have resulted in ongoing uncertainties about the
future direction of the world economy.
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’s medium-term management plan (April 2016 to March 2020) emphasized
two fundamental policies: pursue growth and continue strengthening the management foundation to support growth. To thisend, we have identified e-comics and healthcare as priority businesses. In these areas, we proactively pursued M&A andsought to develop businesses leveraging AI and IoT.
As a result, during the nine months ended December 31, 2019, the Infocom Group generated net sales of ¥41,200 million, up
16.0% year on year. Operating profit rose 53.2%, to ¥5,827 million; ordinary profit grew 51.8%, to ¥5,842 million; and net
income attributable to owners of parent increased 46.4%, to ¥3,976 million.
(i) Business Solution Group
During the consolidated third quarter, our Business Solution Group recorded sales of ¥17,034 million (+9.4% year on year),and operating profit amounted to ¥1,887 million (+253.3%), due in part to strong performance sales to hospitals and frontloaded sales to corporations.
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 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 withcloud frameworks*.
*Cloud framework: IT infrastructure service utilizing virtualization technology (Microsoft Azure, Amazon Web Services, etc.)(ii) Digital Entertainment Group
Segment sales were ¥24,165 million (+21.2% year on year), and operating profit amounted to ¥3,933 million(+20.6%), supported
by strong performance in our e-comics distribution business.
As one measure to boost advertising for this service, we expanded the broadcast period for TV commercials and served as leadsponsor for the Yakult Swallows (professional baseball) Meccha Comics Day. In May and November, we sponsored Mecha
Bookstores featuring popular Meccha Comics products for sale at physical bookstores.
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 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 businessoverseas.

(2) Explanation of financial condition(i) Consolidated financial condition
Total assets amounted to ¥44,511 million, an increase of ¥862 million compared to the end of the prior consolidated fiscal
year. This increase was mainly due to increases in cash and deposits, which more than offset decreases in notes and accounts
receivable. Total liabilities fell ¥1,745 million, to ¥9,196 million due to declines in provision for bonuses and income taxes
payable. Net assets were up ¥2,607 million, compared with the end of the previous consolidated fiscal year, to ¥35,315
million.
Because of the above, the equity ratio rose to 78.5% from 74.6% at the end of the previous consolidated fiscal year.
(ii) Consolidated cash flow
Cash and cash equivalents as of December 31, 2019, amounted to ¥22,411 million, up ¥2,234 million from the end of theprevious consolidated fiscal year.
[Cash flows from operating activities]
Net cash provided by operating activities amounted to ¥5,953million (¥3,277 million in the same quarter of the previous fiscal
year). Principal sources of cash were profit before income taxes of ¥5,762 million (¥3,958 million) and a decrease in notes andaccounts receivable of ¥3,192 million (¥2,100 million). The reason for this decline was a ¥474 million decrease in trade
payables (¥370 million) and income taxes paid of ¥2,649 million (¥2,302 million).
[Cash flow from investing activities]
Net cash used in investing activities amounted to ¥2,141million (compared to ¥852 million in the same quarter of the previous
fiscal year). This result was mainly due to outlays of ¥1,092 million stemming from the acquisition of subsidiary stock inconnection with a change in the scope of consolidation (no such outlays in the year-ago period), as well as ¥527 million inoutlays intangible fixed assets (¥438 million in the year-ago period).
[Cash flows from financing activities]
Net cash used in financing activities amounted to ¥1,528 million (¥1,086 million in the same quarter of previous fiscal year),mainly due to cash dividends paid of ¥1,477 million (¥1,039 million).

(3) Explanation of consolidated earnings forecasts and other forward-looking information
As of the release of this document, we have not made any revisions to the consolidated earnings forecasts as detailed in NoticeRegarding Revised Earnings Forecasts, published on October 30, 2019.
Please note that the above forecasts are based on information available as of the publication date of this material, so actual
results may differ from forecasts due to various factors in the future.

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly 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
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investments and other assets
Allowance for doubtful accounts
Total investment 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
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
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

As of December 31, 201920,173
10,576
558
1,142
(4)
32,44522,407
7,432
939
1,413
(4)
32,187

892

900

1,700
－
38
1,738

1,671
1,224
36
2,933

8,697
(124)
8,573
11,204
43,649

8,617
(127)
8,490
12,32344,511

4,159
1,472
1,222
170
3,620
10,645

3,683
371
493
17
4,123
8,688

－
296
296
10,941

7
501
508
9,196

1,590
1,447
28,833(816)
31,054

1,590
1,452
31,333(810)
33,564

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

1,520
0
(151)
1,369
186
194
35,31544,511

(2)Quarterly consolidated statement of income and comprehensive income
Quarterly Consolidated Statements of Income
Third Quarter(Unit: million yen)
For the nine months ended
December 31, 2018
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
methodOther
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 investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of shares of subsidiaries andassociates
Provision of allowance for doubtful accounts
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

For the nine months ended
December 31, 201935,50918,813
16,695
12,891
3,804

41,20021,05920,14014,312
5,827

82

72

5

1

0
89

3
77

1
0
41
0
43
3,849

1
2
58
0
62
5,842

114
114

2
2

1

2

－

20

－
3
4
3,958
1,236
2,722
7
2,715

56
2
82
5,762
1,796
3,966
(10)
3,976

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

For the nine months ended
December 31, 2019

2,722

3,966

345
(0)
23
369
3,092

(28)
(1)
(107)
(137)
3,828

3,085

3,852

7

(24)

(3) Quarterly Consolidated Statements of Cash Flow
(Unit: Million yen)
For the nine months ended
December 31, 2018
Cash flows from operating activities
Profit before income taxes
Depreciation
Share-based remuneration expenses
Amortization of goodwill
Increase (decrease) in provisionInterest and dividend income
Interest expenses
Loss (gain) on sales of investment securities
Loss on valuation of shares of subsidiaries andassociates
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
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
in scope of consolidation
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of lease obligations
Dividends paid
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

For the nine months ended
December 31, 2019

3,958
816
29
－
(655)
(82)
1
(114)

5,762
771
40
102
(839)
(72)
1
(2)

－

20

2,100
(908)
370
(22)
5,493
87
(1)
(2,302)
3,277

3,192
(381)
(474)
409
8,531
72
(1)
(2,649)
5,953

(209)
(438)
(467)
235

(205)
(527)
(252)
5

－

(1,092)

26
(852)

(69)
(2,141)(46)(1,039)(0)(1,086)(47)(1,477)(4)(1,528)

12

(49)

1,351
16,63017,981

2,234
20,17722,411

(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. Nine months ended December, 2018
1. Information on net sales and profit or loss for each reporting segment
Reportable segment

Adjustments(Note)1

Total(Unit: million yen)Amounts stated in thequarterly consolidated
statements of income(Note) 2

Business solution

Digitalentertainment

15,575

19,93335,509－35,509

72

4

76

(76)

－

Total

15,64819,93735,585(76)

35,509Segment profit(loss)

534

3,262

3,796

7

3,804

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

II. Nine months ended December 31, 2019
1. Information on net sales and profit or loss for each reporting segment
Reportable segment

Adjustments(Note)1

Total(Unit: million yen)Amounts stated in thequarterly consolidated
statements of income(Note) 2

Business solution

Digitalentertainment

17,034

24,165

41,200－41,200

74

0

74

(74)

－

17,10824,16541,274(74)

41,200

1,887

3,933

5,820

7

5,827

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.