(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, 2019 [Japanese
GAAP]
April 25, 2019
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 13, 2019 Scheduled date to commence dividend payments: June 17, 2019
Scheduled date to file Securities Report:
June 14, 2019
Preparation of supplementary materials on financial results: Yes
Holding of financial results briefing:
Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded down.)

1. Consolidated Business Results for FY2018 (April 1, 2018 to March 31, 2019)(1) Consolidated operating results
Net sales(Percentages indicate year-on-year increases.)
Net income attributable toOrdinary profit
owners of parent

Operating profit

Million yen

Million yen%

Million yen

%

13.0
6,889
18.2
6,875
FY2017
9.6
5,829
22.0
5,982
(Note) Comprehensive income: FY2018: ¥5,360 million（0.2％）; FY2017: ¥5,350 million（57.6％）%

Million yen

%

14.9
23.2

4,783
4,640

3.1
42.3

51,72845,774FY2018

Earnings per share

FY2018FY2017

Diluted earnings per
share

Return on
shareholders’ equity

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

Yen

Yen

%

%

%

87.46
84.85

87.07
84.50

15.7
17.9

16.8
16.9

13.3
12.7

(Reference) Equity in earnings (losses) of affiliates: FY2018: ¥2 million; FY2017: ¥10 million(Note) The company performed a two-for-one split of common stock on March 1, 2019. Beginning balances for net income per share anddiluted net income per share in the previous consolidated fiscal year have been adjusted assuming this stock split.
(2) Consolidated financial position
Total assets

Shareholders’ equity ratio

Net assets

Million yen

Million yen

Yen

74.6
73.8

595.05516.08Cash flows from financing
activities

Cash and cash equivalents at
the end of the fiscal year

43,64932,707FY2017
38,23728,360(Reference) Shareholders’ equity: FY2018: ¥32,547 million; FY2017: ¥28,227 million
FY2018(3) Consolidated cash flows
Cash flows from operating
activities

Cash flows from investing
activities

Net assets per share%

Million yen

Million yen

Million yen

Million yen

5,671
5,680

(1,024)(686)(1,105)(747)

20,177
16,630FY2018FY2017

2. Dividends
Dividends per share
YearQ3
Q3
end

Q1

Total

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

Dividend on equity
ratio(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen%%

FY2017

-

10.00

－

28.00

38.00

1,039

22.4

4.0

FY2018

-

10.00

－

17.00

－

1,203

25.2

4.0

FY2019(forecasts)

-

10.00

－

19.00

29.00

－

1 －

30.5

3. Forecasts of Consolidated Business Results for FY2019 (April 1, 2019 to March 31, 2020)
Net sales
Million yen

Operating profit%

Million yen(Percentages indicate year-on-year increases.)
Net income
attributable to owners
Earnings per shareof parent

Ordinary profit%

Million yen%

Million yen%

Yen

26,000 12.4
2,900
11.7
2,900
10.8
1,950
3.9
35.65
Full-year
57,000 10.2
7,800
13.2
7,800
13.5
5,200
8.7
95.07
* 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.
First half

1. Analysis of Business Results1) Overview of Business Results during the Year under Review
Despite steady improvement in corporate earnings, payrolls, and an associated uptick in consumer sentiment, the Japanese economy
demonstrated greater uncertainty throughout the current consolidated fiscal year. This uncertainty was mainly driven by concerns
regarding the increasing U.S.-China trade frictions and a slowing global 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 work-style reforms.
The e-book market continued to grow, demonstrating the waning impact of pirate sites, which had risen sharply since August 2017.
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 ¥51,728 million for current consolidated fiscal year, up 13.0% compared tothe previous fiscal year. Operating profit rose 18.2% to ¥6,889 million and ordinary profit rose 14.9% to ¥6,875 million. Profit
attributable to owners of the parent increased 3.1% to ¥4,783 million.
Our Group’s sales and profit tend to be relatively low in the first and third quarters of the fiscal year and concentrated generally inthe fourth quarter. This trend stems from the concentration of deliveries of products and services for companies and hospitals in
March, at fiscal year-end.
(i) Business Solution Group
Our Business Solution Group recorded sales of ¥24,235 million (1.0% decrease compared to the previous fiscal year). Despite
lower performance in our services for pharmaceutical companies, the segment recorded strong sales in services for hospitals for theperiod. Operating profit improved 1.1% to ¥2,487 million as sales of services for hospitals compensated for lower profits due tocertain unprofitable projects.
Our Health IT subsegment reported improved performance in response to stepped up sales promotions on existing services for
hospitals and pharmaceutical companies. At the same time, the subsegment experienced strong 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-stylereforms. In the community-based comprehensive care field, we redesigned and upgraded the functionality of our Carestyle service(career change support service specializing in care workers), allowing job seekers the ability to apply and submit inquiries tocompanies.
In corporate IT services, we introduced a new version of the company's integrated business management software package,
GRANDIT3.0, an optional RPA Solution product for GRANDIT, and a license subscription service*.
We began offering two new AI and IoT businesses during the year. The first is at score, an AI-based deferred payment service for－2 －the online shopping industry. The second is a food temperature management IoT service that improves the efficiency of foodhygiene management. Our company also began sales of Visual IVR, an automated response system for call centers combining voice
and video.
*Subscription: Regular payment schedule for the access to services.
(ii) Digital Entertainment Group
Segment sales were ¥27,492 million (+29.2% year on year), while operating profit for the segment was ¥4,391 million (+30.7%).
These results were mainly due to the positive impact of data analysis in our e-comics distribution business and initial exclusive
distribution, as well as contributions from stepped-up promotions during the third quarter.
Throughout the year, we took opportunities to strengthen collaborations with publishers in our e-comics distribution business. These
include a bimonthly publication of Grand Jump Meccha, a crossover publication with Shueisha, Inc., sales of Meccha Comics fufu
with Futabasha Publishers Ltd., and special editions of Harlequin under an alliance with HarperCollins Japan. We also operated
Meccha Bookstore, a venture to introduce popular Meccha Comics products for sale at physical bookstores. We ran television
advertising for the first time in Q3 and displayed the Meccha Comics official character Meccha Dog throughout the Christmas
periodIn combination with these measures, we also engaged in more sophisticated data analysis to improve the effectiveness of ouradvertising, resulting in record highs for net sales and operating profit.
In an effort to combat pirate sites and promote a healthy market, our consolidated subsidiary Amutus Corporation entered analliance with four e-bookstores in April to establish the Japan E-Bookstore Federation. In August 2018, this organization received
certification under the White Mark System and launched the Stop Piracy Campaign.
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) Overview of Financial Position for the Current Fiscal Year
Total assets increased ¥5,412 million compared with the end of the previous fiscal year, amounting to ¥43,649 million. This result wasdue to an increase in cash and deposits. Total liabilities rose ¥1,065 million to ¥10,941 million due to an increase in accounts payable.
Net assets grew ¥4,346 million year on year to ¥32,707 million.
3) Overview of Cash Flows for the Current Fiscal Year
Cash and cash equivalents as of March 31, 2019, amounted to ¥20,177 million, up ¥3,547 million from one year earlier.
[Cash flows from operating activities]
Net cash provided by operating activities amounted to ¥5,671 million (¥5,680 million in the previous fiscal year). Principal factors
behind this result included profit before income taxes of ¥6,799 million (¥6,980 million) and depreciation of ¥1,118 million (¥1,154
million). Major uses of cash were income taxes paid of ¥2,307 million (¥1,528 million).
[Cash flows from investing activities]
Net cash used in investing activities amounted to ¥1,024 million (¥686 million in the previous fiscal year). Primary uses of cash
included ¥496 million (¥2,199 million) in the purchase of investment securities and ¥615 million (¥806 million) for the purchase ofintangible assets, including software.
[Cash flows from financing activities]
Net cash used in financing activities amounted to ¥1,105 million (¥747 million in the previous fiscal year), mainly due to cash
dividends paid of ¥1,039 million (¥683 million).

－

3 －(Reference) Changes in cash flow indicators

FY2014FY2015FY2016FY2017FY2018Equity ratio (%)

73.0

66.5

72.2

73.8

74.6

Equity ratio based on market value (%)

100.0

135.8

161.4

158.1

230.7

－

－

－

－

－

1,637.8

3,545.3

1,643.9

3,239.6

3,390.9

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) Outlook for the Next Fiscal Year
Despite steady improvement in consumer sentiment, the Japanese economy is demonstrating a greater uncertainty caused byconcerns about trade frictions.
We expect the IT-related market to be robust throughout the year. Factors include 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), andother technologies; and the use of robotic process automation (RPA) to achieve work-style reforms. We also believe the market fore-books will continue to grow as the use of e-books on smartphones is widespread and the base of users is expanding.
In this environment, we will pursue the fundamental policies of the Infocom Group’s medium-term management plan (April 2016
to March 2020): pursue growth and continue strengthening the management foundation to support growth, setting e-comics andhealthcare as our priority businesses and pursuing key measures.
For the fiscal year ending March 31, 2019, we anticipate net sales of ¥57,000 million (up 10.2% year on year), operating profit of¥7,800 million (up 13.2%), ordinary profit of ¥7,800 million (up 13.4%), and net income attributable to owners of parent of ¥5,200
million (down 8.8%).
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, 2018 and 2019
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 the business over the medium to longterm. At the same time, we aim to provide stable dividends and aim for a dividend payout ratio of 30%, raising dividends in linewith increases in operating performance.
For the fiscal year ended March 31, 2019, we plan to propose a dividend of ¥17（Regular dividend 15 yen, commemorative
dividend 2 yen for the market change）per share at the 37th Ordinary General Meeting of Shareholders.
For the fiscal year ending March 31, 2020, we plan to pay an annual dividend of ¥29 per share, comprising ¥10 per share at the endof the second quarter and ¥19 per share at the end of the fiscal year.

－

4 －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.

－

5 －3．Consolidated Financial Statements and Major Notes
1) Consolidated Balance Sheet(Unit: million yen)
FY2017
As of March 31, 2018

FY2018
As of March 31, 2019

AssetsCurrent assets
Cash and deposits

16,625

20,173

Notes and accounts receivable-trade

9,707

10,576

270

558

1,033

1,142

(0)

(4)

27,63632,445Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

640

645

Accumulated depreciation

(369)

(393)

Buildings and structures , net

271

252

Machinery, equipment and vehicles

14

10

(7)

(9)

7

1

Tools, furniture and fixtures

1,165

1,249

Accumulated depreciation

(673)

(797)

491

451

Buildings and structures

Accumulated depreciation
Machinery, equipment and vehicles, net

Tools, furniture and fixtures, net

389

401

(166)

(219)

Leased asset (net)

222

182

Construction in progress

10

5

Total tangible fixed assets

1,004

892

1,968

1,700

42

38

2,010

1,738

6,135

7,034

Shares of subsidiaries and associates

215

230

Deferred tax assets

413

520

Other

929

912

Allowance for doubtful accounts

(107)

(124)

Total investment and other assets

7,586

8,573

Total non-current assets

10,601

11,204

Total assets

38,23743,649Leased asset
Accumulated depreciation

Intangible assets
Software
Other
Total intangible assets
Investment and other assets
Investment securities－

6 －(Unit: million yen)
FY2017
As of March 31, 2018

FY2018
As of March 31, 2019

Liabilities
Current liabilities

3,457

4,159

64

66

Accounts payable - other

1,396

1,345

Income taxes payable

1,539

1,472

Accrued consumption taxes

564

716

Advances received

700

693

Provision for bonuses

1,211

1,222

－

158

734

811

9,667

10,645

Accounts payable-trade
Lease obligations

Provision for loss on order received
Other
Total current liabilities
Non-current liabilities

182

135

Deferred tax liabilities

－

135

Other

26

26

Total non-current liabilities

209

296

9,876

10,941

Share capital

1,590

1,590

Capital surplus

1,449

1,447

Retained earnings

25,08928,833

Treasury shares

(816)

(816)

Total shareholders’ equity

27,312

31,054

964

1,549

0

1

Foreign currency translation adjustment

(49)

(58)

Total accumulated other comprehensive income

915

1,492

Share acquisition rights

128

157

Non-controlling interests

42

Total net assets

28,36032,707

Total liabilities and net assets

38,23743,649Lease obligations

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges－

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

Net Sales

45,774(Unit: million yen)
FY2018(from April 1, 2018 toMarch 31, 2019)
51,728

Cost of sales

24,16827,121Gross profit

21,60524,606

Selling, general and administrative expenses

15,776

17,717

Operating profit

5,829

6,889

Interest and dividend income

113

85

Share of profit of entities accounted for using equity
method102Foreign exchange gains

3－

Partnership gain

24

－

Other

2

2

155

90

Interest expenses

11Foreign exchange losses－

0Partnership losses

－

101

Other

0

0

Total non-operating expenses

1

103

5,982

6,875

1,138

－

Gain on sales of investment securities

62

171

Reversal of provision for restructuring charges

48

－

1,249

171

Impairment loss

23

55

Loss on retirement of non-current assets

95Loss on valuation of shares of subsidiaries andassociates－

45

Loss on valuation of investment securities

96

106

Provision of allowance for doubtful accounts

107

18

Other

15

15

Total extraordinary losses

251

247

Profit before income taxes

6,980

6,799

Income taxes - current

2,138

2,246

Income taxes - deferred

203

(230)

Total income tax

2,341

2,016

Profit

4,639

4,783

FY2017(from April 1, 2017 toMarch 31, 2018)

Non-operating income

Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sales of non-current assets

Total extraordinary income
Extraordinary losses

Loss attributable to non-controlling interests
Profit attributable to owners of parent

－

8 －

(1)

(0)

4,640

4,783

Consolidated Statement of Comprehensive Income

4,639(Unit: million yen)
FY2018(from April 1, 2018 toMarch 31, 2019)
4,783

765

584

0

1

FY2017(from April 1, 2017 toMarch 31, 2018)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

(55)

(8)

710

577

5,350

5,360

Comprehensive income attributable to owners of parent

5,351

5,361

Comprehensive income attributable to non-controllinginterests

(1)

(0)

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to－9 －3) Consolidated statement of changes in equity
FY2017 (from April 1, 2017 to March 31, 2018)(Unit: million yen)
Shareholders' equity
Share capital

Capital surplus

1,590

1,448

Balance at beginning of period

Retainedearnings
21,132

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

Totalshareholders’equityTreasuryshares(819)

23,351

(683)

(683)

4,640

4,640

0

(0)

(0)

3

4

－

0

3,957

2

3,960

1,590

1,449

25,089(816)

27,312

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

198

(0)

5

204

98

11

Balance at end of period

23,665
(683)
4,640
(0)

Disposal of treasury shares
Net changes in items other thanshareholders' equity
Total changes in items during period

Total net
assets

4
765

0

(55)

710

765

0

(55)

964

0

(49)

－

10 －

30

(6)

734

710

30

(6)

4,695

915

128

4

28,360FY2018 (from April 1, 2018 to March 31, 2019)(Unit: million yen)
Shareholders' equity

Balance at beginning of period

Capital stock

Capital surplus

1,590

1,449

Changes in items during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares

Treasuryshares25,089(816)

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

4,783

4,783
(0)

(2)

(2)

－

(2)

3,744

(0)

3,741

1,590

1,447

28,833(816)

31,054

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

Totalshareholders’equity(0)

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

964

0

(49)

915

128

Noncontrollinginterests

Total net
assets4

28,360Changes in items during period
Dividends of surplus(1,039)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

4,783
(0)
(2)
584

1

(8)

584

1

(8)

1,549

1

(58)

－

11 －

577

29

(1)

605

577

29

(1)

4,346

1,492

157

2

32,707

4) Consolidated Statement of Cash Flows(Unit: million yen)
FY2018(from April 1, 2018 toMarch 31, 2019)

FY2017(from April 1, 2017 toMarch 31, 2018)
Cash flows from operating activities
Profit before income taxes

6,980

6,799

Depreciation

1,154

1,118

Impairment loss

23

55

Share-based remuneration expenses

34

29

Amortization of goodwill

8－

Increase (decrease) in allowance for doubtful accounts

69

23

Increase (decrease) in allowance for investment loss

(55)

－

34

10

Increase (decrease) in provision for loss on order
received

(18)

158

Interest and dividend income

(113)

(85)

Increase (decrease) in provision for bonuses

1

1

Share of loss (profit) of entities accounted for using
equity method

(10)

(2)

Loss (gain) on sales of investment securities

(62)

(171)

Interest expenses

Loss on valuation of shares of subsidiaries and associates－

45

Loss (gain) on valuation of investment securities

96

106

Loss (gain) on sales of non-current assets(1,138)0

Loss on retirement of non-current assets

95

Reversal of provision for restructuring charges

(48)

－

Decrease (increase) in trade receivables

(923)

(868)

Decrease (increase) in inventories

95

(287)

Decrease (increase) in other assets

31

(2)

Increase (decrease) in trade payables

394

702

Increase (decrease) in other liabilities

618

252

7,180

7,891

Interest and dividend income received

105

88

Interest paid

(1)

(1)

(346)

－

(1,528)(2,307)

270

－

5,680

5,671

Purchase of property, plant and equipment

(189)

(252)

Purchase of intangible assets

(806)

(615)

Proceeds from sales of property, plant and equipment

2,433

0

Subtotal

Payments for business restructuring
Income taxes paid
Income taxes refund
Net cash provided by operating activities
Cash flows from investment activities(2,199)(496)

Proceeds from sales of investment securities

112

313

Payments of guarantee deposits

(49)

(3)

Proceeds from refund of guarantee deposits

10

19

Other, net

2

10

(686)

(1,024)Purchase of investment securities

Net cash used in investing activities

－

12 －

Cash flows from financing activities
Repayment of lease obligations

(59)

(62)

Dividends paid

(683)

(1,039)

(7)

(3)

2

2

－

(2)

(0)

(0)

Net cash used in financing activities(747)(1,105)

Effect of exchange rate change on cash and cash
equivalents

(24)

5

Net increase (decrease) in cash and cash equivalents

4,221

3,547

Cash and cash equivalents at beginning of period

12,408

16,630Cash and cash equivalents at end of period

16,63020,177

Dividends paid to non-controlling interests
Proceeds from share issuance to non-controllingshareholders
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Other, net

－

13 －

(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
FY2017 (from April 1, 2017 to March 31, 2018)(Unit: million yen)Amount recorded in the
consolidated financial
statements(Note 2)Business Solution

DigitalEntertainment

24,491

21,28345,774

－

596

6

602

(602)

45,774－

Total
Segment profit

25,087

21,28946,376(602)

45,774

2,459

3,360

5,820

9

5,829

Segment assets

16,73013,14529,876

8,361

38,237

1,089

1,154

－

1,154

8

64
－

8

－

8

－

10

10

－

10

－

193

193

－

193

1,062

29

1,091

－

1,091

Net sales
Sales to external customers
Intersegment sales or transfers

Adjustments(Note 1)

Total

Other items
Depreciation
Amortization of goodwill
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 ¥8,361 million includes ¥6,900 million for the elimination of receivables from theheadquarters management department and ¥15,261 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.

－

14 －

FY2018 (from April 1, 2018 to March 31, 2019)(Unit: million yen)
Business
Solution

DigitalEntertainment

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

Net sales

24,23527,492

51,728－51,728

95

6

102

(102)

－

24,331

27,49851,830(102)

51,728Segment profit

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

Sales to external customers
Intersegment sales or transfers
Total

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 the headquarters
management department and ¥18,260 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.

－

15 －

(Per share information)(Unit: yen)

FY2017(from April 1, 2017 toMarch 31, 2018)
516.0884.85
84.50

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

FY2018(from April 1, 2018 toMarch 31, 2019)595.0587.46
87.07(Note 1). The basis for calculating net income per share and diluted net income per share is as follows.
FY2017(from April 1, 2017 toMarch 31, 2018)
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(Unit: million yen)
FY2018(from April 1, 2018 toMarch 31, 2019)

4,640
－
4,640
54,692,960

4,783
－
4,783
54,696,893－
225,045(225,045)－
245,213(245,213)－－(Note 2). The basis for calculating net assets per share is as follows.
FY2017(March 31, 2018)
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(Unit: million yen)
FY2018(March 31, 2019)28,360
133
(128)
(4)
28,22732,707
160
(157)
(2)
32,54754,697,038

54,696,858(Note 3) The company performed a two-for-one split of common stock on March 1, 2019. Beginning balances for
net assets per share, net income per share, and diluted net income per share in the previous consolidated fiscal year
have been adjusted assuming this stock split.
(Important subsequent events)
Not applicable－16 －