インフォコム（4348） – [Delayed] Financial Results Briefing for Fiscal Year Ended March 31, 2022

Financial Results Briefing for FY03/2022INFOCOM CORPORATION2022.04.27Copyright © 2022 INFOCOM CORPORATION. All rights reserved. ContentsFinancial Results for FY03/22Earnings Forecast for FY03/23Initiatives in Key BusinessesE-ComicHealth ITEvolve Into a Services-Oriented BusinessCopyright © 2022 INFOCOM CORPORATION. All rights reserved. Financial Results for FY03/22ResultsCopyright © 2022 INFOCOM CORPORATION. All rights reserved. FY03/22 Results (Consolidated)Net salesOperating profitNet income: Firm Business Solution performance, despite sluggish growth for E-comics: Lower due to HQ relocation costs: New record-high Net sales－5.1％Operating profit－6.6％Profit attributable to owners of the parent＋10.1%(Billion yen)68.0 64.5 (Billion yen)(Billion yen)604020015105010.8 10.0 6.9 6.2 151050FY03/21 FY03/22FY03/21 FY03/22FY03/21 FY03/22Copyright © 2022 INFOCOM CORPORATION. All rights reserved. 3Digital EntertainmentBusiness SolutionManagement Performance (Consolidated)FY03/21FY03/22(Billion yen)YoYChange%Net sales68.064.510.9（16.9%）(3.4)－5.1％+0.1+1.2%10.0(15.6％)11.410.16.9(0.7)－6.6％(0.7)(0.7)－5.8％－6.8％+0.6+10.1％Operating profit(Operating margin)10.8(15.9％)Cost of HQ relocation (0.8)EBITDAOrdinary profitProfit attributable to owners of the parentNet income per share (yen)ROE(%)12.110.96.2Copyright © 2022 INFOCOM CORPORATION. All rights reserved. 4114.61126.2011.59+10.116.216.1(0.1)Business Areas and Segment StructureDigital Entertainment GroupBusiness Solution GroupDigital EntertainmentHealth ITBusiness SoftwareEnterprise Service ManagementE-comic・General consumersPackage servicesfor medical institutions・Hospitals・Pharmaceutical companies・Nursing care companies・Health industryERPBusiness package cloud servicesSystem integration for major companies・Companies・Government offices・Local governments・Textile manufacturers・Trading companies・Pharmaceutical wholesalers・Mobile phone companiesCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 5Digital Entertainment Results (Consolidated)Net salesOperating profitFY03/21FY03/22Change%44.0 (Billion yen)40.5 (Billion yen)Net sales Operating profit44.07.940.57.7(3.4)－7.9％(0.1)－1.9％1080%(Operating margin)(18.0%）(19.1%）7.9 7.7 Net sales(Billion yen)YoY4030201008642060%40%20%0%18.0%19.1%Operating profitFY03/21 FY03/22FY03/21 FY03/22Cost reductions from reduced advertising Decrease in profits due to decrease in salesCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 6・Advertising effectiveness declined due to pirate sites → Reduced advertising・Decline in special demand stemming from voluntary restraints on unnecessary travel in the previous year・Lack of major hits in original content (some medium-sized hits)Results of E-Comic Distribution Service(Billion yen)12.5107.52.550Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4FY03/18FY03/19FY03/20FY03/21FY03/22Copyright © 2022 INFOCOM CORPORATION. All rights reserved. 7Business Solution Results (Consolidated)Net salesOperating profitFY03/21FY03/22Change%(Billion yen)30(Billion yen)24.0 24.0 Net salesHealth IT24.09.72.824.010.23.1(13.2%）Operating profit(Operating margin)(12.0%）(Billion yen)YoY+0.0＋0.1%+0.5＋6.1%+0.2＋9.9%3.1 2.8 40%Net salesSteady growth despite the impact of COVID-19Excluding HQ relocation costs (0.8)642080%60%20%0%201009.7 10.2 12.0%13.2%FY03/21 FY03/22FY03/21 FY03/22Operating profit・Improved profit margin due to higher productivity from work-style reform (telecommuting, operating improvements, HQ relocation, etc.)・Cost reductionsCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 8543210Investments(Billion yen)Main Details(Billion yen)AmountNew business planning, research, demonstration tests, etc.0.3CategoryBusiness DevelopmentM&A4.25 0.39 Expanding Health IT (converted Medical Create Co., ltd to a subsidiary)Evolve into a services-oriented business (converted Alterbooth Inc. to a subsidiary)2.06 Investments and business alliancesEquity InvestmentCapital increase for South Korean e-comic distribution business (Peanutoon Inc.) 2.01.79 0.44 0.17 0.90 1.63 Capital InvestmentHealth IT0.26 FY03/210.16 FY03/22E-Comic distribution business (established joint venture AmuLink Corp)Southeast Asia social media platform for doctors (business alliance with Docquity Holdings Pte. Ltd.)Fitness app business (business alliance with BeatFit Inc.)E-comic(Systems development, etc.)(radiology systems, pharmaceutical company sales, etc.)GRANDIT miraimil developmentOther (facilities in connection with HQ relocation)R&D InvestmentEquity InvestmentCapital InvestmentBusiness DevelopmentR&D Investment AI, new technology research, etc.Copyright © 2022 INFOCOM CORPORATION. All rights reserved. 91.60.1Balance Sheets (Consolidated)(Billion yen,%)FY03/21FY03/22AmountComposition RatioAmountComposition RatioYoYMajor Change FactorsCurrent assetsFixed assetsTotal assetsCurrent liabilitiesNon-currentliabilitiesTotal liabilitiesTotal net assetsTotal liabilities and net Shareholders’ equity assetsratio43.912.456.414.20.314.541.877.922.1100.025.20.625.974.178.5+1.221.5(0.1)100.0+1.021.6(1.8)0.9+0.122.5(1.6)45.112.357.512.40.512.944.557.556.4100.0100.0+1.073.5%76.8%・Income taxes payable 77.5+2.7・Retained earnings Copyright © 2022 INFOCOM CORPORATION. All rights reserved. 10Cash Flows (Consolidated)(Billion yen)・Profit before income taxes ・Depreciation・Change in notes and accounts receivable-trade and contract assets・Purchase of shares of subsidiaries・Purchase of intangible assets(3.2)・Dividends+7.1(2.2)3029.931.720BeginningFY03/22Cash and EquivalentsOperatingCFInvestingCFFinancingCFEndFY03/22Cash and EquivalentsCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 11(Billion yen)FY03/21FY03/22ChangeOperating CF9.87.1(2.7)Investing CF(1.6)(3.2)(1.5)Free CF8.23.9(4.3)Financing CF(1.7)(2.2)(0.4)Effects of exchange rate changes on cash and cash equivalents Change in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of quarter (0.0)0.0+0.06.41.7(4.7)23.429.9+6.429.931.7+1.7Earnings Forecast for FY03/23ForecastCopyright © 2022 INFOCOM CORPORATION. All rights reserved. Management Indicators (Consolidated)(Billion yen)FY03/22 ResultsFY03/23 ForecastYoY1H2HFY1H2HFYChange%Net sales32.432.164.533.0３７.０70.0+5.4+8.4％Operating profit(Operating margin)4.9(15.4％)5.0（15.9%）10.0（15.6％）4.0（12.1％）6.5（17.6%）10.5（15.0％）+0.4+4.0％EBITDA5.65.711.4Ordinary profit5.05.110.14.64.07.26.511.810.5+0.3+3.4％+0.3+3.0％Profit attributable to owners of the parentNet income per share (yen)ROE3.43.46.92.74.37.0+0.0+1.3％126.2016.1%127.80+1.60+1.3％15.2%(1.0)Copyright © 2022 INFOCOM CORPORATION. All rights reserved. 13Digital Entertainment Earnings Forecast (Consolidated)Net salesOperating profitFY03/22FY03/23Change%44.0 (Billion yen)40.5 (Billion yen)10Net sales Operating profit40.57.744.07.0+3.4＋8.6%(0.7)－9.8％(Operating margin)(19.1%）(15.9%）(Billion yen)YoY7.7 7.0 60%Net salesAiming for growth recovery through expanded content and strengthening marketing40302010080%40%20%0%8642019.1%15.9%Operating profitCost increase due to strengthened marketingFY03/22 FY03/23FY03/22 FY03/23Copyright © 2022 INFOCOM CORPORATION. All rights reserved. 14E-Comic Returning to a Growth Path Owing to Aggressive Investments in AdvertisingContinue revised marketing measures of Q4 in the previous year through the first half of this year; invest in advertisingDetermine the direction for the second half based on the results of the first halfAdjust advertising strategy11.6116 Peak10.6106 10.9109 10.9109 10.8108 10.6106 Determine advertising effectiveness Ad placements9.797 9.595 BottomQ1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Copyright © 2022 INFOCOM CORPORATION. All rights reserved. FY03/21FY03/23FY03/2215Business Solution Earnings Forecast (Consolidated)Net salesOperating profitFY03/22FY03/23Change%(Billion yen)30(Billion yen)26.0 24.0 Net salesHealth ITOperating profit(Operating margin)24.010.22.3*(9.7%）26.011.53.5(13.5%）(Billion yen)YoY+1.9＋8.1%+1.2＋11.7%+1.1＋50.3%3.5 2.3 Net salesIncrease in sales due to growth of Health IT andevolution into a services-oriented business*Cost of HQ relocation (0.8)642080%60%40%20%0%2010010.2 11.5 13.5%9.7%Operating profitFY03/22 FY03/23FY03/22 FY03/23Higher profits due to higher salesCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 16Shareholder ReturnsAnnual dividends per share50.045.010 YenCommemorative Dividend40.027.027.037.027.031.021.010.010.013.018.0(Yen)5040302010022.017.05.0◆ DividendsFor FY03/2023, we forecast an interim dividend of 18 yen and a year-end dividend of 27 yen, for a total annual dividend of 45 yen(35.2% payout ratio)◆ Shareholder BenefitsWe plan to provide shareholder benefits to shareholders owning at least one trading unit per the register of shareholders as of FY03/19FY03/20FY03/21FY03/22FY03/23FY03/23(Forecast)InterimYear-EndSeptember 30, 2022Net income per share (yen)87.46101.32114.61126.20127.80*Dividends per share and net income per share reflect stock split performed on March 1, 2019.Copyright © 2022 INFOCOM CORPORATION. All rights reserved. 17Initiatives in Key BusinessesE-ComicStrategyHealth ITEvolve Into a Services-Oriented BusinessCopyright © 2022 INFOCOM CORPORATION. All rights reserved. E-ComicFY03/22 InitiativesExpand ContentOriginal Comics to Other Media⚫ Bolstered production system for original ⚫ Dramatization of original comicscomics⚫ Strengthen collaboration with publishers⚫ Purchased and sold Webtoon titles⚫ Launched mangasubmission serviceMechaComicCreators⚫ Collaborations with dramasStrengthen Systems Foundation⚫ Established joint venture company AmuLink Corp.Researched and adopted technologies specific to the e-book business⚫ Developed and launched new viewer⚫ Moved systems infrastructure to the cloud⚫ Joint drama with TV TokyoCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 19Launched MangaSubmission WebsiteWorks submitted and viewed free of chargeContest-winning works distributed on MechaComicCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 20Original Comics to Other Media⚫ We have been implementing media tie-ups, mainly for original comics.⚫ We continue to pursue media in areas other than TV dramas.Mangaartist contestsDramatization of original titlesOct. 2021- MBS/TBS×Jan. 2022- TV TokyoDramatization of grand prize-winning titlesWinning titles will be distributed on MechaComicJuly 2021- WOWOWComic adaptations of movies and TV showsOct. 2020- MBS/TBS Mar. 2021- MBSTV Drama (Kansai Television)She Was BeautifulTV Drama (Fuji TV)SUPER RICHTV Animation (TOKYO MX)Puraore! ～PRIDE OF ORANGE～Copyright © 2022 INFOCOM CORPORATION. All rights reserved. 21E-Comic Market Growth Outlook for the Current Fiscal YearDespite the impact of pirate sites, the market continues to grow, mainly through comic apps used by young consumers(Billion yen)600.0500.0400.0300.0200.0100.00.0. 3743. 256. 1282. 6282. 074. 6532. 6791. 1422. 062 1891.. 4851. 6621. 6392013201420152016201720182019202020212022Copyright © 202２ INFOCOM CORPORATION. All rights reserved. 22. 6731. 5115. 7973. 8554. 2401. 6153Apps. 9361. 9055. 7704WebFY03/23 GrowthINFOCOM Forecast10.5％ImpressForecast* 7.7％*Impress CorporationE-book Business Research Report 2021E-ComicStrategies to Return to Growth(Billion yen)1. Optimal use of advertising and marketing・Web ⇒ Acquire members in the 30s and 40s age groups・App ⇒ Try new ways to appeal to young people (20s age group)・Appeal to sense of bargain pricing through free content and membership points・Engage in selection and concentration for content investments2. Cultivate growth businesses・Growth of the MechaComic app business・Growth of Peanutoon in South Korea・Begin distribution of MechaComic app in the U.S.3. Business field expansion・M&A or alliances with other companies in the same industry, other publishing companies・Expand business domains to peripheral markets and overseasCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 235040302010051026102710281029102020212022202E-Comic Optimal Use of Advertising and MarketingImplement measures according to customer status to activate and encourage regular use, leading to loyal customersConversion to loyal customersMeasures to promote traffic to the siteIn-house media (social media) campaignsPaid SubscribersConvert to paid subscribersOther advertisingSponsorship activities Free SubscribersExpand potential customer baseMedium usersDramatizationTV adsOnline video advertisingSearch engine optimizationIndifferent(E-book market / paper publishing market / smartphone game market)Web advertisingRe-enrollmentMonthly membershipOn-site measuresBonus points for higher-priced optionsContent discount measuresContinued-use points campaignHeavy usersLight usersFree SubscribersCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 24E-ComicInitiatives for New Business DomainsIncrease app users in Japan through stronger promotions. Transition Korean business to growth track.MechaComic AppPeanutoon⚫ Replace viewer for stronger analytical capabilities⚫ Implement advertising function⚫ Expand linkage with web services⚫ Enhance original content through increased investment in production⚫ Improve ad performance< Peanutoon Sales>2Q-91YF3Q-91YF4Q-91YF1Q-02YF2Q-02YF3Q-02YF4Q-02YF1Q-12YF2Q-12YF3Q-12YF4Q-12YF1Q-02YF2Q-02YF3Q-02YF4Q-02YF1Q-12YF2Q-12YF3Q-12YF4Q-12YFCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 25E-Comic Business Development (Concept)Content AcquisitionAuthors(Amateur)Authors(Pro)Original ComicsE-Comic DistributionPublishersDeeperCollaborationWebtoon(Korea)Comic AdaptationDramasNovelsCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 26OverseasKoreaAsiaU.S.2019～Q3/2022～Market GrowthDomesticM&ABusiness Field ExpansionLive-action dramasAnimeHealth IT Overall StrategyAccelerate transition to servicesService Domains1. Overseas expansionExpand hospital systems in Southeast AsiaNew Business Planning2. Expand business in health-related fieldsExpand sales of WELSA health management service3. Expand businesses in nursing care-related fieldsExpand sales of SaaS version of CWSExisting Fields4. Secure profits in existing domainsreyopmEleeyopmElresUreyopmElcitsemoDsaesrevO4MedicalHospitalsPharmaceuticalNursingHealthRadiologyClinical InformationNursing ManagementSurgery ManagementDrug InformationCare Staff Management (CWS) selaStroppuS3IT! For Nursing CareCare RecordsCare Staff Management (CWS)Career ChangeSupport2Health DiagnosisHealth AnalysisDigital Health Connect✓ Solasto✓ SOMPO etcPersonal HealthService1Asia HealthcareDrug InformationClinical InformationRadiologyCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 27Health IT Healthcare Strategy in Asia (Concept)FY03/22FY03/23DomesticProducts for Hospitals↓Overseas expansionPhilippinesDrug database improvement completedDrug Information System(DI)IndonesiaBegan building drug databaseProvided system for electronic medical records vendorsBusiness alliance with Docquity(Developing social media platform for doctors in Southeast Asia)Medical Imaging Information SystemIndonesiaDeveloped viewer for mobile devicesSales support for TerakorpExpanded sales of drug information systemsDeveloping our own products in collaboration with local companiesCreation of new businesses in Southeast AsiaAdditional investment in Singapore-based Homage (caregiver matching company)Support for Homage-type services in Japan⇒ Creation of collaboration mechanismBusiness creation focusing on startup investmentsCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 28Health IT Expanding Radiology Systems BusinessIn October 2021, we expanded the scope of our business by acquiring Medical Create Co., Ltd as a subsidiary (main customers are national hospitals)Major ProductsHospitalsCollaboration ResultsRadiology Information Management SystemRiSMECRadiation Therapy Management SystemRiSMEC-RTMedical Device Management System３mecRadiation Dose Management SystemRiSMEC-DOSE⚫ National hospitals 68 (40% share)⚫ Other hospitals 54 facilities(1) Expanded product lineup(2) Expanded scale of salesExpanded market share among national hospitalsCross-sales of INFOCOM productsDeveloped new sales channelsHokkaido/Tohoku17 totalChugoku/Shikoku35 totalKyushu/Okinawa34 total(3) Improved service qualityKanto/Koshinetsu27 totalTechnical capabilities, customer supportTokai/Hokuriku/Kinki8 totalCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 29HospitalsNursing Care Companies⚫ Overtime caps for physicians (beginning April ⚫ Leverage ICT adoption enterprises and IT adoption subsidies⚫ COVID-19-related subsidies will continue in ⚫ Begin proof-of-concept tests to relax staffing standards, conditional on the use of IT and robots2024)FY03/23CWS for CareCare staff management⚫ Develop new sales partners⚫ Expand sales through web marketing⚫ Develop cloud versionHealth IT CWS Expansion tekraMtnemnorivnEserusaeM rojaM⚫ Roughly 10% of medium-sized or larger hospitals (200 beds or more) have adopted work management systemsSmart CWSWork-style reform for doctorsHelp physicians reduce working hours, expand salesCWSCare staff managementExpand market share by capturing users of caregiver schedule managementCWSCaregiver schedule managementExpand by offering simplified version and leverage sales companiesCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 30Evolve Into a Services-Oriented BusinessAreas of Focus to Evolve Into a Services-Oriented Business for General Enterprise CustomersCrisis managementExpand to peripheral areas(Food temperature control IoT service)Documents and formsTarget SMEsNEOSSStrategyPackagedServiceERPLaunch new service businesses*October 2021 startIoT ServicesCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 31Evolve Into a Services-Oriented BusinessAdvance Cloud Services by Building a CCoE Structure That Leverages Alterbooth Development TechnologiesCloud Center of ExcellenceCloud development technologyMicrosoft Azure PartnerCloud Technology Promotion Office (new)Cloud development supportEstablish services as quickly as possible, reduce costs Improve reliability, availability, and maintainabilityCWS for CareIoT servicesPursue company-wide use of cloud computingTechnology sharingActivate communications among engineersTrain cloud engineersArena in which to foster cloud development engineersEngineer communityCloud utilization knowledge baseTrain engineersShort-term dispatch by AlterboothCopyright © 2022 INFOCOM CORPORATION. All rights reserved. 32Becoming a services company that delivers new value through the co-creation of ICT and real-world businessesInfocom CorporationCorporate Communications OfficeTEL: +81 3 6866 3160 Email pr@infocom.co.jpThis document is provided for the purpose of providing information about the Company and its performance, not for the solicitation of investments in securities issued by the Company. In addition, because yen figures in this document are stated in billions of yen and rounded off after the first decimal place, management indicators, year on year changes, and percentage changes are approximate. With certain exceptions, this document is based on data as of March 31, 2022. The names of the companies, services, and products stated in this document are trademarks or registered trademarks of their respective companies.The opinions and forecasts included in this document are judgments of the Company as of the date this document was prepared. The Company does not guarantee the accuracy or completeness of information contained herein, which might change as new data becomes available.Copyright © 2022 INFOCOM CORPORATION. All rights reserved.