[Delayed] Summary of Consolidated Financial Results for the 2nd Quarter of the Fiscal Year Ending March 31, 2022

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2022 [Japanese GAAP]

October 27, 2021

Company name:

Infocom Corporation

Stock exchange listing:

Tokyo

Stock code:

4348

URL

https://www.infocom.co.jp/

Representative:

President and CEO

Norihiro Takehara

Inquiries:

Head of Corporate Communications Office

Shinya Tanaka

TEL [phone]

Scheduled date to file Quarterly Securities Report:

November 9, 2021

Scheduled date to commence dividend payments:

November 30, 2021

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Six months ended September 30, 2021

32,456

(2.3)

4,998

1.6

5,055

2.1

3,445

2.0

Six months ended September 30, 2020

33,213

20.0

4,920

27.4

4,950

27.7

3,377

31.1

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended September 30, 2021

62.90

62.62

Six months ended September 30, 2020

61.70

61.43

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of September 30, 2021

55,773

42,691

76.0

As of March 31, 2021

56,435

41,839

73.5

2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended March 31, 2021	-	10.00	-	27.00	37.00
Year ending March 31, 2022	-	13.00
Year ending March 31, 2022 (Forecast)			-	27.00	40.00

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen	%	Yen
Full year	70,000	2.9	11,000		1.7	11,000		0.6	7,300	16.3	133.28

1

4. Notes
(1)	Changes in significant subsidiaries during the six months ended September 30, 2021	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	No
(3)	Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
	Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
	Changes in accounting policies due to other reasons:			No
	Changes in accounting estimates:				No
	Restatement of prior period financial statements:				No
(4)	Number of issued shares (common shares)
	Total number of issued shares at the end of the period (including treasury shares)
		As of September 30, 2021	57,600,000	shares	As of March 31, 2021		57,600,000	shares
	Number of treasury shares at the end of the period
		As of September 30, 2021	2,826,767	shares	As of March 31, 2021		2,829,423	shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Six months ended September 30, 2021	54,772,225 shares	Six months ended September 30, 2020	54,750,120 shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

						(Millions of yen)
					As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits				29,956	30,732
Notes and accounts receivable - trade	12,502	-
Notes and accounts receivable - trade, and contract	-	10,437
assets
Inventories					167	192
Other					1,345	2,035
Allowance for doubtful accounts			(7)	(5)
Total current assets				43,964	43,392
Non-current assets
Property, plant and equipment			1,054	757
Intangible assets
Software					1,592	1,680
Other					47	34
Total intangible assets				1,639	1,715
Investments and other assets
Investments and other assets			9,974	10,120
Allowance for doubtful accounts	(198)	(211)
Total investments and other assets	9,776	9,908
Total non-current assets				12,471	12,381
Total assets					56,435	55,773
Liabilities
Current liabilities
Accounts payable - trade				4,975	4,574
Income taxes payable				2,729	1,476
Provision for bonuses				1,402	1,025
Other provisions				-	15
Other					5,133	5,744
Total current liabilities				14,241	12,836
Non-current liabilities
Retirement benefit liability			16	23
Other					338	222
Total non-current liabilities			355	245
Total liabilities					14,596	13,082
Net assets
Shareholders' equity
Share capital					1,590	1,590
Capital surplus				1,556	1,559
Retained earnings				37,479	38,646
Treasury shares				(795)	(794)
Total shareholders' equity				39,829	41,001
Accumulated other comprehensive income
Valuation	difference	on	available-for-sale	1,827	1,452
securities
Foreign currency translation adjustment	(153)	(81)
Total accumulated other comprehensive income	1,673	1,370
Share acquisition rights				228	226
Non-controlling interests				107	93
Total net assets					41,839	42,691
Total liabilities and net assets				56,435	55,773
					3

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		September 30, 2020	September 30, 2021
Net sales	33,213	32,456
Cost of sales	16,780	16,770
Gross profit	16,432	15,685
Selling, general and administrative expenses	11,511	10,687
Operating profit	4,920	4,998
Non-operating income
Interest and dividend income	38	52
Share of profit of entities accounted for using equity	6	7
method
Foreign exchange gains	0	-
Other	3	2
Total non-operating income	49	62
Non-operating expenses
Interest expenses	0	0
Foreign exchange losses	-	1
Partnership loss	19	0
Loss on extinguishment share-based compensation	-	3
expenses
Other	0	0
Total non-operating expenses	19	6
Ordinary profit	4,950	5,055
Extraordinary income
Gain on sale of non-current assets	-	0
Total extraordinary income	-	0
Extraordinary losses
Loss on retirement of non-current assets	0	0
Loss on valuation of investment securities	3	44
Bad debts written off	1	-
Other	0	-
Total extraordinary losses	5	44
Profit before income taxes	4,945	5,011
Income taxes	1,589	1,616
Profit	3,355	3,394
Loss attributable to non-controlling interests	(22)	(50)
Profit attributable to owners of parent		3,377	3,445

4

Consolidated statements of comprehensive income (cumulative)

					(Millions of yen)
				Six months ended	Six months ended
				September 30, 2020	September 30, 2021
Profit				3,355	3,394
Other comprehensive income
Valuation difference on available-for-sale securities	1,520	(374)
Deferred gains or losses on hedges		(0)	-
Foreign currency translation adjustment		(69)	74
Total other comprehensive income		1,451	(299)
Comprehensive income			4,806	3,095
Comprehensive income attributable to
Comprehensive	income	attributable to	owners of	4,838	3,142
parent
Comprehensive	income	attributable	to non-	(31)	(47)
controlling interests

5