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 Six Months Ended September 30, 2021
(Based on Japanese GAAP)
October 29, 2021
Company name:
I-NET CORP.
Stock exchange listing: Tokyo
Stock code:

9600

Representative:
Inquiries:

Representative Director, Executive President Mitsuru Sakai
Director and Managing Executive Officer
Naokatsu UchidaURL

https://www.inet.co.jp
TEL

Scheduled date to file Quarterly Securities Report:

November 8, 2021

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

December 3, 2021
Yes

Holding of quarterly financial results meeting:Yes045-682-0806(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
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Six months ended September 30, 2021
14,935
0.3
986
18.9
1,095
28.2
715
92.1
Six months ended September 30, 2020
14,884(3.1)
829 (34.0)854 (31.7)
372 (55.0)
Earnings per share

Diluted earnings per share

Yen
44.78
23.34

Six months ended September 30, 2021
Six months ended September 30, 2020

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2021
As of March 31, 2021

Net assets

Millions of yen
31,78532,056Equity ratio

Millions of yen
16,898
16,212%53.2
50.6

2. Cash dividends
Annual dividends per share

Year ended March 31, 2021
Year ending March 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
22.00
23.50

Yen–

Yen
24.00

Yen
46.00

–

23.50

47.00

Year ending March 31, 2022 (Forecast)Total

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
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
32,500
8.3
2,330
8.1
2,330
2.2
1,600
7.0
100.151

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:NoYes(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
No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 202116,242,424 shares As of March 31, 2021

16,242,424 shares

Number of treasury shares at the end of the period
As of September 30, 2021

266,258 shares As of March 31, 2021

266,328 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

15,976,161 shares Six months ended September 30, 2020

215,955,515 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of September 30, 2021

As of March 31, 2021
AssetsCurrent assetsCash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3

4,027,713
5,930,552

2,875,101––

5,797,899

176,790
76,85048,837
301,345(405)
10,561,685

182,765
88,051
56,827436,687(396)
9,436,936

10,868,150
3,108,756
1,570,428
15,547,334

10,435,006
3,108,756
1,596,271
15,140,034

231,556
1,009,509
53,747
1,294,813

211,594
1,235,096
50,882
1,497,573

2,865,702
1,083,571
731,629(28,122)
4,652,780
21,494,929
32,056,614

3,774,745
1,116,630
847,162(27,920)
5,710,61722,348,225
31,785,161

As of March 31, 2021
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Provision for loss on construction contracts
Provision for loss on anti monopoly act
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4(Thousands of yen)
As of September 30, 2021

1,409,194
3,039,768
511,594
870,572
1,773–
2,792,111
8,625,013

1,379,776
3,101,888
438,312876,668
5,827
40,2193,068,229
8,910,922

6,868,918
700
73,495
275,657
7,218,770
15,843,784

5,540,694
700
83,656
350,701
5,975,752
14,886,674

3,203,992
3,146,335
9,890,484(315,059)
15,925,752

3,203,992
3,146,335
9,972,799(314,956)
16,008,171

233,319

841,572

53,757
287,077
16,212,830
32,056,614

48,742890,315
16,898,487
31,785,161

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended
Six months ended
September 30, 2020
September 30, 2021
Net sales
14,884,778
14,935,646
Cost of sales
11,734,359
11,559,060
Gross profit
3,150,418
3,376,585
Selling, general and administrative expenses
2,320,700
2,389,994
Operating profit
829,718
986,591
Non-operating income
Interest income
167
166
Dividend income
22,55525,547
Subsidy income
29,48074,563Gain on investments in investment partnerships–
36,317
Surrender value of insurance policies
25,050
216
Other
6,713
8,692
Total non-operating income
83,967
145,503
Non-operating expenses
Interest expenses
25,271
23,866
Commission expenses
11,996
11,569Loss on investments in investment partnerships
20,843–Other
1,091848
Total non-operating expenses
59,20336,284
Ordinary profit
854,482
1,095,810
Extraordinary income
Gain on bargain purchase–
28,076
Gain on sale of investment securities–
4,563
Gain on sale of non-current assets–
2,945
Total extraordinary income–
35,585Extraordinary losses
Provision for loss on anti monopoly act–
40,219Loss on retirement of non-current assets
8,827
2,824
Special Retirement Payments
250,000–
Loss on valuation of investment securities
22,616–
Impairment losses
1,089–
Total extraordinary losses
282,533
43,043
Profit before income taxes
571,949
1,088,352
Income taxes
199,499
373,018
Profit372,450
715,333
Profit attributable to owners of parent
372,450
715,3335

Consolidated statements of comprehensive income (cumulative)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests

6Six months ended
September 30, 2020
372,450(Thousands of yen)Six months ended
September 30, 2021
715,333

174,154
4,449
178,604
551,054608,253(5,015)603,237
1,318,571

551,054

1,318,571––

Consolidated statements of cash flows
Six months ended
September 30, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Special Retirement Payments
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Proceeds from dividends income from investments inpartnership
Interest paid
Payments of retirement benefits for directors (andother officers)
Payments of special Retirement Payments
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
Payments of leasehold and guarantee deposits
Purchase of investment securitiesProceeds from sale of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from sale of treasury shares
Dividends paid
Repayments of lease obligations
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

7(Thousands of yen)Six months ended
September 30, 2021

571,949
882,717
1,089
250,000
19,962(27)(22,723)
25,271
227,293(20,914)
186,632(50,711)(125,659)
1,944,878
22,722

1,088,352
906,425––
19,962(210)(25,714)
23,866354,663(31,184)(29,417)(52,837)(418,638)
1,835,266
25,714

15,49029,200(24,823)(23,521)(150,000)–(250,000)(404,067)
1,154,199–(443,279)
1,423,380(823,282)(178,356)(530)(212,556)–
47,442(1,167,282)(369,177)(376,200)(127,138)(11,807)
4,800
18,008(861,515)

30,0001,400,000(1,478,202)(105,431)
125(341,401)(138,470)(633,381)(646,464)
3,083,435
2,436,971

300,000
30,000(1,596,104)(14)
118(382,866)(65,609)(1,714,476)(1,152,611)
4,027,713
2,875,101