May 16, 2022

Briefing Materials for
Financial Results
Fiscal Year Ended
March 2022
[TSE, Prime Market: 9600]

Visit our website©2022 I-NET Corp. All Rights Reserved

Contents
1

4

Overview of Earnings in Fiscal Year Ended March 2022

2

Earnings Forecasts in Fiscal Year Ending March 2023

3

Topics

Initiatives in Medium-term Management Plan

©2022 I-NET Corp. All Rights Reserved

1

1

4

Overview of Earnings for Fiscal Year Ended March 2022

2

Earnings Forecasts for Fiscal Year Ending March 2023

3

Topics

Initiatives in Medium-term Management Plan

©2022 I-NET Corp. All Rights Reserved

2

FY2022：Consolidated Overview of Earnings(Unit: Million yen)

Fiscal year ended March
2021 (“FY2021”)

Fiscal year ended March2022 (“FY2022”)

AmountAmountPercentage

Change YoY

Percentage

AmountPercentage

Net sales

30,016100.0%

31,169100.0%

1,153

3.8%

Cost of sales

23,211

77.3%

24,018

77.1%

806

3.5%

Gross profit

6,804

22.7%

7,151

22.9%

346

5.1%

Selling, general andadministrative expenses

4,648

15.5%

4,783

15.3%

134

2.9%

Operating income

2,155

7.2%

2,367

7.6%

212

9.8%

Ordinary income

2,279

7.6%

2,542

8.2%

262

11.5%

Net income attributableto parent

1,494

5.0%

1,694

5.4%

199

13.4%

Income per share (yen)

93.62

―

106.08

―

12.46

13.3%

©2022 I-NET Corp. All Rights Reserved

3

Net sales by service
We provide customers with services in the following
three service categories.
Information processing
Percentage of Net sales

12,464 million yen

by service in FY2022

Data center, Cloud service
Commissioned calculation service
Mailing Service etc.

4%31,16956%

Million yen

40%

System development

17,511 million yen

Development of software
Development of hardware etc.

Product sales

1,193 million yen

Note: Total of Net sales by service may not match due to rounding. The same applies hereafter.
©2022 I-NET Corp. All Rights Reserved

4

FY2022： Full-year sales by service
Fiscal year ended
March 2021
AmountFiscal year ended
March 2022

Net sales

11,861

12,464603

5.1%

Gross profit

2,803

2,949

146

5.2%

Ratio of gross profit
to net sales

23.6%

23.7%

0.0%

Net sales

16,936

17,511574

3.4%

Gross profit

3,821

4,001

179

4.7%

Ratio of gross profit
to net sales

22.6%

22.8%

0.3%

－

Net sales

1,217

1,193

(24)

(2.0%)

Gross profit

179

200

20

11.6%

Ratio of gross profit
to net sales

14.8%

16.8%

2.1%

Net sales

30,016

31,169

1,153

3.8%

Gross profit

6,804

7,151

346

5.1%

Operating income

2,155

2,367

212

9.8%

Operating margin

7.2%

7.6%

0.4%

(Unit: Million yen）

Information
processing

Systemdevelopment

Product sales

Total

•
•

AmountChange YoY
AmountPercentage

－

－

－

In the fiscal year ended in March 2022, Information processing services remained a strong
performer. System development services recovered from the impact of COVID-19 to a paceof steady growth.
Gross profit increased over the previous year in all service categories.
©2022 I-NET Corp. All Rights Reserved

5

FY2022: Information processing services – Trends in net sales
14,000(Unit: Million yen)

12.4bnyen

12,00010,000
8,000
6,000
4,000
2,000

8.4bn
yen
2,483

2,761

3,032

3,557

3,586

3,670

3,545

3,609

3,917

3,611

3,564

3,610

4,382

3,612

4,951

3,880

6,169

3,955

2,445

’13/3

•
•

Data
center,
Cloud

4,104
Commissioned
settlement
services

2,435

2,450

2,403

2,610

2,523

2,096

1,987

1,737

’20/3

’21/3

0
•
•

6,505

’14/3

’15/3

’16/3

’17/3

’18/3

’19/3

1,854

Mailing
services, etc.

’22/3

Sales in Information processing services have grown approximately 1.5 times over the past 10 years.
In particular, Sales in Data center and Cloud service has grown substantially, approximately 2.6 times
over the past 10 years.
Commissioned settlement at gas stations, our founding business, remains solid with its sales
increasing every year.
Competition for Mailing services has been on the decline due to a reduction in mailed material overthe previous over the previous year, but our Company’s services are well regarded and inquiries havebeen increasing. We also see signs of a halt in the decline.
©2022 I-NET Corp. All Rights Reserved

6

FY2022: Information processing services – Factors behind fluctuations in net sales(Unit: Million yen)
Data center,
Cloud

Commissioned
settlement
services

Mailing services,
etc.

12,464

11,861

Annual growth rate of 5.1%,
increase of 603 million yen
FY2021
FY2022• Sales in Information processing services increased by +5.1% p.a. to 12.4 billion
yen in FY2022.
• As in the previous year, sales in Data centers and Cloud services increased, andCommissioned settlement at gas stations and others were also solid.
• Sales in Mailing services in FY2022 showed the first rise in these five fiscal years.
As a result all services began to show gains in sales over the previous year.
©2022 I-NET Corp. All Rights Reserved

7

FY2022: System development – Trends in net sales
20,00018.9bnyen(Unit: Million yen）

17.5bnyen

18,00016,00014,00012,00012.2bnyen
17,18810,0008,000
6,000

10,327

11,302

11,734

12,386

12,456

12,87014,81315,366

15,901
Softwaredevelopment

4,000
2,000

Hardwaredevelopment, etc.

0
’13/3
•
•
•

’14/3

’15/3

’16/3

’17/3

’18/3

’19/3

’20/3

’21/3

’22/3

Sales in System development services grew approximately 1.4 times over the past 10 years.
The sales has increased every fiscal year until the record-high sales totally 18.9 billion yen achieved in
FY2020. In the following year, the sales declined in FY2021 in part due to customers’ review of development
projects as a result of the pandemic.
However, the close relationship between the customers and I-NET is still strong, so that the decline in Net
sales was limited in scale.
©2022 I-NET Corp. All Rights Reserved

8

FY2022: System development - Factors behind fluctuations in net sales(Unit: Million yen)
Softwaredevelopment
Hardwaredevelopment, etc.

Annual growth rate of 3.4%,
increase of 574 million yen
FY2021•••

FY2022

Sales in System development in FY2022 increased by +3.4% p.a. to 17.5 billion yen.
While the environment remains difficult due to COVID-19, sales from customers in thefinancial industry, distribution industry, and communications service industry, who respect
the Company’s expertise and technology, were solid, and recovered from a decline in sales
in the previous fiscal year to gains.
In this fiscal year, as a result of efforts to improve the operational efficiency of system
employees, gross profit improved. Gross profit increased by +4.7% p.a., exceeding the
3.4% p.a. increase in net sales.

©2022 I-NET Corp. All Rights Reserved

9

FY2022： Consolidated Balance Sheet(Unit: Million yen）

End of fiscal year ended in
March 2021
Constituent
Amountratio

End of fiscal year ended in
March 2022
Constituent
Amountratio

Change YoY
AmountPercentage

Current
assets

10,561

32.9%

10,701

31.9%

139

1.3%

Non-current
assets21,49467.1%

22,802

68.1%

1,307

6.1%

32,056100.0%

33,503100.0%

1,447

4.5%

Current
liabilities

8,625

26.9%

9,903

29.6%

1,278

14.8%

Non-current
liabilities

7,218

22.5%

6,295

18.8%

(922)

(12.8%)

Total liabilities

15,843

49.4%

16,199

48.4%

355

2.2%

Net assets

16,212

50.6%

17,304

51.6%

1,091

6.7%

Total liabilities and net assets

32,056100.0%

33,503100.0%

1,447

4.5%

Total assets

•
•
•
•

The balance of cash and deposits at the end of FY2022 totals 3,684 million yen.
Similarly, the balance of investment securities held at the end of the fiscal year (increased 945 million
yen year on year, primarily due to revaluation of the securities).
The balance of interest-bearing borrowings, including bank loans & leases, at the end of the fiscal year
was 9,074 million yen (down 1,000 million yen year on year, primarily due to a decrease in long-termborrowings).
The Company spent 1,953 million yen in capital expenditures in its own Data centers and others in thisfiscal period.
©2022 I-NET Corp. All Rights Reserved

10

1

4

Overview of Earnings for Fiscal Year Ended March 2022

2

Earnings Forecasts for Fiscal Year Ending March 2023

3

Topics

Initiatives in Medium-term Management Plan

©2022 I-NET Corp. All Rights Reserved

11

FY2023：Forecasts of Consolidated Financial Results(Unit: Million yen）

Fiscal year ended March 2022

AmountFiscal year ending March 2023

Change YoY

AmountChange YoY

Net sales

31,1693.8%

33,500

7.5%

Operating income

2,367

9.8%

2,640

11.5%

Ordinary income

2,542

11.5%

2,770

9.0%

Net income

1,694

13.4%

1,830

8.0%

Ratio of operating
income

7.6%

―

7.9%

―

Ratio of ordinary
income

8.2%

―

8.3%

―

©2022 I-NET Corp. All Rights Reserved

12Dividend Policy（Unit：yen）

60.00《Dividend Policy》
Continue with stabledividends while retaining
earnings to prepare
for future capital demand

50.00
2.00

40.00
30.00

21.50

22.00

23.50

24.00

18.00

19.00

20.00

18.00

19.00

20.00

21.50

22.00

23.50

24.00

2017’/3

2018’/3

2019’/3

2020’/3

2021’/3

2022’/3

2023’/3

InterimYear-end

20.00
10.00
0.00

commemoration dividend（FORECAST）

Plans for annual dividends per share
Dividends increase for 11 straight fiscal years
Fiscal year ended
March 2021

Fiscal year ended
March 2022

Fiscal year ending
March 2023

46.0 yen

47.0 yen

48.0 yenInterim (22.0 yen)
Year-end (24.0 yen)*Interim (23.5 yen)
Year-end (23.5 yen)

(FORECAST)Interim (24.0 yen)
Year-end (24.0 yen)

*April 2021 was the 50th anniversary since founding. We raised our dividend and also pay an
additional dividend of ¥2.0 as the commemoration of 50th anniversary in FY2020.
©2022 I-NET Corp. All Rights Reserved

13

1

4

Overview of Earnings for Fiscal Year Ended March 2022

2

Earnings Forecasts for Fiscal Year Ending March 2023

3

Topics

Initiatives in Medium-term Management Plan

©2022 I-NET Corp. All Rights Reserved

14

Dedicated department established to reinforce pursuit of SDGs

I-NET has proactively engaged in ESG management, primarily
activities giving back to the community. An SDGs Promotion
Office has now been established to pursue further initiatives.

Missions of SDGs Promotion OfficeEnsure familiarity with SDGs and ESG
within the Company

Promote activities giving back to societyCollaboration with local governments,
industry and academia, customers, andothers

Business development from social issues

Promotion of initiatives with the Task Force on
Climate-related Financial Disclosures (TCFD)

PR activities©2022 I-NET Corp. All Rights Reserved

15Promotion of health management
With the belief that employees are the biggest asset for management, we think that employees whoare healthy both mentally and physically are the source of ongoing improvements in corporate value,and pursue health management.
We are pursuing workstyle reforms in order to create a working environment in which all employees
can exercise their abilities with piece of mind.

White 500

(certified for fourthstraight year)

Yokohama HealthManagement
Certification 2022

Received highest rank of AAA(I-NET, I-NET Data Service)(Eruboshi)

Primary initiatives on health Declare health management
 Collaboration between HR Division, Health Support Office,and Health Insurance Union©2022 I-NET Corp. All Rights Reserved

16

Employment for disabled people・Childcare support【Promotion of employment
for disabled people】『I-NET Data Service』

A special subsidiary was established (authorized by
Minister of Health, Labour and Welfare) with the aimof providing a place in which disabled people canthrive and receive support in living independently.

『Cheering on Working Moms』

Support Team for Working Mothers was set up and is
run since June 2017 as a search site for childcare
centers that uses open data for Yokohama City.
（The number of page view in FY2021：710 thousandviews）■Primary operations
Data entry
Scanning

Light work
Preparation ofbusiness cards, etc.

©2022 I-NET Corp. All Rights Reserved

17

I-NET’s regional development foundation
In January 2020, I-NET’s regional development foundation was authorized as apublic interest corporation. By carrying out long-term and stable activities andsupporting activities that contribute to the development of a better local
community, we are implementing ESG activities and giving back to society.
I-NET's regional development foundation,a public interest corporation

The foundation carries out the following projects in
the Kanagawa Prefecture region.
①

Projects to support and provide subsidies or to assess andaward the sustainability and activities of organizations thatcarry out activities related to the following activities• Sound training and education of children and youth• Sound mental and physical development through sports• Improve public sanitation• Environmental conservation and infrastructure• Sound development of local community②

Projects needed to achieve other objectives with public benefit【Result】  FY2019： 13 organizations／3.3 million yen
 FY2020： 14 organizations／3.9 million yen
 FY2021： 22 organizations／6.4 million yen

Link for foundation’s website
https://www.inet-found.or.jp/

I-NET’s regional development foundation was established by
Noriyoshi Ikeda, I-NET’s founder Supreme Adviser, to provide
support and advice on sustainable activities for organizations
carrying out activities contributing to society in Kanagawa
Prefecture (activities aimed at providing public benefit).

©2022 I-NET Corp. All Rights Reserved

18Expansion of Space business（Umi Tsubame Project PETREL）
As part of Japanese space agency JAXA’s Innovative Satellite Technology Demonstration-3 mission,in May 2020, I-NET was chosen to participate in the land and marine observation microsatellite
project (Umi Tsubame, or “petrel”) carried out by a team consisting of companies and universities,
with the Tokyo Institute of Technology playing the central role. Currently, the satellite is being put
together and tests and other preparations are being made for a completion date in FY2022.
～Using IoT measurements and satellite data so that terrestrial and marine observation can contributeto resource exploration and solutions for food problems～
サービス領域
Serviceareas

学術研究機関Academic
research institutes

Affiliations
from ground to sky
地上から宇宙へとつながる連携

Satellite-mounted
衛星搭載装置devices

企業
Companies

National Instituteof Technology,
Sendai College

I-NET’s role

Satellite bus
衛星バス
Ground station,
operation
地上局・運用
Tohoku University

ドローン・航空機
Drones, aircraft
Data center
データセンター
software
ソフトウェアApplication-Oceanography-Agriculture, agrology
アプリケーション-Environmental
studies-海洋学-Astrophysics-農学・土壌学
-Space science, etc.

-環境学
-天体物理学-宇宙科学 etc.

Supercomputing Division, Information
Technology Center, the University ofTokyo

Hokkaido University

Imaging technology

Design of satellite system,
support with tests,
operation of satellites, cloudenvironment for project
promotion, provision of IT
platform for use of satellite
data

School of Science,
the University of
Tokyo

Japan Space Systems

http://www.hp.phys.titech.ac.jp/umitsubame/index.html©2022 I-NET Corp. All Rights Reserved

19Conclusion of capital and operation tie-up
agreement with AVILENIn March 2022, we invested in AVILEN, a start-up company thatdevelops AI technology. In this way, we are pursuing business synergies
through collaboration.

More than 1,000 AI and DX humanresource training programs,
developed by Avilen, including the ecredential course, which boasts thehighest pass rate in the industry

AI engine developed by Avilen,
which covers three main fields,
and AVILEN DS-Hub, a richsource of resources with morethan 100 data scientists

Provision of SaaS for softwarewith built-in machine learningalgorithms, starting with AI Seed,
which makes it possible to analyze
AI data in Excel

Shares cases of the most up-to-date uses of AI
AI/DX educational content produced internally isprovided in individual courses and corporate training
Create potential markets

 Accelerated AI and DX human  Use of AI in data center businessresource training Use of AI in drone business Reinforcement of AI and DX
businesses©2022 I-NET Corp. All Rights Reserved

20Start of collaboration with broadband security company
In March 2022, we began a collaboration to provide security services
with BroadBand Security, Inc. (BBSec).
Services aimed at resolving customers’ issues will be offered.
Prevention
measures

Consulting
Provides risk assessment
and advisory services to
set up security system

Customer issues

Discoverymeasures

I-NET
Provides solutions for
issues made visible

OthermeasuresEx-postmeasures

Solutions

BBSec

I-NET

Establishment of
security system

Provides risk assessment andadvisory services

Provides solutions for issues
made visible

Introduction of cloudservices

Provides risk assessment andadvisory services to set up
security system

Provides cloud services
offered at I-NET’s data
centers

Example of services provided in collaborationConsulting services such as security risk assessments

Service to diagnose vulnerabilities in applications and platforms©2022 I-NET Corp. All Rights Reserved

21

1

4

Overview of Earnings for Fiscal Year Ended March 2022

2

Earnings Forecasts for Fiscal Year Ending March 2023

3

Topics

Initiatives in Medium-term Management Plan

©2022 I-NET Corp. All Rights Reserved

22Initiatives in Medium-termManagement Plan
（April 2022 - March 2025）
May 2022

I-NET Corp.

©2022 I-NET Corp. All Rights Reserved23

1

Looking Back on the Previous
Medium-term Management Plan
（April 2019 – March 2022）©2022 I-NET Corp. All Rights Reserved

24Results in numbers (Previous medium-term plan:
April 2019 – March 2022)(Unit: Million yen)
FY2022FY2019Medium-termtarget (*)

ResultCompared to target

Net sales

27,591

32,50031,16996%

Operatingincome

2,345

2,330

2,367

102%

ROE

10.9%

10.0%

10.1%

+0.1%

(*) On May 7, 2021, the initial plan was revised downward (initial plan: 33,200 million yen in net sales,
2,730 million yen in operating income, 11.1% in ROE) Trends in financial results
35,0003,000

30,000

2,500
2,000

20,0001,500

15,0001,000

10,000During previous
medium-term plan

5,000
0

FY2016FY2017FY2018FY2019FY2020Information processing services
System product sales
FY2016ROE

FY2017

9.4%

10.7%

FY201810.4%

FY2021500

FY20220（Million yen）

（Million yen）

25,000 Financial results

System development services
Operating income (right-hand axis)
FY2019FY2020

10.9%

11.3%

FY2021

FY2022

9.5%

10.1％

• Net sales, operating income
and ROE all fell due to theimpact of COVID-19 in FY2021.
• Earnings recovered in FY2022.

 Medium-term businessconditions• Net sales and income both
remain in a growth trend.
• ROE also remains solid, at the
10% level.

©2022 I-NET Corp. All Rights Reserved

25

Financial results by segment
 Information processing services

 System development services
COVID-19 impact
in FY20

FY2019FY2020Net sales

FY2021

FY2022(million yen)(million yen)

Net sales

FY2021

FY2022Gross profit (right-hand axis)

FY2020Net sales

Solid trend

FY2020(million yen)
FY2019Gross profit (right-hand axis)

 System product sales

FY2019(million yen)(million yen)(million yen)

Consecutive growth

FY2021

FY2022Gross profit (right-hand axis)(Information processing services)
Data center and cloud service use, as well as
commissioned settlement at gas stations, are solid, andnet sales have been on the rise for three fiscal years in arow. Gross profit is also solid. Progress has been made in
reinforcing the stock business infrastructure.
(System development services)
In the fiscal year ended in March 2021, net sales fell dueto the impact of COVID-19, but we took measures suchas reviewing the system by industry type, and in FY2022,
net sales and gross profit both recovered.
(System product sales)
Sales of POS equipment for gas stations and the sale ofancillary equipment for system development services andothers made contributions, leading to solid results.

©2022 I-NET Corp. All Rights Reserved

26

Reinforcement of foundations(Overview of initiatives during previous medium-term plan: April 2019 – March 2022)

ThemesCommissioned
settlement
Stock businessBusinessstrategy

Cloud services
Stock businessDX solutions
HRdevelopment
Investment
strategy

Overview of initiatives

 Reinforced services aimed at oil wholesalers and trading
companies as well as major dealerships• Able to provide new services such as transactions between dealership SS,
cashless services, and point usage

 Establishment of new company in merger with oil wholesaler(operational efficiency, raising digital human resources) Expansion of cloud service sales• Expansion of cloud services, OEM, sales partners• Amplification of storage and back-up products

 Review of system by industry to promote customers’ DX
 Expansion of product line-up• Workstyle reforms, security service products, service analyzing data on
three Cs (closed spaces, crowded places, close contact)

 Training for career building• Various types of training (new employee training, training by year and for
management positions, program to develop leaders• Changes to HR system

 Capital investment

Data centers
Research anddevelopment• Investment in cutting-edge technology (GPU cloud, high-performance storage,etc.）• Investment in line with customer needs, investments in systematic upgrades Next-generation cloud platform development
 Use of satellite data through industry–academia collaboration,
participation in a microsatellite demonstration project©2022 I-NET Corp. All Rights Reserved27General overview and issues
Generaloverview

Issues Reinforce Information processing services (=stockbusiness) based on data center and cloud services
 In addition to customers’ use of data centers,
augment facilities
 Review the system by industry in system development
services, and strengthen the ability to identify
customer issues and solve these issues; enhanceservice and technical abilities
 Further strengthen Information processing services asa foundation for growth, pursue as platform topromote DX for customers and society Deploy operational expertise as a service
 Reinforce ability to address higher costs
 Maintain investment strengths that match customer
and society needs, and consider reinforcing facilities,
including the establishment of new data centers Strengthen human resources©2022 I-NET Corp. All Rights Reserved28

２

Initiatives in Medium-termManagement Plan

（April 2022 - March 2025）©2022 I-NET Corp. All Rights Reserved

29

Numerical targets(Unit: Million yen)

FY2022
results

FY2025targetNet sales

31,16937,700Operating income

2,367

3,200

Operating income
rate

7.6%

8.5%

ROE

10.1%

10% or more

 While working to boost net sales and operating income,we aim to improve the operating income rate and ROE as well.

©2022 I-NET Corp. All Rights Reserved30Service deployment model
One-stop services provided, covering everything from system development
and data centers to cloud services, commissioned settlement and BPO
 Printing Enclosure/sealing,
mailing proxyservices Contact center,entry services

Information
processing services

Print, mailing,
BPO services

Operations and
BPO by I-NET

I-NET’s
Data center

Operations and
BPO by I-NET

 Consulting
 Systemdevelopment

Systemdesign anddevelopment

Systemdevelopment
services

One-stop
services

 Commissioned
settlement
services for gas
stations

Commissioned

Data center

settlement

and cloudservices

services Introduction,
operation,
monitoring SaaS

Based on the expertise that we have built up at our data centers, we have accurately
responded to customer needs for many years due to our thorough security andreliable operations that cover everything from data center services to BPO. I-NET does
not keep this operational expertise to itself, but offers it as a service to customers.
©2022 I-NET Corp. All Rights Reserved

31

Areas for particular reinforcement
Areas for particularreinforcement

Main initiatives

Promotion of customer services
and R&D for the DX and New
Normal eras

• Spread and expansion of cloudservices• Measures limiting contact andpreventing overcrowding• Promotion of big data, AI, and IoT•

Pursuit of co-creation andinnovation and value creation

Diversification and advancementof human resources, improved
productivity
Appropriate management ofbusiness portfolios in the service
deployment model, improved
corporate value

Related SDGs

Establishment of SDGs Promotion Office• Pursuit of projects in collaborations
between industry, public and private
sectors, and academia• Pursuit of business activities throughfoundations and special subsidiarycompanies• Employee skill development• Diversity promotion• Support with careerdevelopment• Promotion of workstyle reforms• Promotion of one-stop modelthrough I-NET’s own data
centers• Reinforcement of stockbusiness©2022 I-NET Corp. All Rights Reserved

32

Business strategy by service
Information processing services



Pursuit of a broad range of services, from infrastructure management andsystem operations to business operations

Data center andcloud services



Full support for move to the cloud, tailored to customer

Expansion of new services (security, storage, etc.)

Energy-saving services provided with high-efficiency, low-powerconsumption server storage

Commissioned
settlement
servicesStrengthen pursuit of DX for oil wholesalers and trading firms (propose measures
to improve operational efficiency, etc.)



Expand services to major dealerships (regulation response, increased use of ASP)Expand customer base (increase services to SS, expand services to LPG industry)Promotion of consulting on better operational efficiency (hybrid ofelectronic and paper)Multifaceted services (collaboration with cooperating entities – BPO,
delivery services, etc.)Upgrade facilities to enhance quality and volume of operations, and run
operations efficientlyStrengthen services for financial institutions



Reinforce deployment of services for sales management system and IoT
platforms

Strengthen cooperation in space and satellite business and I-NET’s
services

Printing, mailing,
and BPO services

Systemdevelopment
services©2022 I-NET Corp. All Rights Reserved33

Information processing services
Servicebreakdown Cloud services
 Data center services

 Commissioned
settlement(gas stations) Trends in net sales
13,00012,000（Million yen）

 BPO services

Percentage of company’s total net sales(consolidated)

12,464

Expanding growth
foundation（forecast）

42.0%

41.0%
（目標）

41.0%

11,000

40.0%

40.0%

10,000

39.0%

9,000

38.0%

8,000

37.0%

7,000

36.6%

36.0%

6,000
5,000

 Printing, mailing35.0%
12'/3 13'/3 14'/3 15'/3 16'/3 17'/3 18'/3 19'/3 20'/3 21'/3 22'/3

 A fixed amount posted to net sales each month Contracts carry on into the next fiscal year and beyond
 Stock business = information processing service

34.0%

FY2019FY2022

FY2025

 Growth foundation with ongoing sales
 Increase in net sales and income per person©2022 I-NET Corp. All Rights Reserved

34

Capital investment
 Reinforce and make capital investments as social infrastructure,primarily the data centers that are the hub for our services.
 In FY2019–FY2021, in addition to customers’ use of data centers,
facilities were augmented.
 We will continue augmenting centers from fiscal 2022 as cloudservices expand.
 We are considering establishing new data centers.
Estimated capital investment
10,000（forecast）(million
yen)
（百万円）

8,000
6,000
4,000
2,000
0

16'/3

17'/3

18'/3

19'/3

20'/3

21'/3

22'/3

23'/3

24'/3

25'/3

Capital investment (other)

Capital investment (DC)

Depreciation and amortization

Net sales from DC and cloud services©2022 I-NET Corp. All Rights Reserved

35

Reinforce human capital: Policies
 Policies

With the belief that employees are the most important asset for management, we haveestablished an equitable HR system that leads to higher motivation for employees in theirwork and that enables both the company and employees to grow. This will facilitate ouraim to become a company that supports the enjoyment of life with information technology.

 Expanded growth on the scale of earnings
achieved with HR investment

 Ideal for IT staff

Targeting sustainable growth with a view toimproving productivity and increasing
number of employees
No. of employees

Proactive new graduate hiring
Reinforcement of mid-career hires
Measures to keep employees fromleaving• Cultivate technical capacity andhuman capacity that are trusted
by customers• All generations, from the young to theelderly, can perform well

Area: Scale offinancial results

Technical capacity
Targeted
capacities

Current
conditions

Human
capacity

Productivity

DX employees, training
Assigning right staff to rightHR, and evaluation system position/assignments
Health management
Employee satisfaction
Career planning
Workstyle reforms
Diversity©2022 I-NET Corp. All Rights Reserved

36Reinforce human capital: Related measures
HR training,development

Workstylereforms

Diversity andinclusion•Train advanced DX staff (AI, data science, etc.)•Train young people early (new hire training with one year of support)•Provide opportunities for learning (joint research with industry,
academia, university for older adults, e-learning)•Raise third-party assessments of technicians by encouraging them toearn certifications•Encouragement to use telework•Review of office layout (no designatedspace in office, etc.)•DX shift for internal systems, paperlessoffice, improvements to productivity•Consider lifting ban on side jobs
(Updates to development hubs)•Activities by Diversity Promotion Office•Continue to proactively hire female employees(40% of new hires are women)•Hire a diverse range of employees, such as
foreign nationals and people with disabilities•Continue to earn Eruboshi and Kurumin certification（Eruboshi）•Pro-active appointment of female managers

Healthmanagement•Continue to reach a 100% uptake rate for regular
healthcare visits• Collaborate with the health insurance association toincrease uptake rate for specific health guidance• Continue to hold sports competition and support forafter-school activities•Continue earning White 500©2022 I-NET Corp. All Rights Reserved

37

Dividend policy
We aim to continue increasing dividends while retaining earnings to
prepare for future capital demand and growth investment.

 Dividends paid (FY2011–FY2021)



Dividends increased for 11 straight fiscal years(forecasted)

2 yen dividend to commemorate 45th
anniversary of founding in FY2015 and tocommemorate 50th anniversary in FY2020

60.00（forecast）

50.00
2.00

(Yen)

40.00
23.50

24.00

22.00

23.50

24.00

2021’/3

2022’/3

2023’/3

21.50

22.00

20.00

21.50

2019’/3

2020’/3

30.00
20.00
10.00
0.00

2012’/3

2013’/3

2014’/3

2015’/3

Interim2016’/3

2017’/3

Year-end

2018’/3

Commemorative dividend©2022 I-NET Corp. All Rights Reserved

38

Enjoy your life withinformation technology!

＜Disclaimer＞


These materials were prepared to provide information on the Group’s financial results and the Group’sbusiness strategy, and are not for the purpose of soliciting the sale or purchase of stocks in the
Company or the Group.
These materials include information such as opinions and predictions on future earnings, but thisinformation is prepared based on the Company’s assessments as of the time the materials wereprepared. As a result, we do not guarantee that these projections will come to pass or be achieved,
and this information may change without advance notice.
The Company is not responsible for any losses resulting from the use of these materials. In addition,these materials are not be duplicated nor reprinted without our permission.

＜Inquiries＞
Corporate Strategy and Investor Relations
TEL
045-682-0806
E-Mail contact_ir@inet.co.jp
visit our website©2022 I-NET Corp. All Rights Reserved

39Overview of Company
As of April 1, 2022

 Company name: I-NET Corp.
 Founded: April 22, 1971
 Headquarters: 3-3-1 Minatomirai,
Nishi-ku, Yokohama
 Capital: 3,203 million yen Founder: Noriyoshi Ikeda,
Founder Supreme Adviser
 Representative Director andExecutive President: Mitsuru Sakai
 Subsidiaries: IST-Software Co., Ltd.
Software Control Co., Ltd.
I-NET DATA SERVICE CORP.
 Number of employees: 1,752 (consolidated)

1,015 (non-consolidated) Offices, branches and data centers
Tokyo office, Sapporo branch, Sendai branch, Chubu branch, Osaka branch,
Chu-Sikoku Branch, Fukuoka branch, No. 1 Data Center, No. 2 Data Center©2022 I-NET Corp. All Rights Reserved40Overview of Company
As of April 1, 2022
Net sales as of FY2022

I-NET Corp.
Net sales：22,595 million yen
Employees: 1,015

Wholly owned
consolidated
subsidiary

Wholly owned
consolidated
subsidiary

Consolidated Net sales：31,169 million yen
Consolidated employees：1,752

100% nonconsolidated special
subsidiary company

IST-Software Co., Ltd.
Business ：System development services
Net sales：6,790 million yen
Employees: 486

Software Control Co., Ltd.
Business ：System development services
Net sales：2,213 million yen
Employees: 251

I-NET DATA SERVICE CORP.
Business ：Office work services
Net sales：71 million yen
Employees: 23©2022 I-NET Corp. All Rights Reserved

41

History(Unit: 100 million yen)

Trends in net sales

350

300

250

Received assignmentsfrom 6 out of 10 designatedoil wholesalers

Listed on firstsectionMerged two
subsidiaries,
founded ISTSoftware

SoftwareControl Co.,
LTD. joined inet
group
Received assignmentsfrom 5 out of
7 designated oilwholesalers

Recordedrecord-high
net sales

Set up droneflying field

Began offering
cloud services

Merger with Soft
Science Co., Ltd.

200

150

100

Listed on second
sectionOver-the-countertrading begins

1st data center,stage II building
begins operating

2nd data center,stage II building
begins operating
2nd data center,stage I building
begins operating

50

0

1st data center,stage I building
begins operating

'22/3
'21/3
'20/3
'19/3
'18/3
'17/3
'16/3
'15/3
'14/3
'13/3
'12/3
'11/3
'10/3
'09/3
'08/3
'07/3
'06/3
'05/3
'04/3
'03/3
'02/3
'01/3
'00/3
'99/3
'98/3
'97/3
'96/3
©2022 I-NET Corp. All Rights Reserved42

Information processing services：Stock business
Servicebreakdown Commissioned
settlement(gas stations) Cloud services
 Data center services

 Printing, mailing BPO services

 Trends in net sales of the past 10 years
13,000

Expanding growth foundation

12,46412,000（Million yen）

11,00010,000
9,000
8,000
7,000
6,000
5,000

12'/3

13'/3

14'/3

15'/3

16'/3

 A fixed amount posted to net sales each month Contracts carry on into the next fiscal year and beyond
 Stock business = information processing service

17'/3

18'/3

19'/3

20'/3

21'/3

22'/3

 Growth foundation with ongoing sales
 Increase in net sales and income per person©2022 I-NET Corp. All Rights Reserved

43

Information processing : Data center and cloud services
Telework support

Hokkaido(1 building)

Nagano(1 building)

Remote desktop

File sharing

Data center services

Yokohama(four buildings)

Osaka(1 building)

Cloud services

Cloud infrastructure

Business cardmanagement
Business chatNo. 1 Data Center(Yokohama)Total floor area of approximately 9,000 ㎡

No. 2 Data Center(Yokohama)Total floor area of approximately
13,000 ㎡©2022 I-NET Corp. All Rights Reserved

44

Information processing : Commissioned calculation for gas station

We have provided data processing services for gas stations (SS)nationwide since founding.
Support SS at seven branches nationwide (Sapporo, Sendai, Tokyo, Nagoya, Osaka,
Chugoku & Shikoku, Fukuoka)
We have a relationship with approximately 30% of all SS based on over 50 years of results

We provide account / credit processing systems for SS affiliated with oil wholesalers (ENEOS,
Idemitsu Showa Shell, Kygnus Sekiyu, Taiyo Oil) and trading companies (Itochu Enex,
Mitsubishi Corporation Energy, Marubeni Energy, San-Ai Oil)Our petroleum sales settlement service has a long track record and is used by many SS,
generating stock growth through monthly fees

（Overview of processing services）•

Inet cloudenvironment

Customer

Invoicedispatched

Settlement-type
Process sales data
Process accounts
receivable data
Process accounts
payable data
Process flash report data

Process kerosene data
Process gasoline data
Internet••••
Send data tocredit cardcompany

Support for building wholesaler
settlement systems
Credit processing
Support for building wholesaling systems
Support for building gas systems
Settlement systems support, etc.

Expanding stock business・Developed public-sector card system
・Service for propane gas business・inet Hikari©2022 I-NET Corp. All Rights Reserved

45

System development services
We support the digital transformations of many customers through thetrusting relationships we have built up over the years in fields such as
operational application development, package software development, dataservices, AI services, embedded control systems, and space development.

Finance

Petroleum and gas

Retail and distribution

Manufacturing

Architecture andreal estate

Railways andtransportation
infrastructure©2022 I-NET Corp. All Rights Reserved

Space

Medicine

46

System development services (Example)
We provide a wide variety of proposals tailored to our customers’
needs, as well as support that will reduce their costs and drive new
growth.

Distribution industry:
Higher operational
efficiency and lower costs

Construction industry:
3D simulator

Food manufacturing industry:
Operational consolidation, visualization

Communications industry:
Modernization©2022 I-NET Corp. All Rights Reserved

47