Supplementary
Briefing Materials
for Financial Results
Third Quarter of theFiscal Year Ending March 2024
I-NET Corp.
[TSE, Prime Market: 9600]
January 31, 2024

©2024 I-NET Corp. All Rights Reserved

Earnings summary
Net sales

28,213

YoY change

millionyen

Operatingincome2,233

Net sales
28,213+2,692+10.6％

millionyen

YoY change
millionyen

Net income
attributable toowners of parent

1,501

Net sales recorded a significant year-on-yearincrease.
• Sales were strong in both the Information Processing+880+65.1％

millionyen+650

278,

Unit: million yen4%+76.5％

millionyen

Breakdown by service

1,239

4%

11,034
15,93957%

39%

Gross profit
6,209
2,338

 Information processing services
 System development services
 Product sales©2024 I-NET Corp. All Rights Reserved•

Operating income increased
approximately 160% year on year
• The main factors for the rise in operating income were•

YoY change
millionyen

Service and System Development Service. In bothsegments, the Company focused on selling services at fairper-unit prices which resulted in a rise in sales.
In the Information Processing Service, sales were strong in
the data center and cloud service, rising 13% year on year.
Sales in the mailing service surged 19% year on year

3,591
58%38%•

cost cutting, improved profitability, and a reduction in
SG&A expenses.
The Company significantly improved profitability by
reducing costs for services in the Information Processing
Service and raising the unit prices of orders received in
the System Development Service.
The sharp rises in electricity prices, a major challenge inthe previous fiscal year, began to ease, and the issue ofhigher costs was receding. The Company upgraded its
air-conditioning equipment, which resulted in improvedefficiency.

Net income attributable to owners of parentrose approximately 170% year on year•

Net income attributable to owners of parent increased avery substantial 76.5% year on year, chiefly due to asignificant rise in operating income and the absence ofany significant year-on-year changes in non-operating
income/expenses or extraordinary income/loss

Note: Amounts are rounded down to the nearest million yen, and the rate of year-onyear change is rounded to the first decimal place.

1

Earnings in Q3 FY3/2024
Unit: million yen

Q3 FY3/2023

Q3 FY3/2024

YoY change

AmountRelative tosales

AmountRelative tosales

Net sales

25,520100.0%

28,213100.0%

2,692

10.6%

74.8%

Cost of sales

20,38279.9%

22,004

78.0%

1,621

8.0%

--

Gross profit

5,137

20.1%

6,209

22.0%

1,071

20.9%

--

Selling, general andadministrative
expenses

3,785

14.8%

3,975

14.1%

190

5.0%

--

Operating income

1,352

5.3%

2,233

7.9%

880

65.1%

81.2%

Ordinary income

1,386

5.4%

2,291

8.1%

904

65.2%

79.0%

850

3.3%

1,501

5.3%

650

76.5%74.3%

Net income
attributable toowners of parent©2024 I-NET Corp. All Rights Reserved

ChangeRate ofChange

Relative toforecasts
Released on May 9,2023% achieved

Note: Amounts are rounded down to the nearest million yen, and the share relative to sales, rate of change, and percent
achieved are rounded to the first decimal place.

2

Summary of quarterly earnings

Operating income (Quarterly)

Net sales (Quarterly)

Unit: million yen

Up 20%

10,0008,000

8,902 8,711

8,553

9,000
7,157

Unit: million yen

Up 6%
9,468

9,184

9,7959,234

900

832

800

600

6,000

400

4,000
3,000

300

2,000

200

1,000

100
1Q

2Q

3Q

FY3/2022

4Q

1Q

2Q

3Q

FY3/2023

4Q

1Q

2Q

3Q

FY3/2024

0292

7.1%

658

3Q

FY3/2022

4Q

1Q

14.0%
12.0%

9.4%

10.0%
8.0%
7.1% 6.0%

7.2%

4.0%

4.1%

2Q

8.2%

8.3%
323

4.2%

1Q

16.0%

Doubled

9.7%

8.8%
301

18.0%

657

548

500

5,000

20.0%

918
776

736

685

700

7,000

0

Impact of spikein electricity
fees

1,000

7,905

7,777 7,681

The red line shows theoperating income rate

3.4%
2Q

3Q

FY3/2023

2.0%
4Q

1Q

2Q

3Q

0.0%

FY3/2024

Q3 FY2024: Net sales rose and operating income doubled year on year

• Net sales rose 6% year on year, achieving a 20% increase from the same period two years ago.
• Operating income doubled year on year, and the operating income rate improved to 7.1%,
on a par with the same period two years ago.
©2024 I-NET Corp. All Rights Reserved

Note: Amounts are rounded down to the nearest million yen, and the rate of year-onyear change is rounded to the first decimal place.

3Summary of consolidated balance sheet
End of March 2023

End of December 2023
(Q3 FY3/2024)

Unit: million yen

Unit: million yen

Current assets
10,246

Total liabilities
15,048Cash and deposits 2,310
Accounts receivable 7,287

Current liabilities 9,294
Non-current liabilities 5,753

Non-current
assets22,384
Buildings and structures 10,362
Land 2,966
Intangible fixed assets 2,093
Investment securities 3,566Interest-bearing liabilities
Short-term 3,138
Long-term 5,367

Total liabilities
16,331

Cash and deposits 4,124
Accounts receivable 6,649

Current liabilities 12,155
Non-current liabilities 4,176(YoY +1,416)

Non-currentassets
23,357(YoY +973)

Net assets
17,582

Total assets: 32,630;
Shareholders' equity ratio: 53.9%©2024 I-NET Corp. All Rights Reserved

Current assets
11,662

Buildings and structures 10,169
Land 2,959
Intangible fixed assets 2,338
Investment securities 4,555(YoY +1,283)

Interest-bearing liabilities
Short-term 4,852
Long-term 5,434

Net assets
18,688(YoY +1,106)

Total assets: 35,019;
Shareholders' equity ratio: 53.4%
Note: Amounts are rounded down to the nearest million yen and shareholders' equity
ratios are rounded to the first decimal place.

4Information processing services
Data center and cloud servicesCompany's own cloud services
Cloud services for companies (SaaS, etc.)
Co-location services for companies

Factors behind changes
in net sales
Commissioned
calculation
services

Commissioned calculation services


Platform for sales management and fee settlement for SS(service stations) (share of over 30% in Japan)
Platform for fee settlement compatible with smart meters
for propane gas businesses (brand name: PROPANET)

Mailing services


Printing and mailing services for general corporations andgovernment agencies
Hybrid distribution service combining printed materials and e-mailNet sales by service
Q3 FY3/2023
Mailing
services

10,044

1,418

14% Data center,
Commissioned
cloud
calculation
services

3,233
32%

5,391
54%

Unit: million yen

Q3 FY3/2024

Up 9.9% YoY
Up 990 million yen

Q3 FY3/2023

Factors behind changes
in gross profit

11,034

Mailing
services

1,684
15%

Commissioned
calculation
services

3,245
30%Data center,
cloud
6,104

Data center,cloud+482

Q3 FY3/2024
Unit: million yen

Fluctuations in
profitability

Effect of higher
revenue

Fluctuations in
profitability
Effect of higher
revenue

55%

Mailing
services

Data center,
cloud

Q3 FY3/2023©2024 I-NET Corp. All Rights Reserved

Unit: million yen(29)

Commissioned
calculation
services(25)

Fluctuations in
profitability
Effect of higher
revenue

Mailing
services+134

Up 33.8% YoY
Up 590 million yen

Q3 FY3/2024

Note: Amounts for net sales, gross profit and changes for each are rounded down to the nearest million yen.
The rate of year-on-year change is rounded to the first decimal place.
Totals, breakdowns and changes may not match due to rounding.

5System development services
Commissioned development





System for energy industry-related companies
System for financial institutions
System for transportation system-related companies
Space-related systems (commissioned development, inspection /tests and operation / evaluation analysis)
System for the distribution industry, general companies, andmanufacturers
security-related system
System for communication businesses
Embedded control related system

System product development


Q3 FY3/2023

Q3 FY3/2024

Rate of change

Softwaredevelopment

12,998

14,533

11.8%

Hardware, etc.

1,393

1,405

0.9%

（*） Incidental to commissioned software development©2024 I-NET Corp. All Rights Reserved

Softwaredevelopment

Up 10.8% YoY
Up 1,547 million yen

Factors behind changes
in gross profit
Fluctuations inprofitability
Effect of higher
revenue

Net sales by service

Unit: million yen

Hardwaredevelopment,etc.（*）

Q３ FY3/2023

Financial products (unsecured loan systems: Loan Ranger UC,
costing systems for financial institutions: ABC Financial, etc.)
Credit settlement systems (i-Gateway), settlement systemlinked to Pos, etc.
Security-related (vulnerability diagnosis, Darktrace, etc.)
DX-related products (systems to improve operational
efficiency, RPA, etc.)

Net sales (million yen)

Factors behind changes
in net sales

Softwaredevelopment+364
Q3 FY3/2023

Q３ FY3/2024
Unit: million yen

Effect of higher
Fluctuations inrevenue
profitability
Hardwaredevelopment,etc.（*）+30

Up 12.4% YoY
Up 395 million yen

Q3 FY3/2024

Note: Amounts for net sales, gross profit and changes for each are rounded down to the nearest million yen.
The rate of year-on-year change is rounded to the first decimal place.
Totals, breakdowns, and changes may not match due to rounding.

6Earnings in Q3 FY3/2024 by service
Q1 FY3/2023

Unit: million yen
Information
processing
services
Systemdevelopment
services
Product sales

Total

AmountYoY change

Q1 FY3/2024

ProfitrateAmount

Net sales

10,044--Gross profit

1,747

17.4%

Net sales

14,391--Gross profit

3,195

22.2%

Net sales

1,084

--

Gross profit

193

17.9%

Net sales

25,520--Gross profit

5,137

20.1%

11,034

Profit rate

ChangeRate ofchange

--

990

9.9%

2,338 ⤴ 21.2%

590

33.8%

--

1,547

10.8%

3,591 ⤴ 22.5%

395

12.4%

1,239

--

155

14.3%

278 ⤴ 22.5%

84

43.8%

--

2,692

10.6%

6,209 ⤴ 22.0%

1,071

20.9%

15,93928,213

Note: Amounts are rounded down to the nearest million yen, and profit rates and rates ofchange are rounded to the first decimal place.
©2024 I-NET Corp. All Rights Reserved7Changes in quarterly net sales by service

Unit: million yen
10,000348

9,0008,000
7,000

308

3,916

403
1,632

1,000
994
0

4,423

Q1

Information processing services

2,000

415

308

209

4,000
3,000

255

303

179

6,000
5,000

472

495

568

4,367

4,804

5,006

4,929

558

513

5,193

5,532

655

649

538

496

5,213

4,455

353

367

493

347

1,682

1,727

1,698

1,739

1,787

1,864

1,958

2,018

2,062

2,022

1,009

1,040

1,061

1,059

1,078

1,096

1,091

1,066

1,093

1,084

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY3/2022

FY3/2023

Commissioned calculationData center, cloud services

System development services

Product sales©2024 I-NET Corp. All Rights Reserved

5,415

Mailing services

FY3/2024

Note: Amounts are rounded down to the nearest million yen, and the totals may not match.

8

Enjoy your life with information 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 stock in the Companyor the Group.
These materials include information such as opinions and predictions on future earnings and werebased on the Company’s assessments as of the time the materials were prepared. As a result, we do
not guarantee that these projections will be achieved, and this information may change without advancenotice.
The Company is not responsible for any losses resulting from the use of these materials. In addition,these materials are not be duplicated or reprinted without our permission.

Inquiries
Corporate Strategy and Investor Relations
TEL
045-682-0806
E-Mail contact_ir@inet.co.jp

visit our website©2024 I-NET Corp. All Rights Reserved9