Supplementary
Briefing Materials
for Financial Results
First Quarter of the Fiscal YearEnding March 2025

I-NET Corp.
[TSE, Prime Market: 9600]

July 31, 2024

©2024 I-NET Corp. All Rights Reserved

Earnings Summary(Unit: Million Yen)

Net Sales

Change Compared to the same period last year

8,926(257)(2.8％)

Operating Profit

221(435)(66.3％)

attributable to owners of parent(361)

The current fiscal year is more weighted towards the second halfthan usual, with a decrease in revenue compared to the same
period last year.
【Status by Service】
Information Processing Services for Service Stations⚫ The information processing services for Service Stations (SS) aremaintaining the current status.
⚫ The number of trading partners in “PROPANETS has increased to 250
customers.

Data Center Cloud Services

Net profit

76

Overview of Sales Revenue(82.5％)⚫ Slight decrease due to adjustments in electricity rates. No impact on
profits.
⚫ The number of new projects is high, but there have been delays in orders,causing revenue recognition to be postponed to the second half of thefiscal year.

Mailing Services

Compared to the same period last year
(Unit: million Yen)
Operating Profit
Net Sales

Progress compared to the Forecast
Unit: MillionYenForecast

Progress⚫ We lost a major bid, and were unable to compensate for the resulting
revenue shortfall with other projects, significantly falling below initialexpectations.
⚫ Aiming for an increase in orders, but realization is expected after thesecond quarter.

System Development

Q1 FY3/2024 Q1 FY3/2025

Q1 FY3/2024

Q1 FY3/2025

Net Sales

40,42022.1%

OperatingProfit

3,250

6.8%

Note: Amounts are rounded down to the nearest million Yen, and the rate of year-on-year change is rounded to the first decimal place.
©2024 I-NET Corp. All Rights Reserved⚫ The decline in system projects related to invoicing, especially in theenergy sector, has had a significant impact.
⚫ Development for the retail and financial industries has reached a lull,entering a transitional period.
⚫ For our financial products, there are many negotiations, but orders aredelayed. Expectations are high for the SaaS-based loan system in thesecond half of the fiscal year.

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

2Analysis of Fluctuations in Operating Profit

Compared to the same period last year

(Unit: Million Yen)

Gross
SG＆A Profit
Increase inSystem –related
Depreciation
ExpensesGrossProfitIncrease inFactors
SystemDevelopment Contributing
to Change inCosts
Sales
Impact of thePrice Increasein Virtual
Infrastructure
SoftwareOperatingProfit

SG＆A
Increase:90
Personnel:35
Depreciation:20
Moving Office:27

Others1,462

OperatingProfit

Q1 FY Mar 2024

Q1 FY Mar2025
Note: Amounts are rounded down to the nearest million Yen, and the rate of year-on-year change is rounded to the first decimal place.

©2024 I-NET Corp. All Rights Reserved

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

3

Earnings in Q1 FY Mar 2025
Q1 FY Mar 2024

Q1 FY Mar 2025

Unit: Million Yen

AmountRelative toSales

Relative toSales

AmountCompared to the same
period last year

Relative toForecasts

Change% achievedRate of Change

Net Sales

9,184

100.0%

8,926

100.0%(257)(2.8%)

22.1%

Cost of Sales

7,155

77.9%

7,242

81.1%

86

1.2%

--

Gross Profit

2,028

22.1%

1,684

18.9%(344)(17.0%)--

SG&A Expenses

1,371

14.9%

1,462

16.4%

90

6.6%

--

Operating Profit

657

7.2%

221

2.5%(435)(66.3%)

6.8%

Ordinary Profit

702

7.2%

264

3.0%(438)(62.4%)

8.2%

438

4.8%

76

0.9%

(361)

(82.5%)

2.9%

Net Income
attributable to owners ofparent

Note: Amounts are rounded down to the nearest million Yen, and relative to sales, rate of changes and % achieved are rounded to the first decimal place.
©2024 I-NET Corp. All Rights Reserved

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

4Earnings in Q1 FY Mar 2025 by Service
Q1 FY Mar 2024

Compared to the same

Q1 FY Mar 2025

period last year

Unit: Million Yen

AmountInformation Processing
Services

System Development
Services

Profit Margin

AmountProfit Margin

Rate ofChange

ChangeNet Sales

3,735--

3,546--(188)(5.1%)

Gross Profit

734

19.7%

565

15.9%(169)(23.0%)Net Sales

5,193--

5,080--(112)(2.2%)

Gross Profit

1,212

23.4%

1,01820.0%(194)(16.0%)Net Sales

255--299--

43

17.2%

Gross Profit

81

31.9%

100

33.5%

1822.9%Net Sales

9,184--

8,926--(257)(2.8%)

Gross Profit

2,028

22.1%

1,684

18.9%(344)(17.0%)

Product Sales

Total
Note: Amounts are rounded down to the nearest million Yen, and the rate of year-on-year change and Profit rate are rounded to the first decimal place.

©2024 I-NET Corp. All Rights Reserved

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

5Information Processing Services
Factors behind changes in Net Sales

Data Center and Cloud Services✓✓✓

Company's own cloud services
Cloud services for companies (SaaS, etc.)
Co-location services for companies

Data Center,
Cloud Services

Commissioned Calculation Services✓Rate of Change (5.1%)
Amount of Decrease (188)

Mailing Services✓✓

CommissionedCalculationServices
MailingServices

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)✓Unit: Million Yen

Printing and mailing services for general corporations and government agencies
Hybrid distribution service combining printed materials and e-mailQ1 FY Mar 2024

Q1 FY Mar 2025

Factors behind changes in Gross Profit
Net Sales by Service
Unit: Million Yen

Q1 FY Mar 2024

Q1 FY Mar 2025

3,735
MailingServices

MailingServices

470
13%

649
17%

Commissioned
Calculation
Services

1,06629%

3,546

Data center,
Cloud Services

2,018
54%

©2024 I-NET Corp. All Rights Reserved

Commissioned
Calculation
Services

1,072
30%

Sales Factors
Profitability
Fluctuation

Profitability
Fluctuation

Sales
Factors

Data center,
Cloud Services(１)

Unit: Million Yen

Sales
Factors

Profitability
Fluctuation

Commissioned

Calculation
Services

Data center,
Cloud Services

(107)

2,004
57%

Rate of Change (23.0%) Amount of Decrease (169)

MailingServices (60)Q1 FY Mar 2024

Q1 FY Mar 2025

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.

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

6

System Development Services
Factors behind changes in net sales

Commissioned Development
✓✓
✓
✓
✓
✓
✓
✓

System development and contracts for energy industry-related companies
System development and contracts for financial institutions
System development and contracts for transportation system-related companies
System development and contracts, inspections/tests, and operation/evaluation analysis
for space-related companies
System development and contracts for the distribution industry, general companies, andmanufacturers
Introduction, development, and contracts for security-related systems
System development and contracts for communication businesses
Embedded control system development and contracts

HardwareDevelopment, etc.

Rate of change (2.2%)
Amount of Decrease (113)

System Product Development✓✓✓✓✓

SoftwareDevelopment

Unit: Million Yen

Q1 FY Mar 2024

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

Q1 FY Mar 2025

Factors behind changes in gross profit
Unit: Million Yen

Profitability
Sales Factors Fluctuation
Sales Factors

Profitability
Fluctuation

Net Sales by Service
Unit: Million Yen
Software Development
Hardware Development, etc.

SoftwareDevelopment(172)

Rate ofChange

Q1 FY Mar 2024

Q1 FY Mar 2025

4,744

4,644(2.1%)

448435(2.9%)

Hardwaredevelopment, etc.
(21)

Rate of change (16.0%)
Amount of Decrease (194)Q1 FY Mar 2024

Q1 FY Mar 2025

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 tothe first decimal place. Totals, breakdowns and changes may not match due to rounding.
©2024 I-NET Corp. All Rights Reserved

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

7

Summary of Quarterly Earnings
Operating Profit (Quarterly)

Net Sales (Quarterly)

The red line shows the Operating Profit Margin
Unit: Million Yen

Unit: Million Yen

10,000

9,468

8,000

8,902 8,711

8,553

9,000

9,795
9,234

9,184

1,000

9,550
8,926

7,905

7,779 7,681

900

18%

832

800
700

6,000

600

5,000

500

4,000

400

685

300

2,000

200

1,000

100

16%

658 654

657

14%

548

12%
10%
8%

323

301

3,000

776

736

7,157

7,000

20%

918

292

7.2%

221

4%

4.1%

4.2%

2.5%001Q

2Q

3Q

FY Mar 2022

4Q

1Q

2Q

3Q

FY Mar 2023

4Q

1Q

2Q

3Q

FY Mar 2024

4Q

1Q

FY Mar 2025

6%

2%0%

1Q

2Q

3Q

FY Mar 2022

4Q

1Q

2Q

3Q

FY Mar 2023

4Q

1Q

2Q

3Q

FY Mar 2024

4Q

1Q

FY Mar 2025

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

©2024 I-NET Corp. All Rights Reserved

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

8Changes in Quarterly Net Sales by Service
Unit: Million Yen
10,000

348

9,000
8,000
7,000

308

415

379
299

308

303

179

209

6,000

5,000

472

495

568
255

4,423

3,916

4,367

4,804

5,415

5,193

5,532

5,213

5,402

System5,080 Develop.

5,006

4,929

558

513

655

649

538

496

604

470

1,958

2,018

2,062

2,022

2,068

2,004 Processing

4,455

4,000
3,000
2,000

353

403

367

493

347

Information

1,632

1,682

1,727

1,6981,739

1,787

1,864

994

1,009

1,040

1,061

1,059

1,078

1,096

1,091

1,066

1,093

1,084

1,104

1,072

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

Services

1,0000FY Mar2025■Commissioned Calculation ■Data Center, Cloud services ■Mailing Services ■System Development Services
FY Mar 2022

FY Mar 2023

FY Mar 2024

Note: Amounts are rounded down to the nearest million Yen, and the totals may not match.
©2024 I-NET Corp. All Rights Reserved

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

99Regarding the full-year Performance Outlook
Although the performance in the first quarter was sluggish, we anticipate astronger second half compared to usual. At this point, we do not plan to revise
the full-year forecast.

• The lack of growth in sales compared to the same period last year was within our initial expectations.
Considering the current order intake and inquiries, we believe that a recovery in sales for the full year isachievable.
• Profit levels have significantly declined compared to the same period last year. In the information processing
services division, we are experiencing increased costs due to higher prices for virtual infrastructure softwareand rising system amortization expenses. However, we are working on passing these costs onto sales prices,and we expect profitability to improve in the future.
• In system development, we are currently in a transitional period between projects, leading to increased costs.
We are focusing on securing orders for development projects starting in the second quarter and beyond.
Specifically, by securing orders for the highly sought-after SaaS-based development services, we aim toachieve our profit targets.
• The mailing services are increasing the number of orders for both large and small projects, with expected
revenue improvement in the second quarter.
©2024 I-NET Corp. All Rights Reserved

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

1010

Enjoy your life with information technology!
＜Disclaimer＞These materials were prepared to provide information on the Group’s financial results and the Group’s business strategy and are
not for the purpose of soliciting the sale or purchase of stock in the Company or the Group.
These materials include information such as opinions and predictions on future earnings and were based 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 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 or reprinted without our permission.
This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

visit our website©2024 I-NET Corp. All Rights ReservedInquiries
I-Net Corp., Investor Relations
TEL
045-682-0806
E-Mail contact_ir@inet.co.jp

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