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 Year Ended March 31, 2023
(Based on Japanese GAAP)May 9, 2023

Company name:
I-NET Corp.
Stock exchange listing: Tokyo
Stock code:
Representative:

9600
URL https://www.inet.co.jp
Representative Director, Executive President Mitsuru Sakai

Inquiries:
Head of Finance Department
Scheduled date of ordinary general meeting of shareholders:

Joji Ishiwata
June 22, 2023

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 22, 2023
June 23, 2023

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

TEL

045-682-0806(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Net salesYear ended March 31, 2023
Year ended March 31, 2022

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
2,129(10.1)
2,175 (14.4)
1,343(20.7)
2,367
9.8
2,542
11.5
1,694
13.4

Millions of yen
34,98831,169%12.3
3.8

Earnings per share

Diluted earnings per
share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
7.7
6.6
6.1
–
10.1
7.8
7.6

Yen
84.06
106.08Year ended March 31, 2023
Year ended March 31, 2022
(2) Consolidated financial position

Total assets
As of March 31, 2023
As of March 31, 2022
(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Net assets

Equity ratio

Millions of yen
32,63033,503

Millions of yen
17,581
17,304

Cash flows fromoperating activities
Millions of yen
2,239
3,715

Cash flows frominvesting activities
Millions of yen(2,118)(2,185)

Net assets per share
%
53.9
51.6

Yen
1,099.90
1,083.14

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,496)2,310(1,873)3,684

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

23.50
24.00

–
–

23.50
24.00

47.00
48.00

750
767

44.3
57.1

4.5
4.4

–

26.00

–

26.00

52.00

1

41.1

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable to
Net 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
37,700
7.7
2,750
29.2
2,900
33.3
2,020
50.3
126.37
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:
Changes in accounting estimates:

No
Yes

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

16,242,424 shares As of March 31, 2022

16,242,424 shares

Number of treasury shares at the end of the period
As of March 31, 2023

257,521 shares As of March 31, 2022

266,281 shares

15,982,944 shares Year ended March 31, 2022

15,976,158 shares

Average number of shares during the period
Year ended March 31, 2023

2

Consolidated financial statements
Consolidated balance sheets

As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Contract assets
Merchandise 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
Accumulated depreciation
Buildings and structures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3(Thousands of yen)
As of March 31, 2023

3,684,659
99,473
5,427,708
867,129
179,768
83,55766,432
293,375(473)
10,701,631

2,310,183
93,4886,035,796
1,158,127
43,597110,797
48,832445,580(370)
10,246,033

19,686,725(9,296,706)
10,390,018
3,108,756
454,396(324,475)
129,920
265,747
3,986,416(2,649,183)
1,337,232
15,231,675

20,638,176(10,275,791)
10,362,384
2,966,336
275,385(95,933)
179,451
137,570
4,365,886(3,060,108)
1,305,777
14,951,521

195,063
1,587,595
50,956
1,833,615

165,433
1,895,013
33,153
2,093,600

3,811,261
1,048,344
114,940
790,224(27,841)
5,736,929
22,802,220
33,503,851

3,566,869
907,910
148,402744,236(28,259)
5,339,159
22,384,280
32,630,314

As of March 31, 2022
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Lease liabilities
Income taxes payable
Contract liabilities
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
Lease liabilities
Deferred tax liabilities
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 March 31, 2023

1,695,714
3,065,848
97,486558,140
606,794
916,833
27,59019,3662,915,707
9,903,482

1,743,329
3,068,448
69,611
282,283
405,714963,633460–
2,761,060
9,294,540

5,858,070
53,095
224,551500
130,789
28,944
6,295,951
16,199,433

5,239,226
128,305
124,496
42,020190,961
28,944
5,753,953
15,048,493

3,203,992
3,146,335
10,576,788(314,986)
16,612,129

3,203,992
3,147,381
11,161,262(304,545)
17,208,090

686,469

526,977

5,818
692,288
17,304,418
33,503,851(153,248)
373,729
17,581,820
32,630,314

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
Fiscal year ended
March 31, 2022
March 31, 2023
Net sales
31,169,800
34,988,835
Cost of sales
24,018,375
27,814,748
Gross profit
7,151,424
7,174,086
Selling, general and administrative expenses
4,783,856
5,044,845
Operating profit
2,367,568
2,129,241
Non-operating income
Interest income
269
27
Dividend income
43,11252,158
Subsidy income
104,129
17,143Gain on investments in investment partnerships
44,061
7,077
Other
45,91829,894
Total non-operating income
237,490
106,301
Non-operating expenses
Interest expenses
45,99743,023
Share of loss of entities accounted for using equity
847
1,263
methodCommission expenses
14,48013,201
Other
1,547
2,662
Total non-operating expenses
62,87160,150Ordinary profit
2,542,187
2,175,391
Extraordinary income
Gain on sale of investment securities
4,563
11,257
Gain on bargain purchase
28,076–
Gain on sale of shares of subsidiaries and associates
12,100–Gain on sale of non-current assets
2,945–
Total extraordinary income
47,685
11,257Extraordinary losses
Loss on valuation of investment securities
5,948
79,008Loss on sale of non-current assets–
51,748Compensation for damage–
43,139Loss on retirement of non-current assets
2,892
17,893
Provision for loss on anti monopoly act
27,996–
Impairment losses
13,051–
Total extraordinary losses
49,888
191,789
Profit before income taxes
2,539,984
1,994,860
Income taxes - current
825,865
641,735
Income taxes - deferred
19,356
9,558
Total income taxes
845,222651,293
Profit
1,694,762
1,343,566
Profit attributable to owners of parent
1,694,762
1,343,566

5

Consolidated statements of comprehensive income

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 ofparentComprehensive income attributable to noncontrolling interests

6

Fiscal year ended
March 31, 2022
1,694,762(Thousands of yen)
Fiscal year ended
March 31, 2023
1,343,566

453,150(47,939)405,2112,099,973(159,492)(159,067)(318,559)
1,025,007

2,099,973

1,025,007––

Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

3,203,992

Retained earnings

3,146,335

9,890,484

Cumulative effects of changes
in accounting policies
Restated balance

Total shareholders'equityTreasury shares(315,059)(249,592)
3,203,992

3,146,335

9,640,892

15,925,752(249,592)(315,059)

15,676,160

Changes during period
Dividends of surplus(758,866)(758,866)

Profit attributable to owners ofparent

1,694,762

1,694,762

Purchase of treasury shares

(45)

(45)

Disposal of treasury shares

118

118

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period––

935,895

73

935,968

3,203,992

3,146,335

10,576,788(314,986)

16,612,129

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference on
available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income233,31953,757

287,077

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets

16,212,830(249,592)

233,31953,757

287,077

15,963,238

Changes during period
Dividends of surplus(758,866)

Profit attributable to owners ofparent

1,694,762

Purchase of treasury shares(45)

Disposal of treasury shares

118

Net changes in items other thanshareholders' equity

453,150(47,939)405,211405,211

Total changes during period

453,150(47,939)405,211

1,341,180

Balance at end of period

686,4695,818

692,288

17,304,418

7

Fiscal year ended March 31, 2023
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

3,203,992

Retained earnings

3,146,335

10,576,788

Treasury shares(314,986)

Total shareholders'equity16,612,129

Changes during period
Dividends of surplus(759,092)(759,092)

Profit attributable to owners ofparent

1,343,566

1,343,566

Purchase of treasury shares
Disposal of treasury shares

1,045

(796)

(796)

11,237

12,283

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–

1,045

584,474

10,440595,960

3,203,992

3,147,381

11,161,262(304,545)

17,208,090

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference on
available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income686,4695,818

692,288

Total net assets

17,304,418

Changes during period
Dividends of surplus(759,092)

Profit attributable to owners ofparent

1,343,566

Purchase of treasury shares(796)

Disposal of treasury shares

12,283

Net changes in items other thanshareholders' equity(159,492)(159,067)(318,559)(318,559)

Total changes during period(159,492)(159,067)(318,559)

277,401

Balance at end of period

526,977(153,248)

373,729

17,581,820

8

Consolidated statements of cash flows
Fiscal year ended
March 31, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss on compensation for damage
Impairment losses
Loss on retirement of non-current assets
Loss (gain) on sale of non-current assets
Loss (gain) on valuation of investment securities
Gain on bargain purchase
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in contract assets
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in contract liability
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Compensation paid for damage
Proceeds from dividends income from investments inpartnership
Interest paid
Payments of retirement benefits for directors (andother officers)
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments of leasehold and guarantee deposits
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Other, net
Net cash provided by (used in) investing activities

9(Thousands of yen)
Fiscal year ended
March 31, 2023

2,539,984
1,841,997
36,492–
13,051
2,892(2,945)
5,948(28,076)(213)(43,382)
45,997

1,994,860
1,910,211
29,62943,139–17,89351,74879,008–315(52,185)
43,023(12,100)–(4,563)(155,795)(85,872)(33,400)
286,520(46,041)
22,977112,372
4,495,844
43,382–(11,257)(602,521)(290,998)
126,531
47,614(122,926)(47,413)(34,304)
3,182,368
52,185(58,472)

39,497

21,680(45,832)(43,033)(60,500)–(756,691)
3,715,699(914,767)
2,239,960(951,715)–(858,459)(138,523)(321,913)
20,80020,00044,771(2,185,040)(1,482,964)
113,883(671,497)(2,263)(97,544)
13,433
10,000(1,460)(2,118,413)

Fiscal year ended
March 31, 2022

Cash flows from financing activities
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 liabilities
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

2,030,000(3,014,768)(45)
118(758,869)(130,148)(1,873,713)(343,054)
4,027,713
3,684,659

10(Thousands of yen)
Fiscal year ended
March 31, 2023
2,600,000(3,216,244)(312)–(757,714)(121,751)(1,496,022)(1,374,475)
3,684,659
2,310,183