Briefing Materials for Financial Results
First half of the Fiscal Year Ending
March 2023
I-NET Corp.
[TSE, Prime Market: 9600]
November 8, 2022

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

Contents
1

Earnings in First Half of Fiscal Year Ending in March 2023

2
3
4
5

©2022 I-NET Corp. All Rights Reserved

Dividends

TopicsReference: Medium-term Management Plan (Fiscal Years 2023-2025)

Reference: Company Overview

2

1

Earnings in First Half of Fiscal Year Ending in March 2023

2
3
4
5

©2022 I-NET Corp. All Rights Reserved

Dividends

TopicsReference: Medium-term Management Plan (Fiscal Years 2023-2025)

Reference: Company Overview

3

H1 FY2023: Consolidated Earnings(Unit: Million yen)•••First half of FY2022

First half of FY2023

AmountAmountPercentage

Change YoY

Percentage

AmountPercentage

Net sales

14,935100.0%

16,808100.0%

1,872

12.5%

Cost of sales

11,55977.4%

13,278

79.0%

1,719

14.9%

Gross profit

3,376

22.6%

3,530

21.0%

153

4.5%

Selling, general andadministrative expenses

2,389

16.0%

2,470

14.7%

80

3.4%

Operating income

986

6.6%

1,059

6.3%

72

7.4%

Ordinary income

1,095

7.3%

1,074

6.4%

(20)

(1.9%)Net income attributable toparent

715

4.8%

648

3.9%

(66)

(9.4%)

Income per share (yen)

44.78

―

40.56

―

(4.2)

(9.4%)Net sales were up 12.5% YoY and were quite strong.
Although higher sales had a substantial effect, the gross profit margin fell 1.6% due to higher cost of sales
following the spike in electricity fees.
Operating income continued to increase, but ordinary income and net income attributable to parent decreased due
to one-off gains posted in the same period of the previous year, among other factors.

©2022 I-NET Corp. All Rights Reserved

Note: Breakdowns and total may not match due to rounding.

4

Net sales and gross profit by service(2) Systemdevelopment(1) Information
processing

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

Software development
Hardware development, etc.

Net sales by service

Gross profit by service

Information
processing

9,400
millionyen
56%

Net sales
16,800
millionyen

6,500
millionyen 39%700
million
Systemdevelopment yen
5%(3) Product
sales

Information
processing
1,200
millionyen
35％

Gross profit 2,100
3,500
millionmillion
yen
yen

100

million yen

Product
sales

4%

61%

Systemdevelopment

Product
sales©2022 I-NET Corp. All Rights Reserved

Note: Breakdowns and total may not match due to rounding.

5H1 FY2023: Sales by service(Unit: Million yen)

Information
processing

Systemdevelopment

Product sales

Total

•
•
•

First half of FY2022

First half of FY2023

AmountAmountChange YoY

AmountPercentage

Net sales

6,077

6,570

492

8.1%

Gross profit

1,434

1,225

(208)

(14.5%)

Ratio of gross profit to
net sales

23.6%

18.7%

(4.9%)－Net sales

8,339

9,462

1,122

13.5%

Gross profit

1,837

2,142

304

16.6%

Ratio of gross profit to
net sales

22.0%

22.6%

0.6%

Net sales

518

776

257

49.7%

Gross profit

104

161

57

54.6%

Ratio of gross profit to
net sales

20.2%

20.8%

0.7%

－

Net sales

14,935

16,808

1,872

12.5%

Gross profit

3,376

3,530

153

4.5%

Ratio of operating
income6.6%

6.3%(0.3%)－－Net sales surpassed the previous year’s levels and were solid in all services.
Net sales increased for information processing services, but gross profit fell a sharp 14.5% over the previous year
due to a spike in electricity rates and other. We are working to improve revenue and profit by shifting to energysaving products and earning customers’ understanding.
Development projects from existing customers increased in system development services, and the ratio of grossprofit to net sales also increased 0.6%.

©2022 I-NET Corp. All Rights Reserved

Note: Breakdowns and total may not match due to rounding.

6H1 FY2023: Information processing services
Breakdown of
net sales

Factors behind fluctuations in net sales(Unit: million yen)

(Unit: million yen)

Mailing

services,etc., 1,015 ,

Data

15%

center,Commissioned

cloud

calculation
services,
2,137 , 33%

Commissioned
calculation
Data center, services

Mailing
services,
etc.

cloud

3,418 ,
52%

8.1% year on year increase
Up 492 million yen
H1 FY2022

Breakdown ofgross profit

H1 FY2023

Factors behind fluctuations in gross profit
RaisedincomeData
Mailing
center,services,cloud,
etc., 200 ,
250 , 21%
16%

Commissioned

Data center,cloud

calculation(282)

services, 776 ,63%(Unit: million yen)

H1 FY2022©2022 I-NET Corp. All Rights Reserved(Unit: million yen)

Fluctuation in
profitability

Fluctuation in
profitability
RaisedincomeFluctuation in
profitability

RaisedincomeCommissioned
calculation
services+59
Down 14.5% year on year
208 million yen decrease

Note: Breakdowns and total may not match due to rounding.

Mailing
services,
etc.

+14

H1 FY2023
7

Information processing services – Trends in net sales(Unit: One hundred million yen)

90

95

97

100

99

106

117

124

83

86

24

27

30

35

36

39

Commissioned
calculation

35

35

36

36

35

36

Mailing
services,
etc.

24

24

24

24

26

25

20

19

17

18

10

'13/3

'14/3

'15/3

'16/3

'17/3

'18/3

'19/3

'20/3

'21/3

'22/3

'23/3

43

36

49

38

65

65
39

41

34
21

52

’ of previous year s%sales for full year

Data center,
Cloud

61

2Q
•
•
•
•

Sales in Information processing services have increased over the past 10 years as Data center and Cloud services
have grown.
The 6,500 million yen in sales in the Information processing division in H1 is equivalent to 52% of the 12,400
million yen in sales in the entire previous fiscal year.
Commissioned calculation services maintained stable sales, but over the past few years, sales have gradually
increased. This can be attributed to the trend among retailers to shift from operation systems that they own
themselves to the use of operation platforms, leading to increased use of our trustworthy services.
Sales in mailing services began to increase in the previous fiscal year. This is because the number of competitors
is declining, and the Company’s services are well-regarded for the full lineup of services from printing to mailing ofdata that we manage at the Company’s data centers.

©2022 I-NET Corp. All Rights Reserved

Note: Breakdowns and total may not match due to rounding.

8H1 FY2023: System Development(Unit: million yen)

Breakdown of sales

Factors behind fluctuations in sales

HardwareHardwaredevelopment,etc.

development, etc.,
923 , 10%

Softwaredevelopment

Software

Up 13.5% year-on-year
1,122 million yen
increasedevelopment,
8,540 , 90%
H1 FY2022

Breakdown of gross profit

Raisedincomedevelopment,
etc. 261 ,12%

Raisedincome(Unit: million yen)

Fluctuation in
profitability

Hardwaredevelopment,
etc.

+241
+64
Up 16.6% year-on-year
304 million yen increase

1,881 , 88%©2022 I-NET Corp. All Rights Reserved

Fluctuation in
profitability

Softwaredevelopment

development,(Unit: million yen)

H1 FY2023

Factors behind fluctuations in gross profit

Hardware

Software(Unit: million yen)

H1 FY2022
Note: Breakdowns and total may not match due to rounding.

H1 FY2023
9

System development – Trends in net sales

122

130

134

139

138

142

Softwaredevelopment

113

117

123

124

128

148

171

168

153

175

159

94
85

Hardwaredevelopment,
etc.

'13/3
•
•
•
•

'14/3

'15/3

'16/3

'17/3

'18/3

'19/3

'20/3

'21/3

54

% of previous year’s
sales for full year

103

163

188

(Unit: One hundred million yen)

'22/3 '23/3 2QOver the past 10 years, sales in the System development division increased every year through FY2020, in partdue to M&A. Sales declined for the first time in FY2021 due to the COVID-19 pandemic, but began rising again thefollowing year, FY2022.
Net sales in H1 totaled 9,400 million yen, equivalent to 54% of the 17,500 million yen in sales posted in the fullprevious year.
System development projects for customers in the financial industry, distribution industry, communicationsindustry and space industry, which have long been areas of strength for the Group, are increasing every year,
leading to higher sales for software development services.
A software development subsidiary joined the Group in FY2019. Earnings for the two subsidiaries are also strong,
contributing to earnings for the development services division overall.

©2022 I-NET Corp. All Rights Reserved

Note: Breakdowns and total may not match due to rounding.

10

End of the first half of FY2023: Consolidated Balance Sheet(Unit: Million yen)

As of the end of March 2022
AmountConstituent ratio

As of the end of September 2022
AmountConstituent ratio

Change YoY
AmountPercentage

Current assets

10,701

31.9%

10,682

32.2%

(18)

(0.2%)

Non-current
assets22,802

68.1%

22,498

67.8%

(304)

(1.3%)

33,503100.0%

33,181100.0%(322)(1.0%)

Current liabilities

9,903

29.6%

9,530

28.7%

(372)

(3.8%)

Non-current
liabilities

6,295

18.8%

6,286

18.9%

(9)

(0.1%)

Total liabilities

16,19948.4%

15,817

47.7%

(382)

(2.4%)Net assets

17,30451.6%

17,363

52.3%

59

0.3%

Total assets

Total assets were down 322 million yen compared with the end of the previous fiscal year, and total liabilities fell 382
million yen.
• The decrease in total assets was due primarily to a decline in the valuation of marketable securities.
• The balance of cash and deposits at the end of September 2022 was 3,488 million yen (down 196 million yen
compared with the end of the previous fiscal year), the balance of interest-bearing liabilities was 9,170 million yen(3,270 million yen in the short-term, 5,900 million yen in the long-term, up 246 million yen over the end of theprevious fiscal year).
• The acquisition of tangible fixed assets, equivalent to capital investment in the Company’s data centers and other,was 746 million yen (up 377 million yen over the previous fiscal year). Investments were made in expanding
facilities and updating equipment, among others.
©2022 I-NET Corp. All Rights Reserved

Note: Breakdowns and total may not match due to rounding.

11

FY2023: Full-year Forecasts(Unit: million yen)

Full-year
earnings
forecasts(*)

H1

Rate ofprogress

Net sales

33,50016,80850.2%

Operating income

2,640

1,059

40.1%

Ordinary income

2,770

1,074

38.8%

Net income
attributable toowner of parent

1,830

648

35.4%

(*) Consolidated full-year earnings forecasts released on May 6, 2022

• Net sales are trending in line with initial forecasts. We expect sales toremain solid.
• The steep rise in cost of sales, primarily for electricity costs, exceeded
initial forecasts. To address this, the Company is shifting to energy-saving
equipment and revising prices, among other measures, to keep down costof sales.
• In conjunction with this, we aim to achieve our full-year earnings
forecasts by improving revenue through higher sales and reducing SG&A
expenses, among other efforts.
©2022 I-NET Corp. All Rights Reserved

Note: Breakdowns and total may not match due to rounding.

121Earnings in First Half of Fiscal Year Ending in March 2023

2
3
4
5

©2022 I-NET Corp. All Rights Reserved

Dividends

TopicsReference: Medium-term Management Plan (Fiscal Years 2023-2025)

Reference: Company Overview

13

Dividends
Dividends for Consolidated H1 FY2023: 24 yen in dividends per
share
Interim

50《Dividend Policy》

Year-end(Unit: Yen)

40

30
Continue with stabledividends while retaining 20
earnings to prepare10
for future capital demand
0

21.5

24.0

23.5

24.0

18.0

19.0

20.0

18.0

19.0

20.0

21.5

22.0

23.5

24.0

2017'/3

2018'/3

2019'/3

2020'/3

2021'/3

2022'/3

2023'/3（forecast）

Annual dividends per share (Expect dividends to increase for 11 straight fiscal years)
Fiscal year ended
March 2021

Fiscal year ended
March 2022

Fiscal year ended
March 2023

46.0 yen

47.0 yen

48.0 yen（result）

Interim (22.0 yen)
Year-end (24.0 yen)©2022 I-NET Corp. All Rights Reserved（result）

Interim (23.5 yen)
Year-end (23.5 yen)（forecast）

Interim (24.0 yen)
Year-end (24.0 yen)14

1

Earnings in First Half of Fiscal Year Ending in March 2023

2
3
4
5

©2022 I-NET Corp. All Rights Reserved

Dividends

TopicsReference: Medium-term Management Plan (Fiscal Years 2023-2025)

Reference: Company Overview

15

Healthcare MaaS* to transform the care taxi industry
I-NET is undertaking initiatives to solve social issues through new businesses.
By building a system that optimally matches people with mobility issues with caretaxi operators and enables them to make reservations and payments, I-NET aims tosolve problems related to the use of care taxis and going out by people with mobility
issues, as well as to create demand by expanding the needs of users.
Currently, the system is being tested in Fujisawa City and Kamakura City in
Kanagawa Prefecture.
People who want to go somewhere

Vehicle dispatching

Prompt dispatch of vehicles andhigher rate of operation

Can use with peace of mind,
creating the desire for mobility

Wheelchair
Stretcher
Assistance required
Stairs at home
Nearby alleys

Care taxi operator

Matching

Nursing care service
Prediction of vehicles on standby
Prediction of care personnel
distribution*MaaS: Mobility-as-a-Service©2022 I-NET Corp. All Rights Reserved

16

Launched a new form solution that can handle both paper andelectronic versions of forms
I-NET has launched a new service that improves the efficiency of form
work by combining our mailing service with Unirita’s Marutto Form Cloud
Service (a cloud service that electronically distributes forms to users).
Company A’s environment

Marutto Form Cloud Service

Core system

Outputofforms

General-purpose
computers

Sorting automation
Enclosing and sealing work canalso be performed on behalf ofthe customer

Character code conversion

Billing personnel

Collation of accounts
by nameClassification

Accounting
systemBusiness partner B

Email notification

Output of forms
Download

Storing electronic data in asecure environment

Accounting
personnel
Systems personnel

Receiving box
for Company B

Business partner
contact

Business partner C
Download

Customer site
Receiving box
for Company C

Email notification

Business partner contact

This enables the following three points to be realized.
 Digital transformation of form work by combining the advantages ofprinting and electronic delivery Flexibility in selecting the delivery method according to the customer’stiming Minimization of the risk of data leakage by completing processing in ourdata center©2022 I-NET Corp. All Rights Reserved

17

I-NET signs contract with Darktrace, a U.K.-based AI security
company, to enhance security products
I-NET has concluded a distributorship agreement with Darktrace, a U.K.based global leader in AI cybersecurity, to sell the Darktrace Immune
System, an NDR product that uses proprietary self-learning AI
technology to autonomously detect, investigate, and block all cyberthreats on the network on a single platform.
This has expanded the scope of security coverage across all industries
and led to the enhancement of our security products. We will continue toprovide world-class tools to support corporate security measures.

©2022 I-NET Corp. All Rights Reserved

18

PROPANET smart meter business for LP gas is growing
rapidly

PROPANET is I-NET’s cloud-based LP gas sales management system for the
LP gas retail industry. It has been well received by LP gas retailers as an
ideal tool for improving operational efficiency and promoting DX.
Consumer

Daily and closing
meter reading data

LPG distributo

LPWA
automatic
meter
reading

Guidelines

Capturing

Meter reading and safety inspections

Settlement

Web portal

Self-sealing invoice
mailing (paper)

Settlement

Various settlement
services

I-NET generalpurpose portal site

Propanet
Deliveryforecast
Inventory
mgmt.
Safetymgmt.

Automatic
meter
reading
Billing
mgmt.
Sales
mgmt.

Print mailing service • Full-featured functions, such as a sending service for meter-reading slips, web
portal system, safety inspection tablet terminal, and integration with various
payment services, etc.
 • Effective data management at I-NET’s data center, disaster countermeasures,
BCP measures, etc.
 • Reduced installation and maintenance costs©2022 I-NET Corp. All Rights Reserved

19Service introduction case studies posted on I-NET’s
websiteFrom this fiscal year, we are focusing on publishing case studies of our services.
By publishing case studies, we expect to improve our credibility, give customers
an idea of how to use our services, and encourage customers considering
service introduction to do so. We will continue to publish many more casestudies in the future.

Webpage for case studies:
https://www.inet.co.jp/product/case/©2022 I-NET Corp. All Rights Reserved20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 Reserved21

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.

■Primary operations
Data entry
Scanning©2022 I-NET Corp. All Rights Reserved【】『Cheering on Working Moms』“Cheering on Working Moms” was set up and is run asa search site for childcare centers that uses open data
for Yokohama City.
Revamped in June 2022, and parenting blog launched.

Light work
Preparation ofbusiness cards, etc.

22

The Inet Foundation, a public interest incorporated
association
The Inet Foundation implements ESG activities and gives
back to society by supporting social activities that contributeto the development of local communities.
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 community

The following is a summary of
the support it has provided
since its establishment.

 FY2022：27 organizations

 FY2021：22 organizations
 FY2020：14 organizations② Projects needed to achieve other objectives with public benefit*The Inet Foundation is a public interest foundation established by Noriyoshi Ikeda,
the company’s founder and chief advisor, to support and subsidize the sustainable
activities of organizations engaged in social contribution activities (activities forthe public interest) in Kanagawa Prefecture.

Foundation website: https://www.inet-found.or.jp/©2022 I-NET Corp. All Rights Reserved

23

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

24

1

Earnings in First Half of Fiscal Year Ending in March 2023

2
3
4
5

©2022 I-NET Corp. All Rights Reserved

Dividends

TopicsReference: Medium-term Management Plan (Fiscal Years 2023-2025)

Reference: Company Overview

25

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 Reserved26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

27

Areas for particular reinforcement
Areas for particularreinforcement
Promotion of customer services
and R&D for the DX and New
Normal eras

Main initiatives• 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©2022 I-NET Corp. All Rights Reserved

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

28

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 Reserved29

Information processing services
Servicebreakdown Cloud services
 Data center services

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

Expanding growth
foundation（Million yen）

 BPO services

Percentage of company’s total net sales(consolidated)

12,464（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©2022 I-NET Corp. All Rights Reserved

34.0%

FY2019FY2022

FY2025

 Growth foundation with ongoing sales
 Increase in net sales and income per person

30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 Reserved31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

32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

33

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

Interim©2022 I-NET Corp. All Rights Reserved

2016’/3

2017’/3

Year-end

2018’/3

Commemorative dividend

34

1

Earnings in First Half of Fiscal Year Ending in March 2023

2
3
4
5

©2022 I-NET Corp. All Rights Reserved

Dividends

TopicsReference: Medium-term Management Plan (Fiscal Years 2023-2025)

Reference: Company Overview

35

Overview of Company
 Company name: I-NET Corp.

As of April 1, 2022

 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 Reserved36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©2022 I-NET Corp. All Rights Reserved

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: 2337

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 Reserved38

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©2022 I-NET Corp. All Rights Reserved

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

39

Information processing : Data center and cloud services
Telework support

Hokkaido(1 building)

Nagano(1 building)

Remote desktop

File sharing

Data center services

Osaka(1 building)

Yokohama(four buildings)

Cloud services

Cloud infrastructure

Business cardmanagement
Business chatNo. 1 Data Center(Yokohama)Total floor area of approximately 9,000 ㎡©2022 I-NET Corp. All Rights Reserved

No. 2 Data Center(Yokohama)Total floor area of approximately
13,000 ㎡

40

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)（Overview of processing services）

Our petroleum sales settlement service has a long track record and is used by many SS,
generating stock growth through monthly fees•

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©2022 I-NET Corp. All Rights Reserved••••
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
41

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

42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

Food manufacturing industry:
Operational consolidation, visualization©2022 I-NET Corp. All Rights Reserved

Construction industry:
3D simulator

Communications industry:
Modernization

43

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

44