Supplementary
Briefing Materials
for Financial Results
First Quarter of theFiscal Year Ending March 2024
I-NET Corp.
[TSE, Prime Market: 9600]
July 31, 2023

©2023 I-NET Corp. All Rights Reserved

Earnings summary
Net sales

9,184

millionyen

Net sales 255, 3%
9,184
5,193
56%
©2023 I-NET Corp. All Rights Reserved

3,735
41%

+1,278+334

millionyen+16.2％

millionyen••

YoY change

Net income
attributable toowners of parent438•

YoY change

Operatingincome657

Net sales increased significantly year on year

millionyen+103.4％

Operating income doubled year on year• Operating income increased, mainly thanks to cost•
YoY change+223

millionyen

millionyen

Breakdown by service
Unit: million yen+103.8%81, 4%

Information processing services
System development services
Product sales

Gross profit
2,028

734
1,212
60%

36%

Sales remained strong for both information
processing services and system development
services.
Contributions to increased sales came especiallyfrom sales of mailing services, which had been
growing at a low rate but rebounded to an 87%
year-on-year increase.
Achieved record first-quarter sales.

•reductions, improved profitability of business
transactions, and curbing of SG&A expenses.
Profitability of both information processing services
and system development services improved
significantly due to efforts to improve profitability andto curb SG&A expenses.
Cost increases from spiking electricity fees, an issue inthe previous fiscal year, were curbed throughefficiency improvements from capital investments suchas updating air-conditioning equipment.

Net income also doubled year on year••

Net income also doubled due to the large increasein operating income and the fact that both nonoperating and extraordinary gains and losses did
not change significantly year on year.
The highest quarterly net income ever wasachieved in this first quarter.

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Summary of quarterly earnings
Net sales (Quarterly)

Up 28%

Unit: million yen

10,000
9,000
8,000
7,000

7,157

7,777 7,681

8,553

Up 16%

7,905

8,902 8,711

9,468 9,184

Operating income (Quarterly)
The red line shows theoperating income rate

Unit: million yen

900800

736

685

700

548

600

6,000

500

5,000

400

4,000

300

3,000
2,000

200

1,000

100

00

1Q

2Q

3Q

FY3/2022

4Q

1Q

2Q

3Q

FY3/2023

4Q

1Q
FY3/2024

Impact of spikein electricity
fees

832

301

20%

776

18%

657

14%

Doubled

12%

9.7%

8.8%

10%

323

8.3%

7.1%
4.2%

16%

292

7.2%

8.2%

8%
6%
4%

4.1%

3.4%

2%
0%

1Q

2Q

3Q

FY3/2022

4Q

1Q

2Q

3Q

FY3/2023

4Q

1Q
FY3/2024

Q1 FY2024: Net sales up sharply, operating income doubled year on year• Net sales grew by a significant 16% year on year and 28% versus two years prior.
• Operating income doubled versus the same period for two consecutive years. The operating
income rate also improved significantly to 7.2%, up 3.1% year on year.
©2023 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.

2

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


Data center,cloud

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-mail

Q1 FY3/2023
Mailing
services, etc.

Net sales by service

3,145347
11%

Commissionedcalculation
services

1,059
34%

Data center,
cloud

1,739
55%

©2023 I-NET Corp. All Rights Reserved

Unit: million yen

Q1 FY3/2024

Mailing
services, etc.

3,735

649
17%

Commissioned
calculation
services

1,066
29%

Data center,
cloud

2,018
54%

Unit: million yen

Commissioned
calculation
services

Mailing
services

Up 18.8% YoY
Up 590 million yen

Q1 FY3/2023

Q1 FY3/2024

Factors behind changes
in gross profit
Fluctuations inprofitability

Fluctuations inprofitability

(9)

(7)

Effect of higher
revenue

Effect of higher
revenue

Data center,
+19
cloud

Q1 FY3/2023

Unit: million yen

Fluctuations inprofitability

Effect of higher
revenueCommissioned
calculation(4)
services

Mailing
services +98

Up 18.3% YoY
Up 114 million yen

Q1 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.

3

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

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

System product development
Softwaredevelopment

Up 16.5% YoY
Up 738 million yen

Factors behind changes
in gross profit

Q1 FY3/2024
Unit: million yen

Effect of higher Fluctuations inrevenue
profitability
Fluctuations inHardware +6
profitability
development,etc.
Effect of higher
revenue

Net sales by service
Q1 FY3/2023

Q1 FY3/2024

Rate of change

Softwaredevelopment

4,015

4,744

18.2%

Hardware, etc.

440

448

1.8%

©2023 I-NET Corp. All Rights Reserved

Unit: million yen

Hardwaredevelopment,etc.

Q1 FY3/2023

Financial products (unsecured loan systems: Loan Ranger,
costing systems for financial institutions: ABC Cal, 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

Software +278
development

Q1 FY3/2023

Up 30.7% YoY
Up 284 million yen

Q1 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.

4Earnings in Q1 FY3/2024
Unit: million yen

Q1 FY3/2023
AmountYoY change

Q1 FY3/2024

Relative tosales

AmountRelative tosales

ChangeRate ofChange

Relative toforecasts
Released on May 9,2023% achieved

Net sales

7,905

100.0%

9,184

100.0%

1,278

16.2%

24.4%

Cost of sales

6,309

79.8%

7,155

77.9%

845

13.4%

--Gross profit

1,595

20.2%

2,028

22.1%

433

27.2%

--

SG&A expenses

1,272

16.1%

1,371

14.9%

997.8%

Operating income

323

4.1%

657

7.2%

334

103.4%

23.9%

Ordinary income

360

4.6%

702

7.7%342

95.1%

24.2%

Net income
attributable to ownersof parent

215

2.7%

438

4.8%

223

103.8%

21.7%©2023 I-NET Corp. All Rights Reserved

Doubled--

Sales and profit both reachedrecord highs in Q1
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.

5

Earnings in Q1 FY3/2024 by service

Unit: million yen
Information
processing
services
Systemdevelopment
services
Product sales
Total

Q1 FY3/2023

Q1 FY3/2024

AmountAmountProfitrateYoY change

Profitrate

ChangeRate ofchange

Net sales

3,145

--

3,735--

590

18.8%

Gross profit

620

19.7%

734

19.7%

113

18.3%

Net sales

4,455

--

5,193--

737

16.5%

Gross profit

928

20.8%

Net sales

303--

Gross profit

46

15.4%

Net sales

7,905--

Gross profit

1,595

20.2%

1,212 ⤴ 23.4%
255--

81 ⤴ 31.9%

9,184

--

2,028 ⤴ 22.1%

284 ⤴ 30.7%
(48)
48

15.9%
(15.9%)

34 ⤴ 74.6%
1,278

16.2%

433 ⤴ 27.2%

Note: Amounts are rounded down to the nearest million yen, and profit rates and rates ofchange are rounded to the first decimal place.
©2023 I-NET Corp. All Rights Reserved6Summary of consolidated balance sheet
End of March 2023

End of Q1 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 3,138Long-term 5,367

Total liabilities
16,561

Cash and deposits 4,224
Accounts receivable 6,517

Current liabilities 11,416
Non-current liabilities 5,144(YoY +1,442)

Non-currentassets
22,742(YoY +358)

Net assets
17,582

Total assets: 32,630;
Shareholders' equity ratio: 53.9%©2023 I-NET Corp. All Rights Reserved

Current assets
11,688

Buildings and structures 10,402
Land 2,966
Intangible fixed assets 2,166
Investment securities 3,921(YoY +1,512)

Interest-bearing liabilities
Short-term 3,011
Long-term 4,735

Net assets
17,869(YoY +287)

Total assets: 34,430;
Shareholders' equity ratio: 51.9%
Note: Amounts are rounded down to the nearest million yen and shareholders' equity
ratios are rounded to the first decimal place.

7

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

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