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, 2021
(Based on Japanese GAAP)May 7, 2021
Company name:

I-NET CORP.

Stock exchange listing: Tokyo
Stock code:
9600
Representative:

URL

https://www.inet.co.jp

Representative Director, Executive President Mitsuru Sakai

Inquiries:
Director and Managing Executive Officer
Scheduled date of ordinary general meeting of shareholders:

Naokatsu Uchida
June 24, 2021

Scheduled date to file Securities Report:

June 24, 2021

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 25, 2021
Yes

Holding of financial results meeting:

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, 2021 (from April 1, 2020 to March 31, 2021)(1) Consolidated operating resultsPercentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
(3.5)
2,155(13.8)
2,279(9.9)
1,494(10.6)
12.7
2,501
6.6
2,531
7.8
1,672
9.9

Net salesYear ended March 31, 2021
Year ended March 31, 2020

Millions of yen
30,01631,097

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
9.5
7.4
7.2
–
11.3
8.7
8.0

Diluted earnings pershareEarnings per share
Yen
93.62
105.13

Year ended March 31, 2021
Year ended March 31, 2020
(2) Consolidated financial position

Total assets
As of March 31, 2021
As of March 31, 2020

Net assets

Equity ratio

Millions of yen
32,056
29,589Millions of yen
16,212
15,224

Cash flows fromoperating activities
Millions of yen
3,419
3,965

Cash flows frominvesting activities
Millions of yen(2,929)(3,872)

Net assets per share%
50.6
51.5

Yen
1,014.82
956.89(3) Consolidated cash flows

Year ended March 31, 2021
Year ended March 31, 2020

Cash flows fromCash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
454
4,027
(308)
3,083

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

Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(Forecast)

Total cash
Dividend payout Ratio of dividends
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

21.50
22.00

––

21.50
24.00

43.00
46.00

684
734

40.9
49.1

4.6
4.7

–

23.50

–

23.50

47.00

146.9

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

Net sales

Full year

Millions of yen
32,500Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%Yen
8.3
2,330
8.1
2,330
2.2
1,600
7.0
100.15

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2021
(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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:

No

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, 2021

16,242,424 shares As of March 31, 2020

16,242,424 shares

Number of treasury shares at the end of the period
As of March 31, 2021

266,328 shares As of March 31, 2020

332,038 shares

15,965,830 shares Year ended March 31, 2020

15,907,601 shares

Average number of shares during the period
Year ended March 31, 20212

Consolidated financial statements
Consolidated balance sheets
As of March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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
GoodwillSoftware
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 assets3(Thousands of yen)
As of March 31, 2021

3,083,435
5,739,386
63,136
153,810172,023
417,608(428)
9,628,973

4,027,713
5,930,552
176,790
76,85048,837
301,345(405)
10,561,685

17,653,755(7,639,050)
10,014,704
3,157,316
1,401,856(1,097,283)
304,572465
3,580,454(2,182,439)
1,398,015
14,875,074

19,173,931(8,305,781)
10,868,150
3,108,756
440,376(302,918)
137,458
1,594
3,692,282(2,260,907)
1,431,375
15,547,334

271,480
855,323
53,842
1,180,646

231,556
1,009,509
53,747
1,294,813

2,227,981
843,711201,446
633,161(1,343)
3,904,956
19,960,677
29,589,651

2,865,702
1,083,571
93,374
638,254(28,122)
4,652,780
21,494,929
32,056,614

As of March 31, 2020
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
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, 2021

1,102,589
2,872,844
192,972
479,972
908,143
24,3202,826,349
8,407,192

1,409,194
3,039,768
98,778511,594
870,572
1,773
2,693,332
8,625,013

5,589,136
163,947–
42,846
72,67989,336
5,957,946
14,365,139

6,868,918
68,030118,182700
73,49589,444
7,218,770
15,843,784

3,203,992
3,275,102
9,089,268(356,390)
15,211,972

3,203,992
3,146,335
9,890,484(315,059)
15,925,752

86,992

233,319(74,453)
12,53815,224,511
29,589,651

53,757
287,077
16,212,830
32,056,614

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, 2020
March 31, 2021
Net sales
31,097,421
30,016,039
Cost of sales
24,000,932
23,211,571
Gross profit
7,096,489
6,804,468
Selling, general and administrative expenses
4,594,871
4,648,967
Operating profit
2,501,617
2,155,500
Non-operating income
Interest income
339
335
Dividend income
33,64536,189Subsidy income
17,618128,059
Surrender value of insurance policies
417
25,050Gain on investments in investment partnerships
20,297–
Other
33,36823,088
Total non-operating income
105,687
212,723
Non-operating expenses
Interest expenses
54,64549,695
Loss on investments in investment partnerships–
20,903
Commission expenses
15,507
14,480
Other
5,728
3,579
Total non-operating expenses
75,881
88,658
Ordinary profit
2,531,422
2,279,565
Extraordinary income
Gain on sale of investment securities–
212,266
Gain on sale of non-current assets
114,891
Total extraordinary income
11217,157
Extraordinary losses
Special Retirement Payment–
250,000
Loss on valuation of investment securities–
22,616
Loss on sale of non-current assets–
18,025
Loss on retirement of non-current assets
385
9,083
Impairment losses
75,681
1,511
Loss on valuation of golf club membership
3,310–
Total extraordinary losses
79,376301,236
Profit before income taxes
2,452,057
2,195,487
Income taxes - current
800,424
593,905
Income taxes - deferred(20,675)
106,813
Total income taxes
779,749
700,719
Profit
1,672,308
1,494,767
Profit attributable to owners of parent1,672,308
1,494,767

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 ofparent
Comprehensive income attributable to noncontrolling interests

6

Fiscal year ended
March 31, 2020
1,672,308(Thousands of yen)
Fiscal year ended
March 31, 2021
1,494,767(73,209)(85,073)(158,283)
1,514,025

146,327128,211
274,538
1,769,306

1,514,025

1,769,306––

Consolidated statements of changes in equity
Fiscal year ended March 31, 2020
(Thousands of yen)
Shareholders' equity

Balance at beginning ofperiod
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
otherthanshareholders' equity
Total changes during
periodBalance at end of period

Balance at beginning ofperiod
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
otherthanshareholders' equity
Total changes duringperiod
Balance at end of period

Share capital

Capital surplus

3,203,992

3,274,129

Retainedearnings
8,077,012

Treasury shares

Total
shareholders'equity(368,789)

14,186,345(660,052)(660,052)

1,672,308

1,672,308

972

(477)

(477)

12,875

13,848–972

1,012,255

12,3981,025,626

3,203,992

3,275,102

9,089,268(356,390)

15,211,972

Accumulated other comprehensive income
Total
Valuation
Remeasurement accumulateddifference ons of defined
otheravailable-forbenefit planscomprehensive
sale securities
incomeTotal net assets

160,201

10,620170,822

14,357,167(660,052)
1,672,308(477)
13,848(73,209)(85,073)(158,283)(158,283)(73,209)(85,073)(158,283)

867,343

86,992(74,453)

12,53815,224,511

7

Fiscal year ended March 31, 2021
(Thousands of yen)
Shareholders' equity

Balance at beginning ofperiod
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesDisposal of treasury
sharesNet changes in items
otherthanshareholders' equity
Total changes during
periodBalance at end of period

Balance at beginning ofperiod
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
otherthanshareholders' equity
Total changes during
periodBalance at end of period

Share capital

Capital surplus

3,203,992

3,275,102

Retainedearnings
9,089,268

Treasury shares

Total
shareholders'equity(356,390)

15,211,972(693,551)(693,551)

1,494,767

1,494,767(128,766)(105,740)(105,740)

147,071

18,305–(128,766)

801,215

41,331

713,780

3,203,992

3,146,335

9,890,484(315,059)

15,925,752

Accumulated other comprehensive income
TotalValuation
Remeasurement accumulateddifference ons of defined
otheravailable-forbenefit planscomprehensive
sale securities
incomeTotal net assets

86,992(74,453)

12,53815,224,511(693,551)
1,494,767(105,740)
18,305

146,327

128,211274,538

274,538

146,327

128,211274,538

988,319

233,31953,757

287,077

16,212,830

8

Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Special Retirement Payments
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Proceeds from dividends income from investments inpartnership
Interest paid
Payments of retirement benefits for directors (andother officers)
Payments Of Special Retirement Payments
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
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 obligations
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

92,452,057
1,710,309
75,681–
39,924(2,780)(33,984)
54,645–97,504
114,819
27,064
341,126(125,470)
4,750,89733,984

2,195,487
1,744,052
1,511
250,000
39,92426,755(36,525)
49,695(212,266)(217,945)
86,492306,604
45,73790,356
4,369,880
36,52445,87027,480(55,303)(50,038)–(150,000)–(810,429)
3,965,017(250,000)(564,435)
3,419,411(3,332,613)(321,127)(200,615)–(18,553)(3,872,911)(2,306,176)(418,287)(613,903)
352,550
56,026(2,929,790)

170,000
3,130,000(2,639,640)(477)–(659,959)(308,427)(308,504)(216,397)
3,299,8333,083,435(170,000)
4,500,000(2,883,294)(105,740)
125(692,770)(193,663)
454,656
944,277
3,083,435
4,027,713