Briefing Materials for
Financial Results
Fiscal Year Ended
March 2023
I-NET Corp.
TSE, Prime Market: 9600

May 24, 2023

©2023 I-NET Corp. All Rights Reserved

Table of Contents

Summary

By service

Dividends
andforecasts
Figures forfiscal year
ended inMarch 2023

Earnings Summary

P.3

Summary of Quarterly Earnings

P.4

Summary of Consolidated
Balance Sheet
Summary of Consolidated
Cash Flow

ESG and SDGs management

P.16-P.21

Company overview

P.22-P.33

P.5
P.6

Information processing services

P.7

System development services

P.8

Trends in net sales by service

P.9

Earnings Forecasts for Fiscal
Year Ending in March 2024
Numerical targets for Mediumterm Management Plan

P.11

Dividends

P.12

Earnings

P.13

Quarterly earnings

P.14

Full-year earnings by service

P.15

P.10

©2023 I-NET Corp. All Rights Reserved2

Earnings summary
Net sales

34,988Operatingincome2,129

Net income
attributable toowners of parent

1,343

ROE

1,432,

YoY change
millionyen

19,806,57%+3,819millionyen+12.3％

YoY change(238)

millionyen

millionyen(10.1％)

YoY change
million
yen

7.7％

Net
4%
sales

Net sales increased significantly
compared to the previous year,
reaching a record high(351)

(20.7％)(2.4)

Information processing
情報処理サービス
services
System developmentシステム開発サービス
services
システム機器販売
Product sales
Unit: million
yen

•

•
•

243, 3%Grossprofit2,381,
33%
4,548,
64%©2023 I-NET Corp. All Rights Reserved

Gross profit showed slower growth due to higher cost of
sales attributable to the spike in electricity fees as well as
higher amortization costs for capital investments, and as aresult, gross profit was in line with the previous year.
Operating income declined due to high cost of sales in
addition to an increase in SG&A expenses such as higher
personnel costs (wage hikes, etc.).

Net income down due to special factors•

PointsInformation processing services were solid, as in theprevious fiscal year. In addition to higher revenue fromcloud services for SaaS, sales management platforms for
propane gas were strong and mailing services recovered.
System development increased significantly due to thewaning of COVID-19.

Operating income fell over the previous year
due to the impact of high cost of sales
following the spike in electricity fees.

•

YoY change

Breakdown by service
13,749,39%

millionyen•

Non-operating balance was down 128 million yen over theprevious year (86 million yen decrease in subsidy revenue,etc.).
Extraordinary losses increased in this fiscal period due tospecial factors such as 79 million yen valuation loss on
investment securities, 69 million yen in losses on the saleand disposal of non-current assets following the disposal ofreal estate, and 43 million yen in compensation payments.

Returning profits to shareholders•••

Annual dividends in the fiscal year ended in March 2023 were
48 yen per share.
Annual dividends will be increased to 52 yen per share in thefiscal year ending in March 2024.
Shareholder benefits were also expanded, and those holding
100 shares as of the end of September became eligible forbenefits (500 yen QUO card Pay).

Note: Amounts are rounded down to the nearest decimal and the rate ofyear-on-year change is rounded to two decimal places.

3Summary of Quarterly Earnings
Net sales(Quarterly)

Unit: Million yen

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

7,157

7,777 7,681

8,553

7,905

Maximum

8,902 8,711

9,468

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

Unit: million
yen

900

832

800

776

736

685

700

400

4,000

300

3,000
2,000

200

1,000

100

0

0

1Q

2Q
'22/3

3Q

4Q

1Q

2Q

3Q

4Q

301

18.0%

323

7.1%

4.2%

12.0%
10.0%

9.7%

8.8%

14.0%

2.6
times

500

5,000

20.0%

16.0%

548

600

6,000

Impact of spikein electricity
fees

8.3%

292

4.1%

8.0%

8.2%

6.0%
4.0%

3.4%

2.0%
0.0%

1Q

’23/3

2Q

3Q
‘22/3

4Q

1Q

2Q

3Q

4Q

‘23/3

Q4 FY2023: Net sales reached a record high and operating income recovered to levels on par with Q4 of theprevious year.

• The spike in electricity fees from mid 2022 had a particularly substantial impact on Q3 earnings, and operating income fell•heavily in Q3.
Price revisions for information processing services were underway from Q4, and profitability improved(operating income rate from 3.4% in Q3 to 8.2% in Q4).
Note: Amounts are rounded down to the nearest decimal and©2023 I-NET Corp. All Rights Reserved

the operating income rate is rounded to two decimal places.

4Summary of Consolidated Balance Sheet
End-March 2022

End-March 2023

Unit: Million yen

Total assets: 33,503; shareholders’ equity: 51.6%

Current assets

10,701

Cash and deposits 3,684
Accounts receivable
5,427

Non-current
assetsTotal assets: 32,630; shareholders’ equity: 53.9%

Total liabilities

5

16,199Current assets

Total liabilities

Cash and deposits 2,310
Accounts receivable
6,035

Current liabilities 9,294
Non-current
liabilities 5,753
Interest-bearing
liabilities
Short-term 3,138
Long-term 5,367

10,246

Current liabilities 9,903
Non-current
liabilities 6,295
Interest-bearing
liabilities
Short-term 3,163
Long-term 5,911

Non-current
assets

15,04822,38422,802

Buildings and structures
10,390Land 3,108
Intangible assets 1,833
Investment securities
3,811

Unit: Million yen

Buildings and structures
10,362Land 2,966
Intangible assets 2,093
Investment securities
3,566

Net assets

17,304

Net assets

17,582

Note: Amounts are rounded down to the nearest decimal and shareholders’equity is rounded to two decimal places.
©2023 I-NET Corp. All Rights Reserved5Summary of Consolidated Cash Flow
（Unit: Million yen）

Profit before income taxes 1,995
1,940
Depreciation
Increase in working capital (890)
137
Other

(1,483)
Tangible fixed assets(primarily investments to augment
data center capacity)(671)
Purchase of intangible assets
Purchase of investment securities (98)
Proceeds from sale of assets, etc. 134

3,182
Operatingactivities

Incometaxes（excluding income
taxes）(942)

Investingactivities

3,684+2,240(1,496)

Financing
activities（excluding dividends）(738)

Dividend
payments(758)

Capital investment fell within the range ofcash flow provided by operating activities
End-March 2022

2,310

Cash anddeposits

Cash anddeposits

Cash flow provided byoperating activities(2,118)Cash flow used forfinancing activities

End-March 2023

Note: Cash and deposits are rounded down to the nearest decimal and the breakdown is rounded
off to the nearest whole number in principle.
©2023 I-NET Corp. All Rights Reserved

6

Information processing services
Data center and cloud services
Company’s own cloud services
Cloud services for companies (SaaS, etc.)
Collocation services for companies

Platform for sales management and fee settlement
for SS (gasoline stands) (share of just under 40%
in Japan)
Platform for fee settlement compatible with smart
meters for propane gas businesses (brand name
PROPANET)

Mailing services


Data center,cloud

Up 10.3% YoY
Up 1,284 million yen

Mailing
service, etc.

1,618 ,
13%

Fluctuations in
profitability

Commissioned
calculation service

4,105 ,
33%

Data center,cloud

6,741 ,
54%

Mailing service,etc.

Commissioned
calculation service

4,325 ,
31%

（Unit: Million yen）

Effect ofhigherrevenue

FY3/2023

2,074 ,
15%

FY3/2023

Factors behind changes in gross profit

Net sales by service

FY3/2022

Mailing
services

Commissioned
calculation
service

FY3/2022

Printing and mailing services for generalcompanies and government agencies
Hybrid distribution service combining printed
materials and mail



456

220

608

12,464

Commissioned calculation service（Unit: Million yen）

Factors behind changes in net sales

Effect ofhigherrevenue

Data center, cloud

Data center,
cloud

(666)

7,350 ,
54%

2,381

Fluctuations in
profitability

Effect of Fluctuations inhigher
profitability
revenueCommissioned +6
calculation
service

Mailing+92
services

Down 19.2% YoY
567 million yen decrease
FY3/2022©2023 I-NET Corp. All Rights Reserved

FY3/2023
Note: Totals and breakdown of changes may not match due to rounding.
The rate of year-on-year change is rounded to two decimal places.

7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 systemrelated industries
System development and contracts, inspections/tests andoperation/evaluation analysis for space-related industries
System development and contracts for distribution industry,general companies, 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


Financial products (unsecured loan system: Loan Ranger,
costing system for financial institutions: ABC Cal, etc.)
Credit settlement system (i-Gateway), settlement
system linked to Pos, etc.
Security-related (vulnerability diagnosis, Darktrace, etc.)
DX-related products (systems to improve operation
efficiency, RPA, etc.)

Factors behind changes in net sales

Hardwaredevelopment, etc.
Softwaredevelopment

Up 13.1% YoY
2,295 million yen increase
FY3/2022

FY3/2023

Factors behind changes in gross profit
Fluctuationsin profitability
Effect of raised income

FY3/2022

Software +447
development

FY3/2023 Rate of change

Softwaredevelopment

15,902

17,852

12.3%

Hardware, etc.

1,609

1,954

21.5%

19,806344

Net sales by service
Net sales (million yen)

（Unit: Million yen）

Effect of raised
income（ Unit: Million yen ）4
Fluctuation in
profitability

Hardware+100
development,etc.

Up 13.7% YoY
547 million yen increase
FY3/2022

FY3/2023
Note: The amounts are rounded off to the nearest whole number andthe rate of year-on-year change is rounded to two decimal places.

©2023 I-NET Corp. All Rights Reserved8Trends in net sales by service
Information processing services

Note: Amounts are rounded to the nearest 100 million yen, so the breakdown and total may
not match. The scale factor is rounded down to the second decimal place.

（Unit: 100 million yen）

101

101

108

119

125

137

91

96

98

29

32

37

38

41

45

52

64

67

commissioned
calculation

36

37

36

36

36

36

41

23

23

23

25

40

43

Mailing
services

39

24

19

18

15

16

21

'14/3

'15/3

'16/3

'17/3

'18/3

'19/3

'20/3

'21/3

'22/3

'23/3

Data center,
cloud

88

System development services（Unit: 100 million yen）

131
Softwaredevelopment

135

141

139

143

113

117

124

125

129

'14/3

'15/3

'16/3

'17/3

'18/3

164

148

189

172

169

175

154

159

'21/3

'22/3

74

Data center andcloud services
grew 2.5 times
over in 10 years

198

179

Systemdevelopment
services grew
1.5 times overin 10 years

Hardware,
other

'19/3

'20/3

©2023 I-NET Corp. All Rights Reserved

'23/3
9

Earnings forecasts for fiscal year ending in March 2024
We forecast 37,700 million yen in net sales, bringing forward the numerical target for FY3/2025 in the current Medium-termManagement Plan by one year.
We expect operating income to increase by 29.2% YoY to 2,750 million yen and net income to increase 50.3% to 2,020 million yen.

(Unit: Million yen)

FY3/2023

FY3/2024

actualEarnings forecasts

YoY rate of change

34,98837,700

7.7%

Operating income

2,129

2,750

29.2%

Ordinary income

2,175

2,900

33.3%

Net income attributable toowner of parent

1,343

2,020

50.3%

6.1%
6.2%
3.8%

7.3%
7.7%
5.4%

+1.2 points+1.5 points+1.6 points

Net sales

Operating income rate

Ordinary income rate
Net income rate

©2023 I-NET Corp. All Rights Reserved

10Revisions to numerical targets for Medium-termManagement Plan (April 2022—March 2025)
Based on recent earnings results, we have raised our target for
FY3/2025 to 40,000 million yen.
Target for FY3/25(Unit: Million yen)

Initial plan

FY3/2023

Revised plan

Recent results

37,70040,00034,988Operating income

3,200

3,200

2,129

Operating income
rate

8.5%

8.0%

6.1%

Net sales

Return on equity(ROE)

10％ or higher

10％ or higher

7.7%

Revised targets for Medium-term Management Plan (April 2022—March 2025) released on May 9, 2023

©2023 I-NET Corp. All Rights Reserved

11Dividends

Dividends for March 2023: 24 yen in dividends per share (annual dividends of 48 yen)
Annual dividends per share were increased for 11 straight fiscal years and the dividend payout ratio
has remained at 40% or more.

Plans for annual dividends in fiscal year ending in March 2024

Annual dividends per share of 52 yen, up 4 yen YoY, for the 12th
straight fiscal year of higher dividends
Dividend policy
Continue with stable dividends while retaining earnings to prepare for future capital demand
60
50
40
30
20
10
（Unit: Yen）

0

Fiscal year-end
Inteirm
Dividend payout ratio

36 yen18.0

38 yen19.0

40 yen20.0

43 yen21.5

46 yen24.0

47 yen23.5

48 yen24.0

52 yen Plan

26.0

60%
50%
40%
30%

18.0

19.0

20.0

21.5

22.0

23.5

24.0

26.0

Mar 2017

Mar 2018

Mar 2019

Mar 2020

Mar 2021

Mar 2022

Mar 2023

Mar 2024

18.0

19.0

20.0

21.5

24.0

23.5

24.0

26.0

18.0

19.0

20.0

21.5

22.0

23.5

24.0

26.0

43.5%

44.2%

41.8%

40.9%

49.1%

44.3%

57.1%

41.1% Plan

©2023 I-NET Corp. All Rights Reserved

70%

20%
10%
0%

12

Earnings in FY2023(Unit: Million yen)

FY3/2022
AmountRelative tosales

FY3/2023
Relative tosales

AmountYoY change
ChangeRate ofchangeRelative to forecasts
Released on May 6, 2022

Released on Jan 31, 2023

Change% achieved

Change% achieved

Net sales

31,169100.0%

34,988100.0%

3,819

12.3%

1,489

104%

(11)

100%

Cost of sales

24,01877.1%

27,814

79.5%

3,796

15.8%

--

--

--

--

Gross profit

7,151

22.9%

7,174

20.5%

22

0.3%

--

--

--

--

4,783

15.3%

5,044

14.4%

260

5.5%

--

--

--

--

2,367

7.6%

2,129

6.1%

(238)

(10.1%)

(511)

81%

329

118%

2,542

8.2%

2,175

6.2%

(366)

(14.4%)

(595)

79%

300

116%

1,694

5.4%

1,343

3.8%

(351)

(20.7%)

(486)

73%

201

118%

SG&A
expenses
OperatingincomeOrdinary
incomeNet income
attributable toowners of parent

Note: Amounts are rounded down to the nearest decimal, the rate of change is rounded totwo decimal places, and the % achieved is rounded to the nearest decimal.
©2023 I-NET Corp. All Rights Reserved

13Quarterly earnings in FY2023(Unit: Million yen)

Q1
AmountRelative to
sales

Q2
AmountRelative to
sales

Q3
AmountRelative to
sales

Q4
AmountRelative tosales

Net sales

7,905

100.0%

8,902

100.0%

8,711

100.0%

9,468

100.0%

Cost of sales

6,309

79.8%

6,968

78.3%

7,104

81.5%

7,432

78.5%

Gross profit

1,595

20.2%

1,934

21.7%

1,607

18.5%

2,036

21.5%

1,272

16.1%

1,198

13.5%

1,314

15.1%

1,259

13.3%

323

4.1%

736

8.3%

292

3.4%

776

8.2%

360

4.6%

714

8.0%

312

3.6%

788

8.3%

215

2.7%

433

4.9%

202

2.3%

492

5.2%

SG&A
expenses
OperatingincomeOrdinary
incomeNet income
attributable to ownersof parent

Note: Amounts are rounded down to the nearest decimal and thefigure relative to sales is rounded to two decimal places.
©2023 I-NET Corp. All Rights Reserved

14

FY2023 earnings by service
FY3/2022
Amount Profit rate

(Unit: Million yen)

Information
processing
services
Systemdevelopment
services
Product sales

Net sales

12,464--

13,749Gross profit

2,949

24%

988

Net sales

YoY change
Change Rate of change
1,284

10.3%

2,381

17% Note 2） (567)(19.2%)

8%252

2% Note 2） (736)(74.5%)

17,511--

19,806

--

2,295

13.1%

Gross profit

4,001

23%

4,548

23%

547

13.7%

Operating income*

1,376

8%

1,848

9%

472

34.3%

Net sales

1,193

--

1,432

--

239

20.0%

Gross profit

200

17%

243

17%

42

21.4%

3

0%

28

2%

25

833.3%Net sales

31,169--34,988

--

3,819

12.3%

Gross profit

7,151

23%

7,174

21%

22

0.3%

Operating income*

2,367

8%

2,129

6%

(238)

(10.1%)

Operating income*Operating income*

Total

FY3/2023
Profit rate
Amount（*）Operating income is a reference
figure calculated with estimates.

--

Note: 1) Amounts are rounded down to the nearest decimal, the profit rate is rounded to the nearest decimal,
and the rate of change is rounded to the second decimal place.
2) Refer to pages 3 and 7 for information on the impact of a spike in electricity fees.
©2023 I-NET Corp. All Rights Reserved

15

Earnings Summary
Summary

P.3

Summary of Quarterly Earnings P.4
Summary of Consolidated
Balance Sheet

P.5

Summary of Consolidated Cash FlowP.6

ESG/SDGs Management

P.16-P.21

Company Overview

P.22-P.33

Information processing servicesP.7

By service

Dividends
andforecasts
Figures forfiscal year
ended inMarch 2023

System development services

P.8

Trends in net sales by service

P.9

Earnings Forecasts for Fiscal
Year Ending in March 2024

P.10

Numerical targets for Medium-termManagement Plan

P.11

Dividends

P.12

Earnings

P.13

Quarterly earnings

P.14

Full-year earnings by service

P.15©2023 I-NET Corp. All Rights Reserved

16

ESG and SDGs initiatives (environment)
Energy conservation by using data centers
I-NET’s data centers earned Rank A of
Yokohama City Environment-conscious
Building System (CASBEE Yokohama).

Co-sponsoring space sustainability initiatives
In August 2022, I-NET approved the spacesustainability concept advocated by Astroscale
Holdings, a company that works on orbit services,
including space debris removal, and signed amarketing partnership agreement on ADRAS-J(Active Debris Removal by Astroscale-Japan) with
its subsidiary. I-NET’s thinking extends to space.

Consolidating servers in the data center’s cloud has
the effect of reducing electricity by about 73.5% (*).

We are also considering further use ofrenewable energy.
Helping theenvironment
with parasols
and water
sprinkling

HVAC located outside areplaced on trestles and waterflows on the concrete roof
surface to achieve the effectof water sprinkling.

External HVAC
are shaded andvaporizers arelocated nearby.
Ceilings are flat with afloor height of 5 m, andair can be fluidly andgently circulated within
the room.

ADRAS-J*）from METI’s Report on Results of2014 Project to Support Use ofEnergy-type Cloud Services by
Small- and Mid-sized Companies*）Space sustainability
This concept advocates looking squarely at the effect of space debris on everyday life and the impact onhumanity in the future and sharing this issue with as many people as possible so that we can think andact together. Astroscale stands at the cutting edge of such efforts©2023 I-NET Corp. All Rights Reserved

17ESG and SDGs initiatives (social contributions)
5 million yen donation to both
Kanagawa prefecture and Yokohama city

Right, Yuji Kuroiwa, governor of Kanagawa
prefecture
Left: Mitsuru Sakai, Representative Director,
Executive President

Right: Takeharu Yamanaka, mayor of Yokohama
Left: Mitsuru Sakai, Representative Director,
Executive President

As part of I-Net’s activities commemorating its 50th anniversary, theCompany donated 5 million yen to Kanagawa prefecture to support
efforts to give young people in poverty a place in society and 5
million yen to Yokohama city to support specific measures in the fightagainst climate change, for a total of 10 million yen.
Kanagawa used this donation to help young people inpoverty attend school and find jobs so that they can be
independent.

Data science internship program started
with Yokohama National University
In December 2019, I-NET signed a comprehensive
affiliation agreement with Yokohama National
University and is currently building multi-faceted
relationships through joint research and employee
interaction, among other initiatives.
I-NET reached a new agreement with the university
to start a data science internship program beginningin the fiscal year ended in March 2023. I-NET will
accept students from Yokohama National University’s
Data Science Education Program (DSEP) every year
and cooperate on personnel training.
Yokohama National
University
https://www.ynu.ac.jp/©2023 I-NET Corp. All Rights Reserved

18

ESG and SDGs initiatives (social contributions)
Encouraging the employment of
disabled people
I-NET Data Service

In April 2009, I-NET established a special subsidiary(authorized by the Minister of Health, Labour and Welfare)with the aim of encouraging the employment of disabled
people.
※There are 579 special subsidiaries in Japan and 49 in
Kanagawa prefecture (as of June 1, 2022), and I-Net Data
Service is one of them.

“Working Moms Supporter” was set up andis run as a search site for childcare centersthat uses open data for Yokohama City.
Revamped in June 2022, and parenting blog
launched.

■Main tasks

Data entry
Scanning

Light work
Preparation ofbusiness cards, etc.

©2023 I-NET Corp. All Rights Reserved

19

ESG and SDGs initiatives (social contributions)
Inet Foundation carries out ESG activities and gives back to society by supporting social
activities that contribute to the development of the local society.
Achievements since
founding

FY22: 27 organizations
FY21: 22 organizations
FY20: 14 organizations

The foundation carries out thefollowing projects in the
Kanagawa Prefecture region.
(1) Projects to support and provide subsidies or toassess and award the sustainability and activities oforganizations that carry out activities related to thefollowing:• Sound training and education of children and youth• Sound mental and physical development throughsports• Improve public sanitation• Environmental conservation and infrastructure• Sound development of local community(2) Projects needed to achieve other objectives withpublic benefit

Inet Foundation was established by Noriyoshi Ikeda, I-NET’s founder, to support and aid thesustainable activities of organizations carrying out activities contributing to society in Kanagawa
Prefecture (activities aimed at providing public benefit). In March 2019, it was formed as a generalfoundation, and was authorized as a public interest corporation by Kanagawa Prefecture in January
2020.
Link for foundation’s website: https://www.inet-found.or.jp/©2023 I-NET Corp. All Rights Reserved

20

ESG and SDGs initiatives (Diversity)

Based on our belief that employees are management’s greatest asset, we believe that the mental andphysical health of employees is the foundation for ongoing improvements in corporate value, and we pursue
health management accordingly.
We are making workstyle reforms to create a work environment in which everyone can exercise their skills
with peace of mind.

Hatarakueru 2023

Awarded the highest level for
Company with Best Benefits (General)

Certified by Hatarakueru
Implementation Committee

White 500

PRIDE Index 2022

(certified for fifth year
in a row)

Earned highest rank of Gold

Sponsored by work with PrideCertified by Ministry of
Economy, Trade, and Industry

Main health-related initiatives
 Declared health management
 HR Department, Health Support
Office and Health Insurance
Association worked together

Kurumin
Certified by Ministry of
Health, Labour and Welfare©2023 I-NET Corp. All Rights Reserved

Eruboshi
Certified by Ministry of Health,Labour and Welfare
21Earnings Summary
Summary

P.3

Summary of Quarterly Earnings P.4
Summary of Consolidated
Balance Sheet

P.5

Summary of Consolidated Cash FlowP.6

ESG/SDGs Management

P.16-P.21

Company Overview

P.22-P.33

Information processing servicesP.7

By service

Dividends
andforecasts
Figures forfiscal year
ended inMarch 2023

System development services

P.8

Trends in net sales by service

P.9

Earnings Forecasts for Fiscal
Year Ending in March 2024

P.10

Numerical targets for Medium-termManagement Plan

P.11

Dividends

P.12

Earnings

P.13

Quarterly earnings

P.14

Full-year earnings by service

P.15©2023 I-NET Corp. All Rights Reserved

22Company Overview

Hybrid-type system company providing information processing services (stocktype business) using our own data centers and system development services(flow-type business).

 Trade name: I-NET Corp.

 Headquarters: 3-3-1 Minatomirai, Nishi-ku,
Yokohama, Kanagawa

 Founded: April 22, 1971
 Capital: 3,203 million yen Founder: Founder and Supreme Adviser, Noriyoshi Ikeda
 Representative: Mitsuru Sakai, Representative Director and Executive President
 Number of employees: 1,774 (consolidated), 1,021 (non-consolidated) As of April 1, 2023
 Business offices, branches, data centers
Tokyo office, Sapporo branch, Sendai branch, Chubu branch, Osaka branch,
Chu-Shikoku Branch, Fukuoka branch

Headquarters(Yokohama)No.1 Data Center©2023 I-NET Corp. All Rights Reserved

No.2 Data Center23©2023 I-NET Corp. All Rights Reserved

24System development services Information processing services
Cost of sales
management and loansystems for financial
institutions

Information
processing
services

Product management,e-money and credit card
point management

Additional services toimprove thefunctions of smart
phones and car
navigation systems

Satellite design, survey
and operation;
Operation of asteroid
probesDevelopment ofreservation systems
for airline
companies andrailway-related
systems

39%

57%
System development
services

4%

Product
sales

Total security solutions toreinforce security measures©2023 I-NET Corp. All Rights Reserved

Wide-ranging cloudservices provided
using I-NET’s own
data center
Digitalmanagement ofdesign andconstruction plans
Printing,
enclosing andmailing tax
payment
notifications

System development inareas such as
manufacturing andsales
Design anddevelopment of
medical equipment
such as diagnostic
devices as well ashome medical

Calculation andsettlement cloudservices for SS

Management, smart meterand settlement systems for
propane gas companies

Sales ofequipment
ancillary toservices

Conscientious
processing at data
center of important
notifications such as
tax payments andpensions

Call center
operations anddata entry work25

I-NET’s strengths【１】 Group of technicians with 4,300 companies as customers

 1,200 development engineers support the 4,300 companies that became
our clients over 51 years in business We have many achievements and have built deep and long business
relationships, particularly in the energy, logistics (convenience stores,etc.), and financial industries (banks, non-banks, etc.) and satellite
development.

【２】 Stock business supporting social infrastructure Cloud service utilizing our own data center Platform services supporting the backbone of the energy industry
 Operation systems for financial institutions (card loans, cost of sales
management, etc.) have been adopted by many banks and non-banks.

【３】 One-stop services for information processing, development and BPO* I-NET can provide services for a series of processes not limited to cloud services, dataprocessing and calculations, but also extending to the development of related systems andcustomer notifications of processing results (email, postal mail).
 Existing customers praise I-NET for being a strong partner in helping them streamline
operations and transition to DX.

*BPO：Business Process Outsourcing©2023 I-NET Corp. All Rights Reserved26

Information Processing Services

Stock business, DX transition

We are currently providing cloud infrastructure (NGEC: Next Generation EASY Cloud) and
our own app services.
Cloud services are provided on OEM even for other companies in the same industry, and ahigh utilization rate is maintained.
I-NET has about 20 cloud partners, including NEOJAPAN, Unirita, Densan and WorkVision.

Partner Partner©2023 I-NET Corp. All Rights Reserved

OEM cloudPartner

Security system

Partner

Data usesystem operations

inet

Instantaneous detectionof fraud, instantrecovery solutions

ＩＴ

inet

Business chat
ChatLuckinet

File sharing service
Cloudstor®

Remote desktop
VIDAAS®
Lp gas sales
management system
Propanet

Gasoline stations
settlement services
inet

・・・

partner27

Information Processing Services

Stock business, DX transition

Platform for the energy companies that support social infrastructure
I-NET has an over-30% share of Japan’s sales management and payment systems
for gasoline stations
Customers
inet cloud environment

Accounting-type
Invoice sent

All typesof fuel(gasoline,
electricity,hydrogenenergy,etc.)
handledGasoline standInternet・Sales data processing
・Account receivabledata processing
・Account payable dataprocessing
・Rapid data processing

Credit company

Data submitted
to credit
company・Kerosene dataprocessing
・Gas dataprocessing

Gasoline sellers (ENEOS, Idemitsu Kosan Shell, Kygnus Sekiyu), commercial firms (Itochu Enex,
Mitsubishi Corporation Energy, Marubeni Energy, San-Ai Obbli), retailers©2023 I-NET Corp. All Rights Reserved28

Information Processing Services

Stock business, DX transition

I-NET’s service “Propanet”: Sales management and payment system for LP gas companies
Platform for energy industry supporting social infrastructure, with 200 companies

In February 2023, weformed a businessaffiliation with Aichi
Tokei Denki, a large
company that makes
gas meters.
By linking I-NET’s
Propanet with Aichi
Tokei Denki’s datatransmission service
Aichi Cloud, LP gas
canisters can be
opened and closed
automatically on thereserved date andtime.
As a result of this,Propanet contracts
increased via Aichi
Tokei Denki.

©2023 I-NET Corp. All Rights Reserved29

Information Processing Services

Stock business, DX transition

New ledger solution compatible with both paper ledgers and digital ledgers
 Achieved DX transition for ledger management by bringing together the merits of printing and digital transmission
 Flexible response to choosing of dispatch method in line with customer’s timing Processing done entirely within I-NET’s data center minimizes risk of external data leaks

Company A’s environment

Marutto Form Cloud Service

Core system

Sorting automation
Enclosing and sealing work can also be
performed on behalf of the customer

Business partner B

Output offorms

General-purpose
computers

Character code conversion

Billing personnel

Collation of accounts by
nameClassification

Accounting
systemEmail notification

Output of forms
Business partner contact
Download

Storing electronic data in a secureenvironment

Receiving box forCompany B

Business partner C
Download

Customer site

Accounting
personnel

Receiving box forCompany C

Systems personnel©2023 I-NET Corp. All Rights Reserved

Email notification

Business partner contact

30

System development services

DX transition

Card loan, unsecured loan system LOAN RANGER for banks and non-banks
All loan operations that occur in sales branches can be processed.
Operation center

Credit information center

Automatic
report/referral toinformation center

Business company’s division● Receive, screen● Call center● Mailing● Card issuance
Inquiry

Creditinformation
centerCPU
connection

Support for all
operations
occurring duringloan operations

Reports

Backbone system
for loans

Encompasses every
step from deposit
management to loan
recovery

Applications
accepted
ScreeningsupportWeb
customer
service

Inbound
response

Convenience
store
settlement

RemindersConnections
to affiliatedATM

Instanttransfers

Storageagent

Internet

internet

ReminderletterCard

Convenience store
Mobile phone●New application●Loan application●Repayment
reservation●Balance
confirmation●History
confirmation

Nighttimeprocessing andtransmission ofledgers

Instanttransfers●Confirmationof intent
Reminder●Inquiry

Affiliated ATM

Account transfer
by customer

Dedicated terminal → register●Repayment

Bank●Loans●Repayment●Withdrawal

Customer©2023 I-NET Corp. All Rights Reserved

31

System development services

DX transition
Diverse security products provided, customers’ current status analyzed andthe optimal plan presented
Overall security image

Malignant bots

Entry point measures
Mitigation measures

BackupInformation
leak measures

Wi-Fi monitoring

Operation log management

Internal
measures
Facility
monitoring

VirtualThe areas circled in blue indicate
solutions that I-NET can provide.

Securecommunication

IT asset management

OT security

Forensic and data analysis

Strengthened
authentication

Entry and exit
management

Crime prevention
camera system

Facility monitoring

End-point measures

Client security

Malware and ransomware measures

Internal measures

Visibility

Exitmeasures

Information
leak measures

Visibility

Administrator

Vulnerability diagnosis

Virus checks

Internal educationand training

New attack(zero-day attack)Password
management

ID management

cracker

Fraudulent accesstargeting credentials
and malware
infections

Application

Encryption measures

Indiscriminate
attackTargeted attacks

Certification file

Restrictions on devices thatcan be brought in

Fraudulent incursion/
DDoS attack

Content

Entry point
measuresThreat intelligence

Port scan

Attacks targeting
setting leaks

Exit measures

Servers

Total security
solutions tailoredto diverse needsof customers

Measures fortelework
environment

etc…

Measures for teleworkenvironment

As of April 1, 2022
©2023 I-NET Corp. All Rights Reserved

32

System development services

Contracting for design, assembly and operation of small satellites
Achievements: Participation started with the weather satellite Himawari andincludes Hayabusa and Hayabusa 2 as well

Source: "Illustration: Akihiro Ikeshita"

Asteroid detector Hayabusa

System design

Landing station operation

Experimental satellite for space debris removal

Inspection/Test(※Located on I-NET site)

Operation/Evaluation

Satellite development,
operation and data processing

Conceptual design Manufacturing assembly Rocket launch

Operation

We support system design, inspection/test and operation/evaluation of artificial satellites and probes.
©2023 I-NET Corp. All Rights Reserved

33

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 Company
or 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

visit our website©2023 I-NET Corp. All Rights Reserved34