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, 2020
(Based on Japanese GAAP)May 7, 2020
Company name:
I-NET CORP.
Stock exchange listing: Tokyo
Stock code:
Representative:

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

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

Naokatsu Uchida
June 24, 2020

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

June 24, 2020
June 25, 2020

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

Yes
No

TEL

045-682-0806(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(1) Consolidated operating results
Net salesYear ended March 31, 2020
Year ended March 31, 2019Operating profit

Millions of yen
31,097
27,591%
12.7
7.7

Millions of yen
2,501
2,345

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%
%%
–
11.3
8.7
8.0
–
10.9
8.6
8.5

Yen
105.13
95.72

Year ended March 31, 2020
Year ended March 31, 2019

%
6.6
12.7

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
2,531
7.8
1,672
9.9
2,347
14.51,521
11.2(2) Consolidated financial position
Total assets
As of March 31, 2020
As of March 31, 2019

Net assets

Equity ratio

Millions of yen
29,58928,515

Millions of yen
15,224
14,357

Cash flows fromoperating activities
Millions of yen
3,965
3,052

Cash flows frominvesting activities
Millions of yen(3,872)(3,074)

Net assets per share%
51.5
50.3

Yen
956.89903.04(3) Consolidated cash flows

Year ended March 31, 2020
Year ended March 31, 2019

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(308)
3,083
173,299

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

Year ended March 31, 2019Year ended March 31, 2020of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

20.00
21.50

––

20.00
21.50

40.00
43.00

635
684

41.8
40.9

4.6
4.6

(Note) We have not determined dividends for the fiscal year ending in March 2021, but as we celebrate the 50th anniversaryof our founding in April 2021, we plan to increase dividends, including a commemorative dividend, to express our gratitude
to all the shareholders who have supported the company thus far.

1

3.Consolidated business forecasts for fiscal year ending in March 2021 (April 1, 2020 to March 31, 2021)
The current fiscal year, which is the first year in our medium-term management plan, got off to a smooth start, and we recorded
the ninth consecutive year of higher sales, the tenth consecutive year of income gains and the eighth consecutive year ofincreased dividends. While we are determined to achieve this plan in the fiscal year ending in March 2021 as well, it is notpossible to adequately predict both the impact of this unprecedented pandemic and the spread of the novel coronavirus to date.
Accordingly, we suspend the release of our forecasts.
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2020(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
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, 2020

16,242,424 shares As of March 31, 201916,242,424 shares

Number of treasury shares at the end of the period
As of March 31, 2020

332,038 shares As of March 31, 2019343,711 shares

15,907,601 shares Year ended March 31, 201915,898,781 shares

Average number of shares during the period
Year ended March 31, 20202

Consolidated financial statements
Consolidated balance sheets
As of March 31, 2019
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
OtherAccumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets3(Thousands of yen)
As of March 31, 2020

3,299,833
5,836,688
78,565
118,862306,600
359,656(3,006)
9,997,201

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

15,190,727(6,858,811)
8,331,916
3,202,109
1,380,074(820,638)
559,435
298,059
3,064,205(1,972,801)
1,091,404
13,482,925

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

311,404
853,473
53,937
1,218,815

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

2,159,604
932,677
153,807571,847(1,546)
3,816,391
18,518,132
28,515,333

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

As of March 31, 2019
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 liabilitiesTotal 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, 2020

1,075,524
2,329,640
306,033
485,664
846,5555,476
2,884,813
7,933,708

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

5,471,980
335,381
43,51862,99467,315
243,266
6,224,457
14,158,165

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

3,203,992
3,274,129
8,077,012(368,789)
14,186,345

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

160,201

86,992

10,620170,822
14,357,167
28,515,333(74,453)
12,53815,224,511
29,589,651

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, 2019
March 31, 2020
Net sales
27,591,755
31,097,421
Cost of sales
21,005,367
24,000,932
Gross profit
6,586,387
7,096,489
Selling, general and administrative expenses
4,240,430
4,594,871
Operating profit
2,345,957
2,501,617
Non-operating income
Interest income
899
339
Dividend income
27,62533,645Gain on investments in investment partnerships
6,599
20,297
Subsidy income
20,334
17,618Other
28,12533,786
Total non-operating income
83,584
105,687
Non-operating expenses
Interest expenses
56,12854,645
Commission expenses
24,956
15,507
Other
801
5,728
Total non-operating expenses
81,88675,881
Ordinary profit
2,347,654
2,531,422
Extraordinary income
Gain on sales of non-current assets–
11
Total extraordinary income–
11
Extraordinary losses
Impairment loss
10,00075,681
Loss on valuation of golf club membership–
3,310
Loss on retirement of non-current assets
1,084
385
Loss on sales of non-current assets
40,000–Loss on sales of investment securities
11,915–
Loss on redemption of investment securities
11,687–
Loss on cancellation of leases
1,804–
Total extraordinary losses
76,491
79,376
Profit before income taxes
2,271,163
2,452,057
Income taxes - current
739,028
800,424
Income taxes - deferred
10,244(20,675)
Total income taxes
749,273
779,749
Profit1,521,889
1,672,308
Profit attributable to owners of parent
1,521,889
1,672,308

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, 2019
1,521,889(Thousands of yen)
Fiscal year ended
March 31, 2020
1,672,308(50,371)(866)(51,237)
1,470,652(73,209)(85,073)(158,283)
1,514,025

1,470,652

1,514,025––

Consolidated statements of changes in equity
Fiscal year ended March 31, 2019
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of periodCapital surplus

3,203,992

Retained earnings

3,274,129

7,175,179

Treasury shares(368,323)

Total shareholders'equity13,284,978

Changes during period
Dividends of surplus(620,056)(620,056)

Profit attributable to owners ofparent1,521,889

1,521,889

Purchase of treasury shares

(465)

(465)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period––

901,833(465)

901,367

3,203,992

3,274,129

8,077,012(368,789)

14,186,345

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference on
available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income210,572

11,486

222,059

Total net assets

13,507,037

Changes during period
Dividends of surplus(620,056)

Profit attributable to owners ofparent1,521,889

Purchase of treasury shares
Net changes in items otherthan shareholders' equity(465)(50,371)(866)(51,237)(51,237)

Total changes during period(50,371)(866)(51,237)

850,129

Balance at end of period

160,201

10,620170,822

14,357,167

7Fiscal year ended March 31, 2020
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

3,203,992

Retained earnings

3,274,129

8,077,012

Treasury shares(368,789)

Total shareholders'equity
14,186,345

Changes during period
Dividends of surplus(660,052)(660,052)

Profit attributable to owners ofparent

1,672,308

1,672,308

Purchase of treasury shares
Disposal of treasury shares

972

(477)

(477)

12,875

13,848Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period–

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

Balance at beginning of period

Valuation difference on
available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated
other comprehensive
income160,201

10,620170,822

Total net assets

14,357,167

Changes during period
Dividends of surplus(660,052)

Profit attributable to owners ofparent

1,672,308

Purchase of treasury shares(477)

Disposal of treasury shares

13,848Net changes in items otherthan shareholders' equity(73,209)(85,073)(158,283)

Total changes during period(73,209)(85,073)(158,283)

867,343

Balance at end of period

86,992(74,453)

12,53815,224,511

8(158,283)

Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest expenses
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
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 sales of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
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
Redemption of bonds
Repayments of lease obligations
Purchase of treasury shares
Dividends paid
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

92,271,163
1,442,361
10,00022,6392,452,057
1,710,309
75,681
39,924283(2,780)(28,525)
56,128(333,513)
174,439
60,582(26,278)
188,300
3,837,581
28,524(33,984)
54,64597,504
114,819
27,064
341,126(125,470)
4,750,897
33,98435,10045,870(56,640)(791,727)
3,052,838(55,303)(810,429)
3,965,017(1,949,183)(349,540)(149,432)
172,039(3,332,613)(321,127)(200,615)–(809,574)–

11,192(3,074,499)(18,553)(3,872,911)

10,0003,370,000(2,434,760)(5,000)(301,858)(465)(619,925)
17,990(3,670)3,303,503
3,299,833

170,000
3,130,000(2,639,640)–(308,427)(477)(659,959)(308,504)(216,397)
3,299,833
3,083,435