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 Six Months Ended September 30, 2023
(Based on Japanese GAAP)
Company name:

October 31, 2023

I-NET Corp.

Stock exchange listing: Tokyo
Stock code:
9600

URL

https://www.inet.co.jp

Representative:

Representative Director and Executive
President

Tomomichi Saeki

Inquiries:

Executive Officer, Head of Finance
Department

Joji Ishiwata

TEL

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

November 8, 2023
December 5, 2023

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

Yes
Yes

045-682-0806(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended September 30, 2023
18,979
12.9
1,575
48.7
1,601
49.0
1,041
60.7
Six months ended September 30, 2022
16,808
12.5
1,059
7.4
1,074
(1.9)
648(9.4)
Earnings per share

Diluted earnings per share

Yen
65.19
40.57

Six months ended September 30, 2023
Six months ended September 30, 2022

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
35,352
32,630

As of September 30, 2023
As of March 31, 2023

Equity ratio

Millions of yen
18,743
17,581%53.0
53.9

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
24.00
26.00

Yen–

Yen
24.00

Yen
48.00

–

26.00

52.00

Year ending March 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Net sales
Full year

Millions of yen
37,700Percentages 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
7.7
2,750
29.2
2,900
33.3
2,020
50.3
126.371

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:NoYes(3) 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(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

16,242,424 shares As of March 31, 2023

16,242,424 shares

Number of treasury shares at the end of the period
As of September 30, 2023

257,584 shares As of March 31, 2023

257,521 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

15,984,872 shares Six months ended September 30, 2022

215,980,886 shares

Quarterly consolidated financial statements
Consolidated balance sheets

As of March 31, 2023
AssetsCurrent assets
Cash and depositsNotes and accounts receivable - trade, and contract
assetsMerchandise 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, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets3(Thousands of yen)
As of September 30, 2023

2,310,183

3,738,113

7,287,412

7,511,349

43,597110,797
48,832445,580(370)
10,246,033

31,839124,637
96,819609,923(222)
12,112,459

10,362,384
2,966,336
1,622,800
14,951,521

10,139,482
2,959,099
1,784,605
14,883,187

165,433
1,895,013
33,153
2,093,600

150,618
2,111,361
33,153
2,295,133

3,566,869
907,910
892,639(28,259)
5,339,159
22,384,280
32,630,314

4,283,327
926,164
880,890(28,259)
6,062,121
23,240,442
35,352,901

As of March 31, 2023
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Provision for loss on orders received
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
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 September 30, 2023

1,743,329
3,068,448
282,283
963,633460–
3,236,386
9,294,540

2,447,575
3,584,368
629,949
1,008,722
25,32844,1784,122,061
11,862,184

5,239,226
42,020190,961
281,746
5,753,953
15,048,493

4,065,842
53,398
153,881474,109
4,747,232
16,609,416

3,203,992
3,147,381
11,161,262(304,545)
17,208,090

3,203,992
3,147,381
11,819,605(304,649)
17,866,331

526,977

1,028,913(153,248)
373,729
17,581,820
32,630,314(151,760)
877,153
18,743,484
35,352,901

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended
Six months ended
September 30, 2022
September 30, 2023
Net sales
16,808,505
18,979,782
Cost of sales
13,278,434
14,749,651
Gross profit
3,530,0714,230,131
Selling, general and administrative expenses
2,470,540
2,654,503
Operating profit
1,059,530
1,575,628
Non-operating income
Interest income
225
Dividend income
32,58838,845Gain on investments in investment partnerships
6,416
3,781
Other
11,265
10,763
Total non-operating income
50,29253,395Non-operating expenses
Interest expenses
22,10918,391
Commission expenses
11,569
8,386
Share of loss of entities accounted for using equity
450
487
methodOther715
109
Total non-operating expenses
34,84427,374
Ordinary profit
1,074,9781,601,648
Extraordinary income
Gain on sale of non-current assets–
5,644
Gain on sale of investment securities
8,027–
Total extraordinary income
8,027
5,644
Extraordinary losses
Loss on cancellation of leases–
1,627
Loss on retirement of non-current assets
479
56
Loss on valuation of investment securities
49,999–Loss on sale of non-current assets
20,019–Total extraordinary losses
70,498
1,684
Profit before income taxes
1,012,506
1,605,608
Income taxes
364,146
563,627
Profit648,360
1,041,981
Profit attributable to owners of parent
648,360
1,041,981

5

Consolidated statements of comprehensive income (cumulative)

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

Six months ended
September 30, 2022
648,360(Thousands of yen)Six months ended
September 30, 2023
1,041,981(211,517)(13,865)(225,382)
422,977

501,936
1,488
503,424
1,545,405

422,977

1,545,405––

Consolidated statements of cash flows
Six months ended
September 30, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss on cancellation of leases
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Loss on retirement of non-current assets
Loss (gain) on sale of non-current assets
Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in contract liability
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
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments of leasehold and guarantee deposits
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Repayments of lease liabilities
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

7(Thousands of yen)Six months ended
September 30, 2023

1,012,506
923,140
14,814–78(32,610)
22,109479
20,01949,999128,633(23,845)(84,205)(45,980)(97,166)(237,990)
1,649,983
32,6101,605,608
1,006,813
14,814
1,627(147)(38,850)
18,39156(5,644)–(223,936)(50,068)
704,246
187,818
193,140
499,488
3,913,360
38,85016,16011,840(22,377)(518,181)
1,158,195(18,244)(228,156)
3,717,649(746,759)
24,770(422,847)(841)(39,460)
13,38410,000(1,397)(1,163,151)(800,548)
15,135(396,172)(2,264)(41,043)
17,494–(120)(1,207,519)–
1,800,000(1,553,604)(117)(374,640)(63,446)(191,808)(196,764)
3,684,659
3,487,894

1,000,000–(1,657,464)(103)(383,081)(41,550)(1,082,199)
1,427,930
2,310,183
3,738,113