Please note this report is a summary of disclosure documents prepared for the convenience of shareholders and other investors outside Japan. In the eventof any discrepancy between the translation and the Japanese original, the latter shall prevail.

January 30, 2024

Consolidated Financial Statements
for the First Nine Months of the Fiscal YearEnding March 31, 2024 [Japanese standard]
INES Corporation
Listing:
Representative:
Contacts:
Head Office:
URL:

Tokyo Stock Exchange (Code: 9742)
Koichi Yoshimura, President & Representative Director
Satoshi Numazaki, Assistant General Manager, Corporate Staff Division
Tel: +81-3-6864-3650
3-10-1, Harumi, Chuo-ku, Tokyo 104-0053, Japan
Tel: +81-3-6864-3650
https://www.ines.co.jp/en/

1. Consolidated Financial Results for the First Nine Months of the Fiscal YearEnding March 31, 2024 (April 1, 2023 to December 31, 2023)(1) Consolidated Operating Results(Million yen, figures in percentages denote year-on-year changes.)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales
Nine months ended Dec. 31, 2023

29,005(3.3)

1,168(44.4)

1,247(42.4)

709(46.9)

Nine months ended Dec. 31, 2022
29,988
5.2
2,100
63.5
2,166
58.0
(Note) Comprehensive income
Nine months ended December 31, 2023: ¥896 million (-27.8%)
Nine months ended December 31, 2022: ¥1,241 million (18.4%)

1,334

61.9

Profit per share (Yen)

Fully diluted profit per share(Yen)

Nine months ended Dec. 31, 2023

34.09

―

Nine months ended Dec. 31, 2022

64.17

―

(2) Consolidated Financial Position(Million yen)
Equity ratio (%)

Total assets

Net assets

51,67536,15770.0

As of March 31, 2023
48,52336,286(Reference) Shareholders’ equity As of December 31, 2023: ¥36,157 million
As of March 31, 2023: ¥36,286 million

74.8

As of December 31, 2023

2. Dividends
Dividends per share (Yen)End of Q1

End of Q2

End of Q3

Fiscal year end

Fiscal year ended March 31, 2023

―

20.00

―

Fiscal year ending March 31, 2024

―

25.00

―

Fiscal year ending March 31, 2024
(Forecast)

Annual

25.00

45.00

25.00

50.00

(Note) Revisions to dividend forecasts published most recently: No

3. Forecasts for Consolidated Financial Results for the Fiscal Year Ending March31, 2024 (April 1, 2023 to March 31, 2024)
Net sales

Operating profit(Million yen, figures in percentages denote year-on-year changes.)
Profit attributable toProfit per share
Ordinary profit
owners of parent(Yen)

Full year
41,500(2.1)
3,000(21.1)(Note) Revisions to results forecasts published most recently: No

2,800

1(27.9)1,700(33.1)

81.72

* Notes(1) Significant changes in subsidiaries during the first half under review (changes in subsidiaries causing achange in the scope of consolidation): No(2) Application of special accounting treatment to the preparation of consolidated financial statements: Yes(3) Changes in accounting policies and changes or restatement of accounting estimates
1. Changes in accounting policies associated with the revision of accounting standards, etc.: No
2. Changes in accounting policies other than 1.: No
3. Changes in accounting estimates: Yes
4. Restatement: No(4) Number of shares outstanding (common shares)
1. Number of shares outstanding at the term end (including treasury shares)
FY2024/3 Q3:20,900,000 shares
FY2023/3:
20,900,000 shares
2. Number of treasury shares at the term end
FY2024/3 Q3:
96,093 shares
FY2023/3:
104,676 shares
3. Average number of shares outstanding
FY2024/3 first nine months:
20,801,718 shares
FY2023/3 first nine months:
20,794,644 shares* Quarterly consolidated financial statements are placed outside the scope of quarterly reviews performed by acertified public accountant or an audit corporation.
* Explanation regarding the proper use of results forecasts and other important notes(Disclaimer regarding forward-looking statements)
Forward-looking statements such as results forecasts provided in this document are prepared based on currently
available information and assumptions that are deemed reasonable, but the Company does not intend to guarantee
their achievement. Actual results may differ significantly from the above forecasts for various reasons. For
conditions regarding the assumptions for results forecasts and notes on the use of results forecasts, etc., please referto page 4 of the accompanying materials “1. Qualitative Information on Financial Results for the First Nine Monthsof the Fiscal Year Ending March 31, 2024, (3) Explanation on future forecast information such as consolidated
results forecasts.”

21. Qualitative Information on Financial Results for the First Nine Months of theFiscal Year Ending March 31, 2024
(1) External environment and the Company’s initiatives in the first nine months under review
During the first nine months under review, the Japanese economy was affected by global geopolitical risks.
Even so, the Nikkei stock average has been on an upward trend since the beginning of the year. In contrast, thereal GDP of Japan in July-September 2023 was down 0.7% quarter on quarter (or down 2.9% on an annualizedbasis). Despite high share prices and the depreciation of the yen, the real economic condition still appears toremain uncertain.
In addition, reflecting the recent shortage of human resources in particular, many companies are accelerating
their efforts to facilitate operational efficiency improvements and operational reforms through the utilizationof new technologies such as generative AI in Japan as well.
In this environment, the Group has been conducting its businesses with a focus on three basic policy measures,supporting the standardization of local governments’ WebRings information system to meet the national
government’s specifications, enhancing DX solutions and accelerating sustainable management, in the final
year of its 2023 Medium-term Management Plan.
In conjunction with the standardization of local governments’ WebRings information system, the Group wasaffected by the partial postponement of the deadline for transition in the standardization as a result of a change
in the basic policy for the standardization of local governments’ information system, which was decided by
the Cabinet on September 8, 2023. Even so, the Group is making preparations steadily for transition. Inaddition, to move the standardization of WebRings forward smoothly, the Group is working on project
management and operation and quality improvement initiatives by leveraging AI.
With respect to the enhancement of DX solutions, the Group is moving forward actively with the research anddevelopment of services to facilitate use of generative AI and large-scale language models (LLM) in local
governments and private companies.
Further, regarding the acceleration of sustainable management, it is working, from the perspective of humaninvestment, on the development of DX-oriented human resources, the promotion of new workstyles and thefacilitation of exchanges between individuals with diverse backgrounds, while also creating an environmentand culture in which all employees shine, grow sustainably and participate actively.
The Group, as an IT company that creates safety and innovation, will continue to take on challenges to create
new value and help customers develop their businesses, while simultaneously moving forward aggressively
with an eye toward the realization of a more prosperous and sustainable society.

(2) Details of operating results
Consolidated net sales for the first nine months under review decreased 3.3% year on year, to ¥29,005 million(please refer to “Consolidated net sales and operating profit in the first nine months of the past five fiscal years”
and “Consolidated net sales by sector,” which are shown in the tables below). Net sales in the Public sector
came to ¥12,530 million, a decrease of 6.4% year on year, chiefly due to a decrease in demand for replacement
prior to the standardization. Net sales in the Financial sector stood at ¥8,746 million, which was almost
unchanged from the previous year, or down 0.1% year on year. Net sales in the Industrial sector declined 1.5%year on year, to ¥7,729 million, mainly reflecting the reduction of backbone system development projects.
On the profit front, operating profit decreased 44.4% year on year to ¥1,168 million and ordinary profit fell
42.4% year on year to ¥1,247 million, largely reflecting a decrease in sales in the Public sector and an increasein costs due to the opening of new sales offices. As a result, the Company recorded a profit attributable toowners of parent of ¥709 million (down 46.9% year on year).

3Consolidated net sales and operating profit in the first nine months of the past five fiscal years(Million yen)Q3 of FY2023

Q3 of FY2019

Q3 of FY2020

Q3 of FY2021

Q3 of FY2022

Net sales

29,71328,64728,50029,98829,005

Operating profit

2,214

1,873

1,284

2,100

1,168

Consolidated net sales by sector(Million yen)

Nine months ended December 31, 2022
Category/Term

AmountComposition ratio(%)

Nine months ended December 31, 2023
AmountComposition ratio(%)

YoY change (%)

Public13,385

44.6

12,530

43.2

(6.4)

Financial

8,755

29.2

8,746

30.2

(0.1)

General industry

7,846

26.2

7,729

26.6

(1.5)

Total
29,988100.0
29,005100.0(3.3)(Note) Effective from the first quarter of the fiscal year under review, net sales of the Group companies that were included in Other
previously have been reclassified and presented in the Public, Financial and General Industry sectors due to the restructuringof the Group’s businesses. Net sales in the first nine months of the previous fiscal year are reclassified and presented in thesame way.

Consolidated net sales by product/service(Million yen)

Nine months ended December 31, 2022Category/Term

AmountComposition ratio(%)

Nine months ended December 31, 2023
AmountComposition ratio(%)

YoY change (%)

System development

11,47438.3

10,90237.6(5.0)

System operation

11,251

37.5

10,66036.8(5.3)

System maintenance

3,566

11.9

3,652

12.6

2.4

Sales of informationequipment

666

2.2

764

2.6

14.7

Other

3,029

10.1

3,025

10.4

(0.1)

Total

29,988100.0

29,005100.0(3.3)(3) Explanation on future forecast information such as consolidated results forecasts
The consolidated financial results forecast and dividend forecast published on October 30, 2023 remainunchanged.
(Caution on future forecast information)
Forward-looking statements such as results forecasts provided in this document are prepared based on currently
available information and assumptions that are deemed reasonable, but the Company does not intend toguarantee their achievement. Actual results may differ significantly from the above forecasts for variousreasons.

4Quarterly Consolidated Financial Statements and Important Notes
Quarterly consolidated balance sheet
As of March 31 and December 31, 2023
As of March 31, 2023
ASSETS
Current assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Securities
Work in process
Raw materials and supplies
Prepaid expenses
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netTools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

5(Million yen)
As of December 31, 2023

9,376

7,588

11,960

8,328

2,300
268
66
454
514
(16)
24,924

–
637
46
483
843
(13)
17,916

3,710(3,204)506
4,583(3,494)
1,089
3
1
1,600

4,060
(3,071)988
4,480(3,470)
1,010
5,281
3,953
11,234

2,241
24
2,265

2,477
23
2,501

13,236
678
4,490
1,328
19,733
23,59948,523

13,400
654
4,544
1,424
20,02333,75851,675

Quarterly consolidated balance sheet
As of March 31 and December 31, 2023
As of March 31, 2023
LIABILITIESCurrent liabilities
Accounts payable - trade
Current portion of long-term borrowings
Accrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Provision for losses on orders received
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors(and other officers)
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock
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
incomeTotal net assets
Total net assets and liabilities

6(Million yen)
As of December 31, 2023

2,006–1,261
908
363
191
959

1,685
208
965
250
222
217
426

73

60

48–
601
6,414

41
335
984
5,397

–

4,791

102

109

4,608
276
834
5,822
12,237

4,270
147
800
10,11915,517

15,00010,10011,682(155)
36,627

15,00010,09911,351(139)
36,312

(179)

(44)

(162)

(109)

(341)

(154)

36,28648,52336,15751,675

Quarterly consolidated statement of income
For the nine months ended December 31, 2022 and 2023
First nine months ofFY2022(April 1, 2022 toDecember 31, 2022)
29,98823,273
6,714
4,614
2,100

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividends income
Dividend income of insurance
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in investment partnerships
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to owners of parent

7(Million yen)First nine months ofFY2023(April 1, 2023 toDecember 31, 2023)
29,00522,903
6,102
4,933
1,168

38
11
6
13
69

39
27
10
14
92

0
–
2
2
2,166

5
5
2
13
1,247

–
–
–

5
18
24

0
99
99
2,067
732
1,334
1,334

6
–
6
1,265
556
709
709

Quarterly consolidated statement of comprehensive income
For the nine months ended December 31, 2022 and 2023

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
Comprehensive income attributable to owners of parent

8First nine months ofFY2022(April 1, 2022 toDecember 31, 2022)
1,334(Million yen)First nine months ofFY2023(April 1, 2023 to
December 31, 2023)
709(205)
112(92)
1,241

134
52
187
896

1,241896

Quarterly consolidated statement of cash flow
For the nine months ended December 31, 2022 and 2023
(Million yen)First nine months of First nine months ofFY2022
FY2023(April 1, 2022 to(April 1, 2023 to
December 31, 2022) December 31, 2023)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in provision for loss on order received
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in retirement benefit liability
Loss (gain) on liquidation of subsidiaries and associates
Loss on retirement of non-current assets
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in other liabilities
Other, net(Subtotal)
Income taxes refund
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Net decrease (increase) in short-term investment securities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of long-term prepaid expenses
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from liquidation of subsidiaries and associates
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Payments for asset retirement obligations
Other, net
Net cash provided by (used in) investing activities

9

2,067
1,432
99
(599)

1,265
1,336
–
(533)

(16)

(12)

(22)

(7)

(9)

7

(72)
–
0–
522
(367)
(32)
(509)
292(60)2,722
12(819)
1,915

(280)
(18)
6(5)
3,657
(349)
(41)
(383)
(828)
(52)
3,759
6(1,258)
2,507

0–
(368)
(407)
(143)
(2)
––
(271)
55
(1)
13(1,125)

(999)
2,300
(9,489)
(765)
(240)
(10)
5
30(164)66(5)
1(9,271)

(Million yen)First nine months of First nine months ofFY2022
FY2023(April 1, 2022 to(April 1, 2023 to
December 31, 2022) December 31, 2023)
Cash flows from financing activities
Proceeds from long-term borrowing
Repayments of lease obligations
Purchase of treasury shares
Cash dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Beginning cash and cash equivalent balanceEnding cash and cash equivalent balance

10–
(12)
(1)
(807)
(821)
(31)
9,731
9,700

5,000
(10)
(1)
(1,010)3,977(2,787)
9,162
6,375