Member of the Financial Accounting Standards Foundation

Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced
for your convenience. Since no auditor audited this report, officially only the Japanese version is assumed to be thesummary of financial statements of the Company. This summary does not constitute any guarantee and the Company
will not compensate any losses and/or damage stemming from actions taken based on these statements. Should there
be any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.

July 12, 2024

Consolidated Financial Results for the Fiscal Year Ended May 31, 2024
<Japanese GAAP>
Listed company:
INTER ACTION Corporation
Listed stock exchange: Tokyo
Securities code:
7725
URL:
https://www.inter-action.co.jp/en/
Representative:
Nobuo Kiji, CEO & President
Contact:
Tomohiro Kitazawa, Corporate Strategy Team, President’s OfficeTelephone number: +81-45-263-9220
Planned Date of General Shareholders’ Meeting: August 23, 2024
Planned Commencement Date of Dividend Payments: August 26, 2024
Planned Filing Date of Securities Report: August 26, 2024
Preparation of explanatory materials for financial results: Yes
Holding of a briefing on financial results: Yes (For Institutional Investors, Analysts)(Amounts of less than one million yen are truncated)

1. Consolidated Financial Results for the Fiscal Year Ended May 31, 2024 (June 1, 2023 to May 31, 2024)(1) Consolidated operating results(% figures show year-on-year change)
Net sales
For the fiscal year ended

Millions of yen

Operating profit%%

Millions of yen%

May 31, 2024
7,754
13.1
1,577
1,637
8.9
8.9
May 31, 2023
6,856
14.0
1,448
1,503
28.2
25.6
(Note) Comprehensive income: the fiscal year ended May 31, 2024: \1,171 million / 19.6%
the fiscal year ended May 31, 2023: \979 million / 25.8%

1,132

15.4

981

28.9

Basic earnings
per share
For the fiscal year ended

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen

Profit toshareholders’equityDiluted earnings
per share

Ordinary profit toassetsOperating profit
to net sales

Yen

Yen

%

%

%

104.15

－

10.7

12.5

20.3

May 31, 2023
–
90.12
10.1
12.5
(Reference) Equity method investment gain (loss): the fiscal year ended May 31, 2024: \– million
the fiscal year ended May 31, 2023: \– million

21.1

May 31, 2024

(2) Consolidated financial position
Total assets

Net assets

Shareholders’ equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of May 31, 2024

13,653

11,04480.9

1,013.92

As of May 31, 2023

12,610

10,13280.4

934.91(Reference) Shareholders’ equity: As of May 31, 2024: \11,044 million
As of May 31, 2023: \10,132 million

(3) Consolidated cash flows
From Operating
Activities
For the fiscal year ended

From Investing
Activities

From Financing
Activities

Cash and Cash
Equivalents at End of
Fiscal Year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

May 31, 2024

8

(154)

(469)

6,312

May 31, 2023

438

(140)

(234)

6,852

2. Dividends
Annual dividends

Ratio of Total
Total AmountAmount ofDividendof CashDividends to
Payout Ratio
Dividends(consolidated) Shareholders’(annual)Equity(consolidated)First
quarterend

Secondquarterend

Third
quarterend

Fiscalyearend

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

May 31, 2023

–

0.00

–

25.00

25.00

274

27.7

2.8

May 31, 2024

–

10.00

–

25.00

35.00

387

33.6

3.6

–

10.00

–

25.00

35.00

For the fiscal year ended

Total

For the fiscal year ending

May 31, 2025
(Forecast)

68.1

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending May 31, 2025
(June 1, 2024 to May 31, 2025)(% figures show year-on-year change)
Net sales
Millions of yen

Full year

6,493

Operating profit% Millions of yen(16.3)

844

Profit attributable to Profit per
owners of parent
share

Ordinary profit% Millions of yen(46.5)

867% Millions of yen(47.0)

559

%

Yen

(50.6)

51.37(Note) The Company has implemented an ESOP and Directors’ stock compensation plan both in the form of stock
benefit trusts. Accordingly, profit per share is calculated based on the average number of shares during the fiscal
year, excluding the number of treasury shares, which includes Inter Action stock held by the stock benefit ESOP
trust accounts and Directors’ compensation stock benefit trust accounts.

* Notes(1) Change in significant subsidiaries during the period (changes in specified subsidiaries affecting the scope of
consolidation): None
New: - (Company name:) Excluded: - (Company name:)(2) Changes in accounting policies and estimates, and retrospective restatements(i) Changes in accounting policies in accordance with revision of accounting standards: None(ii) Changes in accounting policies other than item (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatements: None
(3) Number of shares issued (common stock)(i) Number of shares outstanding at end of period (including treasury shares)
As of May 31, 2024

11,510,200 shares

As of May 31, 2023

11,510,200 shares(ii) Number of treasury shares at end of period
As of May 31, 2024

617,607 shares

As of May 31, 2023

672,507 shares(iii) Average number of shares during period
Fiscal year ended May 31, 2024

10,875,748 sharesFiscal year ended May 31, 2023

10,886,767 shares(Note) The Company has implemented an ESOP and Directors’ stock compensation plan, both in the form of stock benefit trusts.
Accordingly, treasury shares, as stated, include Inter Action stock held by the stock benefit ESOP trust accounts andDirectors’ compensation stock benefit trust accounts.

(Reference) Outline of non-consolidated business results
Non-consolidated Financial Results for the Fiscal Year Ended May 31, 2024 (June 1, 2023 to May 31, 2024)(1) Non-consolidated financial results(% figures show year-on-year change)
Net sales
For the fiscal year ended

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

May 31, 2024

4,952

13.5

1,473

10.4

1,570

7.0

1,086

8.5

May 31, 2023

4,363

9.9

1,334

19.3

1,467

21.7

1,001

24.1

Profit per share
For the fiscal year ended

Profit per share–diluted
Yen

Yen

May 31, 2024

99.95

－

May 31, 2023

92.02

－

(2) Non-consolidated financial position
Total assets
As of May 31, 2024

Net assets

Shareholders’ equity ratio Net assets per share

Millions of yen

Millions of yen%

Yen

12,134

10,93490.1

1,003.81

91.0

932.54As of May 31, 2023
11,10010,106(Reference) Shareholders’ equity: As of May 31, 2024: \10,934 million
As of May 31, 2023: \10,106 million* The consolidated financial results are not subject to auditing by a certified public accountant or an audit firm.
* Proper use of earnings forecasts, and other special matters
The above forecasts of consolidated financial results are based on certain assumptions on economic situation, market
trends, etc. deemed to be reasonable when the forecasts were made. Consequently, actual results may differ from theforecasts due to a variety of future factors. For details of the above forecasts, refer to “(4) Forecasts” under “1.
Overview of Operating Results” (page 4) of the Attached Materials.

[Attached Materials]
Index
1. Overview of Operating Results…………………………………………………………………………….
(1) Overview of operating results for the fiscal year under review ………………………………………..
(2) Overview of financial position for the fiscal year under review ……………………………………….
(3) Overview of cash flows for the fiscal year under review ………………………………………………
(4) Forecasts ………………………………………………………………………………………………..
2. Basic Policy on the Selection of Accounting Standards …………………………………………………..
3. Consolidated Financial Statements and Notes …………………………………………………………….
(1) Consolidated balance sheets ……………………………………………………………………………
(2) Consolidated statements of income and consolidated statements of comprehensive income …………
(Consolidated statements of income) ………………………………………………………………
(Consolidated statements of comprehensive income) ………………………………………………
(3) Consolidated statement of changes in shareholders’ equity ……………………………………………
(4) Consolidated statement of cash flows …………………………………………………………………
(5) Note regarding the consolidated financial statements …………………………………………………
(Notes on premise of going concern) …………………………………………………………………
(Additional information) ………………………………………………………………………………
(Segment information) ………………………………………………………………………………..
(Information per share) ……………………………………………………………………………….
(Significant subsequent events) ………………………………………………………………………
4. Supplementary explanation of consolidated financial results for the fiscal year ended May 31, 2024 ..…
(1) Status of production, orders and sales …………………………………………………………………

-1-

2
2
3
3
4
5
6
6
8
8
9
10
12
13
13
13
13
16
16
17
17

1. Overview of Operating Results(1) Overview of operating results for the fiscal year under review
1) Operating results for the fiscal year under review
Net sales and profits in the Inter Action Group’s financial results for the consolidated fiscal year under review
rose year on year.
The reason for increased net sales is strong sales of products in all segments.
The main reason for increased operating profit is strong sales of high-profit products in the Internet of things
related works segment and the decrease in the selling, general and administrative expenses.
As a result of these business activities, the Inter Action Group’s financial results for the consolidated fiscal
year under review were as follows. Net sales rose by 13.1% to 7,754 million yen (compared with 6,856 million
yen in the previous fiscal year); gross profit fell by 0.6 % to 3,306 million yen (compared with 3,326 million
yen in the previous fiscal year); operating profit rose by 8.9% to 1,577 million yen (compared with 1,448
million yen in the previous fiscal year); ordinary profit rose by 8.9% to 1,637 million yen (compared with
1,503 million yen in the previous fiscal year); and profit attributable to owners of parent excluding income
taxes rose 15.4% year on year to 1,132 million yen (compared with 981 million yen in the previous fiscal year).
Consolidated financial results on a quarterly basis are as follows:
Fiscal year ended
May 31, 2024
Net sales(Unit: Millions of yen)
Second quarterFirst quarter-end
Third quarter-end Fiscal year-end
Total
end
1,740

1,239

1,901

2,873

7,754

Operating profit

211

182

351

832

1,577

Ordinary profit

239

199

378

820

1,637

Profit attributable toowners of parent

150

119

279

583

1,132

Moreover, with respect to the Company’s non-consolidated financial results, net sales in the Internet of things
related works rose by 13.9% to 4,897 million yen (compared with 4,300 million yen in the previous fiscal
year). Net sales in the environmental energy related works fell 4.4% to 6 million yen (compared with 6 million
yen in the previous fiscal year), and net sales in the promotion business of Industry 4.0 fell by 14.5% to 48
million yen (compared with 56 million yen in the previous fiscal year).
As a result, the Inter Action Group’s financial results for the fiscal year under review were as follows. Net
sales rose by 13.5% to 4,952 million yen (compared with 4,363 million yen in the previous fiscal year);
operating profit rose by 10.4% to 1,473 million yen (compared with 1,334 million yen in the previous fiscal
year); ordinary profit rose by 7.0% to 1,570 million yen (compared with 1,467 million yen in the previous
fiscal year); and final profit rose by 8.5% to 1,086 million yen (compared with 1,001 million yen in the previous
fiscal year).
2) Business conditions by segment(Internet of things related works)
During the consolidated fiscal year under review, net sales to this segment’s external customers increased by
13.9% to 4,897 million yen (compared with 4,300 million yen in the previous fiscal year), and segment profit
increased by 10.8% to 2,401 million yen (compared with 2,167 million yen in the previous fiscal year). This
reflects strong sales of pupil lens modules compared with the previous fiscal year, as well as improved
profitability compared with the past with respect to inspection illuminators for domestic customers, due to ashift from existing low-margin models to new models.
Another factor is the decrease in selling expenses resulting from the decrease in sale of products for overseas
customers in compared with the previous fiscal year.
(Environmental energy related works)
During the consolidated fiscal year under review, net sales to this segment’s external customers increased by
38.4% to 1,052 million yen (compared with 760 million yen in the previous fiscal year), and the segment-2-

recorded profit of 39 million yen (compared with loss of 17 million yen in the previous fiscal year). This isbecause, compared with the previous fiscal year, main units in the drying deodorizer equipment area enjoyedstrong sales, and so did main units and high-profit maintenance projects in the exhaust gas treatment area.
(Promotion business of Industry 4.0)
During the consolidated fiscal year under review, net sales to this segment’s external customers increased by
0.5% to 1,804 million yen (compared with 1,796 million yen in the previous fiscal year), and segment profit
decreased by 87.5% to 16 million yen (compared with 135 million yen in the previous fiscal year). Thisdecrease reflects sluggish sales of gear testing systems, despite robust sales of precision vibration isolation
systems.
As in the third quarter, the decrease in segment profit is attributable also to expenses incurred, including
research and development expenses, in connection with AI image processing equipment as well as laser
business and other new businesses.
(2) Overview of financial position for the fiscal year under review
As of the end of the consolidated fiscal year under review (May 31, 2024), total assets amounted to 13,653
million yen, up 1,043 million yen compared with the amount held at the end of the previous consolidated fiscal
year on May 31, 2023.
Current assets amounted to 12,307 million yen, an increase of 1,011 million yen over the end of the previous
consolidated fiscal year. This was primarily because, although cash and deposits decreased by 538 million yen
and work in process decreased by 211 million yen, there was an increase of 281 million yen in accounts
receivable – trade and an increase of 1,622 million yen in electronically recorded monetary claims – operating.
Non-current assets amounted to 1,345 million yen, an increase of 32 million yen compared with the end of theprevious consolidated fiscal year.
As of the end of the consolidated fiscal year under review (May 31, 2024), liabilities amounted to 2,609 million
yen, which is an increase of 131 million yen compared with the end of the previous consolidated fiscal year.
This is mainly attributable to a 201 million yen increase of accrued consumption taxes (other current liabilities).
As of the end of the consolidated fiscal year under review (May 31, 2024), net assets amounted to 11,044
million yen, which is an increase of 911 million yen compared with the end of the previous consolidated fiscal
year. This is mainly attributable to recording of profit attributable to owners of parent of 1,132 million yen anda 126 million yen decrease in treasury shares, despite year-end dividends of 274 million yen in the previous
fiscal year and interim dividends of 110 million yen in the current fiscal year.
(3) Overview of cash flows for the fiscal year under review
For the consolidated fiscal year under review, cash and cash equivalents amounted to 6,312 million yen, which
is a decrease of 540 million yen compared with the balance at the end of the previous consolidated fiscal year.
The status of each type of cash flow for the consolidated fiscal year under review is as follows.
(Cash flow from operating activities)
Net cash provided by operating activities during the consolidated fiscal year under review amounted to 8
million yen (compared with net cash provided by operating activities of 438 million yen in the previous fiscal
year). This is mainly a result of having recorded profit before income taxes of 1,637 million yen, depreciationof 147 million yen, and a 425 million yen increase (decrease) in other assets/liabilities, despite a 1,924 million
yen increase in trade receivables and recording of 526 million yen in income taxes paid.
(Cash flow from investing activities)
Net cash used in investing activities during the consolidated fiscal year under review amounted to 154 million
yen (compared with net cash used in investing activities of 140 million yen in the previous fiscal year). This ismainly a result of having recorded 133 million yen in purchases of property, plant and equipment.
(Cash flow from financing activities)
Net cash used in financing activities during the consolidated fiscal year under review amounted to 469 million
yen (compared with net cash used in financing activities of 234 million yen in the previous fiscal year). This ismainly a result of having recorded 383 million yen in cash dividends paid.
-3-

The trend of cash flow indicators is as follows.

Shareholders’ equity ratio (%)
Shareholders’ equity ratio at market value (%)
Debt repayment period (years)
Interest coverage ratio (times)

For the fiscal year For the fiscal year
For the fiscal year
ended May 31, 2022 ended May 31, 2023 ended May 31, 2024
80.9
81.0
80.4
124.1
216.0
129.7
97.4
1.9
2.0
1.5
48.2
54.1

(Notes) Shareholders’ equity ratio: Shareholders’ equity ÷ Total assets
Shareholders’ equity ratio at market value: Market capitalization ÷ Total assets
Debt repayment period: Interest-bearing debt ÷ Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities ÷ Payment of interest* Market capitalization is calculated by multiplying the closing price of the Company’s shares at fiscal year-end by
the number of shares outstanding at end of period.

(4) Forecasts
1) Overall outlook
In the next consolidated fiscal year (fiscal year ending March 31, 2025), instability in the operating environment
is likely to persist notwithstanding the recovery trend in the semiconductor-related market, which is driven by
the increase in demand for generative AI, because there are concerns about growing risks of a global economic
downturn arising from prolonged inflation, exchange rate fluctuations caused by rises in policy interest rates in
the U.S. and Europe, economic stagnation in China, U.S.-China conflict, situations in Ukraine and the Middle
East, and other factors.
Under such circumstances, we anticipate the Group’s operating results in the next consolidated fiscal year torecord decreases in both net sales and profits, given the outlook for sluggish sales of products in the Internet ofthings related works and the Environmental energy related works segments, as well as expenses that are likely
to be incurred, including research and development expenses, in association with new businesses in the
Promotion business of Industry 4.0 segment.
(Millions of yen)

For the fiscal year ended For the fiscal year ending
Year-on-year rate (%)
May 31, 2024 (Actual)
May 31, 2025 (Forecast)
Net sales

7,754

6,493

(16.3)

Operating profit

1,577

844

(46.5)

Ordinary profit

1,637

867

(47.0)

Profit attributable to owners of parent

1,132

559

(50.6)

2) Business outlook by segment[1] Internet of things related works
For the segment as a whole, net sales are expected to decrease year on year.
With respect to customers’ investment trends in the next consolidated fiscal year, capital investment demand ofdomestic customers is expected to soften compared with the consolidated fiscal year under review inasmuch as
they carried out large-scale capital investment projects in the consolidated fiscal year under review.
With overseas customers, we expect their investment trend to remain unclear in the next consolidated fiscal year.
Still, there are signs of recovery in demand and sales volume of smartphones that had stagnated in some regions,which could prompt customers to gradually resume their moves to strengthen production capacity. As it ispossible that customers’ investment intention could change abruptly, we will strengthen our communication
with customers and keep a close watch on the trends.
In the image sensor market overall, we anticipate the market scale to expand along with further advancement ofsensor technology for application in mobile devices as well as growth of sensors for application in non-mobile
devices, such as automobiles. This leads us to believe that the operating environment in the future will be solid.
We forecast net sales in this segment for the full year of 3,800 million yen.
-4-

[2] Environmental energy related works
For the segment as a whole, net sales are expected to decrease year on year.
With respect to customers’ investment trends in the next consolidated fiscal year, we expect capital investment
demand in the drying deodorizer area to remain steady due in part to customers taking advantage of subsidies
for energy-saving investments. On the other hand, in the exhaust gas treatment system area, capital investment
demand is expected to soften in the next consolidated fiscal year compared with the consolidated fiscal year
under review, given several large-scale capital investment projects that were carried out in the consolidated
fiscal year under review.
We forecast net sales in this segment for the full year of 775 million yen.
[3] Promotion business of Industry 4.0
For the segment as a whole, net sales are projected to be higher compared with the consolidated fiscal year
under review, as we anticipate that sales of precision vibration isolation systems and gear testing systems willcontinue to be strong.
In the area of precision vibration isolation systems, we will aim for medium to long-term growth of the businessby differentiating ourselves from our competitors with vibration monitoring application, a new product, as welldata solutions that apply this application.
In the area of gear testing systems, some new products were launched in the consolidated fiscal year underreview. These include “gear roughness measuring system” that uses our measuring technologies and enables
application to new measurement items, and “AI image processing equipment” (device developed from the FA
image processing system) that enables visual inspection not only for gear inspection but also in various otherareas such as semiconductors, home appliances and musical instruments. We will continue to promote sales ofthese products in the next consolidated fiscal year and aim for their contribution to sales.
With the laser business, we will continue with market surveys and research and development activities while
determining the right timing for launching new products.
We forecast net sales in this segment for the full year of 1,917 million yen.

2. Basic Policy on the Selection of Accounting Standards
The Inter Action Group prepares its consolidated financial statements based on Japanese accounting standards,
taking into account the notions of consistency of the financial statements between different periods andcomparability between the financial statements of different companies.
As for the adoption of international accounting standards (IFRS), the Group will apply the appropriate policy
taking into consideration the situation both in Japan and overseas.

-5-

3. Consolidated Financial Statements and Notes(1) Consolidated balance sheets(Unit: Thousands of yen)
As of May 31, 2023
AssetsCurrent assets
Cash and deposits
Notes receivable – trade
Accounts receivable – trade
Electronically recorded monetary claims – operating
Operational investment securities
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
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6,863,003
22,747
825,942
730,787
39,149137,205
1,791,333
712,967
201,988(28,702)
11,296,423-6-

As of May 31, 2024

6,324,492
30,857
1,107,182
2,352,792
41,958167,729
1,579,954
686,873
85,612(69,519)
12,307,932

714,806

717,060△470,006
244,800
558,604(465,368)
93,236
165,149
635,832(485,571)
231,488
601,309(504,198)
97,110165,149
708,782(497,461)
138,370
641,556(564,996)
143,786
637,535

137,039
32,032
169,072

88,19654,620142,816

130,430
219,309
166,385

130,489
270,090
177,005(13,018)
503,106
1,313,735
12,610,159(11,967)
565,617
1,345,969
13,653,901

(Unit: Thousands of yen)
As of May 31, 2023
Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for product warranties
Provision for share awards for directors (and otherofficers)
Other

As of May 31, 2024

454,887
340,000
63,936306,275
15,979432,564
440,000
59,936324,156
10,709167,000

181,900

532,116

697,040

Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for share awards
Retirement benefit liability
Asset retirement obligations
Other

1,880,193

2,146,306

460,018
9,362
98,827
10,15019,308306,982
11,761
116,699
10,15017,754

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares

597,666
2,477,859

463,348
2,609,655

1,760,299
3,352,855
6,122,593(1,109,626)

1,760,299
3,352,578
6,869,751(983,327)

10,126,122

10,999,302

6,176

44,944

6,176
10,132,299
12,610,159

44,944
11,044,246
13,653,901

Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-7-

(2) Consolidated statements of income and consolidated statements of comprehensive income(Consolidated statements of income)(Unit: Thousands of yen)
For the fiscal year
ended May 31, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Sales commission
Remuneration for directors (and other officers)
Salaries and allowances
Retirement benefit expenses
Provision for product warranties
Research and development expenses
Commission expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Income from assets for rent
Foreign exchange gains
Subsidy income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Expenses of assets for rent
Share of loss of entities accounted for using equity method
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit attributable to owners of parent-8-

For the fiscal year
ended May 31, 2024

6,856,988
3,530,366
3,326,622

7,754,732
4,447,748
3,306,983

299,204
333,256
315,733
12,166
6,166
95,188172,947
643,219
1,877,885
1,448,736

79,442
303,971
361,944
11,9401,708
100,661
161,496
708,306
1,729,472
1,577,511

7,753
120
9,240
44,390166
11,33473,005

20,391
120
18,24057,415
15,726
9,146
121,039

8,072
7,397
－
2,692
18,162
1,503,580

5,635
7,490
44,2193,595
60,9401,637,610

307
307

27
27

－
－
1,503,887
521,019
1,754
522,774
981,113981,113578
578
1,637,059
555,157(50,780)
504,376
1,132,682
1,132,682

(Consolidated statements of comprehensive income)(Unit: Thousands of yen)
For the fiscal year
ended May 31, 2023
ProfitOther comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-9-

For the fiscal year
ended May 31, 2024

981,113

1,132,682(1,492)(1,492)
979,620

38,767
38,767
1,171,449

979,620

1,171,449－－

(3) Consolidated statements of changes in shareholders’ equity
For the fiscal year ended May 31, 2023 (June 1, 2022 – May 31, 2023)(Unit: Thousands of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current period

Capital surplus

1,760,299

Retained earnings

3,352,855

Treasury shares

5,362,752(1,142,686)

Total shareholders’ equity

9,333,221

Changes of items during period
Dividends of surplus
Profit attributable to owners of parent(221,272)(221,272)

981,113981,113Purchase of treasury shares(99,910)(99,910)

Transfer of treasury shares by trust

132,970

132,970

Net changes of items other thanshareholders’ equity－－

759,840

33,060792,901

1,760,299

3,352,855

6,122,593(1,109,626)

10,126,122

Total changes of items during period
Balance at end of current period

Accumulated other comprehensive income
Foreign currency translation
adjustment

7,669

Balance at beginning of current period

Total accumulated othercomprehensive income

7,669

Total net assets

9,340,890

Changes of items during period(221,272)

Dividends of surplus
Profit attributable to owners of parent

981,113Purchase of treasury shares(99,910)

Transfer of treasury shares by trust

132,970(1,492)(1,492)(1,492)

Total changes of items during period(1,492)(1,492)

791,408

Balance at end of current period

6,176

6,176

10,132,299

Net changes of items other than shareholders’ equity- 10 -

For the fiscal year ended May 31, 2024 (June 1, 2023 – May 31, 2024)(Unit: Thousands of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current period

Capital surplus

1,760,299

Retained earnings

3,352,855

Treasury shares

6,122,593(1,109,626)

Total shareholders’ equity

10,126,122

Changes of items during period
Dividends of surplus(385,523)(385,523)

Profit attributable to owners of parent

1,132,682

1,132,682(277)

113,920

113,643

Purchase of treasury shares(113,643)(113,643)

Transfer of treasury shares by trust

126,021126,021

Disposal of treasury shares

Net changes of items other thanshareholders’ equity

－

(277)

747,158

126,298

873,179

1,760,299

3,352,578

6,869,751(983,327)

10,999,302

Total changes of items during period
Balance at end of current period

Accumulated other comprehensive income
Foreign currency translation
adjustment

6,176

Balance at beginning of current period

Total accumulated othercomprehensive income

6,176

Total net assets

10,132,299

Changes of items during period
Dividends of surplus(385,523)

Profit attributable to owners of parent

1,132,682

Disposal of treasury shares

113,643

Purchase of treasury shares(113,643)

Transfer of treasury shares by trust

126,02138,767

38,767

38,767

Total changes of items during period

38,767

38,767

911,947

Balance at end of current period

44,94444,944

11,044,246

Net changes of items other than shareholders’ equity- 11 -

(4) Consolidated statement of cash flows(Unit: Thousands of yen)
For the fiscal year
ended May 31, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for product warranties
I Increase (decrease) in provision for share awards
Increase (decrease) in provision for share awards for directors(and other officers)
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses and guarantees
Foreign exchange losses (gains)
Loss on valuation of inventories
Loss on retirement of non-current assets
Loss (gain) on sales of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in investment securities for sale
Increase (decrease) in notes and accounts payable – trade
Increase/decrease in other assets/liabilities
SubtotalInterest and dividend income received
Interest and guarantees paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Redemption of bonds
Repayments of finance lease liabilities
Purchase of treasury shares
Proceeds from sales of treasury shares
Dividends paid
Commission expenses

1,503,887
131,846
48,842(68,523)(2,654)904

1,637,059
147,104
48,842
39,71534,00014,90010,719(7,873)
8,080(46,314)80,829－(307)(53,581)(832,248)(2,600)(30,008)
42,777
817,776
7,873(8,111)(378,768)
438,769

17,621－
1,300(127,290)
255(14,168)(428)－(140,332)
160,000(69,902)(30,000)(9,720)(99,910)36,426(221,475)–(234,582)
48,788112,643
6,740,352
6,852,995

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 12 -For the fiscal year
ended May 31, 2024

(5,294)
2,398(20,511)
5,635(58,877)
134,315578(27)(1,924,107)
86,716(2,808)(29,384)
425,895
519,772
20,511(5,712)(526,287)
8,283(3,979)2,400(133,720)
27(32,371)(17)
13,597(154,064)
100,000(157,036)－(8,770)(113,643)
137,615(383,505)(44,219)(469,558)
75,249(540,090)
6,852,995
6,312,905

(5) Note regarding the consolidated financial statements(Notes on premise of going concern)
No items to report.
(Additional information)(Stock benefit trust system that delivers company shares to employees through the trust)
1. Overview of transactions
The Company has adopted an incentive plan “Employee Stock Ownership Plan (J-ESOP)” (hereinafter, “theSystem”) for employees that offers them a stake in the Company’s shares. We hope this will help to enhance
employee motivation and morale, and thereby the Company’s stock price and performance, by increasing
the correlation between our stock price, business performance, and the treatment of employees, and sharing
the economic effects with our shareholders.
The system is a mechanism for distributing the Company’s shares to employees that meet certain criteria in
accordance with the stock benefit regulations established in advance by the Company. The Company willaward employees points according to their personal contribution, etc. and distribute shares equivalent to thepoints awarded when the entitlement is gained under certain conditions.
2. Shares of the company remaining in trust
Company shares remaining in trust are to be recorded at book value as “treasury shares” (excluding theamount of incidental costs) under net assets. The treasury shares in question had a book value of 13,486
thousand yen (26,900 shares) at the end of the previous fiscal year and 13,285 thousand yen (26,500 shares)at the end of the consolidated fiscal year under review.
(A performance-linked stock compensation system that distributes the company's shares via a trust to thedirectors)
1. Overview of transactions
We have adopted a “Board Benefit Trust” (hereinafter, “BBT”) that awards the Company’s shares todirectors. The purpose of the BBT is to further clarify the correlation between the remuneration of directors
and the Company’s performance and stock value. We hope this will not only contribute to boosting the stock
price, but also contribute to increasing awareness of the importance of improving earnings and expanding
corporate value over the longer term by sharing the risk of stock price downside with shareholders.
In the BBT system, the Company’s stock is acquired through a trust using funds contributed by the Company.
The BBT is a performance-based stock compensation plan in which the Company’s stock is paid annually
through a trust based on points granted to directors in accordance with their position and performance basedon the director stock benefit regulations established by the Board of Directors.
2. Shares of the company remaining in trust
Company shares remaining in trust are to be recorded at book value as “treasury shares” (excluding theamount of incidental costs) under net assets. The treasury shares in question had a book value of 367,080
thousand yen (127,228 shares) at the end of the previous fiscal year, and 354,902 thousand yen (153,728
shares) at the end of the consolidated fiscal year under review.
(Implications of Russia-Ukraine situation for accounting estimates)
As the future of the Russia–Ukraine situation is unclear and its impact on economic activities is highly
uncertain, we need to pay attention to any developments in the situation in the period ahead. However, we do
not expect these to have a major impact on accounting estimates for the end of the consolidated fiscal year
under review.
(Segment information)
1. Overview of reportable segments
The Inter Action Group has three reportable segments consisting of the “Internet of things related works,”“environmental energy related works,” and “promotion business of Industry 4.0.” Accordingly, the threesegments constitute those units of the company and its consolidated subsidiaries for which discrete financial
information is available and for which the Board of Directors regularly conducts review for the purpose of
making decisions about allocating management resources and assessing financial results.
The Internet of things related works segment mainly develops, manufactures and sells products such as
inspection illuminators used in manufacturing processes for imaging semiconductors (CCD and C-MOS- 13 -

image sensors) at the Company; the environmental energy related works segment mainly develops,
manufactures and sells Air Gases Technos Co., Ltd.’s drying deodorizers for web offset printing presses,
exhaust gas treatment systems and other such products; and the promotion business of the Industry 4.0
segment mainly develops, manufactures and sells products such as precision vibration isolation systems,
particularly of Meiritz Seiki Co., Ltd. and its subsidiaries, and also plans, designs, manufactures, and sells
gear testing machines of Tokyo Technical Instruments Inc. and its subsidiaries.
2. Methods for calculating the monetary amount of sales, income (loss), assets, liabilities and other items ofeach reportable segment
The accounting standards and methods that are used with respect to the reportable business segments are
generally identical to accounting methods applied to present consolidated financial statements, with the
exception of accounting standards for measures of inventories. The Company measures inventory assets atvalues prior to recording their book values on the basis of decreased profitability.
Income in the reportable segments is based on operating profit. Intra-segment internal income and transfer
amounts are based on actual market prices.
3. Information on the monetary amount of sales, income (loss), assets, and other items of each reportablesegment
For the fiscal year ended May 31, 2023 (June 1, 2022 – May 31, 2023)(Unit: Thousands of yen)Amount recorded inInternet ofthings related
works

Environmental
energy-related
business

Promotionbusiness ofIndustry 4.0

Total

4,300,755

760,109

1,796,123

6,856,988－

6,856,988

－

－

－

－

－

－

4,300,755

760,109

1,796,123

6,856,988－

6,856,988

Segment profit (loss)*2

2,167,077(17,953)

135,849

2,284,973(836,236)

1,448,736

Segment assets

9,628,199

898,028

1,983,754

12,509,982

100,176

12,610,159

Depreciation

79,252

3,331

35,788118,372

13,473

131,846

Increases in property, plant andequipment, and intangible assets

92,773－

48,100140,874584

141,459

Adjustments the Consolidated*1

Financial
Statements

Net sales
Sales to external customers
Intra-segment internal sales andtransfer amount
Total

Other items(Notes) 1. The adjustments consist of the following.
(1) The adjusted amount of segment profit (loss) includes negative 755,791,000 yen in Company-wide expenses(mainly expenses incurred by head office administrative operations), negative 80,829,000 yen in inventory
adjustments, and 384,000 yen in intra-segment elimination.
(2) The adjusted amount of segment assets includes Company-wide assets of 100,176,000 yen. The Companywide assets consist mainly of assets associated with the Company’s administrative operations.
(3) The adjusted amounts with respect to depreciation, or otherwise increases in property, plant and equipment,
and intangible assets are attributable to assets of head office administrative operations.
2. Segment profit (loss) is adjusted to operating profit in the consolidated financial statements.

- 14 -

For the fiscal year ended May 31, 2024 (June 1, 2023 – May 31, 2024)(Unit: Thousands of yen)Amount recorded inInternet ofthings related
works

Environmental
energy-related
business

Promotionbusiness ofIndustry 4.0

Total

4,897,752

1,052,023

1,804,956

7,754,732－

7,754,732

－

－

518

518

(518)

－

4,897,752

1,052,023

1,805,474

7,755,250(518)

7,754,732

Segment profit*2

2,401,496

39,424

16,9982,457,919(880,407)

1,577,511

Segment assets

10,673,709

722,195

2,158,622

13,554,527

99,373

13,653,901

Depreciation

76,805

1,639

54,527

132,972

14,131

147,104

Increases in property, plant andequipment, and intangible assets

57,608－107,298

164,907

1,184

166,091

Adjustments the Consolidated*1

Financial
Statements

Net sales
Sales to external customers
Intra-segment internal sales andtransfer amount
Total

Other items(Notes) 1. The adjustments consist of the following.
(1) The adjusted amount of intra-segment internal sales and transfer amount includes negative 518,000 yen in
intra-segment elimination.
(2) The adjusted amount of segment profit includes negative 746,146,000 yen in Company-wide expenses(mainly expenses incurred by head office administrative operations), negative 134,315,000 yen in inventory
adjustments, and 54,000 yen in intra-segment elimination.
(3) The adjusted amount of segment assets includes Company-wide assets of 99,373,000 yen. The Company-wide
assets consist mainly of assets associated with the Company’s administrative operations.
(4) The adjusted amounts with respect to depreciation, or otherwise increases in property, plant and equipment,
and intangible assets are attributable to assets of head office administrative operations.
2. Segment prof is adjusted to operating profit in the consolidated financial statements.

- 15 -

(Information per share)Previous consolidated fiscal year
(June 1, 2022 to May 31, 2023)

Current consolidated fiscal year
(June 1, 2023 to May 31, 2024)

Net assets per share

934.91 yen

1,013.92 yen

Basic earnings per share

90.12 yen104.15 yen(Notes) 1. Diluted earnings per share is not stated because there are no potential shares.
2. The basis for calculating profit per share and profit per share–diluted is as follows.
Previous consolidated fiscal year
(June 1, 2022to May 31, 2023)

Current consolidated fiscal year
(June 1, 2023 to May 31, 2024)

981,113

1,132,682－－

981,113

1,132,682

10,886,767

10,875,748

Profit per share
Profit attributable to owners of parent (thousands ofyen)
Amount not attributable to common shareholders(thousands of yen)
Profit attributable to owners of parent and available
to common shareholders (thousands of yen)
Average number of shares of common stock during
the fiscal year (shares)

3. The calculation of net assets per share includes Inter Action stock held by stock benefit ESOP trust accounts and Directors’compensation stock benefit trust accounts, in addition to treasury shares excluding the total number of shares issued andoutstanding as of the end of the fiscal year. The trust accounts held amounted to 154,128 Company shares as of the end of
the previous consolidated fiscal year (May 31, 2023), and 180,228 shares as of the end of the consolidated fiscal year underreview (May 31, 2024). The average number of shares of common stock during the fiscal year includes Inter Action stock
held by stock benefit ESOP trust accounts and Directors’ compensation stock benefit trust accounts, in addition to thetreasury shares excluded from the calculation. The average number of shares of Inter Action stock held by the trust accounts
amounted to 168,099 Company shares during the previous consolidated fiscal year, and 184,459 shares during theconsolidated fiscal year under review.

(Significant subsequent events)
No items to report.

- 16 -

4. Supplementary explanation of consolidated financial results for the fiscal year ended May 31,
2024(1) Status of production, orders and sales
In the consolidated fiscal year under review, the amount of orders received increased significantly year on year,
and the order backlog also recorded an increase, primarily in the Internet of things related works and thePromotion business of Industry 4.0 segments.
In the Internet of things related works, the increases are attributable to slow capital investment demand in theprevious fiscal year among image sensor manufacturers, our customer segment, and to robust capital
investment demand mainly among domestic customers in the fiscal year under review.
In the Promotion business of Industry 4.0, compared with the previous fiscal year, the amount of orders
received recorded a significant increase in the gear testing systems area, while the order backlog of increased
significantly in the precision vibration isolation systems area.
1) Production results

Segment

Previous consolidated
Current consolidated
fiscal year
fiscal year
(June 1, 2022 to May 31, 2023) (June 1, 2023 to May 31, 2024)(Thousands of Yen)

(Thousands of Yen)

Change(Thousands of Year-on-year
Yen)rate (%)

Internet of things related works

3,470,801

5,524,752

2,053,951

59.2

Environmental energy-related
business

805,981

973,855

167,873

20.8

Promotion business of Industry 4.0

1,829,015

1,751,176(77,838)

(4.3)

Total

6,105,798

8,249,784

2,143,986

35.1(Notes) 1. Amounts presented above are based on sales amounts.
2. Production results include the results achieved with respect to outsourcing.

2) Orders received
Previous consolidated
Current consolidated
fiscal year
fiscal year
(June 1, 2022 to May 31, 2023) (June 1, 2023 to May 31, 2024)
Segment

Internet of things-related businessChangeAmount ofAmount of
Backlog ofAmount of
Backlog of
Backlog ofordersorders received
ordersorders received
ordersordersreceived(Thousands of (Thousands of (Thousands of (Thousands of(Thousands of(Thousands of
Yen)
Yen)
Yen)
Yen)
Yen)
Yen)
2,537,213

1,635,670

5,541,220

2,288,999

3,004,007

653,329

849,213774,113746,621527,393(102,591)(246,719)

Promotion business of Industry 4.0

1,355,783

236,058

1,555,641

262,054

199,858

25,995

Total

4,742,209

2,645,842

7,843,484

3,078,447

3,101,274

432,605

Environmental energy-related
business(Note) The above amounts do not include the results of the operations that engage in make-to-stock production.

- 17 -

3) Sales results

Segment

Previous consolidated
Current consolidated
fiscal year
fiscal year
(June 1, 2022 to May 31, 2023) (June 1, 2023 to May 31, 2024)(Thousands of Yen)

Internet of things-related business(Thousands of Yen)

Change(Thousands of Year-on-year
Yen)rate (%)

4,300,755

4,897,752

596,99613.9

760,109

1,052,023

291,913

38.4

Promotion business of Industry 4.0

1,796,123

1,804,956

8,833

0.5

Total

6,856,988

7,754,732

897,743

13.1

Environmental energy-related
business- 18 -