Briefing Materials
for Financial Results
Second Quarter of the
Fiscal Year Ending March 2024
I-NET Corp.
[TSE, Prime Market: 9600]
November 8, 2023

©2023 I-NET Corp. All Rights Reserved

Table of Contents
Summary
andearnings
forecast

By service

Financial
position

Figures for fiscal
year ending inMarch 2024

Dividends©2023 I-NET Corp. All Rights Reserved

Earnings summary

P.3

Summary of Quarterly Earnings

P.4

Earnings Progress

P.5

Reference: ESG and SDGs Management
P.18-P.21

Information processing services

P.6

Reference: Company Overview

System development services

P.7

Trends in net sales by service

P.8

Reference: Topics

P.16

P.23-P.32

Summary of Consolidated Balance Sheet P.9
Summary of Consolidated Cash Flow

P.10

YoY comparison

P.11

Earnings by service (first half)

P.12

Dividends

P.13
2

Earnings summary
Net sales

Net sales were strong in the first half, reaching arecord highYoY change

18,979 million+2,171 million+12.9％
yen
yen
Operating income

1,575 million
yen

Net income
attributable toowners of parent

1,041 million
yen＋48.7％＋516 million
yen

YoY change＋393 million＋60.7％
yen
Gross profit

Information processing services

200, 5%

4,230

System development services

1,545

7,430

36%

39%

57%

Last year’s spike in electricity fees abated and the costof sales was successfully reduced through energy
savings at data centers. Together with the increase inrevenue, this resulted in a 700 million yen increase ingross profit.
This was enough to cover an increase in SG&A
expenses, mainly higher personnel costs, leading to a
substantial increase in operating income.

Net income for the first half was also strong

•
•

•
•
•

2,484
59%

©2023 I-NET Corp. All Rights Reserved•

No significant extraordinary losses were recorded during
the first half.
Net income reached 51.6% of the full-year forecast of
2,020 million yen.

Returning more profits to shareholders

Product sales

10,725

Information processing services continued to be solid.
In addition to higher revenue from cloud services for
SaaS, mailing services recovered. Sales of our own
services such as PROPANET sales management
platforms for propane gas were strong.
We achieved an increase in revenue in systemdevelopment services thanks to solid performance inareas such as invoicing services and development
projects for our financial services, despite delays in thedevelopment of some contracted projects and delays
due to external factors such as the postponement ofsatellite launches.

Operating income increased significantly YoY in thefirst half due to higher revenue and a successful
reduction in the cost of sales•
Unit: million yen

18,979 823, 4%•

YoY change

Breakdown by service
Net sales•

Annual dividends of 52 yen per share are planned in thefiscal year ending in March 2024.
Shareholder benefits were also expanded, and thoseholding 100 shares as of the end of September became
eligible for benefits (500 yen QUO card Pay).
The number of shareholders has doubled over the past
two years to 10,154 as of the end of September 2023.
Shareholders with 100 shares (one trading unit) or moreincreased by approximately 1.7 thousand over the past
half-year to exceed 7 thousand as of the end of
September 2023.

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
Operating income (Quarterly)

Net sales (Quarterly)

Unit: million yen

Unit: million yen

Up 26%Up 10%

10,0008,000

8,902 8,711

8,553

9,000

7,157

9,468

9,184

Recordhigh

1,000

The line graph shows theoperating income rate

9,795

900

Impact of spikein electricity fees

800

7,905

7,777 7,681

832

7,000

600

3,000

12.0%

7.1%

301

8.3%

323

4.2%

8.2%

292

4.1%

8.0%
7.2%
6.0%
4.0%

3.4%

2.0%

100

1,000
0

10.0%
9.4%

8.8%

200

2,000

14.0%

9.7%

400
300

16.0%

657

500
5,000

1Q

2Q

3Q

FY3/2022

4Q

1Q

2Q

3Q

FY3/2023

4Q

1Q

2Q

FY3/2024

0

20.0%
18.0%

548

6,000

4,000

918

776

736

685

700

Record
high

1Q

2Q

3Q

FY3/2022

4Q

1Q

2Q

3Q

FY3/2023

4Q

1Q

2Q

0.0%

FY3/2024

Q2 FY2024: Earnings were the highest on record and the operating income rate was 9.4%, higher even than Q2 inthe two previous years• Net sales in Q2 grew solidly, increasing by 10% YoY and 26% from the same period two years ago.
• Operating income in Q2 was also the highest on record, with the operating income rate breaking free of the weight of the spike inelectricity fees to maintain a high level.

©2023 I-NET Corp. All Rights Reserved

Note: Amounts are rounded down to the nearest decimal andthe operating income rate is rounded to two decimal places.

4Earnings Progress
Net sales have remained within the forecast range but income is ahead of the forecast, with the income rate
improving due to the effect of a lower cost of sales
However, the full-year earnings forecast for the fiscal year ending in March 2024 has been left unchanged inview of the possible impact of changes in foreign exchange rates and the international situation regarding raw
material prices and especially electricity fees

Q2 FY3/2024(Unit: Million yen)

Progress rate ofEarnings forecasts Q2 FY3/2024
FY3/2024(announced on May 9, 2023)

18,97937,70050.3%

Operating income

1,575

2,750

57.3%

Ordinary income

1,601

2,900

55.2%

Net income attributableto owner of parent

1,041

2,020

51.6%

Operating income rate

8.3%

7.3%

+1.0 points

Ordinary income rate

8.4%

7.7%

+0.7 points

Net income rate

5.5%

5.4%

+0.1 points

Net sales©2023 I-NET Corp. All Rights Reserved

5

Information processing services

Factors behind changes in net sales

Data center and cloud servicesCompany's own cloud services
Cloud services for companies (SaaS, etc.)
Co-location services for companies




cloud

Platform for sales management and payment platforms(domestic market share over 30%) for SS (service stations)Platform for fee settlement compatible with smart meters
for propane gas businesses (brand name: PROPANET)Up 13.1% YoY
Up 860 million yen

Mailing servicesPrinting and mailing services for general corporations andgovernment agencies
Hybrid distribution service combining printed materials and e-mailNet sales by service
Unit: million yen

Q2 FY3/2023

Mailing

services

services

905

1,188

14% Data center,

16%

services

2,137

データセンター
cloud
クラウド
3,526
54%

32%

Fluctuations in
profitability

7,430

Mailing

calculation

Commissioned
calculation
services

2,160

Effect of higher
revenue
Fluctuations in
Effect of higher profitability
revenue

Data center,
cloud
4,081

Data center,
cloud

+202

(18)

Commissioned
calculation
services(10)Effect of higher
revenue

Unit: million yen

Fluctuations in
profitability

Mailing
services+128

Up 26.1% YoY
Up 319 million yen

55%

29%

Q2 FY3/2023©2023 I-NET Corp. All Rights Reserved

Q2 FY3/2024

Q2 FY3/2023

Factors behind changes in gross profit

Q2 FY3/2024

6,570

Commissioned

Mailing
services

Commissioned
calculation
Data center,
services

Commissioned calculation services

Unit: million yen

Q2 FY3/2024

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.

6System Development Services
Commissioned development









Factors behind changes in net sales

System for energy industry-related companies
System for financial institutions
System for transportation system-related companies
Space-related systems (commissioned development,
inspection / tests and operation / evaluation analysis)
System for the distribution industry, general companies,
and manufacturers
security-related system
System for communication businesses
Embedded control related system

Hardwaredevelopment, etc.（*）
Softwaredevelopment

System product development


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

Softwaredevelopment
Hardwaredevelopment, etc.

Up 13.3% YoY
1,263 million yen increase
Q2 FY3/2023

Q2 FY3/2023

Q2 FY3/2024

Rate ofchange

8,539

9,785

14.6%

922

939

1.8%

Fluctuations in Effect of higher
profitability
revenue
Effect of higher
revenue

Softwaredevelopment（*） Incidental to commissioned software development（Unit: Million yen）

Fluctuations in
profitability

Hardwaredevelopment, etc.（*）

+25

+317

Up 13.7% YoY
341 million yen increase
Q2 FY3/2023©2023 I-NET Corp. All Rights Reserved

Q2 FY3/2024

Factors behind changes in gross profit

Net sales by service
Net sales(million yen)

（Unit: Million yen）

Q2 FY3/2024
Note: The amounts are rounded off to the nearest whole number andthe rate of year-on-year change is rounded to two decimal places.

7Trends in net sales by service
Information processing services（Unit: 100 million yen）

101

101

108

125

64

67

137

91

96

Data center,
cloud

29

32

37

38

41

commissioned
calculation

36

37

36

36

36

36

39

40

41

43

Mailing
services

23

23

23

25

24

19

18

15

16

21

3/FY2014
'14/3

'15/3
'16/3
3/FY2015
3/FY2016

45

'17/3
'18/3
'19/3
3/FY2018
3/FY2019
3/FY2017

System development services（Unit: 100 million yen）

131
113

117

141
124

139
125

143

129

148

'20/3
3/FY2020

189

172

74
41
22
12

54

Q2
3/FY2024
'21/3
'22/3
'23/3
24/3
2Q
3/FY2022
3/FY2023
3/FY2021

169

154

175

159

198

179

107
98

Hardware,other

Previous fiscal year

Softwaredevelopment

135

164

52

74

%

88

98

Previous fiscal year119

3/FY2014'14/3©2023 I-NET Corp. All Rights Reserved%

54

3/FY2015'15/3 3/FY2016'16/3

3/FY2017
Q2 3/FY2024'17/3 3/FY2018'18/3 3/FY2019'19/3 3/FY2020'20/3 3/FY2021'21/3 3/FY2022'22/3 3/FY2023'23/3 24/3
2Q
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.

8Summary of Consolidated Balance Sheet
End of March 2023

End of Q2 FY3/2024（Unit: Million yen）

（Unit: Million yen）

Current assets Total liabilities
15,048
10,246
Cash and deposits 2,310
Accounts receivable 7,287

Non-current
assets22,384
Buildings and structures 10,362
Land 2,966
Intangible fixed assets 2,093
Investment securities 3,566

Current liabilities 9,294
Non-current liabilities 5,753

Interest-bearing liabilities
Short-term 3,068
Long-term 5,239(YoY ＋1,866)

Cash and deposits 3,738
Accounts receivable 7,511

Non-current
assets23,240Total liabilities
16,609(YoY +1,560)

Current liabilities 11,862
Non-current liabilities 4,747
Interest-bearing liabilities
Short-term 3,584
Long-term 4,065(YoY +856)

Net assets
17,582

Total assets: 32,630;
Shareholders' equity ratio: 53.9%©2023 I-NET Corp. All Rights Reserved

Current assets
12,112

Buildings and structures 10,139
Land 2,959
Intangible fixed assets 2,295
Investment securities 4,283

Net assets
18,743(YoY +1,161)

Total assets: 35,352;
Shareholders' equity ratio: 53.0%
Note: Amounts are rounded down to the nearest decimal and theShareholders' equity ratio is rounded to two decimal places.

9Summary of Consolidated Cash Flow
（Unit: Million yen）

Tangible fixed assets(800)(primarily investments to augment data center capacity)
Purchase of intangible assets(396)
Purchase of investment securities(41)
Proceeds from sale of assets, etc.
(15)
Other
44

Income taxes(228)

Profit before income taxes
1,606
Depreciation
1,022
Increase in working capital, etc. 1,318

Operatingactivities（excluding
income taxes）

Investingactivities(1,208)Decrease inborrowings(699)

Dividend
payments(383)©2023 I-NET Corp. All Rights Reserved+3,718Cash anddeposits

Cash anddeposits
End-March 2023

Cash flow provided byoperating activities

Cash flow used forfinancing activities(1,082)

Cash and deposits increased due to solid progress in operating
activities and the easing of capital investment

End of Q2 FY3/2024
Note: Cash and deposits are rounded down to the nearest decimal and the breakdown
is rounded off to the nearest whole number in principle.

10Year on year comparison(Unit: Million yen)

Q2 FY3/2023
AmountQ2 FY3/2024

Relative tosales

AmountYoY change

Relative tosales

ChangeRate ofchangeNet sales

16,808100.0%

18,979100.0%

2,171

12.9%

Cost of sales

13,27879.0%

14,749

77.7%

1,471

11.1%

Gross profit

3,530

21.0%

4,230

22.3%

700

19.8%

SG&A expenses

2,470

14.7%

2,654

14.0%

183

7.4%

Operating income

1,059

6.3%

1,575

8.3%

516

48.7%

Ordinary income

1,074

6.4%

1,601

8.4%

526

49.0%

648

3.9%

1,041

5.5%

393

60.7%

Net income attributableto owners of parent©2023 I-NET Corp. All Rights Reserved

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.

11

Q2 FY3/2024 earnings by service(Unit: Million yen)

Q2 FY3/2023
AmountQ2 FY3/2024

Profit rate

AmountYoY change

Profit rate

ChangeRate ofchangeInformation
processing
services

Net sales

6,570

--

7,430

--

860

13.1%

Gross profit

1,225

18.7%

1,545

⤴ 20.8%319⤴ 26.1%

Systemdevelopment
services

Net sales

9,462

--

10,725

--

1,263

13.3%

Gross profit

2,142

22.6%

2,484

⤴ 23.2%341⤴ 16.0%Net sales

776

--

823

--

47

6.1%

Gross profit

161

20.8%

200

⤴ 24.3%38⤴ 23.7%

Net sales

16,808--18,979

--

2,171

12.9%

Gross profit

3,530

21.0%

4,230

⤴ 22.3%700⤴ 19.8%

Product sales

Total©2023 I-NET Corp. All Rights Reserved

Note: 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 two decimal places.

12Dividends
Dividend of 26 yen per share for the second quarter of the fiscal
year ending in March 2024 (interim dividend)

Annual dividends per share of 52 yen (up 4 yen YoY)
Aim to maintain a dividend payout ratio of 40% or more
and increase dividends for the 12th consecutive fiscal year
Trend in dividends per share (yen) and dividend payout ratio (%)
60

Plan

50
40

36 yen38 yen40 yen43 yen46 yen47 yen48 yen52 yen

40%
30%

20

20%

10
0

10%
Mar 2017

Mar 2018

Mar 2019

Mar 2020

Mar 2021

Mar 2022

Mar 2023

Fiscal year-end

18.0

19.0

20.0

21.5

24.0

23.5

24.0

26.0 Plan

Interim

18.0

19.0

20.0

21.5

22.0

23.5

24.0

26.0

Dividend payout ratio

44%

44%

42%

41%

49%

44%

57%

41% Plan©2023 I-NET Corp. All Rights Reserved

60%
50%

30

(Unit: Yen)70%

Mar 20240%13

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.

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

Inquiries
Corporate Strategy and Investor Relations
TEL
045-682-0806
E-Mail contact_ir@inet.co.jp

14Summary
andearnings
forecast

By service

Financial
position

Figures for fiscal
year ending inMarch 2024

Dividends©2023 I-NET Corp. All Rights Reserved

Earnings summary

P.3

Summary of Quarterly Earnings

P.4

Earnings Progress

P.5

Reference: ESG and SDGs Management
P.18-P.21

Information processing services

P.6

Reference: Company Overview

System development services

P.7

Trends in net sales by service

P.8

Reference: Topics

P.16

P.23-P.32

Summary of Consolidated Balance Sheet P.9
Summary of Consolidated Cash Flow

P.10

YoY comparison

P.11

Earnings by service (first half)

P.12

Dividends

P.13
15

Topics
Awarded “2023 Darktrace Partner of
the Year (Japan)” by Darktrace
I-NET signed a sales agency agreement with
Darktrace Holdings Limited, a global leader in AI
cybersecurity, on July 21, 2022. Over the past year,
we have installed Darktrace cybersecurity products at
15 companies. These achievements have beenrecognized with the “2023 Darktrace Partner of theYear (Japan)” award, which is presented to the sales
agent with the most outstanding accomplishments inJapan. Darktrace uses unique self-learning AI
technology to autonomously detect, investigate, andblock all forms of threat on the network through an
integrated platform.

Held a data center field trip
for children
I-NET held a field trip to a data center as a summer
vacation event for children. The event was aimed at
encouraging children, the leaders of the future, togain an interest in IT. As part of this initiative, we
presented children with illustrated pamphlets aboutdata centers and held a field trip to I-NET’s own
data center for elementary school children and theirparents.

By selling Darktrace
products, we willcontinue to support
companies’ security
countermeasures.

©2023 I-NET Corp. All Rights Reserved

16Summary
andearnings
forecast

By service

Financial
position

Figures for fiscal
year ending inMarch 2024

Dividends©2023 I-NET Corp. All Rights Reserved

Earnings summary

P.3

Summary of Quarterly Earnings

P.4

Earnings Progress

P.5

Reference: ESG and SDGs Management
P.18-P.21

Information processing services

P.6

Reference: Company Overview

System development services

P.7

Trends in net sales by service

P.8

Reference: Topics

P.16

P.23-P.32

Summary of Consolidated Balance Sheet P.9
Summary of Consolidated Cash Flow

P.10

YoY comparison

P.11

Earnings by service (first half)

P.12

Dividends

P.13
17

ESG and SDGs Initiatives (Environment)
Achieving Carbon Neutrality by 2050

Participation in the TCFD Consortium

As part of its earnest efforts to address global
environmental issues, the I-NET Group has declared
its support for the recommendations of the Task
Force on Climate-related Financial Disclosures(TCFD). We aim to achieve net zero greenhouse gas
emissions across the entire I-NET Group value chain
by FY2050. As a first step toward achieving this goal,
we will transition part of the electric power consumed
at I-NET’s data centers to renewable energy-sourced
electricity by FY2030. This initiative is expected toreduce the I-NET Group’s greenhouse gas emissions(Scope 1 and 2 equivalent) by at least 33.6%
compared to FY2022.

I-NET has joined the TCFD Consortium, a forum fordiscussion between companies and financial
institutions that endorse the recommendations of the
Task Force on Climate-related Financial Disclosures(TCFD).
Through our participation in the Consortium, we will
strengthen our efforts to analyze and address thebusiness risks and opportunities brought by climatechange and disclose information related to these
efforts.

Note: As part of its earnest efforts to address
global environmental issues, the I-NET Groupdeclared its support for the recommendationsof the Task Force on Climate-related Financial
Disclosures (TCFD) in August 2023.
©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.

■Main tasks
Data entry
Scanning

Light work
Preparation ofbusiness cards, etc.

Revamped in June 2022,
and parenting blog launched.

©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

FY23: 29 organizations
FY22: 27 organizations
FY21: 22 organizations

The foundation carries out the following
projects in the Kanagawa Prefecture region.
(1) Projects to support and provide subsidies or to assess
and award the sustainability and activities of organizations
that carry out activities related to the following:• Sound training and education of children and youth• Sound mental and physical development through sports• Improve public sanitation• Environmental conservation and infrastructure• Sound development of local community(2) Projects needed to achieve other objectives with publicbenefitInet 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
and physical 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

(certified for fifth year in a row)

PRIDE Index 2022
Earned highest rank of Gold

Certified by Ministry of
Economy, Trade, and Industry

Sponsored by work with
Pride

Main health-related initiatives
 Declared health management
 HR Department, Health Support
Office and Health Insurance
Association worked together©2023 I-NET Corp. All Rights Reserved

Platinum Kurumin
Certified by Ministry of
Health, Labour and Welfare

Eruboshi
Certified by Ministry of
Health, Labour and Welfare©2023 I-NET Corp. All Rights Reserved21Summary
andearnings
forecast

By service

Financial
position

Figures for fiscal
year ending inMarch 2024

Dividends©2023 I-NET Corp. All Rights Reserved

Earnings summary

P.3

Summary of Quarterly Earnings

P.4

Earnings Progress

P.5

Reference: ESG and SDGs Management
P.18-P.21

Information processing services

P.6

Reference: Company Overview

System development services

P.7

Trends in net sales by service

P.8

Reference: Topics

P.16

P.23-P.32

Summary of Consolidated Balance Sheet P.9
Summary of Consolidated Cash Flow

P.10

YoY comparison

P.11

Earnings by service (first half)

P.12

Dividends

P.13
22

Company Overview
Hybrid-type system company providing information processing services(stock-type 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,

 Founded: April 22, 1971
 Capital: 3,203 million yen

Yokohama, Kanagawa
 Founder: Noriyoshi Ikeda
 Representative: Tomomichi Saeki, 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)©2023 I-NET Corp. All Rights Reserved

No.1 Data CenterNo.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
to improve 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©2023 I-NET Corp. All Rights Reserved

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

Systemdevelopment
servicesManagement, smart meterand settlement systems
for propane gas companies

39%

57%
4%

Product
sales

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

Calculation andsettlement cloudservices for SS

Sales ofequipment
ancillary toservices

Wide-ranging cloudservices provided
using I-NET’s own
data center
Digitalmanagement ofdesign andconstruction
plans

Printing,
enclosing andmailing tax
payment
notifications

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

Call center
operations anddata entry work

25

Business strategies
Regardless of how society changes, the Group will expand business with and grow thenumber of services and partners on our platforms in a way adapted to these changes.
1. Development
systems
as a service

3. Initiatives for
new business

2. Strengthening
strategic collaboration

ExpandExpandSystemDevelopment

I-NET
Data Service

1st Data Center (Co-location/housing, mailing, BPO)

Mailing services (BPO)

Big data/
artificial intelligence (AI)Cloud services

Hybrid(paper/web)

１st Print Center

Plan to newly established 3rd Data Center (Cloud, co-location/housing, mailing, BPO)
©2023 I-NET Corp. All Rights Reserved

New business launches

2nd Data Center (Cloud, co-location/housing)Grow
Co-location/
housing

Data conversion
services

Integrated packages foruniversities

Payroll services

Groupware services

Various SaaS

Cloud OEM offerings

Security Services

Low-code development
environment
Aerospace-related
services

Cost management system

HydrogenStrategic collaboration
partners

Smart data center services

SoftwareControl

PROPANET

IST-Software

Commissioned
calculation
services(SS business)Feesettlement
Sales
management

I-NET
DigitalTransformation
Department

Unsecured loan system

Company's own
services

2nd Print Center

26

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
Invoicesent

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 Reserved27

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 Reserved28

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 ofprinting 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 byname Classification

Accounting
systemEmail notification

Output of forms
Download

Storing electronic data in a secureenvironment

Receiving box
for Company B

Business partner
contact

Business partner C
Download

Customer site

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

Receiving box forCompany C

Email notification

Business partner contact

29

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.
Credit information
centerAutomatic
report/referral toinformation center

Operation center● Receive, screen● Call center● Mailing● Card issuance

Creditinformation
centerCPU
connection

Inquiry

Business company’s division

Support for all
operations
occurring duringloan operations

Reports

Backbonesystem for loans

Encompasses every
step from deposit
management to loan
recovery

Applications accepted
ScreeningsupportWeb
customer
service

Internet

internet

Inbound
response

Convenienc
e storesettlement

RemindersConvenience store
Mobile phone●New application●Loan application●Repayment
reservation●Balance●Confirmationof intent
Reminder●Inquiry

Affiliated ATM●Repayment

Bank

Account transfer
by customer

Dedicated terminal → register

confirmation●History

Nighttimeprocessing andtransmission ofledgers

Instanttransfers

Instanttransfers

Storageagent

ReminderletterCardConnections
to affiliatedATM●Loans●Repayment●Withdrawal

confirmation

Customer©2023 I-NET Corp. All Rights Reserved

30

System development services

DX transition

Diverse security products provided, customers’ current status analyzed andthe optimal plan presented
Overall security image
Entry point measures

Malignant bots

Mitigation measures

Application
BackupEncryption measures

Indiscriminate
attackWi-Fi monitoring

Operation log management

Virtual©2023 I-NET Corp. All Rights Reserved

Securecommunication

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

IT assetmanagement

End-point measures

OT security

Forensic and data analysis

Strengthened
authentication

Entry and exit
management

Crime prevention
camera system

Facility monitoring

Malware and ransomware measures

Client security

Visibility

Administrator

Internal measures

Attacks targeting
setting leaks

Visibility

Exit measures

Information leakmeasures

Information
leak measures

Vulnerability diagnosis

Virus checks

Internal educationand training

New attack(zero-day attack)Password
management

ID management

cracker

Fraudulent accesstargetingcredentials andmalware infections

Certification file
Restrictions on devices
that can be brought in

Fraudulent
incursion/DDoS attack

Content

Entry point
measuresThreat intelligence

Port scan

Targeted attacks

Exit measures

Servers

Internal
measures
Facility
monitoring

Total security
solutions tailoredto diverse needsof customers

Measures fortelework
environment

etc…

Measures for teleworkenvironment

As of April 1, 2022

31

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

Source: "Illustration: Akihiro Ikeshita"

Experimental satellite
for space debris removal

Asteroid detector
Hayabusa

System design

Inspection/Test

Landing station operation(※Located on I-NET site)

Operation/Evaluation

Satellite development,
operation and data processing

Conceptual design

Manufacturing assemblyRocket launch

Operation

We support system design, inspection/test and operation/evaluation of artificial satellites and probes.

©2023 I-NET Corp. All Rights Reserved

32

Enjoy your life with information technology!
＜Disclaimer＞
These materials were prepared to provide information on the Group’s financial results and the Group’s businessstrategy 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 were based on the
Company’s assessments as of the time the materials were prepared. As a result, we do not guarantee that theseprojections will be achieved, and this information may change without advance notice.
The Company is not responsible for any losses resulting from the use of these materials. In addition, thesematerials are not be duplicated or reprinted without our permission.

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

Inquiries
Corporate Strategy and Investor Relations
TEL
045-682-0806
E-Mail contact_ir@inet.co.jp

33