Inet
July 31, 2024
To whom it may concern,
Company name

I-NET Corp.

Representative:Representative Director, Executive President

Tomomichi Saeki(TSE Prime Code No. 9600)
Inquires
Telephone

Executive Officer
Head of Management Planning Department

Masahiro Shiga

045 (682) 0806

Action to implement management that is conscious of the cost of capital and stock price
I-NET Corp. has been considering future initiatives based on an analysis of our current situation regarding
measures Action to implement management that is conscious of the cost of capital and stock price in response to arequest by the Tokyo Stock Exchange.
We hereby announce that the Board of Directors has resolved the following at a meeting held today.

Action to implement management that is conscious of the cost of capital and stock price

I-NET Corp.
(TSE Prime Market Code No. 9600)
July 31, 2024

©2024 I-NET Corp. All Rights Reserved

Action to implement management that is conscious of the cost of capital and stock price(1) Actions and initiatives in light of the current situation
The current situation

Action policies

Initiatives for this fiscal year The current cost of capital isaround 6% Achievement of the goals of the current
medium-term management plan
Operating margin of 8%, ROE of 10% ormore
ROE of 13% or more in the fiscal year
ending March 31, 2027

 Aggressive investment in growth areas from a
medium- to long-term perspective
A. Enhancing the platform strategy“Increasing” and “expanding” services

 ROE for the fiscal year ended
March 31, 2024: 11.7%
 Estimated PER: 11.4x*
 Actual PBR: 1.5x*

1) Offering services related to development systems
2) Enhancing strategic collaboration
3) New business initiatives

B. A third data center Laying the foundation for a new mediumterm management plan to start next fiscal  Improving capital efficiency
year(1) Reducing cross-shareholdings(2) Seeking appropriate shareholder equity
 Enhancing the data center business andenhancing the coordination of peripheral  Investments in non-financial assets
businesses Achieving sustainable shareholder
returns

 Increasing shareholder returns and improving IR(*) As of July 23, 2024
©2024 I-NET Corp. All Rights Reserved

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

2Action to implement management that is conscious of the cost of capital and stock price(2) Cost of capital and return on capital
Both the equity spread and EVA spread are positive and improved in the fiscal year ended March 31, 2024 compared tothe previous fiscal year
ROE and cost of shareholders’ capital

Fiscal year ended March 31, 2021

Fiscal year ended March 31, 2022

Cost of shareholders’capital

ROIC and WACC

Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024

Fiscal year ended March 31, 2021

Equity spread

Cost of shareholders’ capital= Risk-free rate of return + β x Risk premium

Fiscal year ended March 31, 2023

Fiscal year ended March 31, 2024

EVA spread

WACC (weighted average cost of capital)＝ Cost of shareholders’ capital ｘ E/(E+D)+ (Cost of debt after tax) x D/(E+D)

Risk-free rate of return: Yield on new 10-year government bonds, safe assets
Β (beta): 5 years of monthly data (at the end of the accounting period), the Company’s individual risk
Risk premium: Based on the percent change in the TOPIX (at the end of the accounting period), expectedmarket rate of return©2024 I-NET Corp. All Rights Reserved

Fiscal year ended March 31, 2022

E: Shareholders’ equity, D: Interest-bearing debt
Note: Data source: Nikkei Value SearchThis document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

3Action to implement management that is conscious of the cost of capital and stock price(3) Stock market valuation
 Both PER and PBR are improving as the stock price has increased since May 2023.
 Since April 2024, stock prices have entered an adjustment phase, and PER and PBR have both tended to decrease.

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

June 2024

March 2024

January 2024

November 2023

September 2023

July 2023

June 2023

March 2023

January 2023

November 2022

September 2022

July 2022

June 2022

June 2024

March 2024

January 2024

November 2023

September 2023

July 2023

June 2023

March 2023

January 2023

November 2022

September 2022

July 2022

May 2022

March 2022
©2024 I-NET Corp. All Rights Reserved

March 2022

Changes in the PBR

Changes in the PER

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Action to implement management that is conscious of the cost of capital and stock price(4) Initiatives to enhance corporate value: Enhancing the platform strategy
1) Offering services related to development systems
 Increasing sales of LOAN RANGER®UC and Supply Linker,
which are our own SaaS systems
 Received our first order for LOAN RANGER®UC in July 2024

Ourservices
Systemdevelopment
DXDepartment

SSDepartment

Servicesforstrategicpartners

DCDepartment

BPObusinessSIDepartment

IMS
Department

Subsidiaries

Data center(platform)

Affiliates

IMS Department

https://www.inet.co.jp/news/docs/20230731_03.pdf©2024 I-NET Corp. All Rights Reserved“Increasing” new services“Expanding” existing services

2) Enhancing strategic collaboration
 Released a SaaS-based management integration system incollaboration with our capital partner PRIMAL Inc.
 Enhancing partnerships with startups and enhancing services
deployed in our cloud Seeking to expand sales of products we developed bycollaborating with major system vendors
3) New business initiatives
 Launched a care taxi app as part of an initiative in the MaaS
business

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

5Action to implement management that is conscious of the cost of capital and stock price(5) An initiative to increase corporate value: A third data center
Reasons we are considering building a new data center
1) Responding to strong demand
Increased utilization of existing centers2) Responding to the latest technology

Responding to the introduction of high-performance servers forgenerative AI, such as GPU servers

Status of deliberations at this time1) There are several potential sites2) Leasing and M&A are also being considered3) Utilization of BPO Centers
Note: Nothing has been decided at this time.

Second data center

Third data center
Second data center
Phase 2building

First data centerI-NET as a whole
Capacity: 3,000 racks
Total floor area: 22 thousandsquare meters

Phase 1building1998©2024 I-NET Corp. All Rights Reserved2009

2014

2024

(Under consideration)
Indicates when the data center
will be built

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

6Action to implement management that is conscious of the cost of capital and stock price(6) An initiative to increase corporate value: Improving capital efficiency(1) Reducing cross-shareholdings (currently, approx. 15% of net assets as of March 31, 2024)
The purpose of holding shares should be clear and it should be strategically necessary.
 Whether shares should continue to be held or not will be verified individually. In addition toverification in terms of strategy, when verifying the economic rationale for holding shares wewill base our decisions on the Company’s cost of capital.
Specific goals will be set during the first half of the year to specify the dissolution of crossheld shares.
(2) Seeking appropriate shareholder equity
In order to improve the return on capital, we will provide appropriate shareholder returns andlimit ballooning shareholder equity.
When acquiring treasury stock, the Company’s policy is to give due consideration to theliquidity of the Company’s shares in the market.

©2024 I-NET Corp. All Rights Reserved

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

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Action to implement management that is conscious of the cost of capital and stock price(7) An initiative to increase corporate value: Investment in non-financial assets
In order to make effective use of human capital, we are working toward the following goals*.
Indicator

Goal*

Actual results(as of March 31, 2024)

Percentage of women in management positions

12% by the end of March 2026

8.7%

Percentage of male workers taking childcare leave

70% by the end of March 2026

70.6%

Wage gap between male and female workers

75% by the end of March 2026

71.1%

The employment rate for people with disabilities in our Group was 2.6% (as of March 31, 2024)*Figures for the Company alone Human resource development

Developing human resources with a high level of expertise through training programs and encouraging them toobtain qualifications

 Ensuring diversity

Having women account for at least 40% of the new graduates hired, recruiting foreign human resources, andintroducing a partnership system

 Improving conditions in-house

Promoting health and productivity management and improving working conditions that take life stages and awork-life balance into account©2024 I-NET Corp. All Rights ReservedThis document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

8Action to implement management that is conscious of the cost of capital and stock price(8) An initiative to increase corporate value: Increasing shareholder returns and improving IRAdopting a new policy on shareholder returns, in the form of a total return ratio,
starting this fiscal year to improve shareholder returns

A total return ratio of 40% or more as a guideWe will continue to pay consistent dividends and strive to maintain internal reserves to meet future
capital needs.

As in the past, we intend to strive for “consistent dividends” and “increased dividends” and to further
increase shareholder returns by repurchasing our own shares.
In order to enhance IR activities, the following measures will be implemented in the current fiscal year
(1) Individual briefings for analysts and institutional investors (18 briefings were held during the fiscal year that
ended March 31, 2024, 9 briefings were held in the 1Q of the fiscal year ending March 31, 2025)(2) Increasing the frequency of individual investor briefings (2 briefings were held during the fiscal year that ended
March 31, 2024, 1 briefing was held in the 1Q of the fiscal year ending March 31, 2025)(3) Enhancing the dissemination of information through videos (to describe financial results, businesses, products,and Group companies)©2024 I-NET Corp. All Rights Reserved

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

9Helping customers Enjoy Life with information technology<Disclaimer>
The purpose of this document is to provide information on the performance and business strategies of the Group and is not intended as an offer
or solicitation to buy or sell shares in the Company or the Group.

This document contains opinions, forecasts, and other information concerning future performance. The information herein has been preparedbased on determinations made by the Company at the time this document was prepared. The Company does not guarantee goals will be attainedor achieved, and the information herein may change in the future without notice.

The Company is in no way liable for any damages arising from the use of this document. Please do not reproduce or reprint this document
without prior permission.

visit our website©2024 I-NET Corp. All Rights Reserved<Inquires>
Corporate Strategy and Investor Relations Department, I-NET Corp.
Tel: 045- 682- 0806
E-mail: contact_ir@inet.co.jp

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