Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2022
(Based on Japanese GAAP)May 6, 2022
Company name:

I-NET Corp.

Stock exchange listing: Tokyo
Stock code:
Representative:

9600
URL https://www.inet.co.jp
Representative Director, Executive President Mitsuru Sakai

Inquiries:

Director and Managing Executive Officer

Naokatsu Uchida

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 24, 2022
June 24, 2022

Scheduled date to commence dividend payments:

June 27, 2022

Preparation of supplementary material on financial results:

Yes

Holding of financial results meeting:

Yes

TEL

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

1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating results

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
3.8
2,367
9.8
2,542
11.5
1,694
13.4
(3.5)
2,155
(13.8)
2,279
(9.9)
1,494
(10.6)Net salesYear ended March 31, 2022
Year ended March 31, 2021

Millions of yen
31,16930,016

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
10.1
7.8
7.6
–
9.5
7.4
7.2

Diluted earnings per
share

Earnings per share
Yen
106.08
93.62

Year ended March 31, 2022
Year ended March 31, 2021
(2) Consolidated financial position

Total assets
As of March 31, 2022
As of March 31, 2021

Net assets

Equity ratio

Millions of yen
33,50332,056

Millions of yen
17,304
16,212

Cash flows fromoperating activities
Millions of yen
3,715
3,419

Cash flows frominvesting activities
Millions of yen(2,185)(2,929)Net assets per share
%
51.6
50.6

Yen
1,083.14
1,014.82(3) Consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,873)
3,684
454
4,027

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

22.00
23.50

–
–

24.00
23.50

46.00
47.00

734
750

49.1
44.3

4.7
4.5

–

24.00

–

24.00

48.00

1

41.9

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Net sales

Full year

Millions of yen
33,500Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen
%
Yen
7.5
2,640
11.5
2,770
9.0
1,830
8.0
114.55

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:

No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

16,242,424 shares As of March 31, 2021

16,242,424 shares

Number of treasury shares at the end of the period
As of March 31, 2022

266,281 shares As of March 31, 2021

266,328 shares

15,976,158 shares Year ended March 31, 2021

15,965,830 shares

Average number of shares during the period
Year ended March 31, 20222

Consolidated financial statements
Consolidated balance sheets
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes receivable - trade
Accounts receivable - trade
Contract assets
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
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3(Thousands of yen)
As of March 31, 2022

4,027,713
5,930,552–––
176,790
76,85048,837
301,345(405)
10,561,685

3,684,659–
99,473
5,427,708
867,129
179,768
83,55766,432
293,375(473)
10,701,631

19,173,931(8,305,781)
10,868,150
3,108,756
440,376(302,918)
137,458
1,594
3,692,282(2,260,907)
1,431,375
15,547,334

19,686,725(9,296,706)
10,390,018
3,108,756
454,396(324,475)
129,920
265,747
3,986,416(2,649,183)
1,337,232
15,231,675

231,556
1,009,509
53,747
1,294,813

195,063
1,587,595
50,956
1,833,615

2,865,702
1,083,571
93,374
638,254(28,122)
4,652,780
21,494,929
32,056,614

3,811,261
1,048,344
114,940
790,224(27,841)
5,736,929
22,802,220
33,503,851

As of March 31, 2021
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Lease liabilities
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for loss on construction contracts
Provision for loss on anti monopoly act
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4(Thousands of yen)
As of March 31, 2022

1,409,194
3,039,768
98,778511,594–
870,572
1,773–
2,693,332
8,625,013

1,695,714
3,065,848
97,486558,140
606,794
916,833
27,59019,3662,915,707
9,903,482

6,868,918
68,030118,182700
73,49589,444
7,218,770
15,843,784

5,858,070
53,095
224,551500
130,789
28,944
6,295,951
16,199,433

3,203,992
3,146,335
9,890,484(315,059)
15,925,752

3,203,992
3,146,335
10,576,788(314,986)
16,612,129

233,31953,757
287,077
16,212,830
32,056,614

686,4695,818
692,288
17,304,418
33,503,851

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Subsidy income
Gain on investments in investment partnerships
Surrender value of insurance policies
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Commission expenses
Loss on investments in investment partnerships
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on bargain purchase
Gain on sale of shares of subsidiaries and associates
Gain on sale of investment securities
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Provision for loss on anti monopoly act
Impairment losses
Loss on valuation of investment securities
Loss on retirement of non-current assets
Special Retirement Payment
Loss on sale 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

5

Fiscal year ended
March 31, 2021
30,016,039
23,211,571
6,804,468
4,648,967
2,155,500(Thousands of yen)
Fiscal year ended
March 31, 2022
31,169,800
24,018,375
7,151,424
4,783,856
2,367,568

335
36,189128,059–
25,05023,088
212,723

269
43,112
104,12944,061
216
45,701
237,490

49,695–
14,48020,9033,579
88,6582,279,565

45,997847
14,480–1,547
62,8712,542,187––
212,266
4,891
217,157

28,076
12,1004,563
2,945
47,685–
1,511
22,616
9,083
250,000
18,025301,236
2,195,487
593,905
106,813700,719
1,494,767
1,494,767

27,996
13,051
5,948
2,892
–
–
49,8882,539,984
825,865
19,356845,222
1,694,762
1,694,762

Consolidated statements of comprehensive income

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

6

Fiscal year ended
March 31, 2021
1,494,767(Thousands of yen)
Fiscal year ended
March 31, 2022
1,694,762

146,327
128,211274,538
1,769,306

453,150(47,939)405,2112,099,973

1,769,306–

2,099,973–

Consolidated statements of changes in equity
Fiscal year ended March 31, 2021
(Thousands of yen)

Shareholders' equity

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to ownersof parent
Purchase of treasury shares
Disposal of treasury shares
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

Share capital

Capital surplus

3,203,992

3,275,102

Retainedearnings
9,089,268(128,766)
3,146,335(356,390)(693,551)

1,494,767

1,494,767

801,215
9,890,484

Accumulated other comprehensive income
Total
Valuation
Remeasurements accumulateddifference onof defined
otheravailable-forbenefit planscomprehensive
sale securities
income86,992(74,453)
12,538(105,740)
147,071(105,740)
18,30541,331(315,059)

713,780
15,925,752

Total net assets

15,224,511(693,551)
1,494,767(105,740)
18,305

146,327

128,211274,538

274,538

146,327
233,319

128,21153,757274,538
287,077

988,319
16,212,830

7

Total
shareholders'equity15,211,972(693,551)(128,766)–
3,203,992

Treasury sharesFiscal year ended March 31, 2022
(Thousands of yen)

Shareholders' equity

Balance at beginning of period
Cumulative effects of changes
in accounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

Balance at beginning of period
Cumulative effects of changes
in accounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

Share capital

Capital surplus

3,203,992

3,146,335

Retainedearnings
9,890,484

Treasury shares(315,059)(249,592)
3,203,992–
3,203,992

3,146,335–
3,146,335

9,640,892(249,592)(315,059)(758,866)

1,694,762

1,694,762

935,895
10,576,788

(45)
118

(45)
118

73
(314,986)

935,968
16,612,129(249,592)
53,757

287,077

15,963,238(758,866)
1,694,762(45)
118

453,150(47,939)405,211405,211453,150
686,469(47,939)5,818

405,211692,288

1,341,180
17,304,418

8

15,676,160(758,866)

Accumulated other comprehensive income
Total
Valuation
Remeasurements accumulated
Total net assets
difference on
otherof defined
available-forbenefit planscomprehensive
sale securities
income233,31953,757
287,077
16,212,830

233,319

Total
shareholders'equity15,925,752

Consolidated statements of cash flows
Fiscal year ended
March 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Gain on bargain purchaseSpecial Retirement Payments
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Loss (gain) on sale of shares of subsidiaries and associates
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in contract assets
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in contract liability
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Proceeds from dividends income from investments in partnership
Interest paid
Payments of retirement benefits for directors (and other officers)
Payments Of Special Retirement Payments
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments of leasehold and guarantee deposits
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from sale of treasury shares
Dividends paid
Repayments of lease liabilities
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

9(Thousands of yen)
Fiscal year ended
March 31, 2022

2,195,487
1,744,052
39,9241,511–
250,000
26,755(36,525)
49,695–(212,266)(217,945)–
86,492306,604–
45,73790,356
4,369,880
36,52427,480(50,038)(150,000)(250,000)(564,435)
3,419,411

2,539,984
1,841,997
36,492
13,051(28,076)–(213)(43,382)
45,997(12,100)(4,563)(155,795)(85,872)(33,400)
286,520(46,041)
22,977
118,268
4,495,844
43,38239,497(45,832)(60,500)–(756,691)
3,715,699(2,306,176)(418,287)(1,301)(613,903)
352,550–
57,327(2,929,790)(951,715)(858,459)(138,523)(321,913)
20,80020,00044,771(2,185,040)(170,000)
4,500,000(2,883,294)(105,740)
125(692,770)(193,663)
454,656
944,277
3,083,435
4,027,713–
2,030,000(3,014,768)(45)
118(758,869)(130,148)(1,873,713)(343,054)
4,027,713
3,684,659