I-NET at a Glance

In the information service industry to which the Group (the Company, its consolidated subsidiaries, and equity-method affiliates) belongs, saw the continuation of digital transformation (DX) initiatives such as non-contact and remote services suited to the “new normal,” the spread of cloud-based computing, the expanding use of big data and artificial intelligence (AI), the progress of the IoT, and greater operational efficiency. The use of generative AI, in particular, is progressing rapidly, extending a significant impact on the way that society operates.

Under these conditions, net sales totaled 28,213 million yen (up 10.6% year on year), operating income was 2,233 million yen (up 65.1% year on year), ordinary income was 2,291 million yen (up 65.2% year on year), and net income attributable to owners of parent was 1,501 million yen (up 76.5% year on year) for the nine months ended December 31, 2023.

Net sales increased year on year due to solid performance of cloud-based services and information processing services that provide commissioned calculation and other services to service stations (SS: gasoline stations). In addition, sales associated with system development projects for the finance industry progressed more strongly than anticipated. There was also a significant year-on-year increase in operating income, despite the persistence of an elevated cost of sales, mainly due to the impact of electricity fees. This was due to the reduced impact of electricity fees through measures such as investment in energy-saving at data centers, as well as the effect of higher revenue due to strong sales. As a result, the Company was able to secure a year-on-year increase in net income attributable to owners of parent.

The Group started a new medium-term management plan (April 2022 – March 2025) in this consolidated fiscal year, and will come together and expand the Group’s overall operations to achieve the targets laid out in this plan. In the fiscal year ending in March 2024, as in the previous fiscal period, we expect sales to be strong, and predict that we will achieve net sales of JPY37,700 million, the target for the final year of the plan (fiscal year ending in March 2025) one year early. Accordingly, we have raised the net sales target for the fiscal year ending in March 2025 to JPY40,000 million. The resulting earnings forecasts for the fiscal year ending in March 2024 are shown in the table below. We will work even harder to achieve our earnings forecasts.

With respect to dividends, we plan to increase dividends for the 12th consecutive fiscal year, emphasizing the return of profits to our shareholders, who have supported our growth to this point. Going forward, we will continue to target a stable return of profit.

• Forward-looking statements contained in this document are based on information currently available to the Company and on what the Company deems are reasonable assumptions. Actual results could differ materially due to various factors.

For details, see Financial Data