I-NET at a Glance

• About I-NET
• History of Growth
• Growth Strategies
• Initiatives for Further Growths
• Business Results and Forecasts
• Shareholder Return

As tailwind is expected over the medium to long term,
we are aiming for growth exceeding the market growth rate

The data center market and cloud service market, which form the core of our business, are expected to rapidly expand. In addition, growth is expected in the drone-related market, which the Company is working to establish as a business. Accordingly, the Company's business is expecting overall tailwind. In individual fields, we are maintaining high market share despite the decreasing trend in the number of SS for our SS-related business, for which the Company boasts the leading market share in the industry. Moreover, reorganization and merging of oil wholesalers have generated many system development projects including mutual coordination of credit card and sales data. In addition, the retail and distribution industry, such as convenience stores, is actively utilizing ICT, leading to a great appetite for system investments in system renewals and digitization. As such, the IT / DX (digital transformation) fields undertaken by the Company make or break the existence of corporations, and there are few experts within those corporations. Accordingly, companies are eager to outsource, and the demand is expected to continue growing.

Market trends

Digital transformation (DX)

"Acceleration of data usage in a variety of fields, including healthcare, medical care, nursing, manufacturing sites, automated driving, and agriculture"

According to the Conference on Public-Private Data Utilization Promotion Strategies at the Advanced Information and Communication Network Society Promotion Strategy Headquarters established in the Cabinet, competitions previously occurred in collecting data on fields such as search, communication, and consumption, analyzing the data by utilizing AI and other methods, and utilizing it in providing services in cyber spaces and streamlining and advancing advertising. On the other hand, the competition is expected to transition into fields that require more complex operations going forward, such as healthcare, medical care, nursing, manufacturing sites, automated driving, and agriculture. Amid this transition, the government is planning to establish a foundation for data utilization, design new regulations that accommodate the foundation, and promote digital transformation in both private and public sectors, while taking advantage of strengths that have been fostered by Japanese companies, including "reconciling," "worksite capabilities," and "comprehensive capabilities."

AI

"Enhancing AI in order to realize Society 5.0"

According to the AI Strategy 2019 published by the Integrated Innovation Strategy Promotion Conference established in the Cabinet, Japan is in the process of realizing Society 5.0, in which steady progress is being made in support for private companies such as promoting human resource development and research and development, equipment used to collect, accumulate, and analyze large amounts of data to implement AI systems, and technological development that ensures system security and soundness. In addition, the government has set goals including AI research and development, human resource development, and acceleration in achieving SDGs, promoting measures to become the front runner in the application of AI and achieving strong industry competitiveness as well as building international social infrastructure in the AI field.

Cloud

"Scenarios using IoT platforms increase, including automobiles and mailing machines, medical care, factories, and distribution"

According to WHITE PAPER Information and Communications in Japan for 2019, in the trends of number of IoT devices in the world, high growth is expected in the future for industry purposes including automobiles and mailing machines, medical care, factories, and distribution. In addition, the number of scenarios using cloud to support IoT platforms is increasing. Furthermore, the worldwide market scale for the data centers is expanding at a pace of roughly 10% per year, so a further increase in the needs is expected.