Consolidated Financial Statements for the Fiscal Year Ended March 31, 2025（PDF：225KB）

April 30, 2025

Company name: INES Corporation Listing: Tokyo Stock Exchange Securities code: 9742

URL: https://www.ines.co.jp/en/

Representative: Shuji Hattori, President and Representative Director

Contacts: Satoshi Numazaki, General Manager, Corporate Staff Division Tel: +81-3-6775-4401

Scheduled date of annual general meeting of shareholders: June 25, 2025 Scheduled date to commence dividend payments: June 26, 2025 Scheduled date to file annual securities report: June 25, 2025 Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2025 (April 1, 2024 to March 31, 2025)
   1. Consolidated operating results (Figures in percentages denote year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 40,563 40,557	% 0.0 (4.4)	Millions of yen 3,536 2,877	% 22.9 (24.3)	Millions of yen 3,608 2,732	% 32.0 (29.6)	Millions of yen 2,436 1,795	% 35.7 (29.3)

      Note: Comprehensive income	For the fiscal year ended March 31, 2025:	¥2,420 million	[(4.3)%]
      	For the fiscal year ended March 31, 2024:	¥2,529 million	[1.5%]

      	Profit per share	Fully diluted profit per share	Profit/ Shareholders' equity	Ordinary profit/ Total assets	Operating profit/ Net sales
      Fiscal year ended March 31, 2025 March 31, 2024	Yen 117.13 86.33	Yen - -	% 6.3 4.8	% 6.5 5.3	% 8.7 7.1

      Reference: Equity in earnings of affiliated companies

      For the fiscal year ended March 31, 2025: ¥- million For the fiscal year ended March 31, 2024: ¥- million

   2. Consolidated financial position

      	Total assets	Net assets	Equity ratio	Net assets per share
      As of March 31, 2025 March 31, 2024	Millions of yen 56,727 54,427	Millions of yen 39,192 37,790	% 69.1 69.4	Yen 1,884.21 1,816.54

      Reference: Shareholders' equity

      As of March 31, 2025: ¥39,192 million

      As of March 31, 2024: ¥37,790 million

   3. Consolidated cash flow situation

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 1,478 2,142	Millions of yen (288) (9,987)	Millions of yen 1,536 3,948	Millions of yen 7,991 5,265

2. Dividends

   	Dividends per share					Total dividends (annual)	Dividend payout ratio (consolidated)	Dividends/ Net assets (consolidated)
   	End of Q1	End of Q2	End of Q3	Fiscal year end	Annual
   	Yen - -	Yen	Yen - -	Yen	Yen	Millions of yen 1,040 1,144	%	%
   Fiscal year ended March 31, 2024		25.00		25.00	50.00		57.9	2.8
   Fiscal year ended March 31, 2025		25.00		30.00	55.00		47.0	3.0
   Fiscal year ending March 31, 2026 (Forecast)	-	-	-	-	60.00		44.6

   Note: The dividend forecasts for the end of the second quarter and the fiscal year end of the fiscal year ending March 31, 2026 are to be determined at this time.

3. Forecasts for consolidated financial results for the fiscal year ending March 31, 2026 (April 1, 2025 to March 31, 2026)

(Figures in percentages denote year-on-year changes.)

1. Significant changes in the scope of consolidation during this fiscal year under review: No

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies associated with the revision of accounting standards, etc.: No

   2. Changes in accounting policies other than (i): No

   3. Changes in accounting estimates: No

   4. Restatement: No

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2025	20,900,000 shares
      As of March 31, 2024	20,900,000 shares

   2. Number of treasury shares at the end of the period

      As of March 31, 2025	99,687 shares
      As of March 31, 2024	96,727 shares

   3. Average number of shares outstanding during the period

• Financial results reports are not subject to audit procedures performed by certified public accountants or audit corporations.

• Explanation regarding the proper use of results forecasts and other important notes (Disclaimer regarding forward-looking statements)

Forward-looking statements such as results forecasts provided in this document are prepared based on currently available information and assumptions that are deemed reasonable, but the Company does not intend to guarantee their achievement. Actual results may differ significantly from the above forecasts for various reasons. For conditions regarding the assumptions for results forecasts and notes on the use of results forecasts, etc., please refer to page 7 of the accompanying materials "1. Outline of Operating Results, (3) Future Outlook."

INES Corporation(9742）

• Table of contents of the attached materials

Index

1. Outline of Operating Results 5

   1. Outline of Operating Results for the Fiscal Year ended March 31, 2025 5

   2. Outline of Financial Position for the Fiscal Year Ended March 31, 2025 6

   3. Future Outlook 7

2. Basic Stance regarding Selection of Accounting Principles 8

3. Consolidated financial statements and significant notes thereto 9

   1. Consolidated balance sheets 9

   2. Consolidated statement of income and consolidated statement of comprehensive income 11

      Consolidated statement of income 11

      Consolidated statement of comprehensive income 12

   3. Consolidated statements of changes in shareholders' equity 13

   4. Consolidated statement of cash flow 15

   5. Notes to Consolidated Financial Statements 17

Notes on premise of going concern 17

Significant matters forming the basis for preparing consolidated financial statements 17

Notes on Consolidated Balance Sheets 20

Notes on consolidated statement of income 20

Consolidated statement of comprehensive income 21

Consolidated statement of changes in equity 22

Consolidated statement of cash flows 24

Notes on segment information, etc. 24

Per share information 25

Significant events after reporting period 25

INES Corporation(9742）

Initiatives in the fiscal year under review

The fiscal year under review is the first year of the 2026 Medium-Term Management Plan, and the Group has been promoting its businesses with a focus on the three pillars of action, namely standardizing the information system for local governments, developing next-generation solutions, and enhancing business foundations.

In the public sector, which is our core business, we are promoting the standardization of local government information systems (local government system standardization). However, as a result of various quality tests, an event occurred that did not meet our standards, so we are taking quality measures. As a result, we are reviewing the work schedule for the transition to standardization, and although the start of operation will be delayed for some municipalities, we will ensure that we provide a safe and secure system so as not to affect resident services.

The Group is developing a system, which will be the next generation of the WebRings administration system for local governments under the concept of being connected. In addition, in collaboration with Mitsubishi Research Institute, Inc., we have conducted demonstration experiments of on-demand transportation aimed at improving the convenience of transportation for the elderly in rural areas, and have been working to implement solutions that solve the problems of local communities using the Regional Co-Creation Portal.

In terms of expanding our business base, we have demonstrated the effects of our partnership promotion and have implemented initiatives to expand the number of customers and strengthen our customer base by utilizing alliance partners. In addition, we have promoted the sophistication of our in-house IT infrastructure, developed an internal infrastructure that reduces security risks, and built a development environment that achieves high quality and a short period of time using generative AI.

In April 2025, we revised our personnel system to focus on evaluating the expertise of engineers in order to develop and promote human resources at an early stage, which is an asset of our company. In addition to making specialists a pillar of human resource development, we will promote our business strategy by appointing and utilizing external human resources and promote the utilization of senior human resources.

In April 2024, we moved our head office to Nihonbashi-Kakigaracho, Chuo-ku, Tokyo. We will consolidate the functions of the INES Group's headquarters to expedite decision-making in group management, and aim to strengthen our management base and enhance corporate value by embodying the vision of the Medium-Term Management Plan, "a company that continues to challenge and evolve."

(1) Outline of Operating Results for the Fiscal Year ended March 31, 2025

Consolidated net sales for the fiscal year under review was ¥40,563 million, roughly the same level as the previous fiscal year. Consolidated net sales on a sector-by-sector basis are as shown in the table below. Net sales in the Public sector stood at ¥19,873 million (up 7.4% year on year), mainly reflecting higher sales due to the introduction of the standardization system, more than offsetting lower sales due to the partial withdrawal of the outsourcing business in the Group company. Net sales in the Private sector declined 6.2% year on year, to ¥20,689 million, mainly reflecting a decrease in orders for projects for the development and operation of systems for the insurance industry and lower sales from system development projects for the retailing industry.

By product and service, system development increased due to the introduction of standardization systems, operations decreased due to a decrease in large-scale BPO projects, and others decreased due to the partial withdrawal of outsourcing businesses at Group companies.

On the profit front, operating profit increased 22.9% year on year, to ¥3,536 million, ordinary profit climbed 32.0% year on year, to ¥3,608 million, profit attributable to owners of parent risen 35.7% year