INES : Earnings Document

Note: This document has been translated from a part of 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.

May 7, 2026

Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (Japanese standard)

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: Masatoshi Mihara, General Manager, Corporate Staff Division Tel: [phone]

Scheduled date of annual general meeting of shareholders: June 23, 2026 Scheduled date to commence dividend payments: June 24, 2026 Scheduled date to file annual securities report: June 22, 2026 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, 2026 (April 1, 2025 to March 31, 2026)
   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	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      March 31, 2026	36,616	(9.7)	(647)	-	(460)	-	(1,843)	-
      March 31, 2025	40,563	0.0	3,536	22.9	3,608	32.0	2,436	35.7

      Note: Comprehensive income	For the fiscal year ended March 31, 2026:	¥(1,102) million	[-%]
      	For the fiscal year ended March 31, 2025:	¥2,420 million	[(4.3)%]

      	Profit per share	Fully diluted profit per share	Profit/ Shareholders' equity	Ordinary profit/ Total assets	Operating profit/ Net sales
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2026	(88.57)	-	(4.8)	(0.9)	(1.8)
      March 31, 2025	117.13	-	6.3	6.5	8.7

      Reference: Equity in earnings of affiliated companies

      For the fiscal year ended March 31, 2026: ¥- million For the fiscal year ended March 31, 2025: ¥- million

   2. Consolidated financial position

      	Total assets	Net assets	Equity ratio	Net assets per share
      As of	Millions of yen	Millions of yen	%	Yen
      March 31, 2026	49,361	36,966	74.9	1,776.13
      March 31, 2025	56,727	39,192	69.1	1,884.21

      Reference: Shareholders' equity

      As of March 31, 2026: ¥36,966 million

      As of March 31, 2025: ¥39,192 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	Millions of yen	Millions of yen	Millions of yen	Millions of yen
   March 31, 2026	3,480	1,779	(4,979)	8,273
   March 31, 2025	1,478	(288)	1,536	7,991

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	%	%
   Fiscal year ended March 31, 2025	-	25.00	-	30.00	55.00	1,144	47.0	3.0
   Fiscal year ended March 31, 2026	-	25.00	-	25.00	50.00	1,040	-	2.7
   Fiscal year ending March 31, 2027 (Forecast)	-	-	-	-	55.00		67.3

   Note: The dividend forecasts for the end of the second quarter and the fiscal year end of the fiscal year ending March 31, 2027 are to be determined at this time.

3. Forecasts for consolidated financial results for the fiscal year ending March 31, 2027 (April 1, 2026 to March 31, 2027)

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

	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent		Profit per share
Full year	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
	40,000	9.2	2,500	-	2,500	-	1,700	-	81.68

* Notes

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, 2026	20,900,000 shares
      As of March 31, 2025	20,900,000 shares

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

      As of March 31, 2026	87,301 shares
      As of March 31, 2025	99,687 shares

   3. Average number of shares outstanding during the period

Fiscal year ended March 31, 2026	20,811,063 shares
Fiscal year ended March 31, 2025	20,802,381 shares

• 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.

‌Consolidated financial statements

1. ‌Consolidated balance sheets

   		(Millions of yen)
   As of March 31, 2025		As of March 31, 2026
   Assets
   Current assets
   Cash and deposits	8,205	8,487
   Notes and accounts receivable - trade, and contract assets	15,473	12,574
   Securities	-	100
   Work in process	399	282
   Raw materials and supplies	55	81
   Prepaid expenses	505	572
   Other	139	132
   Allowance for doubtful accounts	(15)	(13)
   Total current assets	24,764	22,217
   Non-current assets
   Property, plant and equipment
   Buildings and structures	5,951	6,064
   Accumulated depreciation	(665)	(953)
   Buildings and structures, net	5,286	5,110
   Tools, furniture and fixtures	4,020	3,995
   Accumulated depreciation	(2,951)	(3,087)
   Tools, furniture and fixtures, net	1,068	907
   Land	5,299	5,299
   Total property, plant and equipment	11,654	11,318
   Intangible assets
   Software	3,216	3,346
   Other	22	22
   Total intangible assets	3,238	3,369
   Investments and other assets
   Investment securities	11,836	7,824
   Long-term prepaid expenses	503	381
   Deferred tax assets	3,514	3,126
   Other	1,215	1,122
   Total investments and other assets	17,069	12,455
   Total non-current assets	31,963	27,143
   Total assets	56,727	49,361

   		(Millions of yen)
   As of March 31, 2025		As of March 31, 2026
   Liabilities
   Current liabilities
   Accounts payable - trade	2,639	2,612
   Short-term borrowings	3,000	-
   Current portion of long-term borrowings	833	833
   Accrued expenses	960	815
   Income taxes payable	253	91
   Accrued consumption taxes	571	108
   Advances received	136	184
   Provision for bonuses	925	947
   Provision for bonuses for directors (and other officers)	107	114
   Provision for loss on orders received	-	488
   Asset retirement obligations	10	8
   Other	526	726
   Total current liabilities	9,965	6,930
   Non-current liabilities
   Long-term borrowings	3,749	2,916
   Provision for retirement benefits for directors (and other officers)	35	23
   Retirement benefit liability	2,866	1,622
   Asset retirement obligations	146	143
   Other	772	759
   Total non-current liabilities	7,569	5,464
   Total liabilities	17,535	12,395
   Net assets
   Shareholders' equity
   Share capital	15,000	15,000
   Capital surplus	10,102	10,108
   Retained earnings	13,835	10,847
   Treasury shares	(120)	(106)
   Total shareholders' equity	38,816	35,849
   Accumulated other comprehensive income
   Valuation difference on available-for-sale securities	153	343
   Remeasurements of defined benefit plans	222	773
   Total accumulated other comprehensive income	375	1,116
   Total net assets	39,192	36,966
   Total liabilities and net assets	56,727	49,361

   		(Millions of yen)
   	Fiscal year ended March 31, 2025	Fiscal year ended March 31, 2026
   Net sales	40,563	36,616
   Cost of sales	30,847	31,253
   Gross profit	9,715	5,362
   Selling, general and administrative expenses	6,179	6,010
   Operating profit (loss)	3,536	(647)
   Non-operating income
   Interest income	51	39
   Dividend income	37	63
   Rental income from real estate	8	25
   Compensation income	-	90
   Dividend income of insurance	16	8
   Other	18	34
   Total non-operating income	133	261
   Non-operating expenses
   Interest expenses	40	55
   Rental expenses on real estate	5	7
   Loss on investments in investment partnerships	1	-
   Office relocation expenses	10	7
   Other	3	4
   Total non-operating expenses	61	74
   Ordinary profit (loss)	3,608	(460)
   Extraordinary income
   Gain on sale of membership	18	6
   Gain on liquidation of subsidiaries and associates	0	-
   Total extraordinary income	18	6
   Extraordinary losses
   Loss on retirement of non-current assets	21	10
   Removal expenses of non-current assets	20	-
   Loss on redemption of investment securities	-	76
   Impairment losses	-	1,104
   Special retirement benefits	71	-
   Other	2	-
   Total extraordinary losses	114	1,190
   Profit (loss) before income taxes	3,511	(1,645)
   Income taxes - current	440	196
   Income taxes - deferred	634	1
   Total income taxes	1,075	198
   Profit (loss)	2,436	(1,843)
   Profit (loss) attributable to owners of parent	2,436	(1,843)

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

   		(Millions of yen)
   Fiscal year ended March 31, 2025		Fiscal year ended March 31, 2026
   Profit (loss)	2,436	(1,843)
   Other comprehensive income
   Valuation difference on available-for-sale securities	98	190
   Remeasurements of defined benefit plans, net of tax	(114)	550
   Total other comprehensive income	(15)	740
   Comprehensive income	2,420	(1,102)
   Comprehensive income attributable to
   Comprehensive income attributable to owners of parent	2,420	(1,102)

3. ‌Consolidated statements of changes in shareholders' equity

   Previous fiscal year (April 1, 2024 to March 31, 2025)

   (Millions of yen)
   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at beginning of period	15,000	10,099	12,438	(140)	37,398
   Changes during period
   Dividends of surplus			(1,040)		(1,040)
   Profit attributable to owners of parent			2,436		2,436
   Purchase of treasury shares				(2)	(2)
   Disposal of treasury shares		2		21	24
   Net changes in items other than shareholders' equity
   Total changes during period	-	2	1,396	19	1,417
   Balance at end of period	15,000	10,102	13,835	(120)	38,816

   	Accumulated other comprehensive income			Total net assets
   	Valuation difference on available-for-sale securities	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
   Balance at beginning of period	54	336	391	37,790
   Changes during period
   Dividends of surplus				(1,040)
   Profit attributable to owners of parent				2,436
   Purchase of treasury shares				(2)
   Disposal of treasury shares				24
   Net changes in items other than shareholders' equity	98	(114)	(15)	(15)
   Total changes during period	98	(114)	(15)	1,402
   Balance at end of period	153	222	375	39,192

   Fiscal year under review (April 1, 2025 to March 31, 2026)

   (Millions of yen)
   	Shareholders' equity
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
   Balance at beginning of period	15,000	10,102	13,835	(120)	38,816
   Changes during period
   Dividends of surplus			(1,144)		(1,144)
   Loss attributable to owners of parent			(1,843)		(1,843)
   Purchase of treasury shares				(1)	(1)
   Disposal of treasury shares		6		16	22
   Net changes in items other than shareholders' equity
   Total changes during period	-	6	(2,987)	14	(2,967)
   Balance at end of period	15,000	10,108	10,847	(106)	35,849

   	Accumulated other comprehensive income			Total net assets
   	Valuation difference on available-for-sale securities	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
   Balance at beginning of period	153	222	375	39,192
   Changes during period
   Dividends of surplus				(1,144)
   Loss attributable to owners of parent				(1,843)
   Purchase of treasury shares				(1)
   Disposal of treasury shares				22
   Net changes in items other than shareholders' equity	190	550	740	740
   Total changes during period	190	550	740	(2,226)
   Balance at end of period	343	773	1,116	36,966

4. ‌Consolidated statement of cash flow

		(Millions of yen)
Fiscal year ended March 31, 2025		Fiscal year ended March 31, 2026
Cash flows from operating activities
Profit (loss) before income taxes	3,511	(1,645)
Depreciation	1,917	1,844
Impairment losses	-	1,104
Increase (decrease) in provision for bonuses	(34)	21
Increase (decrease) in provision for bonuses for directors (and other officers)	26	6
Increase (decrease) in provision for loss on orders received	(49)	488
Increase (decrease) in provision for retirement benefits for directors (and other officers)	(53)	(12)
Increase (decrease) in retirement benefit liability	(735)	(446)
Loss (gain) on liquidation of subsidiaries and associates	(0)	-
Loss on retirement of non-current assets	21	10
Loss (gain) on redemption of investment securities	-	76
Loss (gain) on sale of membership	(18)	(6)
Office relocation expenses	10	7
Removal expenses of non-current assets	20	-
Special retirement benefits	71	-
Decrease (increase) in trade receivables	(3,610)	2,947
Decrease (increase) in inventories	(2)	91
Decrease (increase) in other assets	(67)	(101)
Increase (decrease) in trade payables	907	44
Increase (decrease) in other liabilities	408	(713)
Other, net	(86)	3
Subtotal	2,237	3,722
Income taxes refund	398	105
Income taxes paid	(1,158)	(346)
Net cash provided by (used in) operating activities	1,478	3,480
Cash flows from investing activities
Net decrease (increase) in time deposits	999	(0)
Purchase of property, plant and equipment	(1,432)	(316)
Proceeds from sale of property, plant and equipment	-	24
Purchase of intangible assets	(1,508)	(2,066)
Purchase of long-term prepaid expenses	(98)	(76)
Purchase of investment securities	(2)	(1)
Proceeds from redemption of investment securities	1,800	4,123
Proceeds from sale of membership	38	16
Proceeds from liquidation of subsidiaries and associates	0	-
Payments of leasehold and guarantee deposits	(259)	(48)
Proceeds from refund of leasehold and guarantee deposits	423	126
Payments for asset retirement obligations	(271)	(28)
Other, net	22	25
Net cash provided by (used in) investing activities	(288)	1,779

		(Millions of yen)
Fiscal year ended March 31, 2025		Fiscal year ended March 31, 2026
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	3,000	(3,000)
Repayments of long-term borrowings	(416)	(833)
Repayments of lease liabilities	(5)	(1)
Purchase of treasury shares	(2)	(1)
Dividends paid	(1,039)	(1,142)
Net cash provided by (used in) financing activities	1,536	(4,979)
Net increase (decrease) in cash and cash equivalents	2,726	281
Cash and cash equivalents at beginning of period	5,265	7,991
Cash and cash equivalents at end of period	7,991	8,273