Interim report
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Note: This document has been translated from 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. January 30, 2026 Consolidated Financial Results for the Nine Months Ended December 31, 2025 (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: Satoshi Numazaki, General Manager, Corporate Staff Division Tel: +81-3-6775-4401 Scheduled date to commence dividend payments: – Preparation of supplementary material on financial results: No Holding of financial results briefing: No (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the nine months ended December 31, 2025 (April 1, 2025 to December 31, 2025) (1) Consolidated operating results (cumulative) (Figures in percentages denote year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Nine months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % December 31, 2025 25,212 (10.4) (734) – (564) – (465) – December 31, 2024 28,143 (3.0) 1,539 31.8 1,595 27.9 998 40.8 Note: Comprehensive income For the nine months ended December 31, 2025: ¥(299) million [ –%] For the nine months ended December 31, 2024: ¥1,109 million [23.7%] Profit per share Fully diluted profit per share Nine months ended Yen Yen December 31, 2025 (22.36) – December 31, 2024 48.00 – (2) Consolidated financial position Total assets Net assets Equity ratio As of Millions of yen Millions of yen % December 31, 2025 49,556 37,769 76.2 March 31, 2025 56,727 39,192 69.1 Reference: Shareholders’ equity As of December 31, 2025: ¥37,769 million As of March 31, 2025: ¥39,192 million
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2. Dividends Dividends per share End of Q1 End of Q2 End of Q3 Fiscal year end Annual Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 – 25.00 – 30.00 55.00 Fiscal year ending March 31, 2026 – 25.00 – Fiscal year ending March 31, 2026 (Forecast) 30.00 55.00 Note: Revisions to the forecast of cash dividends most recently a nnounced: No 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.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Profit per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 39,000 (3.9) 1,400 (60.4) 1,500 (58.4) 1,000 (59.0) 48.05 Note: Revisions to the earnings forecasts most recently a nnounced: No
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* Notes (1) Significant changes in the scope of consolidation during the period: No (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes Note: For details, please refer to page 9 of the accompanying materials “2. Quarterly consolidated financial statements and significant notes thereto, (4) Notes to quarterly consolidated financial statements, (Notes to accounting treatment specific to the preparation of quarterly consolidated financial statements).” (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies associated with the revision of accounting standards, etc.: No (ii) Changes in accounting policies other than (i): No (iii) Changes in accounting estimates: No (iv) Restatement: No (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of December 31, 2025 20,900,000 shares As of March 31, 2025 20,900,000 shares (ii) Number of treasury shares at the end of the period As of December 31, 2025 87,163 shares As of March 31, 2025 99,687 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Nine months ended December 31, 2025 20,810,551 shares Nine months ended December 31, 2024 20,802,982 shares * Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or audit corporations: No * Explanation regarding the proper use of re sults 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 3 of the accompanying materials “1. Outline of operating results, (3) Explanation of consolidated earnings forecast and other forward-looking statements.”
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INES Corporation (9742) - 1 - ○ Table of contents of the attached materials Index 1. Outline of operating results ....................................................................................................................... 2 (1) Outline of operating results for the first nine months ended December 31, 2025 .............................. 2 (2) Outline of financial position for the first nine months ended December 31, 2025 ............................. 3 (3) Explanation of consolidated earnings forecast and other forward-looking statements ...................... 3 2. Quarterly consolidated financial statements and significant notes thereto ............................................... 4 (1) Quarterly consolidated balance sheets ................................................................................................ 4 (2) Quarterly consolidated statement of income and consolidated statement of comprehensive income ................................................................................................................................................ 6 Quarterly consolidated statement of income ...................................................................................... 6 Quarterly consolidated statement of comprehensive income ............................................................. 7 (3) Quarterly consolidated statement of cash flow ................................................................................... 8 (4) Notes to quarterly consolidated financial statements ......................................................................... 9 Notes to accounting treatment specific to the preparation of quarterly consolidated financial statements ........................................................................................................................................... 9 Notes on segment information, etc. .................................................................................................... 9 Notes when there are significant changes in amounts of equity ......................................................... 9 Notes on premise of going concern .................................................................................................... 9
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INES Corporation (9742) - 2 - 1. Outline of operating results During the first nine months under review, the Japanese economy continued to recover gradually. However, uncertainties persisted due to the impact of soaring prices and the policy trends of other countries. In the domestic IT market, IT investments aimed at enhancing corporate competitiveness, such as digitalization and AI utilization, against a backdrop of structural labor shortage, are steadily progressing. In this business environment, the Group focused on promoting the following initiatives. “Standardization of local government information systems” Regarding the standardization of local government information systems, multiple local governments are in the transitional stage of preparing for full operation of standard-compliant systems. Adjustments to business processes unique to each municipality, including integration with related systems, are occurring. However, we view this as a crucial phase for solidifying our future customer base. To ensure safety and security, we are executing the transition with a focus on quality and optimizing resources. “Development of next-generation solutions” The Group is continuing work on developing a system that will be the next generation of our flagship product, the WebRings administration system for local governments. We will add no-code general ledger functions and AI agent functions to our service menu, aiming to differentiate from solutions of other companies. “Enhancement of business foundations” To smoothly advance these business strategies, we continue to strengthen our collaboration with partner companies and strive to enhance our business foundations. As part of expanding our solutions, we have launched a support service for AI agents that enhances operational efficiency, governance, and business quality across various industries. We are also promoting company-wide initiatives for AI utilization within the organization. To achieve sustainable management, we have worked on expanding systems that support each employee’s work-life balance, understanding skill sets that align with changes in growth strategies and technological innovations, and establishing mechanisms that allow individuals to feel progress in their personal growth. We are also strengthening our IT business infrastructure to address recent security risks and expanding AI utilization. (1) Outline of operating results for the first nine months ended December 31, 2025 Consolidated net sales for the first nine months under review decreased 10.4% year on year, to ¥25,212 million (please refer to “Consolidated net sales by sector,” which are shown in the table below). Net sales in the public sector stood at ¥10,932 million (down 14.2% year on year), mainly reflecting lower sales due to the extension of local government system standardization and review of its transition method, as well as the revision to the legal system. Net sales in the private sector stood at ¥14,279 million (down 7.3% year on year), mainly reflecting a decline in the development of a system for finance business and lower sales due to the partial withdrawal of the outsourcing business in the Group company. On the profit front, operating loss came to ¥734 million (compared to operating profit of ¥1,539 million in the same period of the previous year) and the ordinary loss was ¥564 million (compared to an ordinary profit of ¥1,595 million in the same period of the previous year), mainly reflecting lower net sales in each field and worsening cost ratio for the project as a whole associated with the review of the transition method for the local government system standardization. As a result, the Company recorded a loss attributable to owners of parent of ¥465 million (compared to profit attributable to owners of parent of ¥998 million in the same period of the previous year).
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INES Corporation (9742) - 3 - Consolidated net sales by sector (Millions of yen) Category/Term Nine months ended December 31, 2024 Nine months ended December 31, 2025 YoY change (%) Amount Composition ratio (%) Amount Composition ratio (%) Public 12,745 45.3% 10,932 43.4% (14.2)% Private 15,398 54.7% 14,279 56.6% (7.3)% Total 28,143 100.0% 25,212 100.0% (10.4)% Consolidated net sales by product/service (Millions of yen) Category/Term Nine months ended December 31, 2024 Nine months ended December 31, 2025 YoY change (%) Amount Composition ratio (%) Amount Composition ratio (%) System development 12,578 44.7% 10,628 42.1% (15.5)% System operation 9,685 34.4% 9,499 37.7% (1.9)% System maintenance 3,660 13.0% 3,586 14.2% (2.0)% Sales of information equipment 728 2.6% 270 1.1% (62.8)% Other 1,490 5.3% 1,227 4.9% (17.6)% Total 28,143 100.0% 25,212 100.0% (10.4)% (2) Outline of financial position for the first nine months ended December 31, 2025 Looking at the financial position as of December 31, 2025, total assets stood at ¥49,556 million, a decrease of ¥7,170 million from the end of the previous fiscal year. Current assets decreased ¥5,332 million, to ¥19,431 million, reflecting decreases mainly in notes and accounts receivable-trade, and contract assets. Non-current assets decreased ¥1,837 million, to ¥30,125 million, due to a decrease in investment securities for the redemption of bonds, despite an increase in investment in software assets. Current liabilities decreased ¥4,628 million to ¥5,336 million, reflecting decreases mainly in short-term borrowings. Non-current liabilities decreased ¥1,119 million to ¥6,450 million, reflecting decreases in long-term borrowings and retirement benefit liability. Net assets decreased ¥1,423 million from the end of the previous fiscal year, to ¥37,769 million mainly due to the posting of loss attributable to owners of parent and dividends paid. (3) Explanation of consolidated earnings forecast and other forward-looking statements The consolidated financial results forecast and dividend forecast published on October 28, 2025 remain unchanged. (Caution on future forecast information) 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.
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INES Corporation (9742) - 4 - 2. Quarterly consolidated financial stat ements and significant notes thereto (1) Quarterly consolidated balance sheets (Millions of yen) As of March 31, 2025 As of December 31, 2025 Assets Current assets Cash and deposits 8,205 8,860 Notes and accounts receivable - trade, and contract assets 15,473 7,582 Securities – 1,124 Work in process 399 969 Raw materials and supplies 55 46 Prepaid expenses 505 563 Other 139 292 Allowance for doubtful accounts (15) (8) Total current assets 24,764 19,431 Non-current assets Property, plant and equipment Buildings and structures 5,951 6,028 Accumulated depreciation (665) (875) Buildings and structures, net 5,286 5,152 Tools, furniture and fixtures 4,020 4,058 Accumulated depreciation (2,951) (3,171) Tools, furniture and fixtures, net 1,068 887 Land 5,299 5,299 Total property, plant and equipment 11,654 11,339 Intangible assets Software 3,216 4,382 Other 22 22 Total intangible assets 3,238 4,405 Investments and other assets Investment securities 11,836 8,894 Long-term prepaid expenses 503 371 Deferred tax assets 3,514 3,979 Other 1,215 1,134 Total investments and other assets 17,069 14,379 Total non-current assets 31,963 30,125 Total assets 56,727 49,556
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INES Corporation (9742) - 5 - (Millions of yen) As of March 31, 2025 As of December 31, 2025 Liabilities Current liabilities Accounts payable - trade 2,639 1,563 Short-term borrowings 3,000 – Current portion of long-term borrowings 833 833 Accrued expenses 960 891 Income taxes payable 253 303 Accrued consumption taxes 571 100 Advances received 136 194 Provision for bonuses 925 393 Provision for bonuses for directors (and other officers) 107 85 Provision for loss on orders received – 31 Asset retirement obligations 10 8 Other 526 932 Total current liabilities 9,965 5,336 Non-current liabilities Long-term borrowings 3,749 3,124 Provision for retirement benefits for directors (and other officers) 35 22 Retirement benefit liability 2,866 2,390 Asset retirement obligations 146 143 Other 772 770 Total non-current liabilities 7,569 6,450 Total liabilities 17,535 11,787 Net assets Shareholders’ equity Share capital 15,000 15,000 Capital surplus 10,102 10,108 Retained earnings 13,835 12,225 Treasury shares (120) (106) Total shareholders’ equity 38,816 37,227 Accumulated other comprehensive income Valuation difference on available-for-sale securities 153 301 Remeasurements of defined benefit plans 222 239 Total accumulated other comprehensive income 375 541 Total net assets 39,192 37,769 Total liabilities and net assets 56,727 49,556
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INES Corporation (9742) - 6 - (2) Quarterly consolidated statement of income and consolidated statement of comprehensive income Quarterly consolidated statement of income (Millions of yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Net sales 28,143 25,212 Cost of sales 21,951 21,378 Gross profit 6,191 3,833 Selling, general and administrative expenses 4,651 4,568 Operating profit (loss) 1,539 (734) Non-operating income Interest income 38 29 Dividend income 23 63 Compensation income – 90 Dividend income of insurance 11 4 Other 18 40 Total non-operating income 93 228 Non-operating expenses Interest expenses 25 41 Loss on investments in investment partnerships 1 – Other 10 16 Total non-operating expenses 37 57 Ordinary profit (loss) 1,595 (564) Extraordinary income Gain on sale of membership – 3 Total extraordinary income – 3 Extraordinary losses Loss on retirement of non-current assets 17 6 Special retirement benefits 82 – Other 22 – Total extraordinary losses 122 6 Profit (loss) before income taxes 1,473 (567) Income taxes 474 (102) Profit (loss) 998 (465) Profit (loss) attributable to owners of parent 998 (465)
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INES Corporation (9742) - 7 - Quarterly consolidated statement of comprehensive income (Millions of yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Profit (loss) 998 (465) Other comprehensive income Valuation difference on available-for-sale securities 88 148 Remeasurements of defined benefit plans, net of tax 22 16 Total other comprehensive income 110 165 Comprehensive income 1,109 (299) Comprehensive income attributable to Comprehensive income attributable to owners of parent 1,109 (299)
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INES Corporation (9742) - 8 - (3) Quarterly consolidated statement of cash flow (Millions of yen) Nine months ended December 31, 2024 Nine months ended December 31, 2025 Cash flows from operating activities Profit (loss) before income taxes 1,473 (567) Depreciation 1,379 1,264 Increase (decrease) in provision for bonuses (569) (532) Increase (decrease) in provision for bonuses for directors (and other officers) (0) (22) Increase (decrease) in provision for loss on orders received 4 31 Increase (decrease) in provision for retirement benefits for directors (and other officers) (53) (12) Increase (decrease) in retirement benefit liability (401) (451) Loss on retirement of non-current assets 17 6 Loss (gain) on sale of membership – (3) Special retirement benefits 82 – Decrease (increase) in trade receivables 2,255 7,949 Decrease (increase) in inventories (282) (561) Decrease (increase) in other assets (146) (95) Increase (decrease) in trade payables (80) (1,004) Increase (decrease) in other liabilities 368 (389) Other, net (105) (42) Subtotal 3,942 5,567 Income taxes refund 397 105 Income taxes paid (1,156) (344) Net cash provided by (used in) operating activities 3,184 5,327 Cash flows from investing activities Net decrease (increase) in time deposits 1,000 – Purchase of property, plant and equipment (1,117) (301) Proceeds from sale of property, plant and equipment – 24 Purchase of intangible assets (1,248) (1,653) Purchase of long-term prepaid expenses (52) (66) Purchase of investment securities (2) (1) Proceeds from redemption of investment securities 200 2,000 Proceeds from sale of membership – 6 Payments of leasehold and guarantee deposits (257) (17) Proceeds from refund of leasehold and guarantee deposits 413 94 Payments for asset retirement obligations (250) (28) Other, net 22 20 Net cash provided by (used in) investing activities (1,293) 75 Cash flows from financing activities Net increase (decrease) in short-term borrowings – (3,000) Repayments of long-term borrowings (208) (625) Repayments of lease liabilities (4) (1) Purchase of treasury shares (1) (1) Dividends paid (1,014) (1,121) Net cash provided by (used in) financing activities (1,229) (4,748) Net increase (decrease) in cash and cash equivalents 660 654 Cash and cash equivalents at beginning of period 5,265 7,991 Cash and cash equivalents at end of period 5,926 8,646
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INES Corporation (9742) - 9 - (4) Notes to quarterly conso lidated financial statements Notes to accounting treatment specific to the preparation of quarterly consolidated financial statements Calculation of tax expense Tax expense is calculated by reasonably estimating the effective tax rate after applying tax effect accounting to profit before income taxes for the fiscal year including the third quarter under review, and multiplying profit before income taxes by this estimated effective tax rate. Notes on segment information, etc. The Group provides integrated services from planning and development of information systems and networks to operation, maintenance, and maintenance after operation, and is omitted because it is a single segment of the information service business. Notes when there are significant changes in amounts of equity Dividends of surplus Regarding the year-end dividends for the previous fiscal year, the Company resolved the following at the Ordinary General Meeting of Shareholders held on June 25, 2025. (1) Types of shares: Common shares (2) Total amount of dividends: ¥624 million (3) Dividends per share: ¥30 (4) Record date: March 31, 2025 (5) Effective date: June 26, 2025 (6) Source of dividends: Retained earnings Regarding the interim dividends for the current fiscal year, the Company resolved the following at the Board of Directors held on October 28, 2025. (1) Types of shares: Common shares (2) Total amount of dividends: ¥520 million (3) Dividends per share: ¥25 (4) Record date: September 30, 2025 (5) Effective date: December 5, 2025 (6) Source of dividends: Retained earnings Notes on premise of going concern Not applicable.