Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — FY2024 Earnings Presentation
47 slides from Internet Initiative Japan's earnings presentation, May 13, 2025
Slide 1: Presentation Material for Consolidated Financial Results for FY24
Presentation Material for Consolidated Financial Results for FY24 (April 1, 2024 to March 31, 2025) Internet Initiative Japan Inc. (IIJ) The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774) May 13, 2025 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ int
Slide 2: Outline
Outline Ⅰ. FY24 Summary & FY25 Targets P. 2 Ⅱ. FY24 Financial Results P. 3 ~ P. 17 Ⅲ. Service ＆ Business Developments, etc. P. 18 Ⅳ. FY25 Financial Targets P. 19 ~ P. 21 Appendix P. 22 ~ P. 26 【Reference】 Presentation material for company overview P. 27 ~ P. 45 • FY24 stands for a fiscal year from A
Slide 3: FY24 Summary & FY25 Targets
Ⅰ. FY24 Summary & FY25 Targets Unit: JPY/¥ billion (bn), +%, YoY = Year over year comparison Net Profit is “Profit for the period attributable to owners of the parent” FY2024 Summary FY2025 Targets Acquisition of large-scale NW construction & operation projects from various rd industries has become
Slide 4: Year over Year Analysis
Ⅱ- 1. Year over Year Analysis Unit: ¥ (JPY) billion YoY = Year over year comparison % of revenue % of revenue % of revenue FY24 Results FY23 Results YoY FY24 Targets YoY (Announced in Aug. 2024) Apr. 2024 - Mar. 2025 Apr. 2023 - Mar. 2024 Apr. 2024 - Mar. 2025 Revenues 316.83 276.08 +14.8% +40.75 31
Slide 5: Year over Year Analysis
Ⅱ- 2. Year over Year Analysis Unit: ¥ (JPY) billion (bn) GP = Gross Profit YoY = Year over year comparison Revenues FY23 +40.75 FY24 276.08 316.83 IP & Outsourcing services Consumer and enterprise steadily grew IoT strongly grew (+10.88 in FY23) (+0.07 in FY23) (+3.86 in FY23) (+8.56 in FY23) Favora
Slide 6: Revenues
Ⅱ- 3. Revenues Unit: ¥ (JPY) million [ ], YoY = Year over year comparison Internet Connectivity Services (Enterprise) Systems Integration (SI) Systems Construction (including equipment sales) Internet Connectivity Services (Consumer) Systems Operation and Maintenance Network (NW) Services Outsourcin
Slide 7: Cost of Revenues & Gross Profit Ratio
Ⅱ- 4. Cost of Revenues & Gross Profit Ratio Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Gross margin: NW (Network) Services SI (Systems Integration) Total Cost of revenues: NW (Network) Services SI (Systems Integration) ATM Operation Business 28.
Slide 8: Network (NW) Services (1) Revenues
Ⅱ- 5. Network (NW) Services (1) Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison Total Contracted Bandwidth (Gbps) Internet Connectivity (enterprise) Services WAN (Wide Area Network) Services FY24: ¥48.99 bn, +9.5% YoY (+11.1% YoY in FY23) Outsourcing Services • Of which, IP S
Slide 9: Network (NW) Services (2) Cost of Revenues
Ⅱ- 5. Network (NW) Services (2) Cost of Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison Circuit-related costs (Internet backbone, WAN lines, etc.) Outsourcing-related costs (mobile infrastructure related costs such as interconnectivity charge and voice communication services, ou
Slide 10: Network (NW) Services (3) Security and Mobile/IoT
Ⅱ- 5. Network (NW) Services (3) Security and Mobile/IoT Unit: ¥ (JPY) billion ( ) = Year over year comparison MRR ＝Monthly Recurring Revenue Security Business Mobile/IoT Business Security service revenue 3,000 3,176 Subscriptions (Subs.) FY23: 30.93 [+15.7%] FY24: 35.94 [+16.2%] (unit: thousand) 2
Slide 11: Systems Integration (SI) (1) Revenues
Unit: ¥ (JPY) million Ⅱ- 6. Systems Integration (SI) (1) Revenues [ ] , YoY = Year over year comparison MRR = Monthly Recurring Revenue Systems Construction revenues (including equipment sales) Systems operation & maintenance revenues for on-premise system Cloud revenues such as private cloud which
Slide 12: Systems Integration (SI) (2) Cost of Revenues
Ⅱ- 6. Systems Integration (SI) (2) Cost of Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison Purchasing costs (Equipment, etc.) Outsourcing-related costs (SI-related outsourcing personnel costs, etc.) Others Network operation-related costs (Depreciation cost such as for cloud faci
Slide 13: Human Capital Disclosure
Ⅱ- 7. Human Capital Disclosure Number of Employees (consolidated basis) Personnel-related costs & expenses (consolidated basis) Breakdown of Employees Unit: ¥ (JPY) million Contract worker (personnel) Admin. Full-time worker (personnel) approx.10% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Sales Consol
Slide 14: SG&A, etc.
Ⅱ- 8. SG&A, etc. Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Research & development expenses Commission expenses Others (including other income and other expenses) Personnel-related expenses ( ) % of total revenues FY24 SG&A, etc. was almost as
Slide 15: Profit
Unit: ¥ (JPY) million Ⅱ- 9. Profit [ ] , YoY = Year over year comparison Operating margin Operating profit Operating profit FY24: ¥30.10 bn, +3.7% YoY Net profit • Profit increased YoY by absorbing approx. -¥1.5 bn of VMware license-related profit impact Profit before tax FY24: ¥29.18 bn, +0
Slide 16: Consolidated Statements of Financial Position (Summary)
Ⅱ- 10. Consolidated Statements of Financial Position (Summary) Unit: ¥ (JPY) million Mar. 31, 2024 Mar. 31, 2025 Changes Mar. 31, 2024 Mar. 31, 2025 Changes Cash & cash equivalents 45,474 32,534 (12,940) Trade & other payables 25,435 30,238 +4,803 Trade receivables 45,683 56,361 +10,678 Borrowings (
Slide 17: Consolidated Cash Flows
Ⅱ- 11. Consolidated Cash Flows Unit: ¥ (JPY) million YoY = Year over year comparison Operating Activities FY24 Major Breakdown YoY Change FY23: 40,780 FY24: 28,528 Profit before tax 29,184 +250 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Depreciation and amortization 31,372 +2,076 11,035 11,536 13,193 1
Slide 18: Other Financial Data
Ⅱ- 12. Other Financial Data Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison CAPEX CAPEX-related depreciation and amortization Cash CAPEX Finance lease FY23: 22,521 [+8.1%] FY24: 26,274 [+16.7%] FY23: 15,634 [+2.3%] FY24: 17,312 [+10.7%] 9,880 4,139 4,311 4,377 4,485 6,689 3,869 3,878 3,9
Slide 19: Acquisition of large-scale projects as a new norm by Service Integration model
Ⅲ. Acquisition of large-scale projects as a new norm by Service Integration model Project overview Project size (approx.) Main revenue recognition Acquisition periods Timing of revenue recognition Information infrastructure system for a public sector organization ¥3.0 bn, 4 yrs NW service, SI constr
Slide 20: FY25 Financial Targets
Ⅳ- 1. FY25 Financial Targets Unit: ¥ (JPY) billion (bn) GP = Gross Profit FY25 Targets Premise and Assumption % of total reveue % of total reveue FY24 FY25 Revenues FY24 FY25 Gross Profit Result Target 1H25 FY25 Result Target (Apr. 1, 2025 - Sep. 30, 2025) YoY (Apr. 1, 2025 - Mar. 31, 2026) YoY 316.
Slide 21: Year over Year Analysis
Ⅳ- 2. Year over Year Analysis Unit: ¥ (JPY) billion (bn) GP = Gross Profit Revenues FY24 result +23.17 FY25 target 316.83 340.0 (+29.49 in FY23) (+4.16 in FY23) (+7.07 in FY23) (+0.03 in FY23) • NW services (excl. Mobile) revenues are calculated by deducting the below mentioned Mobile services reven
Slide 22: FY25 Dividend Forecast
Ⅳ- 3. FY25 Dividend Forecast Unit: JPY (¥) Basic shareholders’ return policy: Continuous and stable dividend payment while considering the need to have retained earnings for the enhancement of financial position, mid-to-long term business expansion and future investment Dividend per share: FY21
Slide 23: Management Structure (to be from June 2025)
Appendix Management Structure (to be from June 2025) Board Members Message from new President I am dedicated to firmly inheriting the growth trajectory we have established, further honing and demonstrating our group's greatest strength of technological capabilities and continuously strive to enhan
Slide 24: Acquired large-scale Service Integration projects
Appendix Acquired large-scale Service Integration projects Services provided by IIJ SI provided by IIJ Educational Information NW for Chiba city Integrated information system for public safety org. SASE案件(多数) Large-scale SASE project for a global company Internet IIJ GIO Managed Prisma Access UOM
Slide 25: Launched a new shared banking system platform for Japanese regional banks
Appendix Launched a new shared banking system platform for Japanese regional banks with IBM Japan and MUFG Bank The regional banking system alliance groups “Judankai” & “Chance” have adopted the platform Promoting service cross-selling for them IIJ’s part in this initiative Areas where IIJ can pro
Slide 26: NTT Docomo's Mobile data interconnectivity charge
Appendix NTT Docomo’s Mobile data interconnectivity charge (Mbps Unit charge, monthly) Fiscal FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 Year Method Future cost method: MNOs are to disclose the charges for next three yrs based on their prediction about cost etc. Announced in Mar. 2025 New ¥10,874 ¥10,3
Slide 27: Mobile service for consumers IIJmio Giga Plan
Appendix Mobile service for consumers “IIJmio Giga Plan” Including tax IIJmio awarded No. 1 overall satisfaction in the Oricon Customer Satisfaction® Survey for low-cost SIM & mobile device sets IIJmio “Giga Plan” • Slight price revision in Mar. 2025 GigaPlans: by data plans GigaPlans: by plans As
Slide 28: Presentation material for company overview
【Reference】 Presentation material for company overview P. 27 ~ P. 45 © Internet Initiative Japan Inc. 27
Slide 29: Company Profile
Business Company Profile About IIJ Model Growth Strength Strategy IIJ has been taking initiatives in Internet Infrastructure field in Japan Established December 1992 (The first established full-scale ISP in Japan) Number of Employees 5,221 (approx. 70% engineers) Large Shareholders NTT Group, KDDI,
Slide 30: From ISP to Total Network Solution Provider
Business From ISP to Total Network Solution Provider About IIJ Model Growth Strength Strategy Systems Integration (SI) revenue: Systems construction One time (including equipment sales) revenue EMERGE Systems operation and maintenance Network enhancement, (including private Cloud) Cloud, consumer mo
Slide 31: IIJ as a Total Network Solution Provider
Business IIJ as a Total Network Solution Provider About IIJ Model Growth Strength Strategy Offers various network services and systems integration together in many projects 16,000 customers Approx. (as of Mar. 31, 2025) (Japanese companies, central government agencies, local governments, consumer IS
Slide 32: Data center (DC)
Business Data center (DC) About IIJ Model Growth Strength Strategy Matsue DCP (opened in Apr. 2011) Shiroi DCC (opened in May 2019) Operate 16 DCs in Japan, 2 of which are owned by IIJ Objective IIJ’s own service facility (as of Mar. 2025) Expanding own DC capacity along with growing demands for
Slide 33: Extensive Service Lineups
Business Extensive Service Lineups About IIJ Model Growth Unit: ¥ (JPY) billion (bn) Strength Strategy FY24 Revenue category About Business Situation & Outlook revenue Core service providing from the foundation Matured market (hard to entry) Highly reliable dedicated connectivity services for
Slide 34: Monthly Recurring Revenue Accumulation
Business Monthly Recurring Revenue Accumulation About IIJ Model Unit: ¥ (JPY) billion (bn) Growth % = Year over year change Strength Strategy FY19 FY20 FY21 FY22 FY23 FY24 204.5 213.0 226.3 252.7 276.1 316.8 (+6.3%) (+4.2%) (+6.3%) (+11.7%) (+9.2%) (+14.8%) Revenues ATM operation business Systems co
Slide 35: Expanding economies of scale by Service Integration
Business About IIJ Expanding economies of scale by Service Integration Model Unit: ¥ (JPY) billion Growth approximate curve Strength Strategy Systems construction revenues (including equipment sales) NW service (excluding mobile) revenues Systems operation & maintenance revenues 112.28 82.53 105.21
Slide 36: Capex and Business Developments
Business Capex and Business Developments About IIJ Model Unit: ¥ (JPY) billion (bn) Growth Strength Strategy FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Revenues 176.2 192.4 204.5 213.0 226.3 252.7 276.1 316.8 Stronger demands for enterprise network services 27.8% 27.5% 28.7% 27.8% NW service 18.1% 16.3
Slide 37: Service & Solution Development Capability
Business Service & Solution Development Capability About IIJ Model Growth Strength Strategy Initiate the market by continuously developing innovative various network-related services & solution in-house © Internet Initiative Japan Inc. 36
Slide 38: Excellent Customer Base
Business Excellent Customer Base (Number of IIJ Group’s clients: approx. 16,000 as of March 31, 2025) About IIJ Model Growth Strength Strategy Through reliable operation, continuous use of Internet connectivity services since the inception of IIJ Our reliable infrastructure operation and cross-s
Slide 39: Competitive Advantages
Business Competitive Advantages About IIJ Model Growth Strength Strategy Against telecom carriers, IIJ Against systems integrators (SIers), IIJ • Has highly skilled IP (Internet Protocol) engineers • Operates one of the largest Internet backbone (SIers do not) • Is faster to move than bureaucratic o
Slide 40: NW Services and SI provided together as a Total Solution
Business NW Services and SI provided together as a Total Solution About IIJ Model Growth Strength Strategy Systems Integration (SI) to meet specific requirements cannot be covered by NW services Network (NW) services (in-house developed) Secure Web Managed Cloud Content Simple Secure MX IIJ ID DNS P
Slide 41: Mid-term Plan (FY24 ~ FY26)
Consolidated base Business About IIJ Mid-term Plan (FY24 ~ FY26) Net Profit is “Profit for the period attributable to owners of the parent” Model “times” are calculated by comparing FY26/FY26-end to FY23/FY23-end Growth The figures below are all assumed targets Strength Strategy Accelerate business
Slide 42: Mid-term Plan's Financial Outlook
Business About IIJ Mid-term Plan’s Financial Outlook Model Growth Unit: ¥ (JPY) billion Strength Strategy Breakdown image of financial outlook Total FY20 FY23 FY26 outlook Gross FY20 FY23 FY26 outlook Operating FY20 FY23 FY26 outlook Revenue (one before (Previous Mid-term (New Mid-term’s Profit (one
Slide 43: Mid-to-long Term Vision
Business About IIJ Mid-to-long Term Vision Model Growth Strength Strategy The figures mentioned below are all assumed status and image Beyond 5,000 Previous Mid-term Mid-term Mid-to-long Term Vision *5,000 is derived from the Japanese unit of ¥5,000 oku (oku = one hundred million) which is ¥500 bn (
Slide 44: Enterprise internal NW & systems in Japan becoming to change
Business Enterprise internal NW & systems in Japan becoming to change About IIJ Model Growth Strength Strategy 30 yrs ago Nowadays IIJ covered external NW with Internet IIJ’s opportunities rise to cover entire NW & system Carriers & SIers covered internal NW & systems utilizing various NW functions
Slide 45: Financial Business zone
Business About IIJ The progress of Decurret’s business Model Growth Strength Strategy About DeCurret The first commercial project about digital currency(DCJPY) in Japan • Shareholder: 43 companies, IIJ ownership: 34.8% (an equity method investee) Issuer of digital GMO Aozora Net Bank, Ltd. • Busines
Slide 46: Market Environment & Growth Forecast, etc.
Business About IIJ Market Environment & Growth Forecast, etc. Model Growth Strength Strategy Historical traffic data of major domestic IX SIM type MVNO market share in Japan Peak traffic Maintain top share in the domestic SIM-type MVNO market Mar. 31, 2023 Mar. 31, 2024 1st IIJ 19.8% IIJ 21.6% 2nd
Slide 47: © Internet Initiative Japan Inc.
© Internet Initiative Japan Inc.
Internet Initiative Japan — FY2024 Earnings Presentation on 6ix