Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — Q3 FY2004 Earnings Presentation
14 slides from Internet Initiative Japan's earnings presentation, Feb 9, 2005
Slide 1: Third Quarter Results for the Year Ending March 31, 2005
Internet Initiative Japan Inc. Third Quarter Results for the Year Ending March 31, 2005 February 9, 2005 Statements made in this material regarding IIJ's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements that are based on IIJ's and manage
Slide 2: Highlights
Highlights 9 Largely increased operating and net income in 3Q04 - Operating income: JPY 410 million (An increase of 73.9% from 3Q03 and an increase of 45.4% from 2Q04) - Net income: JPY 920 million (Turned positive from a net loss of JPY 273 million in 2Q04) Higher-margin and recurring revenues such
Slide 3: Highlights
Highlights By Service Topics © 3
Slide 4: Summary of 3Q04 Results
Highlights Summary of 3Q04 Results (JPY millions) 3Q04 3Q03 YoY 2Q04 QoQ % of Total % of Total % change % of Total % change Revenues Revenues Revenues Total Revenues 10,261 100.0% 9,633 100.0% 6.5% 10,512 100.0% (2.4%) Total Costs 8,486 82.7% 8,125 84.3% 4.4% 8,854 84.2% (4.2%) SG & A Expenses 1,365
Slide 5: Revenues, Costs and Gross Margin
Highlights Revenues, Costs and Gross Margin (JPY million) Total Revenues (%) Connectivity and VAS gross 15,000 30 margin ratio continued to Connectivity and VAS Gross Margin Ratio 23.9% 23.7% improve to 14.0% SI Gross Margin Ratio 22.3% 20.0% 23.7% - Trend of decreasing 10,000 20 connectivity revenu
Slide 6: Operating and Net Income (Loss)
Highlights Operating and Net Income (Loss) Operating Income (Loss) Net Income (Loss) Operating income increased compared to 3Q03 and 2Q04 Substantially improved due to higher operating Having established a profit base due to increased revenues income, the sale of available-for-sale securities and fr
Slide 7: Outlook for FY2004
Highlights Outlook for FY2004 9 We expect sequential and annual increases in revenue and operating income in 4Q04 - Fourth quarter is usually the strongest part of our fiscal year due to seasonal fluctuation of SI revenues - We expect that an increase in revenues from operational outsourcing and mai
Slide 8: By Service
Highlights By Service Topics © 8
Slide 9: Connectivity Services
By Service Connectivity Services Trend of decreasing connectivity service revenues is slowing Revenues and has almost become flat (4Q03 to 1Q04: -188M, 1Q04 to 2Q04: -98M, 2Q04 to 3Q04: -64M) (JPY millions) (Gbps) 5000 109.5 120 Shift to lower-priced broadband services almost completed 4500 4,345 4,
Slide 10: Value-added Services
By Service Value-added Services VAS and other revenues continued to improve, increasing 30.8% Revenues YoY and 11.5% QoQ, to become one of IIJ’s major revenue sources (JPY millions) 2500 Increased awareness of security issues by corporate customers is spurring security-related service sales 2,158 20
Slide 11: Systems Integration
By Service Systems Integration Revenues increased by 37.4% compared to 3Q03 due to an Revenues increase in revenues from outsourced operations of SI (JPY millions) Revenues from outsourced operation steadily increased by 6000 32.3% from 2Q04 and contributed to a stable increase in revenues and profi
Slide 12: Cross-selling
By Service Cross-selling 9Usage (%) of VAS by Connectivity service customers continued to stay at a high level 9Usage (%) of Connectivity service by SI customers also increased 3Q04 2Q04 VAS Cross-selling Ratio *1 87.5% 86.9% SI Cross-selling Ratio *2 90.0% 80.0% *1 Percentage of the largest 1,000 c
Slide 13: Topics
Highlights By Service Topics © 13
Slide 14: Topics
Topics Electronic tag market expecting rapid Overview of the FY2004 RFID Pilot Project run by the growth Ministry of Economy, Trade, and Industry - Over 4.7 billion out of 6 billion tags to be used in 2010 will be used with Project name: Shipping Container RFID Pilot Project a network such as the In
Internet Initiative Japan — Q3 FY2004 Earnings Presentation on 6ix