Internet Initiative Japan Inc. · TSE:3774

Internet Initiative Japan — Q3 FY2001 Earnings Presentation

17 slides from Internet Initiative Japan's earnings presentation, February 2002

  1. Slide 1: Results of 3Q01

    Results of 3Q01 2002 February Internet Initiative Japan Inc. The statements within this may contain forward-looking statements that involve risk and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Internet Ini

  2. Slide 2: Highlights in the 3Q Results

    Highlights in the 3Q Results • Steady Growth in Total Revenues – JPY9.9 billion, grew by 35.7% from 3Q00 and by 4.3% from 2Q01. • Continuous Decrease in International Backbone Cost – Decreased by 62.4% from 3Q00 and by 14.0% from 1Q01. • Steady Improvement in Operating Performance – Gross margin inc

  3. Slide 3: Revenues Breakdown (Quarter Basis)

    Revenues Breakdown (Quarter Basis) (JPY Millions) 4Q 4 Q Guidance Revenues 10.5B - 11B Others Operating Income 150M - 300M Value-Added EBITDA 900M - 1,050M SI Connectivity Copyright © 2002 by Internet Initiative Japan Inc. All Rights Reserved. 3

  4. Slide 4: IIJ Consolidated Revenues

    IIJ Consolidated Revenues (JPY in millions) 4Q 10,500 31,876 Expecting full fiscal 2001 11,000 to be JPY38.3B-38.8B 25,302 4Q 9,200 ars ye 7 for 3Q 9,934 75% 3Q 7,322 GR 14,769 CA 12,323 2Q 2Q 9,528 8,108 8,533 4,058 1Q 1Q 8,332 1,099 7,246 3/1995 3/1996 3/1997 3/1998 3/1999 3/2000 3/2001 3/2002E Co

  5. Slide 5: Backbone Costs (1)

    Backbone Costs (1) (JPY Millions) Decreased by 39.5% from 1Q00 Procurement price down by favorable Market Environment International Decreased by 51.4% from 2Q00 Decreased by 62.4% from 3Q00 Domestic Copyright © 2002 by Internet Initiative Japan Inc. All Rights Reserved. 5

  6. Slide 6: Backbone Costs (2)

    Backbone Costs (2) Domestic & International BB Costs Unit Price for International BB (JPY million) (JPY Thousands) (Mbps) Cost per 1Mbps Expecting FY2001 to be less than FY2000 Backbone Bandwidth 1998 1999 2000 2001 Copyright © 2002 by Internet Initiative Japan Inc. All Rights Reserved. 6

  7. Slide 7: Gross Margin

    Gross Margin Gross Margin Gross Margin By Segment ( ) ( ) 3Q:14.7% SI Connectivity + VAS Copyright © 2002 by Internet Initiative Japan Inc. All Rights Reserved. 7

  8. Slide 8: Operating Income/Loss

    Operating Income/Loss Quarterly Yearly (JPY millions) (JPY millions) 2001E 2001E 18M-168M 4Q01E 150M - 300M Copyright © 2002 by Internet Initiative Japan Inc. All Rights Reserved. 8

  9. Slide 9: EBITDA

    Quarterly Yearly (JPY Millions) (JPY Millions) 4Q01E 2001E 2001E 900M -1,050M 2,893M-3,043M Copyright © 2002 by Internet Initiative Japan Inc. All Rights Reserved. 9

  10. Slide 10: Internet Connectivity IP Service

    Internet Connectivity IP - Capturing Strong demand for Higher Bandwidths - Dedicated Access Service IP Service(*) ARPU (*) Dedicated Access Service excluding IIJT1Standard/IIJ Economy Contracted Bandwidth (JPY Thousands) (Mbps) (Contracts) Number of Contracts (Gbps) 3,200 7.7Gbps 7.7 Gbps 2,800 Band

  11. Slide 11: Internet Data Center Services: Revenues and Contracts

    DC Internet Data Center Services Revenues and Contracts (JPY in Millions) (Contract) Number of Contracts Acquired large IDC contracts Some migrations from conventional Revenues connectivity services to data center connectivity services Expecting 4Q to further grow Copyright © 2002 by Internet Initia

  12. Slide 12: Systems Integration Services: Revenues and Gross Margin Ratio

    Systems Integration Services SI Revenues and Gross Margin Ratio (JPY in Millions) Gross Margin Ratio (%) The highest SI revenues in IIJ history Acquired large SI projects SI Revenues Retained the 15% level in gross margin Expecting 4Q to further grow Copyright © 2002 by Internet Initiative Japan Inc

  13. Slide 13: Awarded as the Best Provider 2001 (1)

    Awarded as the Best Provider 2001 (1) Awarded as the Best Provider 2001 Dedicated Access Service (Source: Nikkei Communications December 2001) 1 IIJ Total Ranking 1 2 Hitachi (netSpace) Consulting 2 Price 3 3 NTT PC (InfoSphere) 4 VAS 5 Stability 4 Jens (AT&T WorldNet) 6 7 5 Japan Telecom (ODN) 8 9

  14. Slide 14: Awarded as the Best Provider 2001 (2)

    Awarded as the Best Provider 2001 (2) Dialup Access Service Hosting / Housing Services (Source: Nikkei Communications December 2001) (Source: Nikkei Communications December 2001) Total Ranking Total Ranking 1 Consulting 1 Consulting 2 Price Price 2 3 3 4 4 Throughput Server 5 Stability Backbones 5 6

  15. Slide 15: IIJ CDN: Closed IP Network

    • Closed IP Network • Access to the platform will be for free of charge broadcasting model) Internet cache cache DC DC DC cache DC cache DC cache cache DC IP IP CATV CATV IP CATV IP CATV Copyright © 2002 by Internet Initiative Japan Inc. All Rights Reserved. 15

  16. Slide 16: Change on End User Side

    Change on End User Side Current IIJ CDN Access IIJ CDN User Access Access ISP ISP ISP Internet Protocol Internet Protocol Internet Protocol Internet Protocol IIJ CDN Internet Content Content Internet Copyright © 2002 by Internet Initiative Japan Inc. All Rights Reserved. 16

  17. Slide 17: Distribution Outsourcing Vendors

    * Distribution Content Vendors Holders Distribution * Corporate Outsourcing Information Vendors Settlement User Management Content Management Systems Management and Operation Data Center CDN Network (Cash-controlled Network) Copyright © 2002 by Internet Initiative Japan Inc. All Rights Reserved. 17

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