Internet Initiative Japan Inc. · TSE:3774

Internet Initiative Japan — H1 2026 Earnings Presentation

46 slides from Internet Initiative Japan's earnings presentation, Nov 6, 2026

1. Slide 1: Presentation Material for Consolidated Financial Results for 1H26

   Presentation Material for Consolidated Financial Results for 1H26 (April 1, 2026 to September 30, 2026) Internet Initiative Japan Inc. (IIJ) The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774) November 6, 2026 Disclaimer Statements made in this presentation regarding IIJ’s or manageme

2. Slide 2: Outline

   Outline Ⅰ. 1H26 Summary P. 2 ~ P. 3 Ⅱ. Financial Results P. 4 ~ P. 18 Appendix P. 19 ~ P. 27 【Reference】 Presentation material for company profile P. 28 ~ P. 44 • FY26 stands for a fiscal year from Apr. 1, 2026 to Mar. 31, 2027. 1Q26 stands for 1Q of FY26, 1H26 stands for 1st half of FY26 (Apr. 1, 2

3. Slide 3: 1H26 Summary

   Ⅰ- 1. 1H26 Summary Unit: JPY billion +%, YoY = Year-over-year change Net income: attributable to owners of the parent Amid Japanese Enterprises’ Networks & Systems Changes, Shifting to Structural Business Growth by Leveraging Our Network Technological & Operational Expertise 1H26 Revenue Significant

4. Slide 4: Examples of IT Infrastructure and Security Projects Across Industries

   Ⅰ- 2. Examples of IT Infrastructure and Security Projects Across Industries IIJ services Internet Connectivity Infrastructure Consolidation for a Major Financial Group Cybersecurity Governance Enhancement for a Major Financial Group Internet 01 02 03 04 Other DNS Server WAAP Anti-DDoS Other ISP IIJ

5. Slide 5: Consolidated Financial Results

   Ⅱ- 1. Consolidated Financial Results Unit: ¥ (JPY) billion YoY = Year over year comparison % of revenue % of revenue % of revenue % of revenue 1H26 Results 1H25 Results YoY 1H26 Forecasts YoY FY26 Forecasts YoY (Announced in May 2026) (Revised in Nov. 2026) Apr. 2026 - Sep. 2026 Apr. 2025 - Sep. 202

6. Slide 6: Year over Year Analysis

   Unit: ¥ (JPY) billion (bn) Ⅱ- 2. Year over Year Analysis GP = Gross Profit O/M = Operation and Maintenance YoY = Year over year comparison Revenues 1H25 +48.39 1H26 161.91 210.30 IP and outsourcing services grew (+6.75 in 1H25) Consumer and enterprise IoT steadily; started slightly behind initial co

7. Slide 7: 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

8. Slide 8: 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 27.

9. Slide 9: Network (NW) Services (1) Revenues

   Ⅱ- 5. Network (NW) Services (1) Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Total Contracted Bandwidth (Gbps) WAN (Wide Area Network) Services Outsourcing Services Internet Connectivity (consumer) Services Significant increase in contrac

10. Slide 10: 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

11. Slide 11: Network (NW) Services (3) Security and Mobile/IoT

    Ⅱ- 5. Network (NW) Services (3) Security and Mobile/IoT Unit: ¥ (JPY) billion [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Security Business Mobile/IoT Business  Ongoing strong demand drives stable growth in security services (MRR) Enterprise • Continuous demand to co

12. Slide 12: Systems Integration (SI) (1) Revenues

    Ⅱ- 6. Systems Integration (SI) (1) Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Systems Construction revenues (including equipment sales) Systems operation & maintenance revenues for on-premise system Cloud revenues such as private cloud

13. Slide 13: 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

14. Slide 14: SG&A, etc.

    Ⅱ- 7. 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 1H25: 19,740[+4.5%] 1H26: 22,97

15. Slide 15: Human Capital Disclosure

    Ⅱ- 8. Human Capital Disclosure Number of Employees (consolidated basis) Personnel-related Costs & Expenses (consolidated basis) Unit: ¥ (JPY) million Contract worker (personnel) Full-time worker (personnel) 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 11,049 11,305(*) 11,278 12,133 12,354 13,100 +363 YoY +314 YoY

16. Slide 16: Profit

    Unit: ¥ (JPY) million Ⅱ- 9. Profit [ ] , YoY = Year over year comparison Operating margin  1H26 Operating profit: ¥16.53 bn, +7.4%YoY Operating profit  Operating profit increased YoY despite the absence of the ¥1.17 billion one-time gain Net profit related to the retirement benefit plan revision i

17. Slide 17: Consolidated Statements of Financial Position (Summary)

    Ⅱ- 10. Consolidated Statements of Financial Position (Summary) Unit: ¥ (JPY) million Mar. 31, 2026 Sep. 30, 2026 Changes Mar. 31, 2026 Sep. 30, 2026 Changes Cash & cash equivalents 38,395 41,161 +2,766 Trade & other payables 34,478 48,872 +14,394 Trade receivables 62,084 68,506 +6,422 Borrowings (cu

18. Slide 18: Consolidated Cash Flows

    Ⅱ- 11. Consolidated Cash Flows Unit: ¥ (JPY) million YoY = Year over year comparison Operating Activities 1H26 Major 1H25: 23,378 1H26: 28,746 Breakdown YoY Change FY25: 50,460 Profit before tax 16,045 +896 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Depreciation and amortization 16,826 +754 16,787 18,219 12,106

19. Slide 19: Other Financial Data

    Ⅱ- 12. Other Financial Data Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison CAPEX CAPEX-related depreciation and amortization Cash CAPEX 1H25: 15,044 [-1.7%] 1H26: 15,901 1H25: 9,204 [+8.9%] 1H26: 9,376 Finance lease FY25: 32,208 [+22.6%] [+5.7%] FY25: 18,802 [+8.6%] [+1.9%] 8,257 6,787

20. Slide 20: FY26 Dividend Forecast

    Appendix FY26 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: FY

21. Slide 21: Business Progress

    Appendix Business Progress Advancing Final-year Execution of the Current Mid-term Plan while Shaping the Next Three-year Growth Plan (Announcement planned in May 2027) Business • Core strengths and business structure remain unchanged. Growth to accelerate through business area expansion and service

22. Slide 22: Advancing IIJ's Offering Model with AI

    Appendix AI strategy (Announced in May 2026) Advancing IIJ's Offering Model with AI As a network services provider, IIJ aims to create added value through AI-native service offerings and capture the transformative benefits of AI. Targeting approx. 30% of company-wide operations to be AI-enabled by t

23. Slide 23: Large-Scale Projects Becoming the New Norm

    Appendix Large-Scale Projects Becoming the New Norm 2H23 1H24 2H24 1H25 2H25 1H26 Revenue recognition category NW service SI NW system construction & O/M 4 other projects for public institution ¥1.5 bn, 6 yrs ¥14.0 bn, 5 yrs SI Construction, O/M SI Construction, O/M Revenue recognition from 2Q26 Rev

24. Slide 24: Typical Transitions of Service Integration Projects

    Appendix Typical Transitions of Service Integration Projects Other IIJ-original offerings Network Services System Integration Educational Information NW for Chiba city Total NW project for a prominent company group Shared Banking System Platform Approx. 7,000 Mainframe joint platform Remote access u

25. Slide 25: NTT Docomo's Mobile data interconnectivity charge

    Appendix NTT Docomo’s Mobile data interconnectivity charge (Mbps Unit charge, monthly) Fiscal FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Year Announced in Mar. 2026 New ¥10,931 ¥10,104 ¥9,488 +0.5% YoY -7.6% YoY -6.1% YoY Future cost method No one-time cost reimbursement Fixed ¥27,024 ¥19,979 ¥15,042 ¥

26. Slide 26: Mobile service for consumers “IIJmio GigaPlans”

    Appendix Mobile service for consumers “IIJmio GigaPlans” Tax included Price list for “IIJmio GigaPlans” GigaPlans: by data plans • The price list was updated in Mar. 2025. The 15GB plan was revised in Mar. 2026. As of Sep. 30, 2026 35GB 45GB 55GB less than 2% 1% less than 1% With voice ¥850 2GB Data

27. Slide 27: Digital Currency Business

    Appendix Digital Currency Business DCJPY: A digital currency that tokenizes bank deposit on the blockchain. Also called tokenized deposits, they can be minted, transferred, and burned on the DCJPY Network Company Profile DCJPY Network DCP Co., Ltd. (DeCurret Holdings changed its trade name to DCP Co

28. Slide 28: Established a JV for soil moisture sensing business with Sony Semiconductor Solutions

    Appendix Established a JV for soil moisture sensing business with Sony Semiconductor Solutions Corporation Company Overview Background of Establishment / Business Development Company Name Sensiphia, Inc.  IIJ provides smart agriculture solutions that integrate communication infrastructure, IIJ: 85%

29. Slide 29: Presentation material for company profile

    【Reference】 Presentation material for company profile P. 28 ~ P. 44 © Internet Initiative Japan Inc. 28

30. Slide 30: Company Profile

    MSCI’s ESG rating: AA Company Profile Company (as of Mar. 2026) Profile 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 5,823 (approx. 70% engineers) Large Shareholders NTT Group,

31. Slide 31: Management structure (As of June 26, 2026)

    Ratio of female directors Ratio of outside directors Company Management structure (As of June 26, 2026) and auditors 28.6% 50.0% Profile Board of Directors (10 members) About President Taniwaki (Since Apr. 2025) Koichi Suzuki Yasuhiko Taniwaki  Joined MIC in 1984 and led major telecom reforms inclu

32. Slide 32: Recurring Revenue: From ISP to Total Network Solution Provider

    From ISP to Total Network Solution Provider Company Profile Systems Integration (SI) revenue: Systems construction One time (including equipment sales) revenue EMERGE Systems operation and maintenance Network enhancement, (including private Cloud) Cloud, consumer mobile, IoT …. Network (NW) services

33. Slide 33: Network Engineering Capabilities as Our Core Value - Business Model

    Network Engineering Capabilities as Our Core Value - Business Model - Company Profile Revenue (¥ bn) Client Base  Approx. 16,000 clients  Longstanding client relationships Overseas Business  High penetration to top tier 10 FY20 FY25 Private Sectors in Japan Public Sectors in Japan Top MVNO by mar

34. Slide 34: Extensive Service Lineups

    Extensive Service Lineups Company Profile Unit: ¥ (JPY) billion (bn) FY25 YoY Cost Gross Revenue category revenue growth Structure Margin About Business situation, growth drivers and outlook • IIJ’s flagship service since the inception • Matured market (hard to entry) • Highly reliable dedicated con

35. Slide 35: Recurring Revenue Accumulation & Expansion of Economies of Scale

    Recurring Revenue Accumulation & Expansion of Economies of Scale Unit: ¥ (JPY) billion (bn) % = Year over year change Company Profile FY20 FY21 FY22 FY23 FY24 FY25 34.8 27.2 29.0 30.1 (10.1%) 23.5 (10.5%) (9.5%) 14.2 (10.4%) (10.8%) (6.7%) 345.4 316.8 (+9.0%) (+14.8%) 23.7 276.1 22.1 (+9.2%) 55.5 25

36. Slide 36: Financial Performance

    Financial Performance Company Profile Unit: ¥ (JPY) billion (bn) FY21 FY22 FY23 FY24 FY25 Total Revenue 226.3 252.7 276.1 316.8 345.4 YoY +6.3% +11.7% +9.2% +14.8% +9.0% NW services 128.2 138.9 151.3 162.6 178.7 YoY +1.1% +8.4% +8.9% +7.4% +9.9% NW services (excl. Mobile services) 87.5 96.6 105.2 11

37. Slide 37: Competitive Advantages

    Competitive Advantages Company Profile 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 organizations • Has NW services ass

38. Slide 38: Service & Solution Development Capability

    Service & Solution Development Capability Company Profile Initiate the market by continuously developing innovative various network-related services & solution in-house © Internet Initiative Japan Inc. 37

39. Slide 39: Excellent Customer Base

    Excellent Customer Base Company Profile  Number of IIJ Group’s clients: approx. 16,000 as of March 31, 2026  Through reliable operation, continuous use of Internet connectivity services since the inception of IIJ  Our reliable infrastructure operation and cross-sell strategy have led to low churn

40. Slide 40: Mid-term Plan (FY24~FY26)

    Consolidated base Mid-term Plan (FY24~ FY26) Net Profit is “Profit for the period attributable to owners of the parent” Company “times” are calculated by comparing FY26/FY26-end to FY23/FY23-end Profile The figures below are all assumed targets Accelerate business scale expansion toward the Mid-to-l

41. Slide 41: Mid-term Plan's Financial Outlook

    Mid-term Plan’s Financial Outlook Company Profile Unit: ¥ (JPY) billion Breakdown image of financial outlook Total FY20 FY23 FY26 Outlook Gross FY20 FY23 FY26 Outlook Operating FY20 FY23 FY26 Outlook Revenue (one before previous (Previous Mid-term (New Mid-term’s last FY) Profit (one before (Previou

42. Slide 42: Mid-to-long Term Vision

    Company Mid-to-long Term Vision Profile 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 (FY21-FY23) (FY24-FY26) Total reven

43. Slide 43: Enterprise internal NW & systems in Japan becoming to change

    Enterprise internal NW & systems in Japan becoming to change Company Profile 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 Stick to legacy NW systems Finally

44. Slide 44: Data Centers (DCs)

    Data Centers (DCs) Company Profile  IIJ operates 13 DCs in Japan, 2 of which are owned by IIJ 2 DCs owned by IIJ (as of Nov. 2026), the remaining facilities are leased from DC Matsue DCP (opened in Apr. 2011) Shiroi DCC (opened in May 2019) owners on floor-by-floor basis Used as facilities to accom

45. Slide 45: Market Environment & Growth Forecast, etc.

    Market Environment & Growth Forecast, etc. Company Profile Historical traffic data of major domestic IX SIM type MVNO market share in Japan  Maintain top share in the domestic SIM-type MVNO market Peak traffic Mar. 31, 2024 Mar. 31, 2025 Mar. 31, 2026 1st IIJ 21.8% IIJ 24.5% IIJ 24.9% 2nd NTT DOCOM

46. Slide 46: © Internet Initiative Japan Inc.

    © Internet Initiative Japan Inc.

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