Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — Investor Presentation (September 2026)
68 slides from Internet Initiative Japan's investor presentation, September 2026
Slide 1: Corporate Overview of Internet Initiative Japan (IIJ)
Corporate Overview of Internet Initiative Japan (IIJ) Internet Initiative Japan Inc. (IIJ) The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774) September and October 2026 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations,
Slide 2: Outline
Outline 1. Business Status Updates P. 2 – 10 2. About IIJ P. 11 – 19 3. Financial Information P. 20 – 45 4. Supplemental Business Information P. 46 – 67 • FY26 (FY2026) stands for a fiscal year ending March 31, 2027. Others alike • Abbreviation: NW stands for network, SI stands for systems integrati
Slide 3: Top Management Message Updates
Top Management Message Updates 1 Entering a Major Growth Phase LEGACY EVOLVED Intranet / On- AI DX • Structural changes in networks and systems finally occurring among Closed premise Flexible System Japanese institutions Network System Cloud Network Platform • Capturing strong network reconstruction
Slide 4: Business Progress Updates
Business Progress Updates 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 v
Slide 5: Advancement of Growth Strategy
Advancement of Growth Strategy Updates Business Environment A Business Model Under Ongoing Expansion • Changes & expansion of • Rising cybersecurity threats corporate NW/system • Growing importance of Shifting from NI & individual service/product delivery • Continuous expansion of NW/system operatio
Slide 6: Network Evolution Drives Our Business Demands
1 Network Evolution Drives Our Business Demands Updates 30 years ago Nowadays IIJ: external network with Internet IIJ’s growth opportunities Carriers & SIers: internal network & systems full network & system coverage with various network functions Stick to legacy network & systems Finally network &
Slide 7: Driving Scalable Growth through Service Integration Model
1 Driving Scalable Growth through Service Integration Model Other IIJ-original offerings Updates Typical transactions of Service Integration projects Network Services Network Integration Educational Information NW for Chiba city Total NW project for a prominent company group Shared Banking System
Slide 8: Recent Track Record of Large-scale Projects
1 Recent Track Record of Large-scale Projects Updates 1H23 2H23 1H24 2H24 1H25 2H25 NW system construction & O/M Revenue recognition category for public institution ¥1.5 bn, 6 yrs NW service SI Construction, O/M Revenue recognition from 3Q26 SI System construction for government agency ¥1.0 bn, 3 yr
Slide 9: Advancing IIJ's Offering Model with AI
2 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 Preparing pricing policy for NW service price revisions from the start of 1Q27 System Integration (SI) Network Ser
Slide 10: Network Engineering Capabilities as Our Core Value - Business Model
3 Network Engineering Capabilities as Our Core Value - Business Model - Updates Revenue (¥ bn) Client Base Approx. 16,000 clients Longstanding client relationships Overseas Business High penetration to top tier 10 FY20 FY25 All Private Sectors in Japan Public Sectors in Japan Top MVNO by marke
Slide 11: Profitability to Improve with Business Scale Expansion
4 Profitability to Improve with Business Scale Expansion Updates Perspective Our Initiatives Pursue large-scale Service Integration projects as many as possible to steadily accumulate MRR Enhance existing network services features to strengthen cross-selling and accelerate MRR growth Restructu
Slide 12: Outline
Outline 1. Business Status Updates P. 2 – 10 2. About IIJ P. 11 – 19 3. Financial Information P. 20 – 45 4. Supplemental Business Information P. 46 – 67 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations, or predictions for the future ar
Slide 13: Company Profile
Company Profile MSCI’s ESG rating: AA (as of Mar. 2026) About IIJ 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 5,818 (approx. 70% engineers) Large Shareholders NTT Group, KDDI,
Slide 14: From ISP to Total Network Solution Provider
From ISP to Total Network Solution Provider About IIJ Systems Integration (SI) revenue: Systems construction (including equipment sales) EMERGE One time revenue Systems operation and maintenance Network enhancement, (including private Cloud) Cloud, consumer mobile, IoT …. Network (NW) services reven
Slide 15: Total Network Solution Provider with Extensive Service Lineup
Total Network Solution Provider with Extensive Service Lineup Unit: ¥ (JPY) billion (bn) About IIJ 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) •
Slide 16: Extensive Client Base
Extensive Client Base About IIJ 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 rate Co
Slide 17: Competitive Advantages
Competitive Advantages About IIJ Differentiation from telecom carriers Differentiation from systems integrators (SIers) • Deep expertise in IP (Internet Protocol) technologies • Operates one of Japan’s largest Internet backbones • Fast and flexible operations • Owns and develops network service plat
Slide 18: Management structure (Planned as of June 30, 2026)
Ratio of female directors Management structure (Planned as of June 30, 2026) and auditors 28.6% Ratio of outside directors 50.0% About IIJ Board of Directors (10 members) About President Taniwaki (Since Apr. 2025) Koichi Suzuki Yasuhiko Taniwaki Joined MIC in 1984 and led major telecom reforms inc
Slide 19: Human Capital
Human Capital About IIJ Total Number of Employees (consolidated) Turnover Rate (IIJ) Number of New Graduates (consolidated) Admin. Engineers Apr. Apr. Apr. Apr. Apr. FY21 FY22 FY23 FY24 FY25 Sales approx. 70% 2022 2023 2024 2025 2026 Engineers 4.2% 4.6% 4.5% 3.8% 3.9% Mar. 2021 Mar. 2022 Mar. 2023 M
Slide 20: Market Environment
Market Environment About IIJ 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 DOCOMO 9.8% Optage 8.6% Optage 8.2%
Slide 21: Financial Information
Financial Information Internet Initiative Japan Inc. (IIJ) The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774) August 2026 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations, or predictions for the future are forward-looki
Slide 22: Outline
Outline 1. Business Status Updates P. 2 – 10 2. About IIJ P. 11 – 19 3. Financial Information P. 20 – 45 4. Supplemental Business Information P. 46 – 67 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations, or predictions for the future ar
Slide 23: Financial Performance
Financial Performance Unit: ¥ (JPY) billion (bn) Financial Information 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 10
Slide 24: 1Q26 Summary
1Q26 Summary Unit: ¥ (JPY) billion YoY = Year over year comparison Financial Net Profit is “Profit for the period attributable to owners of the parent” Information Strong Domestic and Overseas Demand Drives 1Q Revenue Above Plan, Profit on Track Seeing Continued Solid Demand while Developing Growth
Slide 25: Consolidated Financial Results
Consolidated Financial Results Unit: ¥ (JPY) billion YoY = Year over year comparison Net profit is Profit for the period attributable to owners of the parent Financial Information % of revenue % of revenue % of revenue % of revenue 1Q26 Results 1Q25 Results YoY 1H26 Forecast YoY FY26 Forecast YoY (A
Slide 26: Year over Year Analysis
Year over Year Analysis Unit: ¥ (JPY) billion (bn) GP = Gross Profit YoY = Year over year comparison Financial Information Revenues 1Q25 +20.78 1Q26 76.82 97.60 IP and Outsourcing services Consumer and enterprise IoT steadily grew grew (+0.03 in 1Q25) (+1.32 in 1Q25) Recognition of two large-scale (
Slide 27: Revenues
Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Financial Information Internet Connectivity Services (Enterprise) Systems Integration (SI) Systems Construction (including equipment sales) Internet Connectivity Services (Consumer) Systems Ope
Slide 28: Cost of Revenues & Gross Margin
Cost of Revenues & Gross Margin Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Financial Information Gross margin: NW (Network) Services SI (Systems Integration) Total Cost of revenues: NW (Network) Services SI (Systems Integration) ATM Operation Bu
Slide 29: Network (NW) Services (1) Revenues
Network (NW) Services (1) Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Financial Information Total Contracted Bandwidth (Gbps) WAN (Wide Area Network) Services Outsourcing Services Significant increase in contracted bandwidth No significa
Slide 30: Network (NW) Services (2) Cost of Revenues
Network (NW) Services (2) Cost of Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison Financial Information Circuit-related costs (Internet backbone, WAN lines, etc.) Outsourcing-related costs (mobile infrastructure related costs such as interconnectivity charge and voice communicat
Slide 31: Network (NW) Services (3) Security and Mobile/IoT
Network (NW) Services (3) Security and Mobile/IoT Unit: ¥ (JPY) billion Financial [ ] , YoY = Year over year comparison Information QoQ = Quarter over quarter comparison Security Business Mobile/IoT Business Ongoing strong demand drives stable growth in security services (MRR) Enterprise • Continu
Slide 32: Systems Integration (SI) (1) Revenues
Systems Integration (SI) (1) Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Financial Information Systems Construction revenues (including equipment sales) Systems operation & maintenance revenues for on-premise system Cloud revenues such a
Slide 33: Systems Integration (SI) (2) Cost of Revenues
Systems Integration (SI) (2) Cost of Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison Financial Information Purchasing costs (Equipment, etc.) Outsourcing-related costs (SI-related outsourcing personnel costs, etc.) Others Network operation-related costs (Depreciation cost such a
Slide 34: Human Capital Disclosure
Human Capital Disclosure Financial Information 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 11,049 11,305(*) 11,278 12,133 12,354 +363 YoY +314
Slide 35: SG&A, etc.
SG&A, etc. Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Financial Information Research & development expenses Commission expenses Others (including other income and other expenses) Personnel-related expenses ( ) % of total revenues FY25: 41,332 [+
Slide 36: Profit
Profit Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison Financial Information Operating margin 1Q26 Operating profit: ¥6.59 bn, +9.2%YoY Operating profit 1Q26 Profit before tax: ¥6.71 bn, +17.0%YoY Net profit Interest expense: ¥380 million (1Q25: ¥327 million) Foreign exchange gai
Slide 37: Consolidated Statements of Financial Position (Summary)
Consolidated Statements of Financial Position (Summary) Unit: ¥ (JPY) million Financial Information Unit: ¥ (JPY) million Mar. 31, 2026 June 30, 2026 Changes Mar. 31, 2026 June 30, 2026 Changes Cash & cash equivalents 38,395 34,186 (4,209) Trade & other payables 34,478 43,360 +8,882 Trade receivable
Slide 38: Consolidated Cash Flows
Consolidated Cash Flows Unit: ¥ (JPY) million YoY = Year over year comparison Financial Information Operating Activities 1Q26 Major FY25: 50,460 Breakdown YoY Change Profit before tax 6,712 +975 1Q25 2Q25 3Q25 4Q25 1Q26 Depreciation and amortization 8,167 +204 16,787 Changes in operating assets & li
Slide 39: Other Financial Data
Other Financial Data Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison Financial Information CAPEX CAPEX-related depreciation and amortization Cash CAPEX Finance lease FY25: 32,208 [+22.6%] FY25: 18,802 [+8.6%] 8,257 6,787 9,182 7,982 7,627 4,523 4,681 4,861 4,737 4,651 5,904 5,954 4,203 7
Slide 40: FY26 Financial Targets (Remain unchanged from May 2026)
FY26 Financial Targets (Remain unchanged from May 2026) Financial Appendix Unit: ¥ (JPY) billion (bn) Information FY26 Forecast Breakdown Unit: ¥ (JPY) billion (bn) GP = Gross Profit % of total reveue % of total reveue Revenue Approx. ¥1.5 bn of Gross profit FY25 FY26 enterprise mobile FY25 FY26 1H2
Slide 41: Year over Year Analysis
Year over Year Analysis Unit: ¥ (JPY) billion (bn) GP = Gross Profit Financial Information Revenues FY25 +39.60 FY26 Outlook 345.40 385.0 Consumer and enterprise IoT to grow Enterprise mobile device revenue of approx. ¥1.5 bn IP and Outsourcing services to planned in 1Q26 (+0.07 in FY25) steadily gr
Slide 42: Shareholders’ Return
Shareholders’ Return Unit: ¥ (JPY) Financial Information 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 pe
Slide 43: Mid-term Plan (FY24 ~ FY26)
Mid-term Plan (FY24 ~ FY26) Consolidated base Net Profit is “Profit for the period attributable to owners of the parent” Financial “times” are calculated by comparing FY26/FY26-end to FY23/FY23-end Information The figures below are all assumed targets Accelerate business scale expansion toward the M
Slide 44: Mid-term Plan’s Financial Outlook
Mid-term Plan’s Financial Outlook Unit: ¥ (JPY) billion Financial Information 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 (P
Slide 45: Mid-to-long Term Vision
Mid-to-long Term Vision Financial Information 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
Slide 46: Supplemental Business Information
Supplemental Business Information Detailed Business Overview Internet Initiative Japan Inc. (IIJ) The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774) August 2026 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations, or predi
Slide 47: Outline
Outline 1. Business Status Updates P. 2 – 10 2. About IIJ P. 11 – 19 3. Financial Information P. 20 – 45 4. Supplemental Business Information P. 46 – 67 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations, or predictions for the future ar
Slide 48: Enterprise Network Services
Enterprise Network Services Supplemental Business Information IIJ’s enterprise network services’ business model: Cost doesn’t have to increase at the same pace as the revenue: economies of scale IP service (Internet Protocol) Business model IP Service is a bandwidth guaranteed dedicated Internet c
Slide 49: Security Business (1)
Security Business (1) Supplemental Business Information Provide a wide range of security services over network Information analysis platform utilizing information and expertise only available to ISPs Security services for internal systems Security services for external systems Web access securit
Slide 50: Security Business (2)
Security Business (2) Supplemental Business Information Many initiatives taken by IIJ for security 1994 Started providing firewall services (first in Japan) 1999 Started providing fully-managed firewall services (first in Japan) 2004 Started providing spam mail filtering (first in Japan) 2005 Adde
Slide 51: Security Business (3)
Security Business (3) Supplemental Business Information IIJ Secure MX Service (SMX) IIJ DDoS (Distributed Denial of Service) Protection Service Cloud-based integrated mail security service (launched in Sep. 2006) Comprehensive service to protect enterprise NW system from DDoS attacks Different
Slide 52: Security Business (4)
Security Business (4) Supplemental Business Unit: ¥ (JPY) billion Information Security Service (monthly recurring revenue) Mail Security Web GW Full outsource of mail system, Full outsource of web security, URL filtering, Revenue strongly increasing along with continuous strong demands counter
Slide 53: Mobile Business (1)
Mobile Business (1) Unit: ¥ (JPY) billion (bn) Supplemental %, YoY = Year over year comparison Business QoQ = Quarter over quarter comparison Information Accumulate enterprise IoT traffic by leveraging the blue-chip client base, various NW services & SI function - higher utilization of the mobile
Slide 54: Mobile Business (2)
Mobile Business (2) Supplemental Business Information Revenues (unit: ¥ billion) Enterprise Mobile (IoT) FY25 MVNE (providing to other MVNOs) ¥25.3 bn IIJmio (consumer) Rapid expansion of consumer IIJ launched inexpensive SIM GigaPlans from IIJ started providing LTE services to market in Japan Apr.
Slide 55: Mobile Business (3)
Mobile Business (3) Supplemental Business Including tax Information 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 Jun. 30, 2026 45GB 55GB 35GB less 1% less 1% With voice ¥850 2% 2GB Data-only ¥740 2
Slide 56: Mobile Business (4)
Mobile Business (4) Supplemental Business Information 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 Fixed as previously proposed by the
Slide 57: Mobile Business (5)
Mobile Business (5) Supplemental Business Information Most of current enterprise mobile solution are simple usage such as connecting NW and surveillance cameras, etc. Accumulating various enterprise mobile solutions © Internet Initiative Japan Inc. 56
Slide 58: IoT Business (1)
IoT Business (1) Supplemental Business Information Combining IIJ’s existing service lineups and SI to build IoT systems IIJ IoT Specific Fields and Industry Home / Care Agriculture Energy Businesses (Manufacturing) Monitoring WISE-PaaS IIJ Japan-East IIJ Water Management Necolico Home Cloud Services
Slide 59: IoT Business (2)
IoT Business (2) Supplemental Business Information IIJ’s IoT projects Advanced IoT usage: factory IoT Industrial Shift from reactive post-sales maintenance model to IIJ provides IoT system for Toyota Motor Hokkaido machinery proactive field services Providing a one-stop solution by offering mobi
Slide 60: IoT Business (3) New JV with SONY for soil moisture sensing business
Supplemental IoT Business (3) New JV with SONY for soil moisture sensing business Business Information Company Overview Background of Establishment / Business Development Company Name Sensiphia, Inc. IIJ provides smart agriculture solutions that integrate communication infrastructure, IIJ: 85%, So
Slide 61: System Integration (SI)
System Integration （SI） Supplemental Business Unit: ¥ (JPY) billion (bn) Information SI Revenue Overview of IIJ’s SI Projects Construction (one-time) Typical projects Operation and Maintenance (recurring) *excluding cloud service revenue Small-to-medium server Network renewal projects construction p
Slide 62: Cloud Services
Cloud Services Supplemental Business Unit: ¥ (JPY) billion (bn) Information Cloud service as one of the cross-selling elements Promoting cloud shift of the current blue-chip Japanese clients Cloud Service Revenue Cloud Market in Japan FY21 FY22 FY23 FY24 FY25 28.66 32.43 33.36 36.49 39.15 Slow c
Slide 63: Data Centers (DCs)
Data Centers (DCs) Supplemental Business Information IIJ operates 13 DCs in Japan, 2 of which are owned by IIJ 2 DCs owned by IIJ (as of Aug. 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 f
Slide 64: Overseas Business
Overseas Business Supplemental Business Unit: ¥ (JPY) billion (bn) Information IIJ started expanding overseas business around FY11 to strengthen relationship with Japanese clients Financial Performance Overseas Projects FY21 FY22 FY23 FY24 FY25 IIJ has exported its container-type data centers to
Slide 65: DeCurret and Digital Currency Business
DeCurret and Digital Currency Business Supplemental Business Information Company Profile Tokenized Deposit Platform DCP DCP Co., Ltd. (DeCurret Holdings changed its name effective on July 1, 2026) Business • Digital currency business (Electronic Payment Services Provider) • Growing number of commerc
Slide 66: CDN Business through JOCDN
CDN Business through JOCDN Supplemental Business Information IIJ established a CDN (Content Delivery Network) company with major Japanese broadcasters to meet growing demand for Internet content distribution, entering a market long dominated by Akamai Technologies Company Profile CDN Services Name
Slide 67: ATM Operation Business
ATM Operation Business Supplemental Business Information Business Model Similar to “Seven Bank” model Placing ATMs in pachinko parlors in Japan • After long discussion, started to place in Kanto, Kansai, Kyushu and Tokai areas • 7,665 pachinko parlors in Japan as of Dec. 31, 2022 (Source: Nation
Slide 68: © Internet Initiative Japan Inc.
© Internet Initiative Japan Inc.
Internet Initiative Japan — Investor Presentation (September 2026) on 6ix