Internet Initiative Japan Inc. · TSE:3774

Internet Initiative Japan — 2Q FY2008 Earnings Presentation

24 slides from Internet Initiative Japan's earnings presentation, Nov 13, 2008

  1. Slide 1: Internet Initiative Japan 2Q FY2008 Presentation

    3774 2008.11.13 http://www.iij.ad.jp/IR/

  2. Slide 2: Internet Initiative Japan

    Internet Initiative Japan . 2009 3 _— . 2009 3 2 LS

  3. Slide 3: Highlights of 2Q FY2008 results

    . 2009 3 z 10.9% zSI z zSI z z z 186 z 10/24 z1 2,000 +250 z IP z 10/28 4 or 4,000 11/14 1/30 © 2

  4. Slide 4: 1H08 income statement summary

    1H08 1H07 332.5 299.9 10.9% 332.0 345.0 81.4% 79.4% 270.8 238.1 13.7% ― ― 18.6% 20.6% 61.7 61.8 0.2% ― ― 15.5% 14.5% 51.6 43.6 18.4% ― ― 3.0% 6.1% 10.1 18.2 44.6% 9.5 18.5 2.3% 5.7% 7.7 17.0 54.9% 7.0 16.5 1.1% 11.6% 3.7 34.8 89.4% 3.0 8.0 © 3

  5. Slide 5: Quarterly revenue and trends

    ATM 18,359 18,486 17,023 399 234 16,926 16,294 16,328 6 609 286 391 238 5 5,384 14,007 13,587 13,696 5,920 3,036 3,254 630 491 4,168 12,437 393 6,406 542 2,553 3,871 3,605 4,420 4,653 4,775 2,778 3,991 3,799 3,782 3,350 3,488 3,775 3,254 3,681 3,690 3,772 3,439 3,512 3,092 2,641 2,863 2,793 2,848 4,

  6. Slide 6: Quarterly revenue by service

    ATM 28.8% 25.0% 25.5% 24.0% 23.5% 23.3% 22.3% 21.6% 21.6% 21.3% 23.1% 21.0% 21.0% 19.8% 20.1% 18.5% 18.3% 19.1% 18.5% 18.6% 16.8% 17.4% 17.5% 16.9% 16.3% 16.7% 15.9% 15.4% 14.6% 13.5% 342 202 85 494 333 199 15 266 583 423 7,771 333 6,985 6,024 6,154 483 5,938 8,016 5,611 5,322 4,849 4,581 6,598 6,73

  7. Slide 7: Service contracts and revenue breakdown

    ‹ ¾ ¾ ‹ 449.1 422.1 392.4 330.3 334.9 346.0 ¾ 323.5 253.2 260.0 8,605 8,605 225.4 8,447 8,447 8,396 7,936 8,049 6,871 ¾ 6,156 6,100 6,233 3,681 3,690 3,772 5,864 3,439 3,512 3,092 2,863 2,793 2,848 2,641 1,513 1,622 1,596 1,615 1,489 492 806 490 493 494 2,733 2,799 2,813 2,893 2,973 3,009 3,023 3,14

  8. Slide 8: 7,276 7,065 6,598 5,670 ‹ ¾ ¾ ¾ ‹ ©

    7,276 7,065 6,598 5,670 ‹ ¾ ¾ ¾ ‹ © 7

  9. Slide 9: System integration revenue

    9,234 7,717 7,409 SI 5,870 ‹ 5,500 5,081 4,762 4,177 ¾ 3,520 2,190 ¾ ¾ 3,871 3,605 6,406 2,553 4,168 5,920 5,384 3,036 3,254 2,778 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 4,089 6,487 5,691 5,347 7,240 6,077 4,494 2,972 3,592 3,960 11,147 11,755 11,795 SI 9,705 ‹ 9,457 8,833 ¾ 6,185 5,951 5

  10. Slide 10: 6,024 6,154 5,938 4,849 ‹ ¾ ¾ ¾ ©

    6,024 6,154 5,938 4,849 ‹ ¾ ¾ ¾ © 9

  11. Slide 11: Costs and margins by quarter

    2,614 2,550 2,372 2,458 16.0% 15.1% 2,221 2,30 2,301 1 12.9% 13.3% 59 85 2,062 2,062 14.1% 61 13.0% 60 63 1,874 55 15.1% 1,744 1,747 13.8% 56 14.0% 12.5% 40 1,383 1,286 40 43 1,220 1,153 1,185 8.5% 7.6% 1,270 1,067 7.1% 6.5% 6.6% 924 7.5% 915 862 6.8% 7.8% 7.4% 6.2% 1,088 1,124 1,177 1,173 1,178 843

  12. Slide 12: IIJ revenue breakdown

    IIJ 15% 19% 66% 2,599 2,605 ‹ ¾ ¾ 1Q08 ¾ © 11

  13. Slide 13: Quarterly profit trends

    9.8% 7.3% 6.7% 6.9% 5.8% 6.2% 4.5% 5.0% ‹ 2,907 3.5% 2.5% ¾ 2,120 1,807 ‹ 1,405 1,151 ¾ 1,144 1,125 1,136 1,089 986 734 811 692 611 ¾ 559 571 594 411 169 198 ¾ 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 ¾ 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 175 1,980 392 552 213 326 9 15 27 45 55 85 20 29 42 52 18

  14. Slide 14: Operating results factors

    ¾ SI 9 ¾ 332.5 345 1Q08 3 12.5 ¾ 1 ¾SI 2 ¾SI 1.5 10.1 ¾SI 18.5 1 8.5 ¾ 3 ¾ 1 © 13

  15. Slide 15: Business initiatives

    ¾ SI 36 FY06 ¾ 12 730 785 ATM 55 2Q08 4Q08 ¾ 5 ¾ ¾ SI 9 ¾ SI 38 52 1.5 ¾ 14 3 2 GDX 1 ¾ ¾SI ¾ ¾ © 14

  16. Slide 16: Internet Initiative Japan group services

    IJ Internet Initiative Japan OC On-Demand Solutions > a 1st Trust Networks GDxé*<s TRUSTED COMMUNICATIONS | | | 4 IJ INNOVATION INSTITUTE. q - Internet Initiative Japan > Net Care

  17. Slide 17: Balance sheet

    9,319 11,471 2,152 9,981 12,255 2,275 1,537 1,184 +353 2,148 2,005 +143 753 844 92 13,668 11,740 +1,928 5,869 5,907 38 4,023 4,177 154 7,000 9,150 2,150 19,394 19,555 +161 72 91 163 24,979 24,981 1 © 53,275 55,703 2,427 16

  18. Slide 18: Cash flows

    4,083 2,826 ¾ 1,608 2,063 2,018 1,987 1,444 ¾ 905 338 (1,328) 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 (267) 25 (711) (380) ¾ 980 (855) (832) (825) (1,210) (1,917) ¾ 119 (3,520) 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3,898 (996) ¾ 500 (1,314) (1,268) (983) (1,437) (2,695) (1,405)

  19. Slide 19: CAPEX and Adjusted EBITDA

    CAPEX 3,953 6,078 2,685 ¾ 1,071 ¾ 585 2,232 ¾IIJ 784 1,831 ¾IIJ 245 1,546 1,250 1,224 1,242 1,058 842 636 Adjusted EBITDA 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 7,728 9,534 9,534 3,101 2,316 2,379 4,228 4,775 2,137 2,044 1,880 1,948 1,354 1,739 1,293 1,245 1,666 1,656 1,191 1,243 1,107 1,

  20. Slide 20: 2Q08 quarterly results

    2Q08 2Q07 169.3 162.9 3.9% 81.4% 79.0% 137.8 128.7 7.1% 18.6% 21.0% 31.4 34.3 8.2% 15.1% 14.1% 25.5 23.0 10.8% 3.5% 6.9% 5.9 11.2 47.2% 2.7% 5.8% 4.6 9.4 51.5% 1.2% 17.8% 2.0 29.1 93.2% © 19

  21. Slide 21: Full-year forecasts

    73,000 66,835 6,165 9.2% 3,800 4,759 959 20.2% 3,000 4,362 1,362 31.2% 2,800 5,177 2,377 45.9% 13,561 25,100 11,539 46.0% 2,000 1,750 250 14.3% © 20

  22. Slide 22: Internet Initiative Japan group companies

    IJ Internet Initiative Japan i-revo TAIHEICOMPUTER

  23. Slide 23: Internet Initiative Japan

    Internet Initiative Japan g

  24. Slide 24: IR contact information

    IR 101-0051 1-105 TEL: 03-5259-6500 FAX: 03-5259-6311 URL: http://www.iij.ad.jp/IR E-Mail: ir@iij.ad.jp

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