Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — Q2 FY2006 Earnings Presentation
14 slides from Internet Initiative Japan's earnings presentation, Nov 9, 2006
Slide 1: Consolidated Financial Results for the Second Quarter and First Half of FY Ending March 2007
Internet Initiative Japan Inc. Consolidated Financial Results for the Second Quarter and the First Half of Fiscal Year Ending March 31, 2007 Internet Initiative Japan Inc. 2006.11.9 Note: Historical quarterly figures from 1Q04 to 3Q04 have been restated to reflect the change in income tax expense (b
Slide 2: Forward-looking Statements
Forward-looking Statements Statements made in this press release 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 managements' current expectations, assumptions, estimates and projections about
Slide 3: Summary of Financial Results for 2Q and 1H06
Summary of Financial Results for 2Q and 1H06 Total revenues and operating income continued to trend upward, in excess of IIJ’s initial targets, due to strength in demand for systems integration and outsourcing services <<1H06 (2006/4-9)>> - Total revenues JPY 26,444 million (+21.3% compared to 1H05,
Slide 4: Consolidated Financial Results for 1H06
Consolidated Financial Results for 1H06 (JPY million) 1H06 1H05 (2006/4-2006/9) (2005/4-2005/9) YoY % of Total % of Total Initial Targets Results Revenues Results Revenues Total Revenues 25,000 26,444 100.0% 21,809 100.0% +21.3% Total Costs - 21,582 81.6% 17,991 82.5% +20.0% Gross Margin - 4,862 18.
Slide 5: Consolidated Financial Results for 2Q06
Consolidated Financial Results for 2Q06 (JPY million) 2Q06 2Q05 (2006/7-2006/9) (2005/7-2005/9) YoY % of Total % of Total Results Revenues Results Revenues Total Revenues 14,007 100.0% 11,929 100.0% +17.4% Total Costs 11,448 81.7% 9,873 82.8% +16.0% Gross Margin 2,559 18.3% 2,056 17.2% +24.5% SG&A/R
Slide 6: Trend of Quarterly Revenues
Trend of Quarterly Revenues Value-added Services Systems Integration (One-time) Equipment Sales and Other Revenues Internet Connectivity Outsourced Operation of Systems Gross Margin Ratio (JPY million) Services Integration (Recurring) 17.1% 18.3% 18.3% 18.7% 18.5% 15,000 17.8% 17.3% 17.2% Revenues 1
Slide 7: Trend of Quarterly Operating and Net Income (Loss)
Trend of Quarterly Operating and Net Income (Loss) (JPY million) Operating Operating Income Net Income (Loss) <Operating Income - 2Q06> 2,500 Margin Ratio ¾ Increased by 59.9% compared to 6.0% 2Q05 due to an increase in revenues 5.8% 5.8% 5.4% from value-added services and systems integration. 2,000
Slide 8: Results by Service – Connectivity and Value-added Services
Results by Service – Connectivity and Value-added Services Total Contracted Trend of Revenues and Gross Margin Ratio Bandwidth (Gbps) (JPY million) 6,156 6,000 5,860 5,767 5,767 5,841 5,849 5,864 20% 5,666 253.2 5,450 5,508 5,000 194.9 225.4 14.0% 14.4% 185.5 14.6% 13.2% 13.9% 13.5% 13.5% 13.0% 4,00
Slide 9: Results by Service – Systems Integration
Results by Service – Systems Integration Trend of Revenues and Gross Margin Ratio Systems integration - One-time revenues mainly from construction of network (JPY million) 10,000 Outsourced operation 30% systems continued to increase and recurring revenues Gross Margin Ratio from outsourced operatio
Slide 10: Balance Sheets and Cash Flows in 2Q06
Balance Sheets and Cash Flows in 2Q06 (JPY million) Balance Sheets September 30, 2006 March 31, 2006 Change Cash 12,860 13,727 -867 Available-for-sale Securities 3,500 6,775 -3,275 Long and Short-term Borrowings 6,810 6,835 -24 Common Stock 16,834 16,834 － Additional Paid-in Capital 26,599 26,599 －
Slide 11: Other Financial Data in 2Q06
Other Financial Data in 1Q06 (JPY million) 2Q06 2Q05 Change (2006/7-2006/9) (2005/7-2005/9) CAPEX 636 795 -20.0% Depreciation and Amortization 1,069 1,010 +5.8% Adjusted EBITDA 1,880 1,517 +23.9% Copyright © 2006 Internet Initiative Japan Inc.
Slide 12: Revision of Financial Targets (November 2, 2006)
Revision of Financial Targets (November 2, 2006) 1H06 (2006/4-2006/9) FY2006 (2006/4-2007/3) Consolidated Initial Revised (JPY million) Initial Revised (JPY million) Increasing mainly due to Total favorable trends of revenues Increasing reflecting Revenues 25,000 26,400 from connectivity, value-adde
Slide 13: Enhanced IIJ Solutions Line-up
Enhanced IIJ Solutions Line-up IIJ has been enhancing its solutions line-up and continued to develop new security and e-mail related services and enhance its existing services. Services Date of Introduction Descriptions <Security> IIJ Managed IPS Service 7/3 Service to protect corporate internal net
Slide 14: Enhanced IIJ Group Structure
Enhanced IIJ Group Structure IIJ established a fully owned subsidiary, Net Chart Japan Inc. for cooperation in the field of network construction and sales force enhancement. (Net Chart Japan Inc. started its business operations after it succeeded the business operations of Net Chart Japan Corporatio
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