Internet Initiative Japan Inc. · TSE:3774

Internet Initiative Japan — 9M FY2012 Earnings Presentation

20 slides from Internet Initiative Japan's earnings presentation, Feb 8, 2013

  1. Slide 1: Consolidated Financial Results For 1Q-3Q FY2012

    Consolidated Financial Results For 1Q-3Q FY2012 (9 months ended December 31, 2012) Internet Initiative Japan Inc. TSE1(3774), NASDAQ(IIJI) February 8, 2013

  2. Slide 2: Agenda

    Agenda Ⅰ. Summary of 1Q-3Q FY2012 Financial Results Ⅱ. Consolidated Financial Results for 1Q-3Q FY2012 Ⅲ. Reference Materials * “1Q-3Q” points to the 9 months period ended on December 31, 2012 1

  3. Slide 3: Summary of 1Q-3Q FY2012 Financial Results

    Ⅰ. Summary of 1Q-3Q FY2012 Financial Results < 1Q-3Q FY2012 Financial Results > ・Revenues JPY76,690 million (up 8.4% YoY) ・Gross margin JPY15,525 million (up 10.1% YoY) ・Operating income JPY5,043 million (up 26.1% YoY) ・Income before tax income expense JPY4,946 million (up 30.8% YoY) ・Net income att

  4. Slide 4: Consolidated Financial Results for 1Q-3Q FY2012

    Ⅱ-1. Consolidated Financial Results for 1Q-3Q FY2012 3

  5. Slide 5: Revenues

    Ⅱ-2. Revenues Network Services Systems Integration (SI) Equipment Sales Unit: JPY million Internet Connectivity Services for Corporate Use Systems Construction ATM Operation Business Internet Connectivity Services for Home Use Systems Operation and Maintenance Outsourcing Service WAN Service 1Q-3Q F

  6. Slide 6: Cost of Revenues and Gross Margin Ratio

    Ⅱ-3. Cost of Revenues and Gross Margin Ratio Cost of revenues : Network Services Systems Integration（SI） Equipment Sales ATM Operation Business Gross margin ratio : Network Services Systems Integration（SI) Total revenue Unit: JPY million 1Q-3Q FY11: 56,654 1Q-3Q FY12: 61,165 18,860 19,111 18,683 20,

  7. Slide 7: Network Services (1) Revenues

    Ⅱ-4. Network Services (1)Revenues Unit: JPY million 1,107.5 Total Contracted 1,003.3 Bandwidth (Gbps) 918.8 820.7 853.0 857.7 791.0 1Q-3Q FY11: 47,242 1Q-3Q FY12: 48,515 15,521 15,800 15,921 16,167 16,092 16,167 16,256 WAN Services Outsourcing Services Internet Connectivity Services for Home Use Int

  8. Slide 8: Network Services (2) Cost of Revenues

    Ⅱ-4. Network Services (2)Cost of Revenues Unit: JPY million 1Q-3Q FY11: 37,587 1Q-3Q FY12: 37,972 (Gross margin ratio: 20.4%) (Gross margin ratio: 21.7%) 12,440 12,606 12,541 12,398 12,764 12,619 12,589 Others Outsourcing Costs Personnel Related Costs Network Operation Related Costs Circuit Related

  9. Slide 9: Systems Integration (1) Revenues

    Ⅱ-5. Systems Integration (1)Revenues <Systems Construction> Unit: JPY million Systems Construction Revenues Systems Operation and Maintenance Revenues Order Backlog ※Systems construction’s order backlog and order received includes Order Received equipment sales 1Q-3Q FY11: 7,349 1Q-3Q FY12: 9,824 Yo

  10. Slide 10: Systems Integration (2) Cost of Revenues

    Ⅱ-5. Systems Integration (2)Cost of Revenues Unit: JPY million 1Q-3Q FY11: 17,267 1Q-3Q FY12: 20,994 (Gross margin ratio: 20.5%) (Gross margin ratio: 18.0%) 5,770 5,957 5,541 7,712 6,564 7,526 6,904 Purchasing Costs Outsourcing Costs Others Network Operation Related Costs Personnel Related Costs YoY

  11. Slide 11: Number of Employees

    Ⅱ-6. Number of Employees Contract worker (No. of employees) Full time worker 1,953 1,955 1,941 1,923 2,078 2,081 2,086 [Employee Distribution] Administration 13% Sales 19% Engineers 68% 3,627 3,686 3,551 3,613 3,741 3,858 3,902 Personnel related costs and expenses (% of revenue) （15.5%） （15.5%） （15.

  12. Slide 12: SG&A Expenses/R&D

    Ⅱ-7. SG&A Expenses/R&D Unit: JPY million Research and Development Expenses General and Administrative Expenses 1Q-3Q FY11: 10,100 1Q-3Q FY12: 10,482 Sales and Marketing Expenses (14.3%) (13.7%) ( ) % of Total Revenues 3,587 3,200 3,313 3,535 3,445 3,440 3,597 (15.4%) (13.4%) (14.1%) (13.3%) (13.9%)

  13. Slide 13: Operating Income and Net Income

    Ⅱ-8. Operating Income and Net Income Unit: JPY million Operating Income Net Income Attributable to IIJ Operating Margin Ratio 1Q-3Q FY12 1Q-3Q FY11 Operating Income: 5,043 Operating Income: 3,998 Net income attributable to IIJ: 3,112 Net income attributable to IIJ: 2,390 YoY = 3Q12 compared to 3Q11

  14. Slide 14: Summary of Consolidated Balance Sheets

    Ⅱ-9. Summary of Consolidated Balance Sheets Unit: JPY million Balance Sheet Cash and cash equivalents: ・Decreased mainly due to the increase in operating assets such as inventories and prepaid expenses, payment of income taxes and repayments for the borrowings Accounts receivable and Accounts pay

  15. Slide 15: Consolidated Cash Flows

    Ⅱ-10. Consolidated Cash Flows Operating Activities: Unit: JPY million 1Q-3Q FY11: 6,580 1Q-3Q FY12: 5,880 FY11: 11,659 1Q-3Q FY12 Operating Activities: Depreciation and amortization: JPY5,544 million Increase in inventories, prepaid expenses, and other operating assets: JPY2,952 million Payments

  16. Slide 16: Other Financial Data (CAPEX etc.)

    Ⅱ-11. Other Financial Data (CAPEX etc.) Unit: JPY million CAPEX (Include Capital Leases): 1Q-3Q FY11 : 8,652 1Q-3Q FY12 : 8,452 FY11: 10,917 Domestic IIJ GIO related CAPEX JPY3.2 billion 1Q-3Q FY11 (of JPY1.1 billion related to Matsue DC’s core facilities) 1Q-3Q FY12 JPY2.1 billion Depreciation and

  17. Slide 17: Developments of "IIJ GIO"

    Ⅲ-1. Developments of “IIJ GIO” ■ Business Developments of IIJ GIO IIJ GIO Domestic Revenues (JPY million) 2,000  3Q12 revenue: approx. JPY1.6 billion Large SNS Game Clients Enterprise Business and Others 1,750 1Q-3Q FY12 revenue: approx. JPY4.3 billion <IIJ GIO Revenue Recognition> IIJ GIO Compone

  18. Slide 18: Revision of FY2012 Year-End Dividend Forecast

    Ⅲ-2. Revision of FY2012 Year-End Dividend Forecast IIJ conducted a 1:200 stock split on common stock with an effective date of October 1, 2012. Dividend figures shown below are retroactively adjusted to reflect the stock split. Interim Year-End JPY18.75 （Forecast） JPY16.25 JPY13.75 JPY11.25 JPY10.00

  19. Slide 19: FY2012 Financial Target (Dividend forecast changed)

    Ⅲ-3. FY2012 Financial Target (Dividend forecast changed) *1 IIJ conducted a 1:200 stock split on common stock with an effective date of October 1, 2012. Accordingly, net income attributable to IIJ per share and cash dividend per share (IIJ common share) in the above are adjusted based on post stock

  20. Slide 20: Forward-looking Statements / Contact Information

    ※ Forward-looking Statements Statements made in this presentation 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 abou

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