Internet Initiative Japan Inc. · TSE:3774

Internet Initiative Japan — 1Q-3Q FY2025 Earnings Presentation

44 slides from Internet Initiative Japan's earnings presentation, Feb 6, 2026

1. Slide 1: Presentation Material for Consolidated Financial Results for 1Q-3Q25

   Presentation Material for Consolidated Financial Results for 1Q-3Q25 (April 1, 2025 to December 31, 2025) Internet Initiative Japan Inc. (IIJ) The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774) February 6, 2026 Disclaimer Statements made in this presentation regarding IIJ’s or manage

2. Slide 2: Outline

   Outline Ⅰ. Financial Summary P. 2 Ⅱ. Financial Results P. 3 ~ P. 17 Ⅲ. List of Large-scale Projects P. 18 Appendix P. 19 ~ P. 25 【Reference】 Presentation material for company profile P. 26 ~ P. 42 • FY25 stands for a fiscal year from Apr. 1, 2025 to Mar. 31, 2026, 1Q25 stands for 1st quarter of FY25

3. Slide 3: Ⅰ. Financial Summary

   Ⅰ. Financial Summary Unit: JPY/¥ billion (bn), +%, YoY = Year over year comparison Net Profit is “Profit for the period attributable to owners of the parent” Accumulating demand enabled by SWOT-aligned strengths Business expanding into a high-growth phase Steadily securing large-scale NW constructio

4. Slide 4: Ⅱ-1. Consolidated Financial Results

   Ⅱ- 1. Consolidated Financial Results Unit: ¥ (JPY) billion YoY = Year over year comparison % of revenue % of revenue % of revenue 1Q-3Q25 1Q-3Q24 YoY FY25 Targets YoY Results Results (Announced in May 2025) Apr. 2025 - Dec. 2025 Apr. 2024 - Dec. 2024 Apr. 2025 - Mar. 2026 Revenues 249.33 229.31 +8.7

5. Slide 5: Ⅱ-2. 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 1Q-3Q24 +20.02 1Q-3Q25 229.31 249.33 Consumer and enterprise IoT grew (+0.02 in 1Q-3Q24) IP and Outsourcing services steadily grew (+20.38 in 1Q24) Exce

6. Slide 6: Ⅱ-3. 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

7. Slide 7: Ⅱ-4. 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.

8. Slide 8: Ⅱ-5. 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 Internet Connectivity (enterprise) Services Outsourcing Services Internet Connectivity (consu

9. Slide 9: Ⅱ-5. 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

10. Slide 10: Ⅱ-5. 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)  Steady growth in both revenue and

11. Slide 11: Ⅱ-6. 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

12. Slide 12: Ⅱ-6. 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

13. Slide 13: Ⅱ-7. Human Capital Disclosure

    Ⅱ- 7. Human Capital Disclosure Number of Employees (consolidated basis) Personnel-related Costs & Expenses (consolidated basis) Unit: ¥ (JPY) million Contract worker (personnel) 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Full-time worker (personnel) +363 YoY Consolidated 10,333 10,665 10,299 10,341 11,049 1

14. Slide 14: Ⅱ-8. SG&A, etc.

    Ⅱ- 8. 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 1Q-3Q24: 28,223 [+9.9%] 1Q-3Q25

15. Slide 15: Ⅱ-9. Profit

    Unit: ¥ (JPY) million Ⅱ- 9. Profit [ ] , YoY = Year over year comparison  1Q-3Q25 Operating profit : ¥24.41 bn, +17.9% YoY Operating margin • Operating profit was below expectations as strong SI demand and broad inflationary cost increases Operating profit continue Net profit • There was a one-time

16. Slide 16: Ⅱ-10. Consolidated Statements of Financial Position (Summary)

    Ⅱ- 10. Consolidated Statements of Financial Position (Summary) Unit: ¥ (JPY) million Mar. 31, 2025 Dec. 31, 2025 Changes Mar. 31, 2025 Dec. 31, 2025 Changes Cash & cash equivalents 32,534 40,603 +8,069 Trade & other payables 30,238 29,557 (681) Trade receivables 56,361 50,928 (5,433) Borrowings (cur

17. Slide 17: Ⅱ-11. Consolidated Cash Flows

    Ⅱ- 11. Consolidated Cash Flows Unit: ¥ (JPY) million YoY = Year over year comparison Operating Activities 1Q-3Q25 Major 1Q-3Q24: 19,329 1Q-3Q25: 40,165 Breakdown YoY Change FY24: 28,528 Profit before tax 24,631 +4,043 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 16,787 Depreciation and amortization 24,417 +1,

18. Slide 18: Ⅱ-12. Other Financial Data

    Ⅱ- 12. Other Financial Data Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison CAPEX CAPEX-related depreciation and amortization Cash CAPEX Finance lease 1Q-3Q24: 21,346 [+34.8%] 1Q-3Q25: 24,226 1Q-3Q24: 12,827 [+10.1%] 1Q-3Q25: 14,065 FY24: 26,274 [+16.7%] [+13.5%] FY24: 17,312 [+10.7%] [+

19. Slide 19: Ⅲ. Accumulation of large-scale projects as a new norm by Service Integration model

    Ⅲ. Accumulation of large-scale projects as a new norm by Service Integration model Along with accumulation of large-scale projects & progress in revenue recognition, MRR is gradually increasing Revenue recognitions of large-scale projects 1H23 2H23 1H24 2H24 1H25 3Q25 (3 months) One-time Approx. ¥0

20. Slide 20: FY25 Financial Targets

    Unchanged from Appendix FY25 Financial Targets May 2025 Unit: ¥ (JPY) billion (bn) GP = Gross Profit FY25 Targets Premise and Assumption % of total reveue % of total reveue FY24 FY25 Revenues FY24 FY25 Gross Profit FY25 Result Target Result Target 1H25 (Apr. 1, 2025 - Sep. 30, 2025) YoY (Apr. 1, 202

21. Slide 21: Year over Year Analysis

    Unchanged from Appendix Year over Year Analysis May 2025 Unit: ¥ (JPY) billion (bn) GP = Gross Profit Revenues FY24 result +23.17 FY25 target 316.83 340.0 (+29.49 in FY23) (+4.16 in FY23) (+7.07 in FY23) (+0.03 in FY23) • NW services (excl. Mobile) revenues are calculated by deducting the below ment

22. Slide 22: FY25 Dividend Forecast

    Unchanged from Appendix FY25 Dividend Forecast May 2025 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

23. Slide 23: 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

24. Slide 24: NTT Docomo's Mobile data interconnectivity charge

    Appendix NTT Docomo’s Mobile data interconnectivity charge (Mbps Unit charge, monthly) Fiscal FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Year To be announced in Mar. 2026 Announced in Mar. 2025 New ¥10,874 ¥10,383 ¥9,052 -15.5% YoY -4.5% YoY -12.8% YoY Fixed in Dec. 2025 Fixed as previously propos

25. Slide 25: Mobile service for consumers "IIJmio GigaPlans"

    Appendix Mobile service for consumers “IIJmio GigaPlans” Tax included Price list for “IIJmio GigaPlans” GigaPlans: by data plans • 35GB 45GB The price list was updated in Mar. 2025. The 15GB plan is going to revised in Mar. 2026. 55GB As of Dec. 31, 2025 less than 1% 2% less than 1% With voice ¥850

26. Slide 26: DeCurret and Digital Currency Business

    Appendix DeCurret and 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 Shareholders (43 companies) Financial Zone (FZ) Busi

27. Slide 27: Presentation material for company profile

    【Reference】 Presentation material for company profile P. 26 ~ P. 42 © Internet Initiative Japan Inc. 26

28. Slide 28: Company Profile

    MSCI’s ESG rating: AA Company Profile Company (from Sep. 2024) 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 5,514 (approx. 70% engineers) Large Shareholders NTT Group, K

29. Slide 29: Management structure (As of June 30, 2025)

    Ratio of female directors Ratio of outside directors Company Management structure (As of June 30, 2025) and auditors 20.0% 46.7% Profile Board of Directors (11 members) About President Taniwaki (Since Apr. 2025) Koichi Suzuki Yasuhiko Taniwaki  Joined MIC in 1984 and led major telecom reforms inclu

30. Slide 30: 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

31. Slide 31: 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 Private Sectors in Japan Public Sectors in Japan Top MVNO by market share

32. Slide 32: Extensive Service Lineups

    Extensive Service Lineups Company Profile Unit: ¥ (JPY) billion (bn) FY24 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

33. Slide 33: Recurring Revenue Accumulation & Expansion of Economies of Scale

    Recurring Revenue Accumulation & Expansion of Economies of Scale Company Unit: ¥ (JPY) billion (bn) Profile % = Year over year change FY19 FY20 FY21 FY22 FY23 FY24 27.2 (10.8%) 29.0 (10.5%) 30.1 (9.5%) 23.5 (10.4%) 14.2 (6.7%) 316.8 8.2 (4.0%) (+14.8%) 276.1 22.1 (+9.2%) 252.7 50.3 (+11.7%) 20.5 226

34. Slide 34: Financial Performance

    Financial Performance Company Profile Unit: ¥ (JPY) billion (bn) FY20 FY21 FY22 FY23 FY24 Total Revenue 213.0 226.3 252.7 276.1 316.8 YoY +4.2% +6.3% +11.7% +9.2% +14.8% NW services 126.8 128.2 138.9 151.3 162.6 YoY +4.0% +1.1% +8.4% +8.9% +7.4% NW services (excl. Mobile services) 79.3 87.5 96.6 105

35. Slide 35: 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

36. Slide 36: 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. 35

37. Slide 37: Excellent Customer Base

    Excellent Customer Base Company Profile  Number of IIJ Group’s clients: approx. 16,000 as of March 31, 2025  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

38. Slide 38: 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-

39. Slide 39: 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 Mid-term (New Mid-term’s Profit (one before (Previous Mid-term (New Mi

40. Slide 40: 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

41. Slide 41: 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

42. Slide 42: 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 Feb. 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  IIJ is expanding its owne

43. Slide 43: 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 Peak traffic  Maintain top share in the domestic SIM-type MVNO market Mar. 31, 2024 Mar. 31, 2025 Sep. 30, 2025 1st IIJ 21.6% IIJ 23.3% IIJ 24.2% 2nd NTT DOCOM

44. Slide 44: © Internet Initiative Japan Inc.

    © Internet Initiative Japan Inc.

Internet Initiative Japan — 1Q-3Q FY2025 Earnings Presentation on 6ix