Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — Q1 FY2025 Earnings Presentation
44 slides from Internet Initiative Japan's earnings presentation, Aug 7, 2025
Slide 1: Presentation Material for Consolidated Financial Results for 1Q25
Presentation Material for Consolidated Financial Results for 1Q25 (April 1, 2025 to June 30, 2025) Internet Initiative Japan Inc. (IIJ) The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774) August 7, 2025 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ in
Slide 2: Outline
Outline Ⅰ. 1Q25 Summary P. 2 Ⅱ. 1Q25 Financial Results P. 3 ~ P. 17 Ⅲ. List of Large-scale Projects P. 18 Appendix P. 19 ~ P. 24 【Reference】 Presentation material for company overview P. 25 ~ P. 42 • FY25 stands for a fiscal year from Apr. 1, 2025 to Mar. 31, 2026 • 1Q25 stands for 1st quarter of FY
Slide 3: 1Q25 Summary
Ⅰ. 1Q25 Summary Unit: JPY/¥ billion (bn), +%, YoY = Year over year comparison Net Profit is “Profit for the period attributable to owners of the parent” Stronger NW Replacement Demand Multiple Large-scale Projects Secured including a Japanese Megabank 1Q Revenue & Profit on Track Solid Start with Hi
Slide 4: Year over Year Analysis
Ⅱ- 1. Year over Year Analysis Unit: ¥ (JPY) billion YoY = Year over year comparison % of revenue % of revenue % of revenue % of revenue 1Q25 Results 1Q24 Results YoY 1H25 Targets YoY FY25 Targets YoY (Announced in May 2025) (Announced in May 2025) Apr. 2025 - Jun. 2025 Apr. 2024 - Jun. 2024 Apr. 202
Slide 5: Year over Year Analysis (Revenues and Operating Profit)
Ⅱ- 2. Year over Year Analysis Unit: ¥ (JPY) billion (bn) GP = Gross Profit YoY = Year over year comparison Revenues 1Q24 +4.81 1Q25 72.02 76.82 IP and Outsourcing services steadily grew (+7.90 in 1Q24) (-0.01 in 1Q24) O/M (recurring) accumulated, (+1.07 in 1Q24) Construction n line with our expectat
Slide 6: 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
Slide 7: 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.
Slide 8: 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 Outsourcing Services Internet Connectivity (consumer) Services Internet Connectivity (enterpri
Slide 9: 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
Slide 10: 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 Continuous demand for in-house developed security services Enterprise: Continued demand for device conne
Slide 11: 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
Slide 12: 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
Slide 13: 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) Full-time worker (personnel) 1Q24 2Q24 3Q24 4Q24 1Q25 +394 YoY +363 YoY Consolidated 10,333 10,665 10,299 10,341 11,049 of
Slide 14: 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 FY24: 38,298 [+9.9%] 9,651 9,23
Slide 15: Profit
Unit: ¥ (JPY) million Ⅱ- 9. Profit [ ] , YoY = Year over year comparison Operating margin Operating profit 1Q25: ¥6.03 bn, +34.6% YoY Operating profit • Achieved high profit growth YoY, excluding the contribution from the VMware license-related Net profit profit rebound, despite typical 1Q profi
Slide 16: Consolidated Statements of Financial Position (Summary)
Ⅱ- 10. Consolidated Statements of Financial Position (Summary) Unit: ¥ (JPY) million Mar. 31, 2025 June 30, 2025 Changes Mar. 31, 2025 June 30, 2025 Changes Cash & cash equivalents 32,534 30,020 (2,514) Trade & other payables 30,238 26,543 (3,695) Trade receivables 56,361 46,759 (9,602) Borrowings (
Slide 17: Consolidated Cash Flows
Ⅱ- 11. Consolidated Cash Flows Unit: ¥ (JPY) million YoY = Year over year comparison Operating Activities 1Q25 Major Breakdown YoY Change FY24: 28,528 Profit before tax 5,737 +698 1Q24 2Q24 3Q24 4Q24 1Q25 12,545 12,106 Depreciation and amortization 7,963 +364 8,802 9,199 Changes in operating assets
Slide 18: 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 FY24: 26,274 [+16.7%] FY24: 17,312 [+10.7%] 9,880 8,257 4,377 4,485 4,523 4,139 4,311 5,428 6,038 6,071 4,928 5,954 2,606 4,630 2,836 3,8
Slide 19: 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, MRR is gradually increasing Revenue recognitions of large-scale projects 1H23 2H23 1H24 2H24 1Q25 (3 months in total) One-time Approx. ¥0.4 bn Approx. ¥5.0 bn Approx.
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 Result Target 1H25 FY25 Result Target (Apr. 1, 2025 - Sep. 30, 2025) YoY (Apr. 1, 202
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
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
Slide 23: Secured large-scale Service Integration projects
Services provided by IIJ Appendix Secured large-scale Service Integration projects SI provided by IIJ Other IIJ-original offerings Educational Information NW for Chiba city Total NW project for a prominent company group Global NW project for a Japanese megabank Approx. 7,000 Third party cloud Manage
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 Year Method Future cost method: MNOs are to disclose the charges for next three yrs based on their prediction about cost etc. Announced in Mar. 2025 New ¥10,874 ¥10,3
Slide 25: Mobile service for consumers IIJmio GigaPlans
Appendix Mobile service for consumers “IIJmio GigaPlans” Including tax Price list for “IIJmio GigaPlans” GigaPlans: by data plans • (Figures in parenthesis) are as of Mar. 31, 2025 As of Jun 30, 2025 With voice ¥850 2GB 45GB less than 1% Data-only ¥740 35GB (less than 1%) 55GB 2% less than 1% (1%) (
Slide 26: Presentation material for company overview
【Reference】 Presentation material for company overview P. 25 ~ P. 42 © Internet Initiative Japan Inc. 25
Slide 27: Company Profile
Business Company Profile About IIJ Model Growth Strength Strategy 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 5,504 (approx. 70% engineers) Large Shareholders NTT Group, KDDI,
Slide 28: Leadership (As of June 30, 2025)
Business About IIJ Leadership (As of June 30, 2025) Model Growth Strength Strategy Board of Directors (11 members) Performance based About President Taniwaki (Since Apr. 2025) Koichi Suzuki Yasuhiko Taniwaki compensation for an annual and Representative Director, Representative Director, Joined MI
Slide 29: Recurring Revenue: From ISP to Total Network Solution Provider
Business From ISP to Total Network Solution Provider About IIJ Model Growth Strength Strategy Systems Integration (SI) revenue: Systems construction One time (including equipment sales) revenue EMERGE Systems operation and maintenance Network enhancement, (including private Cloud) Cloud, consumer mo
Slide 30: Extensive Service Lineups
Business Extensive Service Lineups About IIJ Model Growth Unit: ¥ (JPY) billion (bn) Strength Strategy FY24 YoY Revenue category revenue About Business situation, growth drivers and outlook growth IIJ’s core service since the establishment Matured market (hard to entry) Highly reliable dedicat
Slide 31: Recurring Revenue Accumulation
Business Recurring Revenue Accumulation About IIJ Model Unit: ¥ (JPY) billion (bn) Growth % = Year over year change Strength Strategy 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
Slide 32: Capex and Business Developments
Business Capex and Business Developments About IIJ Model Unit: ¥ (JPY) billion (bn) Growth Strength Strategy FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Revenues 176.2 192.4 204.5 213.0 226.3 252.7 276.1 316.8 Stronger demands for enterprise network services 27.8% 27.5% 28.7% 27.8% NW service 18.1% 16.3
Slide 33: Service & Solution Development Capability
Business Service & Solution Development Capability About IIJ Model Growth Strength Strategy Initiate the market by continuously developing innovative various network-related services & solution in-house © Internet Initiative Japan Inc. 32
Slide 34: Excellent Customer Base
Business Excellent Customer Base (Number of IIJ Group’s clients: approx. 16,000 as of March 31, 2025) About IIJ Model Growth Strength Strategy Through reliable operation, continuous use of Internet connectivity services since the inception of IIJ Our reliable infrastructure operation and cross-s
Slide 35: Competitive Advantages
Business Competitive Advantages About IIJ Model Growth Strength Strategy 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 o
Slide 36: NW Services and SI provided together as a Total Solution
Business NW Services and SI provided together as a Total Solution About IIJ Model Growth Strength Strategy Systems Integration (SI) to meet specific requirements cannot be covered by NW services Network (NW) services (in-house developed) Secure Web Managed Cloud Content Simple Secure MX IIJ ID DNS P
Slide 37: Mid-term Plan (FY24 ~ FY26)
Consolidated base Business About IIJ Mid-term Plan (FY24 ~ FY26) Net Profit is “Profit for the period attributable to owners of the parent” Model “times” are calculated by comparing FY26/FY26-end to FY23/FY23-end Growth The figures below are all assumed targets Strength Strategy Accelerate business
Slide 38: Mid-term Plan's Financial Outlook
Business About IIJ Mid-term Plan’s Financial Outlook Model Growth Unit: ¥ (JPY) billion Strength Strategy 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
Slide 39: Mid-to-long Term Vision
Business About IIJ Mid-to-long Term Vision Model Growth Strength Strategy 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 (
Slide 40: Enterprise internal NW & systems in Japan becoming to change
Business Enterprise internal NW & systems in Japan becoming to change About IIJ Model Growth Strength Strategy 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
Slide 41: Data center (DC)
Business Data center (DC) About IIJ Model Growth Strength Strategy Matsue DCP (opened in Apr. 2011) Shiroi DCC (opened in May 2019) Operate 16 DCs in Japan, 2 of which are owned by IIJ Objective IIJ’s own service facility (as of Aug. 2025) Expanding own DC capacity along with growing demands for
Slide 42: Market Environment & Growth Forecast, etc.
Business About IIJv Market Environment & Growth Forecast, etc. Model Growth Strength Strategy 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 1st IIJ 21.6% IIJ 23.3% 2n
Slide 43: Financial Business zone
Business About IIJ The progress of DeCurret’s business Model Growth Strength Strategy About DeCurret The first commercial project about digital currency (DCJPY) in Japan • Shareholder: 43 companies, IIJ ownership: 34.8% (an equity method investee) Issuer of digital GMO Aozora Net Bank, Ltd. • Busine
Slide 44: © Internet Initiative Japan Inc.
© Internet Initiative Japan Inc.
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