Internet Initiative Japan Inc. · TSE:3774

Internet Initiative Japan — Q1 FY2010 Earnings Presentation

20 slides from Internet Initiative Japan's earnings presentation, Aug 13, 2010

  1. Slide 1: 1st Quarter FY2010 Consolidated Financial Results

    1st Quarter FY2010 Consolidated Financial Results Internet Initiative Japan Inc. 2010.8.13

  2. Slide 2: Agenda

    Agenda Ⅰ. Summary of 1Q FY2010 Financial Results Ⅱ. Consolidated Financial Results for 1Q FY2010 Ⅲ. Reference Materials 1

  3. Slide 3: I. Summary of 1Q FY2010 Financial Results

    I. Summary of 1Q FY2010 Financial Results ≪1Q FY2010 Financial Results ≫  Revenue JPY 15,813 million (down 0.1 % YoY)  Gross margin JPY 3,025 million (up 0.9 % YoY)  Operating Income JPY 266 million (down 24.3 % YoY)  Income before Income Tax Expense JPY 279 million (down 6.9 % YoY)  Net Income

  4. Slide 4: II-1. Consolidated Results for 1Q FY2010

    II-1. Consolidated Results for 1Q FY2010 Unit: JPY million % of Revenues % of Revenues 1Q10 1Q09 YoY （10/04～10/6） （09/04～09/6） Total  1Q revenues are seasonally low but Revenues 15.8 15.8 (0.1%) revenue was in line with original target 80.9% 81.1% Total Costs 12.8 12.8 (0.4%)  Gross margin and gro

  5. Slide 5: II-2. Revenues

    II-2. Revenues Internet Connectivity Services Systems Construction Unit: JPY million One-time Recurring Outsourcing Services Revenues Equipment Saleｓ Revenues Systems Operation and Maintenance ATM Operation Business FY08: 69,731 FY09: 68,006 19,694 18,942 98 17,535 6 318 16,926 259 16,328 6 6 202 15

  6. Slide 6: II-3. Cost of Revenues and Gross Margin Ratio

    II-3. Cost of Revenues and Gross Margin Ratio Cost of Revenues Connectivity and Outsourcing Services SI Equipment Sales ATM Operation Gross Margin Ratio Total Gross Margin Ratio Business Connectivity and Outsourcing Services SI 28.1% Unit: JPY million 26.7% 27.8% 26.2% 25.7% 24.6% 23.3% 23.4% 21.6%

  7. Slide 7: II-4. Connectivity and Outsourcing Services (1) Revenues

    II-4. Connectivity and Outsourcing Services (1) Revenues Connectivity Services for Home Use Outsourcing Services YoY = 1Q10 compared to 1Q09 Connectivity Services for Corporate Use Total Contracted Bandwidth (Gbps) QoQ = 1Q10 compared to 4Q09 Unit: JPY million 647.2 650.4 660.9 619.8 584.7 530.5 449

  8. Slide 8: II-4. Connectivity and Outsourcing Services (2) Cost of Revenues

    II-4. Connectivity and Outsourcing Services (2) Cost of Revenues Purchasing Costs Others Outsourcing Costs Personnel Related Costs Network Operation Related Costs Circuit Related Costs 7,655 Unit: JPY million 7,651 8 7,647 3 0 526 502 567 1,262 1,359 1,274 931 964 962 1,771 1,716 1,758 3,153 3,112 3

  9. Slide 9: II-5. Systems Integration (1) Revenues

    YoY = 1Q10 compared to 1Q09 II-5. Systems Integration (1) Revenues Unit: JPY million QoQ = 1Q10 compared to 4Q09 (Systems construction) Systems Construction Revenues 5,297 Systems Operation and Maintenance Revenues 5,081 5,500 Order Backlog System construction’s order 4,428 4,580 backlog and order r

  10. Slide 10: II-5. Systems Integration (2) Cost of Revenues

    II-5. Systems Integration (2) Cost of Revenues Purchasing Costs Outsourcing Costs Others 7,152 Network Operation Related Costs Personnel Related Costs Unit: JPY million 2,705 4,876 4,793 1,235 854 1,762 1,638 1,541 328 304 333 1,625 1,078 1,229 718 732 738 1Q09 4Q09 1Q10 YoY = 1Q10 compared to 1Q09

  11. Slide 11: II-6. Number of Employees

    II-6. Number of Employees （number of employees） [Employee Distribution] 2,000 Contract worker Administration 1,800 Full time worker 1,740 1,673 1,687 15% 1,602 1,600 265 228 263 Sales 229 1,400 1,373 18% 173 1,200 1,155 Engineers 129 67% 1,000 800 1,445 1,424 1,475 1,373 600 1,200 1,026 400 200 0 20

  12. Slide 12: II-7. SG&A Expenses/R&D

    II-7. SG&A Expenses/R&D Sales and Marketing Expenses Research and Development Unit: JPY million General and Administrative Expenses ( ) % of Revenues YoY = 1Q10 compared to 1Q09 QoQ = 1Q10 compared to 4Q09 FY08 : 10,668 FY09 : 10,544 2,978 2,931 （15.7%） （14.9%） 2,759 2,614 2,647 72 2,550 2,526 199 2

  13. Slide 13: II-8. Operating Income and Net Income

    II-8. Operating Income and Net Income Unit: JPY million Operating Income Net Income Operating Margin Ratio YoY = 1Q10 compared to 1Q09 QoQ = 1Q10 compared to 4Q09 Operating income ： 2,917 Operating income ： 3,412 Net income attributable Net income attributable  Operating Income: to IIJ： 1,419 to II

  14. Slide 14: II-9. Consolidated Balance Sheets

    II-9. Consolidated Balance Sheets Unit: JPY million June 30, March 31, Changes 2010 2009 Cash and Cash 9,137 8,764 +373 Equivalents  Decreased in connection to the Accounts Receivable 9,635 11,397 (1,761) decrease in on-going SI Projects Inventories 639 808 (169)  Payments of bonuses Prepaid Expen

  15. Slide 15: II-10. Consolidated Cash Flows

    II-10. Consolidated Cash Flows Unit: JPY million Net cash provided by (used in) operating activities FY08 : 8,631 FY09 : 9,621 Decrease in accounts receivable: JPY1,768 million 3,280 3,360 Increase in accrued expenses, other current 2,628 1,987 2,164 2,274 and noncurrent liabilities: JPY1,085 mill

  16. Slide 16: II-11. Other Financial Data (CAPEX etc.)

    II-11. Other Financial Data (CAPEX etc.) Unit: JPY million CAPEX (Include Capital Lease) FY08 : 7,006 FY09 : 5,584 2,685 1,831 1,832 1,752 1,489 Adjusted EBITDA 1,218 1,221 1,124 FY08 : 8,348 FY09 : 8,718 658 2,777 2,550 2,193 2,132 2,099 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 1,948 1,656 1,71

  17. Slide 17: III-1. Reference: FY2010 Financial Target

    III-1. Reference: FY2010 Financial Target Unit: JPY billion (except for Net Income and Cash Dividend per Share) FY10 Previous Target Revised FY10 Target FY09 Actual YoY （10/4～11/3） （10/4～11/3） （09/4～10/3） (Revised FY10 to FY09 Acutal) Total Revenues 71.0 84.5 68.0 +16.5 24.3% Operating Income 4.3 4.

  18. Slide 18: III-2. Reference: IIJ Group Companies

    III-2. Reference: IIJ Group Companies （As of Jul. 30, 2010) Company Name Ownership Main Business Provides a full range of network operation and management services, Net Care, Inc. from customer support, end-user help desks, monitoring and troubleshooting to integrated management services. Provides n

  19. Slide 19: III-3. Reference: Press Release

    III-3. Reference: Press Release Date Press Releases 1/19 IIJ Builds Web Infrastructure for Cabinet Office Survey Site using IIJ's Cloud Service 1/26 IIJ Introduces DKIM Sender Authentication Technology to the IIJ Post Office Service 1/28 IIJ Offers Enterprise PDA with IIJ Mobile Service/Type D 2/4 I

  20. Slide 20: Forward-looking Statements

    ※ 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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