Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — FY2015 Earnings Presentation
23 slides from Internet Initiative Japan's earnings presentation, May 13, 2016
Slide 1: FY2015 Consolidated Financial Results
FY2015 Consolidated Financial Results Internet Initiative Japan Inc. TSE1(3774), NASDAQ(IIJI) May 13, 2016 © 2016 Internet Initiative Japan Inc.
Slide 2: Agenda
Agenda Ⅰ. Summary of FY2015 Financial Results Ⅱ. FY2016 Business Strategies Ⅲ. Middle Term Plan Ⅳ. Consolidated Financial Results for FY2015 Ⅴ. Reference Materials © 2016 Internet Initiative Japan Inc. 1
Slide 3: Summary of FY2015 Financial Results
Ⅰ. Summary of FY2015 Financial Results < FY15 Results > YoY = year over year Revenues JPY140.65 billion (up 14.3% YoY) Annual dividend per Gross margin JPY24.66 billion (up 11.7% YoY) common share JPY22.00 Operating income JPY6.14 billion (up 21.0% YoY) Payout ratio 25.0% Net income attributable to
Slide 4: FY2016 Business Strategies
Ⅱ. FY2016 Business Strategies Expect operating income to grow with strong revenue growth Capture enterprise IT needs more Financial Targets • Introduce new functions of our new service platform for network and cloud “IIJ Omnibus” and “IIJ GIO Unit: JPY billion Infrastructure P2” respectively to pr
Slide 5: Middle Term Plan
Ⅲ. Middle Term Plan Unit: JPY billion Business Strategies Approx. Provide comprehensive solutions meeting enterprise systems 250.0 demand with “Network cloud services” and “System cloud services” with SI functions 159.0 Enhance advantageous businesses 140.7 such as MVNO and security Pursue new
Slide 6: Consolidated Financial Results for FY2015
Ⅳ- 1. Consolidated Financial Results for FY2015 Unit: JPY billion % of Revenues % of Revenues % of Revenues YoY YoY FY15 Results FY14 Results FY16 Target Change in % Change in % (Apr. 2015 - Mar. 2016) (Apr. 2014 - Mar. 2015) (Apr. 2016 - Mar. 2017) Total Revenues 140.7 123.1 +14.3% 159.0 +13.1% 82.
Slide 7: Revenues
Ⅳ- 2. Revenues Unit: JPY million Network Services Systems Integration (SI) [ ] , YoY = compared to the same period in a previous year Internet Connectivity Services (Enterprise) Systems Construction Internet Connectivity Services (Consumer) Systems Operation and Maintenance Outsourcing Service WAN S
Slide 8: Cost of Revenues and Gross Margin Ratio
Ⅳ- 3. Cost of Revenues and Gross Margin Ratio Cost of revenues: Network Services Systems Integration(SI) Equipment Sales ATM Operation Business Unit: JPY million Gross margin ratio: Network Services Systems Integration(SI) Total Revenues [ ] , YoY = compared to the same period in a previous year FY1
Slide 9: Gross Margin and Operating Income
Ⅳ- 4. Gross Margin and Operating Income Unit: JPY billion Operating Income YoY = compared to the same period in a previous year YoY change in SG&A Expenses * YoY change in ATM Operation Business gross margin YoY change in of SI gross margin (incl. Equipment Sales) +0.24 GM = gross margin YoY change
Slide 10: Network Services: Revenues
Ⅳ- 5. Network Services (1)Revenues WAN Services Unit: JPY million Outsourcing Services Total Contracted [ ] , YoY = compared to the same period in a previous year Bandwidth (Gbps) QoQ = 4Q15 compared to 3Q15 Internet Connectivity Services (Consumer) Internet Connectivity Services (Enterprise) 2,315.
Slide 11: Network Services: Cost of Revenues
Ⅳ- 5. Network Services (2)Cost of Revenues Unit: JPY million Others [ ] , YoY = compared to the same period in a previous year Outsourcing-related costs Personnel-related costs FY15 Cost of network services: Network operation-related costs Mobile-related costs (recognized in Circuit-related costs
Slide 12: Systems Integration (SI): Revenues
Ⅳ- 6. Systems Integration (SI) (1)Revenues < Systems Construction > 10,986 Unit: JPY million 8,720 [ ] , YoY = compared to the same period in a previous year 7,619 6,893 6,306 6,078 5,929 Systems Construction Revenues 4,734 Systems Operation and Maintenance Revenues Order backlog ※Systems constructi
Slide 13: Systems Integration (SI): Cost of Revenues
Ⅳ- 6. Systems Integration (SI) (2)Cost of Revenues Purchasing costs Unit: JPY million Outsourcing-related costs [ ] , YoY = compared to the same period in a previous year Others QoQ = 4Q15 compared to 3Q15 Network operation-related costs Personnel-related costs ( ) Gross margin ratio FY14: 41,562 (1
Slide 14: Number of Employees
Ⅳ- 7. Number of Employees Unit: JPY million [ ] , YoY = compared to the same period in a previous year Contract worker (Number of employees) 2,523 2,546 2,818 2,835 2,975 2,981 2,977 2,980 Full time worker 361 364 349 350 362 370 311 328 [Employee Distribution] Administration 12% Sales 2,614 2,617 2
Slide 15: SG&A Expenses/R&D
Ⅳ- 8. SG&A Expenses/R&D Research & development expenses Unit: JPY million [ ] , YoY = compared to the same period in a previous year General & administrative expenses Sales & marketing expenses ( ) % of total revenues FY14: 16,977 (13.8%) FY15:18,515 (13.2%) [up 1,654, up 10.8%] [up 1,517, up 8.9%]
Slide 16: Operating Income and Net Income
Ⅳ- 9. Operating Income and Net Income Operating Income Net Income Attributable to IIJ Operating Margin Ratio Unit: JPY million [ ] , YoY = compared to the same period in a previous year Income before income tax expenses: FY14 Operating income: 5,075 FY15 Operating income: 6,140 FY15: JPY6,193 mill
Slide 17: Consolidated Balance Sheets (Summary)
Ⅳ- 10. Consolidated Balance Sheets (Summary) Unit: JPY million Mar. 31, 2015 Mar. 31, 2016 Changes Cash and Cash Equivalents 21,094 19,569 (1,525) Accounts Receivable 22,252 23,747 +1,495 Inventories and Prepaid Expenses (Current and Noncurrent) 7,835 11,761 +3,925 Investments in Equity Method Inves
Slide 18: Consolidated Cash Flows
Ⅳ- 11. Consolidated Cash Flows < Operating Activities > Unit: JPY million [ ] , YoY = compared to the same period in a previous year FY14: 12,912 FY15: 12,052 [up 4,125] [down 861] FY15 Operating Activities 4,667 4,240 Major YoY 3,582 2,855 2,490 2,901 2,498 Breakdown Change 1,731 Net income 4,190 +
Slide 19: Other Financial Data (CAPEX etc.)
Ⅳ- 12. Other Financial Data (CAPEX etc.) Cash CAPEX Unit: JPY million < CAPEX > Capital Lease [ ] = compared to the same period in a previous year FY14: 11,835 FY15: 14,812 < Breakdown of CAPEX (unit: JPY billion) > [down 725] [up 2,977] FY13 FY14 FY15 TOTAL CAPEX 12.6 11.8 14.8 Network update, back
Slide 20: Cloud Business Developments
Ⅴ - 1. Cloud Business Developments Cloud-related revenue (Unit: JPY billion) 4Q15 revenue (Unit: JPY billion) Large game customers 4Q15 cloud-related revenue recognition: General purpose SaaS 0.08 86.3% in systems operation and maintenance, 13.7% in outsourcing Business enterprise customers (groupwa
Slide 21: Mobile Business Developments
Ⅴ- 2. Mobile Business Developments Total subscription & revenue IIJmio mobile & IIJ Mobile subscription & revenue Total subscription (thousand): 4Q15-end Subscription IIJmio mobile (Consumer) Revenue IIJ Mobile (Enterprise) 1,228 IIJ Mobile (Enterprise) (unit: JPY billion): Total revenue (JPY billio
Slide 22: FY2016 Financial Target
Ⅴ - 3. FY2016 Financial Target % of Revenues % of Revenues % of Revenues Unit: JPY billion 1H16 FY16 FY15 FY16 Target to FY15 Results Target Target Results Total Revenues 73.8 159.0 140.7 +18.4 +13.1% 17.3% 17.4% 17.5% Gross Margin +2.9 +11.9% 12.8 27.6 24.7 3.8% 4.6% 4.4% Operating Income 2.8 7.3 6
Slide 23: Forward-looking statements / Contact Information
※ Forward-looking statements Statements made in this presentation regarding IIJ’s or managements’ 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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