Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — H1 2025 Earnings Presentation
44 slides from Internet Initiative Japan's earnings presentation, Nov 7, 2025
Slide 1: Presentation Material for Consolidated Financial Results for 1H25
Presentation Material for Consolidated Financial Results for 1H25 (April 1, 2025 to September 30, 2025) Internet Initiative Japan Inc. (IIJ) The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774) November 7, 2025 Disclaimer Statements made in this presentation regarding IIJ’s or manageme
Slide 2: Outline
Outline Ⅰ. 1H25 Summary P. 2 Ⅱ. 1H25 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
Slide 3: 1H25 Summary
Ⅰ. 1H25 Summary Unit: JPY/¥ billion (bn), +%, YoY = Year over year comparison Net Profit is “Profit for the period attributable to owners of the parent” Ongoing High Demand for Network and System Upgrades Across Industries Driven by Structural Changes in Network Leveraging the Service Integration Mo
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 1H25 Results 1H24 Results YoY 1H25 Targets YoY FY25 Targets YoY (Announced in May 2025) (Announced in May 2025) Apr. 2025 - Sep. 2025 Apr. 2024 - Sep. 2024 Apr. 202
Slide 5: 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 1H24 +14.89 1H25 147.02 161.91 IP and Outsourcing services steadily grew Consumer and enterprise IoT grew (+0.01 in 1H24) (+13.85 in 1Q24) (+1.82 in 1H2
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) 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Full-time worker (personnel) 10,333 10,665 10,299 10,341 11,049 11,305 *2 +394 YoY +363 YoY
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 1H24: 18,889 [+10.4%] 1H25: 19,
Slide 15: Profit
Unit: ¥ (JPY) million Ⅱ- 9. Profit [ ] , YoY = Year over year comparison Operating margin Operating profit 1H25: ¥15.39 bn, +30.6% YoY Operating profit • High Growth by SI & NW Service Revenue expansion, ¥1.17 bn of Retirement Provision Reversal, Net profit & VMware-related Rebound Profit befo
Slide 16: Consolidated Statements of Financial Position (Summary)
Ⅱ- 10. Consolidated Statements of Financial Position (Summary) Unit: ¥ (JPY) million Mar. 31, 2025 Sep. 30, 2025 Changes Mar. 31, 2025 Sep. 30, 2025 Changes Cash & cash equivalents 32,534 37,298 +4,764 Trade & other payables 30,238 32,199 +1,961 Trade receivables 56,361 51,605 (4,756) Borrowings (cu
Slide 17: Consolidated Cash Flows
Ⅱ- 11. Consolidated Cash Flows Unit: ¥ (JPY) million YoY = Year over year comparison Operating Activities 1H24: 10,527 1H25: 23,378 1H25 Major Breakdown YoY Change FY24: 28,528 Profit before tax 15,149 +4,033 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 12,545 12,106 Depreciation and amortization 16,072 +714 8,802
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 1H24: 15,308 [+45.2%] 1H25: 15,044 1H24: 8,450 [+9.1%] 1H25: 9,204 Finance lease FY24: 26,274 [+16.7%] [-1.7%] FY24: 17,312 [+10.7%] [+8.9%] 9,880 8,25
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 & progress in revenue recognition, MRR is gradually increasing Revenue recognitions of large-scale projects 1H23 2H23 1H24 2H24 1H25 One-time Approx. ¥0.4 bn Approx. ¥5
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 1H25 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: 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
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” Price list for “IIJmio GigaPlans” GigaPlans: by data plans • (Figures in parenthesis) are as of Mar. 31, 2025 As of Sep. 30, 2025 With voice ¥850 45GB 2GB less than 1% 55GB Data-only ¥740 35GB (less than 1%) less than 1% 2% (less than 1%) (1%)
Slide 26: DeCurret and Digital Currency Business
Appendix DeCurret and Digital Currency Business DeCurret aims to transform Japan’s digital currency landscape through tokenized bank deposits named “DCJPY” Company Profile DCJPY Network Shareholders (43 companies) Financial Zone (FZ) Business Zone (BZ) DeCurret Holdings • IIJ (shareholding ratio:
Slide 27: Presentation material for company profile
【Reference】 Presentation material for company profile P. 26 ~ P. 42 © Internet Initiative Japan Inc. 26
Slide 28: Company Profile
MSCI’s ESG rating: AA Company Profile Company (as of 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 5,491 (approx. 70% engineers) Large Shareholders NTT Group,
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) 20.0% 46.7% Profile Board od Directors (11 members) About President Taniwaki (Since Apr. 2025) Koichi Suzuki Yasuhiko Taniwaki Joined MIC in 1984 and led major telecom reforms including NTT’s re
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
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
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
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
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
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
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
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
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-
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
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
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
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 Nov. 2025), 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
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 1st IIJ 21.6% IIJ 23.3% 2nd NTT Docomo 9.7% Optage 8.1% 3rd O
Slide 44: © Internet Initiative Japan Inc.
© Internet Initiative Japan Inc.
Internet Initiative Japan — H1 2025 Earnings Presentation on 6ix