Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — Investor Presentation (February 2026)
65 slides from Internet Initiative Japan's investor presentation, February 2026
Slide 1: Corporate Overview of Internet Initiative Japan (IIJ)
Corporate Overview of Internet Initiative Japan (IIJ) Internet Initiative Japan Inc. (IIJ) The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774) February and March 2026 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations, or
Slide 2: Outline
Outline 1. Business Status Updates P. 2 – 8 2. About IIJ P. 9 – 17 3. Financial Information P. 18 – 42 4. Supplemental Business Information P. 43 – 63 • FY25 (FY2025) stands for a fiscal year ending March 31, 2026. Others alike • 1Q-3Q25 stands for the nine months of FY2025 (Apr. 1, 2025 to Dec. 31,
Slide 3: Business Status Updates
Business Status Updates Updates Network Engineering Capabilities as Our Core Value, to Become Prominent Differentiation • Over 2,000 network engineers engaging in network service developments, operation, network enhancement and maintenance 1 • Proud of comprehensive lineups of network services and n
Slide 4: Network Engineering Capabilities as Our Core Value - Business Model
1 Network Engineering Capabilities as Our Core Value - Business Model - Updates Revenue (¥ bn) Client Base Approx. 16,000 clients Longstanding client relationships Private Sectors in Japan Public Sectors in Japan Top MVNO by market share Overseas Business High penetration to top tier 10 compan
Slide 5: Network Evolution Drives Our Business Demands
2 Network Evolution Drives Our Business Demands Updates 30 years ago Nowadays IIJ: external network with Internet IIJ’s growth opportunities Carriers & SIers: internal network & systems full network & system coverage with various network functions Stick to legacy network & systems Finally network &
Slide 6: Toward Service Integration Business Model, and Thereafter
3 Toward Service Integration Business Model, and Thereafter Other IIJ-original offerings Updates Typical transactions of Service Integration projects Network Services Network Integration Educational Information NW for Chiba city Total NW project for a prominent company group Shared Banking System
Slide 7: Recent Track Record of Large-scale Projects
3 Recent Track Record of Large-scale Projects Updates 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. ¥0.4 bn Approx. ¥5.0 bn Approx.
Slide 8: Profitability to Improve with Business Scale Expansion
4 Profitability to Improve with Business Scale Expansion Updates Perspective Our Initiatives Pursue large-scale Service Integration projects as many as possible to steadily accumulate MRR Enhance existing network services features to strengthen cross-selling and accelerate MRR growth Restructu
Slide 9: Advancement of Growth Strategy
5 Advancement of Growth Strategy Updates Business Environment A Business Model Under Ongoing Expansion • Changes & expansion of • Rising cybersecurity threats corporate NW/system • Growing importance of Shifting from NI & individual service/product delivery • Continuous expansion of NW/system operat
Slide 10: Outline
Outline 1. Business Status Updates P. 2 – 8 2. About IIJ P. 9 – 17 3. Financial Information P. 18 – 42 4. Supplemental Business Information P. 43 – 63 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations, or predictions for the future are
Slide 11: Company Profile
Company Profile MSCI’s ESG rating: AA (from Sep. 2024) About IIJ Established December 1992 (The first established full-scale Internet Service Provider in Japan) Number of Employees 5,514 (approx. 70% engineers) Number of Customers Approximately 16,000 enterprises Large Shareholders NTT Group, KDDI,
Slide 12: From ISP to Total Network Solution Provider
From ISP to Total Network Solution Provider About IIJ 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 reven
Slide 13: Total Network Solution Provider with Extensive Service Lineup
Total Network Solution Provider with Extensive Service Lineup Unit: ¥ (JPY) billion (bn) About IIJ FY24 YoY Cost Gross Revenue category revenue growth Structure Margin About Business situation, growth drivers and outlook • Matured market (hard to entry) • IIJ’s flagship service since the inception I
Slide 14: Extensive Client Base
Extensive Client Base About IIJ 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 rate Co
Slide 15: Competitive Advantages
Competitive Advantages About IIJ Differentiation from telecom carriers Differentiation from systems integrators (SIers) • Deep expertise in IP (Internet Protocol) technologies • Operates one of Japan’s largest Internet backbones • Fast and flexible operations • Owns and develops network service plat
Slide 16: Management structure (As of June 30, 2025)
Ratio of female directors Management structure (As of June 30, 2025) and auditors 20.0% Ratio of outside directors 46.7% About IIJ Board of Directors (11 members) About President Taniwaki (Since Apr. 2025) Koichi Suzuki Yasuhiko Taniwaki Joined MIC in 1984 and led major telecom reforms including N
Slide 17: Human Capital
Human Capital About IIJ Total Number of Employees (consolidated) Turnover Rate (IIJ) Number of New Graduates (consolidated) Engineers approx. 70% around FY25 plan: +440 YoY Low employee turnover driven Continuously hire and train new by diverse experiences and high graduates who are drawn to IIJ emp
Slide 18: Market Environment
Market Environment About IIJ 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 DOCOMO 9.7% Optage 8.1% Optage 8.1%
Slide 19: Financial Information
Financial Information Internet Initiative Japan Inc. (IIJ) The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774) February 2026 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations, or predictions for the future are forward-loo
Slide 20: Outline
Outline 1. Business Status Updates P. 2 – 8 2. About IIJ P. 9 – 17 3. Financial Information P. 18 – 42 4. Supplemental Business Information P. 43 – 63 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations, or predictions for the future are
Slide 21: Financial Performance
Financial Performance Unit: ¥ (JPY) billion (bn) Financial Information 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% Enterprise NW 79.3 87.5 96.6 105.2 112.3 YoY +4.
Slide 22: Shareholders’ Return
Shareholders’ Return Unit: ¥ (JPY) Financial Information 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 Dividend per
Slide 23: Mid-term Plan (FY24 ~ FY26)
Mid-term Plan (FY24 ~ FY26) Consolidated base Net Profit is “Profit for the period attributable to owners of the parent” Financial “times” are calculated by comparing FY26/FY26-end to FY23/FY23-end Information The figures below are all assumed targets Accelerate business scale expansion toward the M
Slide 24: Mid-term Plan’s Financial Outlook
Mid-term Plan’s Financial Outlook Unit: ¥ (JPY) billion Financial Information 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 (
Slide 25: Mid-to-long Term Vision
Mid-to-long Term Vision Financial Information Beyond 5,000 Mid-to-long Term Vision The figures mentioned below are all assumed status and image Previous Mid-term Mid-term *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
Slide 26: 1Q-3Q25 Summary
1Q-3Q25 Summary Unit: JPY/¥ billion (bn), +%, YoY = Year over year comparison Net Profit is “Profit for the period attributable to owners of the parent” Financial Information Accumulating demand enabled by SWOT-aligned strengths Business expanding into a high-growth phase Steadily securing large-sca
Slide 27: Consolidated Financial Results
Consolidated Financial Results Unit: ¥ (JPY) billion YoY = Year over year comparison Financial Information Profit for the period attributable to owners of the parent • SG&A etc. represents the sum of SG&A, which includes R&D expenses, and other income/expenses © Internet Initiative Japan Inc. 26
Slide 28: Year over Year Analysis
Year over Year Analysis Unit: ¥ (JPY) billion (bn) GP = Gross Profit YoY = Year over year comparison Financial Information 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) Exceeded expectation
Slide 29: Revenues
Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Financial Information Internet Connectivity Services (Enterprise) Systems Integration (SI) Systems Construction (including equipment sales) Internet Connectivity Services (Consumer) Systems Ope
Slide 30: Cost of Revenues & Gross Margin
Cost of Revenues & Gross Margin Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Financial Information Gross margin: NW (Network) Services SI (Systems Integration) Total Cost of revenues: NW (Network) Services SI (Systems Integration) ATM Operation Bu
Slide 31: Network (NW) Services (1) Revenues
Network (NW) Services (1) Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Financial Information Total Contracted Bandwidth (Gbps) WAN (Wide Area Network) Services Internet Connectivity (enterprise) Services Outsourcing Services Internet Con
Slide 32: Network (NW) Services (2) Cost of Revenues
Network (NW) Services (2) Cost of Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison Financial Information Circuit-related costs (Internet backbone, WAN lines, etc.) Outsourcing-related costs (mobile infrastructure related costs such as interconnectivity charge and voice communicat
Slide 33: Network (NW) Services (3) Security and Mobile/IoT
Network (NW) Services (3) Security and Mobile/IoT Unit: ¥ (JPY) billion Financial [ ] , YoY = Year over year comparison Information QoQ = Quarter over quarter comparison Security Business Mobile/IoT Business Ongoing strong demand drives stable growth in security services (MRR) Steady growth in b
Slide 34: Systems Integration (SI) (1) Revenues
Systems Integration (SI) (1) Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Financial Information Systems Construction revenues (including equipment sales) Systems operation & maintenance revenues for on-premise system Cloud revenues such a
Slide 35: Systems Integration (SI) (2) Cost of Revenues
Systems Integration (SI) (2) Cost of Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison Financial Information Purchasing costs (Equipment, etc.) Outsourcing-related costs (SI-related outsourcing personnel costs, etc.) Others Network operation-related costs (Depreciation cost such a
Slide 36: Human Capital Disclosure
Human Capital Disclosure Financial Information 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
Slide 37: SG&A, etc.
SG&A, etc. Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Financial Information Research & development expenses Commission expenses Others (including other income and other expenses) Personnel-related expenses ( ) % of total revenues 1Q-3Q24: 28,223
Slide 38: Profit
Profit Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison Financial Information 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 • Ther
Slide 39: Consolidated Statements of Financial Position (Summary)
Consolidated Statements of Financial Position (Summary) Unit: ¥ (JPY) million Financial Information • Prepaid expenses increased mainly due to increases in projects for clients, license fee and maintenance for facility, etc., Expected to be recovered gradually over multiple years • Tangible assets i
Slide 40: Consolidated Cash Flows
Consolidated Cash Flows Unit: ¥ (JPY) million YoY = Year over year comparison Financial Information 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 amortiza
Slide 41: Other Financial Data
Other Financial Data Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison Financial Information 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,
Slide 42: FY25 Financial Targets (Unchanged from May 2025)
FY25 Financial Targets (Unchanged from May 2025) Unit: ¥ (JPY) billion (bn) GP = Gross Profit Financial Information Premise and Assumption +19.1% YoY +4.7% YoY +14.2% YoY +24.2% YoY +2.7 YoY +29.5 YoY +10.0% YoY +7.4% YoY +9.9% YoY +4.1% YoY +11.2 YoY +1.8 YoY NW Services • Revenue to grow through
Slide 43: Year over Year Analysis (Unchanged from May 2025)
Year over Year Analysis (Unchanged from May 2025) Unit: ¥ (JPY) billion (bn) GP = Gross Profit Financial Information 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
Slide 44: Supplemental Business Information
Supplemental Business Information Detailed Business Overview Internet Initiative Japan Inc. (IIJ) The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774) February 2026 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations, or pre
Slide 45: Outline
Outline 1. Business Status Updates P. 2 – 8 2. About IIJ P. 9 – 17 3. Financial Information P. 18 – 42 4. Supplemental Business Information P. 43 – 63 Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations, or predictions for the future are
Slide 46: Enterprise Network Services
Enterprise Network Services Supplemental Business Information IIJ’s enterprise network services’ business model: Cost doesn’t have to increase at the same pace as the revenue: economies of scale IP service (Internet Protocol) Business model IP Service is a bandwidth guaranteed dedicated Internet c
Slide 47: Security Business (1)
Security Business (1) Supplemental Business Information Provide a wide range of security services over network Information analysis platform utilizing information and expertise only available to ISPs Security services for internal systems Security services for external systems Web access securit
Slide 48: Security Business (2)
Security Business (2) Supplemental Business Information Many initiatives taken by IIJ for security 1994 Started providing firewall services (first in Japan) 1999 Started providing fully-managed firewall services (first in Japan) 2004 Started providing spam mail filtering (first in Japan) 2005 Adde
Slide 49: Security Business (3)
Security Business (3) Supplemental Business Information IIJ Secure MX Service (SMX) IIJ DDoS (Distributed Denial of Service) Protection Service Cloud-based integrated mail security service (launched in Sep. 2006) Comprehensive service to protect enterprise NW system from DDoS attacks Different
Slide 50: Security Business (4)
Security Business (4) Supplemental Business Unit: ¥ (JPY) billion Information Security Service (monthly recurring revenue) Mail Security Web GW Full outsource of mail system, Full outsource of web security, URL filtering, Revenue strongly increasing along with continuous strong demands counter
Slide 51: Mobile Business (1)
Mobile Business (1) Unit: ¥ (JPY) billion (bn) Supplemental %, YoY = Year over year comparison Business QoQ = Quarter over quarter comparison Information Accumulate enterprise IoT traffic by leveraging the blue-chip client base, various NW services & SI function - higher utilization of the mobile
Slide 52: Mobile Business (2)
Mobile Business (2) Supplemental Business Information Sales Channel of Consumer Mobile 1. Direct sales through IIJ’s website 2. Sales partners include BICCAMERA INC. one of the largest retailers in Japan, and Japan Airlines • IIJ pays sales commission expenses to sales partners Revenues (unit: ¥ bil
Slide 53: Mobile Business (3)
Mobile Business (3) Supplemental Business Including tax Information Price list for “IIJmio GigaPlans” GigaPlans: by data plans • The price list was updated in Mar. 2025. The 15GB plan is going to revised in Mar. 2026. 35GB 45GB 55GB As of Dec. 31, 2025 less than 2% 1% less than 1% With voice ¥850 2G
Slide 54: Mobile Business (4)
Mobile Business (4) Supplemental Business Information NTT Docomo’s Mobile data interconnectivity charge (Mbps unit charge・monthly) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 To be announced in Mar. 2026 New Announced in Mar. 2025 ¥10,874 ¥10,383 ¥9,052 -15.5% YoY -4.5% YoY -12.8% YoY Fixed in De
Slide 55: Mobile Business (5)
Mobile Business (5) Supplemental Business Information Most of current enterprise mobile solution are simple usage such as connecting NW and surveillance cameras, etc. Accumulating various enterprise mobile solutions © Internet Initiative Japan Inc. 54
Slide 56: IoT Business (1)
IoT Business (1) Supplemental Business Information Combining IIJ’s existing service lineups and SI to build IoT systems IIJ IoT Specific Fields and Industry Home / Care Agriculture Energy Businesses (Manufacturing) Monitoring WISE-PaaS IIJ Japan-East IIJ Water Management Necolico Home Cloud Services
Slide 57: IoT Business (2)
IoT Business (2) Supplemental Business Information IIJ’s IoT projects Advanced IoT usage: factory IoT Industrial Shift from reactive post-sales maintenance model to IIJ provides IoT system for Toyota Motor Hokkaido machinery proactive field services Providing a one-stop solution by offering mobi
Slide 58: System Integration (SI)
System Integration （SI） Supplemental Business Unit: ¥ (JPY) billion (bn) Information SI Revenue Overview of IIJ’s SI Projects Construction (one-time) Typical projects Operation and Maintenance (recurring) *excluding cloud service revenue Small-to-medium server Network renewal projects construction p
Slide 59: Cloud Services
Cloud Services Supplemental Business Unit: ¥ (JPY) billion (bn) Information Cloud service as one of the cross-selling elements Promoting cloud shift of the current blue-chip Japanese clients Cloud Service Revenue Cloud Market in Japan Slow cloud shift Multi-cloud strategies Some advanced cases T
Slide 60: Data Centers (DCs)
Data Centers (DCs) Supplemental Business Information 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 Main: IIJ
Slide 61: Overseas Business
Overseas Business Supplemental Business Unit: ¥ (JPY) billion (bn) Information IIJ started expanding overseas business around FY11 to strengthen relationship with Japanese clients Financial Performance Overseas Projects FY20 FY21 FY22 FY23 FY24 IIJ has exported its container-type data centers to
Slide 62: DeCurret and Digital Currency Business
DeCurret and Digital Currency Business Supplemental Business Information Company Profile DCJPY Network Shareholders (43 companies) Financial Zone (FZ) Business Zone (BZ) DeCurret Holdings • IIJ (shareholding ratio: 34.8%), financial institutions (banks, securities, and insurance), Banks: Enterprises
Slide 63: CDN Business through JOCDN
CDN Business through JOCDN Supplemental Business Information IIJ established a CDN (Content Delivery Network) company with major Japanese broadcasters to meet growing demand for Internet content distribution, entering a market long dominated by Akamai Technologies Company Profile CDN Services Name
Slide 64: ATM Operation Business
ATM Operation Business Supplemental Business Information Business Model Similar to “Seven Bank” model Placing ATMs in pachinko parlors in Japan • After long discussion, started to place in Kanto, Kansai, Kyushu and Tokai areas • 7,665 pachinko parlors in Japan as of Dec. 31, 2022 (Source: Nation
Slide 65: © Internet Initiative Japan Inc.
© Internet Initiative Japan Inc.
Internet Initiative Japan — Investor Presentation (February 2026) on 6ix