Internet Initiative Japan Inc. · TSE:3774

Internet Initiative Japan — Q3 FY2003 Earnings Presentation

9 slides from Internet Initiative Japan's earnings presentation, Feb 16, 2004

  1. Slide 1: Third Quarter Results for the Year Ending March 31, 2004

    Internet Initiative Japan Inc. Third Quarter Results for the Year Ending March 31, 2004 February 16, 2004 Statements made in this material with respect to IIJ's plans, objectives, strategies, intentions, beliefs, predictions and other statements that are not historical facts are forward-looking stat

  2. Slide 2: Highlights

    Highlights Total revenues: JPY 9,633 million ($ 89.9 million*). - Increased by 4.9% from 9,185 million in 2Q03. A decrease of 8.8% compared to 3Q02. - The increase from 2Q03 is mainly due to an increase in revenues from Systems Integration (SI) and value-added services. Operating income: JPY 236 mil

  3. Slide 3: Highlights

    Highlights Income before income tax: JPY 1,806 million ($ 16.9 million). - Improvement from the 2Q03 loss before tax of JPY 987 million. - The improvement was primarily a result of: - Positive operating income of JPY 236 million. - A gain of JPY 1,572 million generated by the sale of the Company’s s

  4. Slide 4: Revenue Growth (Quarterly)

    Revenue Growth (Quarterly) (JPY Millions) Internet Systems Value Added Others Connectivity Integration Services 13,036 12,110 10,568 10,564 9,849 9,934 9,528 9,633 9,185 8,333 8,344 2001 2002 2003 2001 2002 2003 2001 2002 2003 2001 2002 1Q 2Q 3Q 4Q 4

  5. Slide 5: Revenue Growth (Yearly)

    Revenue Growth (Yearly) JPY44,018 (JPY/USD Millions*) (USD410.9) JPY39,905 (USD372.5) 4Q JPY31,876 13,036 4Q a rs (USD297.5) 12,110 ye JPY25,302 r 8 (USD236.2) fo 3Q GR 10,563 CA 3Q 3Q % JPY14,769 9,934 59 (USD137.9) 9,633 JPY12,323 (USD 115.0) 2Q 2Q 10,568 JPY8,533 2Q 9,528 9,185 (USD79.7) JPY4,058

  6. Slide 6: Connectivity and Value-added Services

    Connectivity and Value-added Services Gross margin improvement despite Revenues and Gross Margin flat revenues due to reduction of (JPY millions) (%) international and domestic 7000 backbone costs 16 Gross Margin Ratio - Total revenue decreased slightly. 6000 Revenue from value added services, 14 su

  7. Slide 7: Systems Integration

    Systems Integration Gross margin improved significantly Revenues and Gross Margin - Revenue increased by 13.3% due to a (JPY millions) (%) steady increase from operational outsourcing services. - Gross margins significantly improved to Gross Margin Ratio 23.9% from 10.7% QoQ due to winning profitabl

  8. Slide 8: Operating and Net Income (Loss)

    Operating and Net Income (Loss) Operating Income (Loss) Net Income (Loss) (JPY Millions) (JPY Millions) 1,976 350 236 1500 150 -50 500 -250 -500 -450 -650 -1500 -850 -2500 -1050 -1250 -3500 1Q00 3Q 1Q01 3Q 1Q02 3Q 1Q03 3Q03 1Q00 2Q 3Q 4Q 1Q01 2Q 3Q 4Q 1Q02 2Q 3Q 4Q 1Q03 2Q 3Q 8

  9. Slide 9: Financial Results (Quarterly and Unaudited)

    Financial Results (Quarterly and Unaudited) (JPY Millions) Statements of Operation 1Q03 2Q03 3Q03 Total revenues 8,344 9,185 9,633 Total costs 7,868 8,337 8,125 Sales and marketing 973 1,100 699 General and administrative 612 482 486 Research and development 96 96 87 Operating income (loss) (1,206)

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