Internet Initiative Japan Inc. · TSE:3774

Internet Initiative Japan — Q1 FY2012 Earnings Presentation

20 slides from Internet Initiative Japan's earnings presentation, Aug 7, 2012

  1. Slide 1: 1st Quarter FY2012 Consolidated Financial Results

    1st Quarter FY2012 Consolidated Financial Results Internet Initiative Japan Inc. 2012 8 7 2012.8.7

  2. Slide 2: Agenda

    Agenda Ⅰ. Summary of 1Q FY2012 Financial Results Ⅱ. Consolidated Financial Results for 1Q Q FY2012 Ⅲ. Reference Materials 1

  3. Slide 3: Summary of 1Q FY2012 Financial Results

    Ⅰ. Summary of 1Q FY2012 Financial Results < 1st Quarter Financial Results > ・Revenues JPY24,841 million (up 6.3% YoY) ・Gross margin JPY4,819 , million ((up p 7.1% YoY)) ・Operating income JPY1,374 million (up 50.2% YoY) ・Income before tax income expense JPY1,373 million (up 58.7% YoY) ・Net income att

  4. Slide 4: Consolidated Financial Results for 1Q FY2012

    Ⅱ-1. Consolidated Financial Results for 1Q FY2012 Unit: JPY billion % of Re Revenues en es % of Revenues Re en es % of Revenues Re en es YoY 1Q12 1Q11 YoY 1H12 Target （12/4～12/6） （11/4～11/6） （12/4～12/9） (1H12 to 1H11) Total Revenues 24 8 24.8 23 4 23.4 6 3% 6.3% 50 5 50.5 7 0% 7.0% 80.6% 80.7% Total

  5. Slide 5: Revenues

    Ⅱ-2. Revenues Network Services Systems Integration （SI） Equipment Sales Unit: JPY million Internet Connectivity Services for Corporate Use Systems Construction ATM Operation Business Internet Connectivity Services for Home Use Systems Operation and Maintenance Outsourcing Service WAN Service Recurri

  6. Slide 6: Cost of Revenues and Gross Margin Ratio

    Ⅱ-3. Cost of Revenues and Gross Margin Ratio Cost of revenues : Network Services Systems Integration（SI） Equipment Sales ATM Operation Business Gross margin ratio : Network Services Systems Integration（SI) Total revenue 23.3% Unit: JPY million 20.5% 21.2% % 20.1% 20 1% 20 7% 20.7% 19.9% 20.2% 22.2%

  7. Slide 7: Network Services (1) Revenues

    Ⅱ-4. Network Services (1)Revenues Unit: JPY million 918.8 820.7 853.0 857.7 Total Contracted 791.0 Bandwidth (Gbps) FY11: 63,409 WAN Services ( 22 (up 22.7%YoY) 7%Y Y) Outsourcing Services 15,800 15,921 16,167 16,092 Internet Connectivity Services 15,521 for Home Use Internet Connectivity Services f

  8. Slide 8: Network Services (2) Cost of Revenues

    Ⅱ-4. Network Services (2)Cost of Revenues Unit: JPY million FY11: 49,985 (Gross margin ratio: 21.2%) 21 2%) 12,764 12,440 12,606 12,541 12,398 552 608 632 717 678 2,145 2,126 2,026 2,005 2,162 Others 1,132 1,134 1,108 1,063 1,161 Outsourcing Costs 1 944 1,944 2 022 2,022 2,050 2 034 2,034 2 188 2,18

  9. Slide 9: Systems Integration (1) Revenues

    Ⅱ-5. Systems Integration (1)Revenues <Systems S t construction> t ti 5 741 5,741 Unit: JPY million Systems Construction Revenues 4,710 4,590 4,494 Systems Operation and Maintenance Revenues Order Backlog ※System construction’s order backlog and order received includes Order Received FY11 : 11,998 11

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

    Ⅱ-5. Systems Integration (2)Cost of Revenues Unit: JPY million FY11: 24,979 7 712 7,712 (Gross margin ratio :20.6%) 6,564 5,957 2 ,530 5,770 5 541 5,541 Purchasing Costs 1,387 Outsourcing Costs 1 ,198 1,220 7 72 Others Network Operation Related Costs 2 ,111 2,137 Personnel Related Costs 1 ,837 1 823

  11. Slide 11: Number of Employees

    Ⅱ-6. Number of Employees Contract worker 2,078 Full time worker (No. of employees) 2,000 1,944 1,953 1,923 256 1 740 1,740 258 243 244 1,687 [Employee Distribution] 265 263 1,500 Administration 14% 1,000 Sales 1,822 19% 1,686 1,710 1,679 1 475 1,475 Engineers 1 424 1,424 67% 500 0 2010/3 2010/6 2011

  12. Slide 12: SG&A Expenses/R&D

    Ⅱ-7. SG&A Expenses/R&D Research and Development Expenses Unit: JPY million General and Administrative Expenses Sales and Marketing Expenses （ ） % of Total Revenues FY11: 13,635 (14.0%) 3,587 3,535 3,445 (15.4%) 3,313 (13.3%) (13.9%) 3,200 (14.1%) 79 ((13.4%)) 149 104 77 84 1,553 1,379 1,411 (6.6%) 1

  13. Slide 13: Operating Income and Net Income

    Ⅱ-8. Operating Income and Net Income 8.9% Unit: JPY million Operating Income Net Income Attributable to IIJ 6.4% 6.6% Operating Margin Ratio 5.5% 3 9% 3.9% YoY = 1Q12 compared to 1Q11 QoQ = 1Q12 compared to 4Q11 FY11 Operating Income : 2,356 6,353 1Q12 Operating income: JPY1,374 million FY11 Net in

  14. Slide 14: Summary of Consolidated Balance Sheets

    Ⅱ-9. Summary of Consolidated Balance Sheets Unit: JPY million March 31, June 30, Changes 2012 2012 Cash and Cash Equivalents 13,537 11,470 (2,067) Decreased mainly due to the payment Accounts Receivable 15,722 14,404 (1,318) of income taxes Inventories 752 888 +136 Prepaid Expenses 1,848 3,419 +1,5

  15. Slide 15: Consolidated Cash Flows

    Ⅱ-10. Consolidated Cash Flows Operating Activities Unit: JPY million FY11 : 11,659 5,079 1Q12 Operating Activities: Increase I in i operating ti income i 2,966 Payments for income taxes: JPY2,045 million 2,292 Increase in prepaid expenses and other current 1,323 1,424 assets: JPY1,943 million etc

  16. Slide 16: Other Financial Data (CAPEX etc.)

    Ⅱ-11. Other Financial Data (CAPEX etc.) CAPEX (Include Capital Leases) Unit: JPY million FY11 : 10,917 3,567 3,298 2,878 2 208 2,208 2 265 2,265 Unit: JPY million Adjusted EBITDA FY11 : 13,534 1Q11 2Q11 3Q11 4Q11 1Q12 4,285 Depreciation and Amortization 3 294 3,294 3,376 Unit: JPY million 3 172 3,17

  17. Slide 17: Developments of IIJ GIO

    Ⅲ-1. Developments of “IIJ GIO” ■Business developments of IIJ GIO (JPY million) IIJ GIO Revenues ((number b off projects)  1Q12 revenue: approx. JPY1.2 billion 1,250 1400 (4Q11: JPY1.0 billion, 1Q11: JPY0.5 billion) • June 2012 revenue: JPY0.4 billion Large SNS Game Clients 1200 • Number of projects

  18. Slide 18: Developments of Overseas Business

    Ⅲ-2. Developments of Overseas Business ■1Q12 Overseas business developments ■Future overseas business expansion  1Q12 revenue: approx. JPY1.0 billion. Business  Continue to acquire orders of large servers starting up better than anticipated construction projects  Constructing g and operating p g

  19. Slide 19: FY2012 Financial Target (Remain unchanged)

    Ⅲ-3. FY2012 Financial Target (Remain unchanged) Unit: JPY billion FY12 Target FY11 Actual YoY （12/4～13/3） （12/4 13/3） （11/4～12/3） （11/4 12/3） (FY12 to FY11 Acutal) Total Revenues 107.0 97.3 +9.7 10.0% Operating Income 7.5 6.4 +1.1 18.0% IIncome before b f Income Tax 6.9 6.0 +0.9 15.5% Expense Nett I

  20. Slide 20: Forward-looking Statements / Contact Information

    ※ 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, expectations, assumptions estim

Internet Initiative Japan — Q1 FY2012 Earnings Presentation on 6ix