Internet Initiative Japan Inc. · TSE:3774

Internet Initiative Japan — Q1 FY2011 Earnings Presentation

21 slides from Internet Initiative Japan's earnings presentation, Aug 12, 2011

  1. Slide 1: 1st Quarter FY2011 Consolidated Financial Results

    1st Quarter FY2011 Consolidated Financial Results Internet Initiative Japan Inc. 2011.8.12

  2. Slide 2: Agenda

    Agenda Ⅰ. Summary of 1Q FY2011Financial Results Ⅱ. Consolidated Financial Results for 1Q Q FY2011 Ⅲ. Reference Materials 1

  3. Slide 3: I. Summary of 1Q FY2011 Financial Results

    I. Summary of 1Q FY2011 Financial Results st <1 Quarter Financial Results> •Total revenues JPY23,362 million (up 47.7% YoY) •Gross margin g JPY4,502 million ((up p 48.8% YoY)) •Operating income JPY915 million (up 244.2% YoY) •Income before income tax expense JPY865 million (up 210.0% YoY) •Net incom

  4. Slide 4: II-1. Consolidated Results for 1Q FY2011

    II-1. Consolidated Results for 1Q FY2011 Unit: JPY billion % of Revenues % of Revenues % of Revenues 1Q11 1Q10 YoY FY10 Target （11/4～11/6） （10/4～10/6） （11/4～12/3） Total Revenues 23.4 15.8 47.7% 100.0 80 7% 80.7% 80 9% 80.9% Total Costs 18.9 12.8 47.5% ― 19.3% 19.1% Gross Margin 45 4.5 30 3.0 48 8% 4

  5. Slide 5: II-2. Revenues

    II-2. Revenues Unit: JPY million Internet Connectivity Services One-time Systems Construction Recurring Outsourcing Services Revenues Equipment Sales Revenues WAN Services ATM Operation Business Systems Operation and Maintenance FY09: 68,006 FY10: 82,418 （down 2.5％ YoY） （up 21.2％ YoY） 25,622 23,362

  6. Slide 6: II-3. Cost of Revenues and Gross Margin Ratio

    II-3. Cost of Revenues and Gross Margin Ratio Unit: JPY million Cost of Revenues Network Services SI Equipment Sales ATM Operation Gross Margin Ratio Business Network Services SI Total Gross Margin Ratio 28.1% 27.8% 26.7% 26.2% 25.7% 24.7% % IIJ Global IIJ-Global 2Q10 Q 3Q10 4Q10 1Q11 23.4% % (1mont

  7. Slide 7: II-4. Network Services (1) Revenues

    II-4. Network Services (1) Revenues Unit: JPY million Internet Connectivity Services for Home Use Internet Connectivity Services for Corporate Use WAN Services Outsourcing Services 791.0 702.5 702.0 733.4 647 2 647.2 650 4 650.4 660 9 660.9 619.8 584.7 FY10: 51,662 Total Contracted Bandwidth (Gbps)

  8. Slide 8: II-4. Network Services (2) Cost of Revenues

    II-4. Network Services (2) Cost of Revenues Unit: JPY million Purchasing Costs Personnel Related Costs Others Network Operation Related Costs Outsourcing Costs Circuit Related Costs FY10: 41,678 (Gross Margin: 19.3%) FY09: 30,534 12 402 12,402 12 474 12,474 12 440 12,440 (Gross Margin: 17.4%) 0 0 0

  9. Slide 9: II-5. Systems Integration (1) Revenues

    II-5. Systems Integration (1) Revenues Unit: JPY million (Systems construction) 5,928 Systems Construction Revenues 5,297 5,344 Systems Operation and Maintenance Revenues 4,428 4,580 4,710 3,844 Order Backlog System construction’s order backlog and order received Order Received Includes equipment sa

  10. Slide 10: II-5. Systems Integration (2) Cost of Revenues

    II-5. Systems Integration (2) Cost of Revenues Unit: JPY million Purchasing Costs Outsourcing Costs Others Network Operation Related Costs FY10: 22,466 Personnel Related Costs 7 590 7,590 7,152 FY09: 21,904 3 230 3,230 5,770 2,705 5,174 5,066 5,017 4,876 4,793 1,198 4,702 1,412 972 987 1,235 , 35 98

  11. Slide 11: II-6. Number of Employees

    II-6. Number of Employees (Personnel) Contract worker 1,944 1,953 2,000 Full time worker 1 687 1,687 1,740 , 258 243 1,602 [Employee Distribution] 265 263 1,500 229 Administration 14% Sales 1,000 20% 1,686 1,710 Engineers 1,373 1,424 1 475 1,475 66% 500 0 2009/3 2010/3 2010/6 2011/3 2011/6 Personnel

  12. Slide 12: II-7. SG&A Expenses/R&D

    II-7. SG&A Expenses/R&D Unit: JPY million 2Q10 Sales and Marketing Expenses Research and Development IIJ-Global 3Q10 4Q10 1Q11 (1month) General and Administrative Expenses ( ) % of Revenues SG&A 224 777 767 856 Amortization of FY09 : 10,544 10 544 FY10 : 12,449 12 449 customer relationships 20 109 1

  13. Slide 13: II-8. Operating Income and Net Income

    II-8. Operating Income and Net Income Unit: JPY million YoY Y Y = 1Q11 compared d tto 1Q10 Operating income ： 3,412 Operating income ： 4,141 Operating Income QoQ = 1Q11 compared to 4Q10 Net Income Attributable to IIJ Net income attributable Net income attributable Operating Margin Ratio to IIJ： 2,23

  14. Slide 14: II-9. Consolidated Balance Sheets

    II-9. Consolidated Balance Sheets Unit: JPY million March 31, June 30, Changes 2011 2011 Increased due to bonus payments and payments for operation and maintenance Cash and Cash Equivalents 13,314 11,435 (1,879) fee for SI projects Accounts Receivable 16,431 14,063 (2,368) Inventories 601 809 +208

  15. Slide 15: II-10. Consolidated Cash Flows

    II-10. Consolidated Cash Flows Unit: JPY million <Operating Activities> <Operating Activities> Increased operating income FY09 : 9,621 FY10 : 12,564 4,177 Decrease in accounts receivable: JPY2,346 million 3,360 3,279 Decrease in accounts payable: JPY2,551 million 2 628 2,628 2 835 2,835 2,164 2,2

  16. Slide 16: II-11. Other Financial Data (CAPEX etc.)

    II-11. Other Financial Data (CAPEX etc.) Unit: JPY million CAPEX (Include Capital Lease) Matsue DC: JPY889 million FY09 : 5,584 FY10 : 6,752 2,878 IIJ-Global: JPY233 million ATM operation business: JPY148 million 2,212 1,752 1,804 1,489 1,515 1,218 1,221 Adjusted EBITDA 1,124 FY09 : 8,718 FY10 : 10,

  17. Slide 17: III-1. Cloud Computing Services Developments

    III-1. Cloud Computing Services Developments Monthly revenues and project numbers of IIJ GIO <Business developments of IIJ GIO> JYP million project IIJ GIO monthly revenue for June 2011: over JPY180 million 200 700 Components (customized cloud. Revenue recognized in SI 180 operation and maintenanc

  18. Slide 18: III-2. Reference: FY2011 Financial Target (Remain unchanged)

    III-2. Reference: FY2011 Financial Target (Remain unchanged) Unit: JPY billion (except for Net Income and Cash Dividend per Share) 1H11 Target FY11 Target FY10 Actual YoY （11/4～11/9） （11/4～12/3） （10/4～11/3） (Revised FY10 to FY09 Acutal) Total Revenues 47 5 47.5 100 0 100.0 82 4 82.4 +17 6 21.3% +17.

  19. Slide 19: III-3. Reference: IIJ Group Companies

    III-3. Reference: IIJ Group Companies （As of July 31, 2011) Company Name Ownership Main Business Provides a full range of network operation and management services, Net Care Care, Inc Inc. from customer support support, end-user end user help desks, desks monitoring and troubleshooting to integrated

  20. Slide 20: III-4. Reference: IIJ Press Releases

    III-4. Reference: IIJ Press Releases Dat e Pr e ss Re l e ase s 04/05 IIJ to Release IIJ Wide Area Load Balancing Service 04/07 IIJ Partners with Ooyala to Re-sell its Video Services in Japan IIJ to Introduce iPad to 1,000 PARIS MIKI Stores Countrywide with Remote Management via IIJ Smart Mobile 04/

  21. Slide 21: Forward-looking Statements / Contact Information

    ※ Forward-looking Statements Statements made in this presentation regarding IIJ IIJ’ss or management management’s s intentions, intentions beliefs, beliefs expectations, or predictions for the future are forward-looking statements that are based on IIJ’s and managements’ current expectations, assump

Internet Initiative Japan — Q1 FY2011 Earnings Presentation on 6ix