Internet Initiative Japan Inc. · TSE:3774

Internet Initiative Japan — 1H FY2011 Earnings Presentation

22 slides from Internet Initiative Japan's earnings presentation, Nov 8, 2011

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

    1st Half FY2011 Consolidated Financial Results Internet Initiative Japan Inc. 2011.11.8

  2. Slide 2: Agenda

    Agenda Ⅰ.Summary Ⅰ. of 1H FY2011 Financial 2012年3月期第2四半期 総括Results Ⅱ.Consolidated Ⅱ. 2012年3月期第2四半期 年3月期第 四半期 Financial 連結業績 Results for 1H FY2011 Ⅲ.Reference Ⅲ. ご参考資料 Materials 1

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

    I. Summary of 1H FY2011 Financial Results <1H FY2011 Financial Results> •Total revenues JPY47,207 million (up 37.7% YoY) •Gross margin JPY9,236 million (up 35.0% YoY) •Operating O ti income i JPY2 448 million JPY2,448 illi ( 103 (up 103.8% 8% Y YoY) Y) •Income before income tax expense JPY2,291 mill

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

    II-1. Consolidated Results for 1H FY2011 Unit: JPY billion % of Revenues % of Revenues % of Revenues % of Revenues 1H11 Revised 1H11 Initial 1H11 1H10 YoY Target Target （11/4～11/9） （10/4～10/9） （11/4～11/9） （11/4～11/9） Total Revenues 47.2 34.3 37.7% 47.2 47.5 80 4% 80.4% 80 0% 80.0% Total Costs 38.0 2

  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% IIJ--Global 2Q10* 3Q10 4Q10 1Q11 2Q11 26.7% 25.7% 26 2% 26.2% Cost 1,761 5,215 5,160

  7. Slide 7: II-4. Network Services

    II-4. Network Services Unit: JPY million Internet Connectivity Services for Home Use Internet Connectivity Services for Corporate Use WAN Services Outsourcing Services 791.0 820.7 702.5 702.0 733.4 647 2 647.2 650 4 650.4 660 9 660.9 584.7 619 8 619.8 FY10: 51,662 Total Contracted Bandwidth (Gbps) F

  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 0 12,474 0 12,440 0 0 12,606 (Gross Margin: 17.4%) 616 557 552

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

    II-5. Systems Integration (1) Revenues Unit: JPY million (Systems construction) Systems Construction Revenues Systems Operation and Maintenance Revenues 5,928 5,297 5,344 Order Backlog System construction’s order 4,428 4,580 4,710 4,590 backlog and order received 3,844 Order Received Includes equipm

  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 7 152 7,152 7 590 7,590 FY09: 21,904 5,770 5,957 4,876 5,174 4,702 2,705 4,793 5 066 5,066 5 017 5,017 3 230 3,230 1,198 1,2

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

    II-6. Number of Employees Contract worker (Personnel) Full time worker 1,968 1,944 1,953 1,955 2,000 267 258 243 246 1 687 1,687 [Employee Distribution] 263 Administration 1,500 14% Sales 19% 1,000 Engineers 1,701 1,686 1,710 1,709 67% 1,424 500 0 2010/3 2010/9 2011/3 2011/6 2011/9 Personnel related

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

    II-7. SG&A Expenses/R&D Unit: JPY million Sales and Marketing Expenses Research and Development IIJ-Global 2Q10* 3Q10 4Q10 1Q11 2Q11 General and Administrative Expenses ( ) % of Revenues SG&A 224 777 767 856 663 Amortization of customer 20 109 125 106 106 FY09 : 10,544 10 544 FY10 : 12,449 12 449 re

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

    II-8. Operating Income and Net Income Unit: JPY million YoY = 2Q11 compared to 2Q10 Operating income ： 3,412 Operating income ： 4,141 Operating Income QoQ = 2Q11 compared to 1Q11 Net Income Attributable to IIJ Net income attributable Net income attributable Operating Margin Ratio to IIJ： 2,234 to II

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

    II-9. Consolidated Balance Sheets Unit: JPY million March 31, September 30, Changes 2011 2011 Cash and Cash Nonmarketable 13,314 10,974 (2,339) Equivalents equity securities: JPY1,899 million Available for sale Accounts Receivable 16,431 14,453 (1,979) equity securities: JPY819 million Others: JP

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

    II-10. Consolidated Cash Flows Unit: JPY million <Operating Activities> <2Q11 Operating Activities> FY09 : 9,621 FY10 : 12,564 Increased operating income 4,177 Decrease in accounts payable: JPY1,345 million 3,360 3,279 2 628 2,628 , 2,835 2,966 etc 2,164 2,274 1,468 1,323 While operating income i

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

    II-11. Other Financial Data (CAPEX etc.) CAPEX (Include Capital Lease) 1H11 CAPEX Breakdown FY09 : 5,584 FY10 : 6,752 IIJ-Global JPY0.3 billion Cloud related JPY1.7 bbillion J o (of which, JPY0.5 billion not in original plan) Matsue DC JPY0.9 billion Customer project related JPY0.9 billion (not

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

    III-1. Cloud Computing Services Developments Monthly revenues and project numbers of IIJ GIO JYP million project 300 900 <Business developments of IIJ GIO> IIJ GIO monthly revenue for Sep 2011: over JPY250 million Components (customized cloud. Revenue recognized in SI 250 750 operation and mainten

  18. Slide 18: III-2. IIJ Group: Strengthen Global Business Developments

    III-2. IIJ Group: Strengthen Global Business Developments  IIJ America (100% consolidated subsidiary of IIJ, established in 1996)) operates backbone across the United States and provides network services to Japanese companies in the United States  IIJ America is constructing private cloud computin

  19. Slide 19: III-3. Reference: FY2011 Financial Target (Remain unchanged)

    III-3. Reference: FY2011 Financial Target (Remain unchanged) Unit: JPY billion (except for Net Income and Cash Dividend per Share) FY11 Target FY10 Actual YoY （11/4～12/3） （10/4～11/3） (Revised FY10 to FY09 Acutal) Total R Revenues 100.0 82.4 +17.6 17.6 21.3% Operating Income 6.3 4.1 +2.2 52.1% Income

  20. Slide 20: III-4. Reference: IIJ Group Companies

    III-4. Reference: IIJ Group Companies （As of Oct 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

  21. Slide 21: III-5. Reference: IIJ Press Releases

    III-5. Reference: IIJ Press Releases Dat e Pr e ss Re le ase s 8/18 IIJ to Build Infrastructure for docomo market (i-mode) 9/6 IIJ Global to Develop the IIJ Global Smart WAN Service 2Q 9/14 IIJ Global to Launch SaaS-based Asset Management Service GLASS 9/16 IIJ Opens the Mitaka Data Center Net Chart

  22. Slide 22: 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

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