Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — Q1 2020 Earnings Presentation
24 slides from Internet Initiative Japan's earnings presentation, Aug 7, 2020
Slide 1: Consolidated Financial Results for 1Q20
Consolidated Financial Results for 1Q20 (April 1, 2020 to June 30, 2020) Internet Initiative Japan Inc. TSE1 (3774) August 7, 2020 © Internet Initiative Japan Inc.
Slide 2: Outline
Outline Ⅰ. Summary of 1Q20 P. 2 Ⅱ. Consolidated Financial Results for 1Q20 P. 3 -16 Ⅲ. Other Information P. 17 Ⅳ. Appendix P. 18 - 22 © Internet Initiative Japan Inc. 1
Slide 3: Summary of 1Q20
Ⅰ. Summary of 1Q20 Unit: JPY billion (bn) %= Year over year Revenue JPY50.38 bn +1.1% OP JPY2.05 bn +48.2% Started with far stronger than expected profit growth Japanese enterprises advanced their IT usages As a service provider, expect sustainable profit growth for the middle-to-long term Profit ex
Slide 4: Consolidated Financial Results for 1Q20
Ⅱ- 1. Consolidated Financial Results for 1Q20 Unit: JPY billion YoY = Year over year % of revenue % of revenue % of revenue 1Q20 results 1Q19 results YoY FY20 Targets YoY Apr. 2020 - June 2020 Apr. 2019 - June 2019 Apr. 2020 - Mar. 2021 Revenue 50.4 49.8 +1.1% +0.5 210.0 +2.7% +5.5 83.9% 85.2% 83.9%
Slide 5: Operating Profit Comparison
Unit: JPY billion Ⅱ- 2. Operating Profit Comparison GP = Gross Profit YoY = Year over year comparison Operating Profit YoY change in NW services GP YoY change in SI GP YoY change in ATM operation business GP YoY change in SG&A etc. 1Q18 1Q19 1Q20 Operating Profit Operating Profit Operating Profit +0
Slide 6: Revenues
Ⅱ- 3. Revenues Unit: JPY million [ ] , YoY = Year over year comparison NW Services Internet Connectivity Services (Enterprise) Systems Integration (SI) Systems Construction (including equipment sales) Internet Connectivity Services (Consumer) Systems Operation and Maintenance Outsourcing Service WAN
Slide 7: Cost of Sales & Gross Profit Ratio
Ⅱ- 4. Cost of Sales & Gross Profit Ratio Unit: JPY million [ ] , YoY = Year over year comparison Cost of Sales: NW Services SI ATM Operation Business Gross profit ratio: NW Services SI Total Gross Profit Total 1Q20: JPY8,113 million (+9.9%, +JPY731 million YoY) NW Services 1Q20: JPY5,991 mil
Slide 8: Network Services (1) Revenues
Unit: JPY million Ⅱ- 5. Network Services (1) Revenues [ ] , YoY = Year over year comparison QoQ = 1Q20 compared to 4Q19 WAN Services Total Mobile Revenue Promoting Japanese enterprises to enjoy reliable Outsourcing Services Total Contracted Bandwidth (Gbps) and flexible enterprise network and to adv
Slide 9: Network Services (2) Cost of Sales
Unit: JPY million Ⅱ- 5. Network Services (2) Cost of Sales [ ] , YoY = Year over year comparison QoQ = 1Q20 compared to 4Q19 Circuit-related costs (Internet backbone, WAN lines etc.) Outsourcing-related costs (interconnectivity charge for mobile infrastructure, outsourcing personnel costs etc.) Othe
Slide 10: Systems Integration (SI) (1) Revenues
Unit: JPY million Ⅱ- 6. Systems Integration (SI) (1) Revenues [ ] , YoY = Year over year comparison QoQ = 1Q20 compared to 4Q19 Systems Construction (one-time) Systems Operation & Maintenance (recurring) Order backlog FY19: 31,976 [+14.7%] FY19: 46,418 [+11.1%] Revenues Order 8,118 6,492 8,696 8,338
Slide 11: Systems Integration (SI) (2) Cost of Sales
Unit: JPY million Ⅱ- 6. Systems Integration (SI) (2) Cost of Sales [ ] , YoY = Year over year comparison QoQ = 1Q20 compared to 4Q19 Purchasing costs (Equipment and licenses etc.) Outsourcing-related costs (SI-related outsourcing personnel costs etc.) Others Network operation-related costs (Deprecia
Slide 12: Number of Employees
Ⅱ- 7. Number of Employees YoY = Year over year comparison Contract worker (personnel) Full time worker (personnel) (+170) (+258) Employee Distribution Hired 210 new graduates in Apr. 2020 (171 in Apr. 2019, 175 in Apr. 2018) FY20 net addition of employees is planned to be approx. 290 (FY19 resul
Slide 13: SG&A etc.
Ⅱ- 8. SG&A etc. Unit: JPY million [ ] , YoY =Year over year comparison Research & development expenses Commission expenses Others Personnel expenses ( ) % of total revenues FY19: 24,076 [+6.3%] (12.1%) (11.9%) (11.2%) (11.9%) (12.0%) 1Q20: +0.1% YoY • Overall below our budget plan “Personnel exp
Slide 14: Profit
Ⅱ- 9. Profit Unit: JPY million [ ] , YoY =Year over year comparison Operating profit Net Profit (Profit for the period attributable to owners of the parent) Operating profit ratio Profit before tax 1Q20: JPY1,694 million (+23.8% YoY) • Interest expense: JPY151 million • Dividend income: JPY56 mi
Slide 15: Consolidated Statements of Financial Position (Summary)
Ⅱ- 10. Consolidated Statements of Financial Position (Summary) Unit: JPY million Mar. 31, 2020 June 30, 2020 Changes Cash and cash equivalents 38,672 38,893 +221 Trade receivables 32,585 28,499 (4,086) Inventories 2,476 2,132 (345) Prepaid expenses (current and non-current) 17,475 20,601 +3,126 Tang
Slide 16: Consolidated Cash Flows
Ⅱ- 11. Consolidated Cash Flows Unit: JPY million YoY = Year over year comparison Operating Activities Major YoY FY19: 33,394 Breakdown Change Profit before tax 1,694 +326 Depreciation and amortization 7,095 -69 Changes in operating assets and liabilities 4,576 +6,633 Income taxes paid (2,177) +874 I
Slide 17: Other Financial Data
Ⅱ- 12. Other Financial Data Unit: JPY millions CAPEX CAPEX-related depreciation and amortization Cash CAPEX Finance lease FY19: 15,150 FY19:14,422 (Unit: JPY billion) FY20 CAPEX is planned to be around JPY16 billion including JPY3 billion of additional placement of Adjusted EBITDA modules for Shir
Slide 18: Mobile & IoT Business Developments
% = Year over year comparison Ⅲ - 1. Mobile & IoT Business Developments revenue unit: JPY billion subs. = subscriptions Total Mobile Subs. & Revenue Full-MVNO Revenue 1Q20-end total subs.: 3,114 thousand (+11.8%) Strong revenue growth of enterprise covered the 1Q20 total revenue: JPY11.84 bill
Slide 19: Opportunity with Remote Access
Ⅳ- 1. Opportunity with Remote Access Appendix GIGA School Program Support(*5) IIJ Cloud Exchange Services(*2) IIJ Omnibus Services(*1) IIJ Mobile Services(*4) IIJ Flex Mobility Services(*3) IIJ Omnibus Services(*1) (*1) Services to provide secured connection between office and/or data centers throug
Slide 20: Internet Traffic
Ⅳ- 2. Internet Traffic Appendix Internet traffic rapidly increased along with the stay-at-home orders and the declaration of state of emergency. While the traffic has calmed down after the lifting of the state of emergency, it continues to be relatively large volume compared to February (1) (2) (4)
Slide 21: FY20 Financial Targets
Ⅳ- 3. FY20 Financial Targets Unchanged from May 14, 2020 Appendix Unit: JPY billion Assumption for Revenue outlook YoY = Year over year comparison NW services (recurring): increase by approx. JPY3.0 % of Revenues % of Revenues billion YoY Enterprise NW services: FY20 Target FY19 Results YoY • En
Slide 22: Operating Profit Outlook
Ⅳ- 4. Operating Profit Outlook Unchanged from May 14, 2020 Appendix Operating Profit Unit: JPY billion YoY = Year over Year YoY change in NW services gross profit YoY change in SI gross profit YoY change in ATM operation business gross profit YoY change in SG&A etc. 8.7 8.2 NW service gross profit
Slide 23: Mobile Unit Charge by Future Cost method
Ⅳ- 5. Mobile Unit Charge by Future Cost method Appendix Mobile unit charge YoY change Applied Fiscal Year FY17 FY18 FY19 FY20 FY21 FY22 Method Actual Cost Method Future Cost method Docomo -18.2% -5.0% -6.0% -16.0% (*) -19.8% -15.9% (*) KDDI -10.8% -20.2% -13.3% -38.0% -15.4% -8.6% (*) FY20 decreas
Slide 24: Disclaimer
Disclaimer Statements made in this presentation regarding IIJ’s or managements’ intentions, beliefs, expectations, or predictions for the future are forward-looking statements that are based on IIJ’s and managements’ current expectations, assumptions, estimates and projections about its business and
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