Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — FY2012 Earnings Presentation
22 slides from Internet Initiative Japan's earnings presentation, May 15, 2013
Slide 1: FY2012 Consolidated Financial Results
FY2012 Consolidated Financial Results Internet Initiative Japan Inc. TSE1(3774), NASDAQ(IIJI) May 15, 2013
Slide 2: Agenda
Agenda Ⅰ. Summary of FY2012 Financial Results Ⅱ. Consolidated Financial Results for FY2012 Ⅲ. Reference Materials 1
Slide 3: Summary of FY2012 Financial Results
Ⅰ. Summary of FY2012 Financial Results < FY2012 Results > < FY2013 Target > ・Revenues JPY106.2 billion (up 9.2% YoY) JPY117.0 billion (up 10.1% YoY) ・Gross margin JPY21.9 billion (up 9.3% YoY) ・Operating income JPY7.8 billion (up 22.0% YoY) JPY9.4 billion (up 21.2% YoY) ・Income before income tax exp
Slide 4: Consolidated Financial Results for FY2012
Ⅱ-1. Consolidated Financial Results for FY2012 3
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 FY11: 9
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 Unit: JPY million FY11: 77,326 FY12: 84,395 18,860 19,111 18,683 20,672 20,022 2
Slide 7: Revenue YoY Change
Ⅱ-4. Revenue YoY Change Unit: JPY billion <By Service> FY11: 97.3 +8.9 FY12: 106.2 +1.0 +4.2 ATM Operation Business Systems Construction & Equipment Sales +1.9 Systems Operation& Maintenance WAN Services -0.5 Outsourcing Services Internet Connectivity Services for Home +1.3 Internet Connectivity Ser
Slide 8: Operating Income YoY Change
Ⅱ-5. Operating Income YoY Change Unit: JPY billion <By Service> FY11 Network SI ATM Operation SG&A FY12 Service +Equipment Sales Business +1.4 IIJ and other <By Company> consolidated IIJ Exlayer * Trust Networks IIJ Global companies +1.4 * Consolidated in 2Q12 7
Slide 9: Network Services (1) Revenues
Ⅱ-6. Network Services (1)Revenues Unit: JPY million Total Contracted Bandwidth (Gbps) FY11: 63,410 FY12: 65,232 15,521 15,800 15,921 16,167 16,092 16,167 16,256 16,717 WAN Services Outsourcing Services Internet Connectivity Services for Home Use Internet Connectivity Services for Corporate Use YoY =
Slide 10: Network Services (2) Cost of Revenues
Ⅱ-6. Network Services (2)Cost of Revenues Unit: JPY million FY11: 49,985 FY12: 50,692 (Gross margin ratio： 21.2%) (Gross margin ratio： 22.3%) 12,440 12,606 12,541 12,398 12,764 12,619 12,589 12,721 Others Outsourcing Costs Personnel Related Costs Network Operation Related Costs Circuit Related Costs
Slide 11: Systems Integration (1) Revenues
Ⅱ-7. Systems Integration (1)Revenues <Systems Construction> Unit: JPY million Systems Construction Revenues Systems Operation and Maintenance Revenues Order Backlog ※Systems construction’s order backlog and order received include Order Received equipment sales FY11: 11,998 FY12: 15,825 YoY = 4Q12 co
Slide 12: Systems Integration (2) Cost of Revenues
Ⅱ-7. Systems Integration (2)Cost of Revenues Unit: JPY million FY11: 24,979 FY12: 30,425 (Gross margin ratio： 20.6%) (Gross margin ratio： 18.2%) 5,770 5,957 5,541 7,712 6,564 7,526 6,904 9,431 Purchasing Costs Outsourcing Costs Others Network Operation Related Costs Personnel Related Costs YoY = 4Q1
Slide 13: Number of Employees
Ⅱ-8. Number of Employees (No. of employees) 1,953 1,955 1,941 1,923 2,078 2,081 2,086 2,116 Contract worker Full time worker [Employee Distribution] Administration 14% Sales 19% Engineers 67% 3,627 3,686 3,551 3,613 3,741 3,858 3,902 3,979 Personnel related costs and (15.5%) (15.5%) (15.1%) (13.6%)
Slide 14: SG&A Expenses/R&D
Ⅱ-9. SG&A Expenses/R&D Unit: JPY million Research and Development Expenses FY11: 13,635 FY12: 14,101 General and Administrative Expenses (14.0%) (13.3%) Sales and Marketing Expenses 3,587 3,200 3,313 3,535 3,445 3,440 3,597 3,619 ( ) % of Total Revenues (15.4%) (13.4%) (14.1%) (13.3%) (13.9%) (13.1%
Slide 15: Operating Income and Net Income
Ⅱ-10. Operating Income and Net Income FY11 FY12 Unit: JPY million Operating Income Operating Income: 6,353 Operating Income: 7,753 Net Income Attributable to IIJ Net income attributable to IIJ: 3,641 Net income attributable to IIJ: 5,301 Operating Margin Ratio 4Q12 Operating income: JPY2,710 millio
Slide 16: Summary of Consolidated Balance Sheets
Ⅱ-11. Summary of Consolidated Balance Sheets Unit: JPY million Decreased mainly due to: • purchase of property and equipment, • increase in operating assets along with business expansion, • payment of income taxes • repayments for the borrowings Increased as the business scale expands Increased main
Slide 17: Consolidated Cash Flows
Ⅱ-12. Consolidated Cash Flows Operating Activities: Unit: JPY million YoY = FY2012 compared to FY2011 FY11: 11,659 FY12: 9,639 FY12 Operating Activities: 5,079 Depreciation and amortization: JPY7,556 million Increase in accounts receivable: JPY2,906 million 3,759 2,966 Increase in inventories, pr
Slide 18: Other Financial Data (CAPEX etc.)
Ⅱ-13. Other Financial Data (CAPEX etc.) CAPEX (Include Capital Leases): Unit: JPY million FY11 FY12 FY11: 10,917 FY12: 10,405 CAPEX related to JPY4.3 billion* JPY2.3 billion domestic cloud ATM JPY0.4 billion JPY0.6 billion Network equipment JPY6.3 billion JPY7.4 billion and others st *of JPY1.3 bill
Slide 19: Developments of IIJ GIO
Ⅲ-1. Developments of “IIJ GIO” FY12 Total Revenue: JPY6.2 billion FY13 Target (revenue recognition: less than 80% in SI operation and maintenance, the rest in outsourcing) Cloud related revenue over JPY10 billion, 4Q12 number of projects: approx. 1,800 (4Q11: approx. 1,100) nd IIJ GIO-based SaaS
Slide 20: FY2013 Financial Target
Ⅲ-2. FY2013 Financial Target < Assumption for Target > Revenue Network Services Corporate use grow continuously, Home use revenue increase, Outsourcing grow along with Cloud revenue over JPY10 billion Systems Integration Operation and Maintenance grow along with the cloud growth, the absolute fig
Slide 21: FY2013 Year-End Dividend Forecast
Ⅲ-3. FY2013 Year-End Dividend Forecast IIJ conducted a 1:200 stock split on common stock with an effective date of October 1, 2012. Dividend figures shown below are retroactively adjusted to reflect the stock split. Interim Year-End (YoY) ― (+JPY1.25) (+JPY1.25) (+JPY1.25) (+JPY2.5) (+JPY2.5) (+JPY2
Slide 22: Forward-looking Statements / Contact Information
※ Forward-looking Statements 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 abou
Internet Initiative Japan — FY2012 Earnings Presentation on 6ix