Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — Q3 2002 Earnings Presentation
17 slides from Internet Initiative Japan's earnings presentation, February 2003
Slide 1: Internet Initiative Japan (Nasdaq: IIJI)
Internet Initiative Japan (Nasdaq: IIJI) February, 2003 Statements made in this press release that state 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, e
Slide 2: 3Q02 Highlights
3Q02 Highlights • In 3Q02: – Total revenues totaled JPY10.6 billion($89.0 million), an increase of 6.3% YoY, and unchanged from 2Q02 • 3rd time in IIJ`s history that revenues surpassed JPY10 billion. – Operating loss temporarily expanded • Operating loss was JPY567 million vs. JPY151 million of oper
Slide 3: Revenues Growth (QoQ)
Revenues Growth (QoQ) 12,500 13,000 (E) JPY Millions 12,110 10,568 10,568 Others 9,934 9,849 9,528 9,200 VAS 8,333 8,108 7,246 7,322 SI Connectivity 00 01 02 00 01 02 00 01 02 00 01 02(E) 1Q 2Q 3Q 4Q Copyright © 2003 by Internet Initiative Japan Inc. All Rights Reserved. 3
Slide 4: Revenues Growth (Full Fiscal)
10% growth Revenues Growth (Full Fiscal) expected JPY Millions 4Q 39,905 12,500 13,000 31,876 4Q 12,110 ars e 8y 25,302 for 3Q 10,563 67% 3Q AGR 9,934 C 14,769 12,323 2Q 2Q 10,568 9,528 8,533 4,058 1Q 1Q 8,332 9,849 1,099 3/1995 3/1996 3/1997 3/1998 3/1999 3/2000 3/2001 3/2002 3/2003 Copyright © 200
Slide 5: Revenues Portfolio (FY02 9 months accumulated)
Revenues Portfolio(FY02 9 months accumulated) Dedicated Access services Dial-up access services System Integration services(SI) VAS including data center service) Equipment Sales Others 4.4% 3.4% 7.3% 12.9% 33.8% 8.6% 8.0% 52.8% 32.6% 27.8% 7.7% 11% FY 98 before IPO FY02 9 months accumulated present
Slide 6: IIJ Top 150 Customers (3Q02)
IIJ Top 150 Customers (3Q02) Cross selling rate - Connectivity & VAS = 67% - Connectivity & SI = 53% - Connectivity & DC = 25% 50% from IIJ’s Top 150 Customers Others Telecom 32% 43% Manufacturing Revenues 13% at December 2002 Financial SI Venders Services 19% 16% Copyright © 2003 by Internet Initia
Slide 7: Internet connectivity and VAS (1)
IP Internet connectivity and VAS (1) Revenues and Gross Margin Temporary decline in revenues (JPY Millions) (%) due to: 7,000 Gross Margin Ratio Contract cancellations by the telecom 16 service arms of regional electric power 6,000 14 companies. 5,000 12 Shift by second-tier customers to lower- 4,00
Slide 8: Internet connectivity and VAS (2)
IP Internet connectivity and VAS (2) Total Number of Contracts and Bandwidth in Dedicated Access Services IP Service (*) ARPU (*) Dedicated Access Service excluding (Number of Contracts) (Gbps) IIJ Internet Data Center connectivity and other connectivity 5000 35 (JPY Thousands) (Mbps) 4500 Total Con
Slide 9: Systems Integration Service
Systems Integration Service SI Revenues and Gross Margin Improvements due to: JPY Millions (%) Development of Resource on Demand DC 6, 000 service 16 Success in capitalizing on market for 5, 000 Gross Margin Ratio 14 large-scale gateway solutions ie: Ricoh etc. 12 4, 000 10 For 4Q02 3, 000 8 Strong
Slide 10: Equipment Sales
Equipment Sales Revenues and Gross Margin Highlights: (JPY Millions) (%) 1,800 30 Maintained high level of revenues as a 1,600 result of a boost in SI-related Gross Margin Ratio 25 equipment sales 1,400 Launched SEIL/neu ATM 1,200 20 service in November 2002 1,000 15 800 600 10 400 Equipment Sales 5
Slide 11: Operating Profit QoQ
Operating Profit QoQ Operating Profit (JPY Millions) Summary: 200 Operating loss of JPY567 million 0 Expecting a significant improvement in 4Q02 -200 -400 -600 567 -800 -1000 1Q00 3Q 1Q01 3Q 1Q02 3Q Copyright © 2003 by Internet Initiative Japan Inc. All Rights Reserved. 11
Slide 12: IIJ Content Delivery Network (CDN)
IP IIJ Content Delivery Network (CDN) IIJ-CDN Application Service Platform iBPS User Content Service Lisenxe Lisence Monitoring Comp. Comp. Comp. Comp. Comp. Center Storage Support Web Admin Web ASP Gateway IIJ-CDN User Support CDN-JAPAN CSP Enterprise Center Internet Connectivity Internet IIJ CDN N
Slide 13: IIJ Group's New Data Centers
IIJ Group’s New Data Centers The new large scale Data Centers deploy the most advanced facilities and network environments and are further strengthened by the collective strength of the IIJ Group. Yokohama 1 Data Center: Center with the best facilities and services for the full-outsourcing of corpor
Slide 14: Awarded as the Best Provider 2002 -- Broadband Service
Awarded as the Best Provider 2002 -- Broadband Service -- Total Ranking / Broadband Service By Category Total Ranking Consulting Price 1 IIJ VAS Stability 2 Nifty 3 NTT Communications Server 4 KDDI Throughput 5 Japan Telecom Operation Support Backbones Security Access Point IIJ NTT Copyright © 2003
Slide 15: Awarded as the Best Provider 2002 -- Dedicated Access
Awarded as the Best Provider 2002 -- Dedicated Access -- Total Ranking / Dedicated Access By Category Total Ranking 1 IIJ Consulting Price 2 Powered Com VAS Stability 3 JENS 4 Cable & Wireless IDC 5 FUJITSU Server Throughput 6 NTT Communications 7 Japan Telecom Operation Support 8 KDDI 9 NEC Backbon
Slide 16: Awarded as the Best Provider 2002 -- Dialup Access
Awarded as the Best Provider 2002 -- Dialup Access -- Total Ranking / Dialup Access By Category Total Ranking Consulting Price 1 IIJ 2 NEC Mobile Stability 3 Nifty 4 AT&T Operation 5 NTT Communications Throughput 6 KDDI 7 Japan Telecom Backbones Support Access Security Point IIJ NTT Source: Nikkei C
Slide 17: FYI / Hosting and Housing Service
FYI / Hosting and Housing Service Total Ranking / Dialup Access By Category Total Ranking Consulting Price 1 NTT PC Communications 2 IIJ Space Stability 3 JENS 4 KDDI Sharing 5 NEC Rate Throughput 6 Cable and Wireless IDC 7 NTT Communications VAS Support 8 FUJITSU Report Security IIJ NTT Source: Nik
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