Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — FY2014 Earnings Presentation
24 slides from Internet Initiative Japan's earnings presentation, May 15, 2015
Slide 1: FY2014 Consolidated Financial Results
FY2014 Consolidated Financial Results Internet Initiative Japan Inc. TSE1(3774), NASDAQ(IIJI) May 15, 2015
Slide 2: Agenda
Agenda Ⅰ. Summary of FY2014 Financial Results Ⅱ. Consolidated Financial Results for FY2014 Ⅲ. Reference Materials 1
Slide 3: Summary of FY2014 Financial Results
Ⅰ. Summary of FY2014 Financial Results < FY2014 Results> < FY2015 Target > %: YoY change Revenues JPY123.1 billion up 7.7% JPY139.0 billion up 13.0% Gross margin JPY22.1 billion up 4.8% JPY25.1 billion up 13.7% Operating income JPY5.1 billion down 11.3% JPY6.5 billion up 28.1% Net Income attributabl
Slide 4: Consolidated Financial Results for FY2014
Ⅱ- 1. Consolidated Financial Results for FY2014 Unit: JPY billion % of Revenues % of Revenues % of Revenues FY14 FY13 YoY FY15 Target YoY Change in % Change in % (Apr. 2014 (Apr. 2013 (Apr. 2014 -Mar. 2015) -Mar. 2014) -Mar. 2015) Total Revenues 123.1 114.3 +7.7% 139.0 +13.0% 82.1% 81.6% 81.9% Total
Slide 5: Revenues
Ⅱ- 2. Revenues Network Services Systems Integration (SI) Equipment Sales Unit: JPY million Internet Connectivity Services (Enterprise) Systems Construction YoY = FY14 compared to FY13 ATM Operation Business Internet Connectivity Services (Consumer) Systems Operation and Maintenance Outsourcing Servi
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 Revenues Unit: JPY million YoY = FY14 compared to FY13 FY14 Total Gross Margin: JPY
Slide 7: Revenue YoY Change
Ⅱ-4. Revenue YoY Change Revenues Enterprise network services Systems construction & equipment sales ATM operation business Consumer network services Systems operation & maintenance Unit: JPY billion YoY = FY14 compared to FY13 +4.00 +0.81 +2.24 (0.48) +2.20 Network Services +1.72 FY13 FY14 + 8.78 Yo
Slide 8: Operating Income YoY Change
Ⅱ-5. Operating Income YoY Change Operating income Network services gross margin SI and equipment sales gross margin Unit: JPY billion ATM operation business gross margin SG&A and R&D YoY = FY14 compared to FY13 +0.39 (1.65) +0.79 (0.17) FY13 FY14 (0.64) YoY 5.72 5.08 FY14 Operating income：JPY5.08
Slide 9: Network Services (1) Revenues
Ⅱ- 6. Network Services (1)Revenues WAN Services Unit: JPY million Outsourcing Services YoY = FY14 compared to FY13, QoQ = 4Q14 compared to 3Q14 Total Contracted Internet Connectivity Services (Consumer) Bandwidth (Gbps) Internet Connectivity (Enterprise) Internet Connectivity Services (Enterprise)
Slide 10: Network Services (2) Cost of Revenues
Ⅱ- 6. Network Services (2)Cost of Revenues Unit: JPY million FY13: 53,046 (21.2%) FY14: 54,932 (20.4%) [up 2,354, up 4.6% YoY] [up 1,886, up 3.6% YoY] YoY = FY14 compared to FY13 13,242 13,223 13,299 13,282 13,213 13,155 13,762 14,801 (21.1%) (21.4%) (20.3%) (21.8%) (21.3%) (22.1%) (21.2%) (17.0%) O
Slide 11: Systems Integration (SI) (1) Revenues
Ⅱ- 7. Systems Integration (SI) (1)Revenues < Systems Construction > YoY = FY14 compared to FY13 Unit: JPY million Systems Construction Revenues Systems Operation and Maintenance Revenues Order backlog ※Systems construction’s order backlog and FY13: 18,674 FY14: 20,437 Order received order received i
Slide 12: Systems Integration (SI) (2) Cost of Revenues
Ⅱ- 7. Systems Integration (SI) (2)Cost of Revenues FY13: 36,510 (14.0%) FY14: 41,562 (13.8%) Unit: JPY million [up 6,086, up 20.0% YoY] [up 5,051, up 13.8% YoY] YoY = FY14 compared to FY13 QoQ = 4Q14 compared to 3Q14 7,350 8,416 9,061 11,684 8,322 9,618 10,239 13,382 (15.4%) (15.7%) (13.9%) (12.0%)
Slide 13: Number of Employees
Ⅱ- 8. Number of Employees 2,269 2,311 2,322 2,353 2,523 2,546 2,818 2,835 Contract worker Full time worker [Employee Distribution] Administration 11% Sales 18% Engineers 71% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Personnel related 4,212 4,254 4,317 4,408 4,641 4,643 4,704 5,114 costs & expenses (15
Slide 14: SG&A Expenses/R&D
Ⅱ- 9. SG&A Expenses/R&D FY13: 15,343 (13.4%) FY14: 16,977 (13.8%) Unit: JPY million [up 1,242, up 8.8% YoY] [up 1,654, up 10.8% YoY] YoY = FY14 compared to FY13 3,725 3,697 3,886 4,036 4,229 4,259 4,173 4,336 (14.1%) (13.2%) (13.7%) (12.8%) (15.4%) (14.4%) (13.6%) (12.3%) Research & development expe
Slide 15: Operating Income and Net Income
Ⅱ- 10 Operating Income and Net Income Operating Income Net Income Attributable to IIJ Operating Margin Ratio Unit: JPY million YoY = FY14 compared to FY13 FY13 Operating Income: 5,723 FY14 Operating income: 5,075 FY13 Net income attributable FY14 Net income attributable to IIJ: 4,442 to IIJ: 3,322
Slide 16: Consolidated Balance Sheets (Summary)
Ⅱ- 11. Consolidated Balance Sheets (Summary) Unit: JPY million March 31, March 31, Changes 2014 2015 Cash and Cash Equivalents 22,421 21,094 (1,327) Accounts Receivable 19,214 22,252 +3,038 Inventories and Prepaid Expenses (Current and Noncurrent) 7,432 7,835 +404 Investments in Equity Method Invest
Slide 17: Consolidated Cash Flows
Ⅱ- 12. Consolidated Cash Flows < Operating Activities > Unit: JPY million YoY = FY14 compared to FY13 FY13: 8,787 FY14: 12,912 [down 852 YoY] [up 4,125 YoY] Operating Activities FY14 Breakdown YoY Change Net income 3,397 (1,287) Depreciation and amortization 9,677 +854 Net gain on other non-cash tra
Slide 18: Other Financial Data (CAPEX etc.)
Ⅱ- 13. Other Financial Data (CAPEX etc.) < CAPEX (Include Capital Leases) > Unit: JPY million < Depreciation and Amortization > YoY = FY14 compared to FY13 FY13: 12,560 FY14: 11,835 FY13: 8,823 FY14: 9,677 [up 2,155 YoY] [down 725 YoY] [up 1,267 YoY] [up 854 YoY] Cash CAPEX Capital Lease < Adjusted
Slide 19: Cloud Business Developments
Ⅲ-1. Cloud Business Developments Cloud-related revenue (Unit: JPY billion) Breakdown of 4Q14 revenue (Unit: JPY billion) Large game customers 4Q14 Cloud-related revenue recognition: 83.2% in system operation and maintenance, 16.8% in outsourcing General purpose SaaS 0.08 Business enterprise customer
Slide 20: MVNO Business Developments
Ⅲ-2. MVNO Business Developments Total subscription & revenue IIJmio & IIJmobile subscription & revenue Subscription: Consumer IIJmio Total subscription: (unit: thousand) Enterprise mobile (excluding MVNE) 673 thousand as of Mar. 2015 Revenue: Consumer IIJmio (unit: JPY billion) Enterprise mobile 384
Slide 21: Overseas Business Developments
Ⅲ-3. Overseas Business Developments Financial Results (Unit: JPY billion) Overseas offices Revenue Main subsidiaries Est. Employees Business Provide mainly ISP services , Cloud IIJ America Inc. 1996 39 services and SI to the Japanese companies in the U.S.A. Provide mainly SI and Cloud services IIJ E
Slide 22: Business/Services Developments for Mid term growth
Ⅲ- 4. Business/Services Developments for Mid term growth Unit: JPY billion FY10 FY11 FY12 FY13 FY14 FY15 Target Revenue 82.4 97.3 106.2 114.3 123.1 139.0 Operating Income 4.14 6.35 7.75 5.72 5.08 6.5 Weak SI after Lehman shock Enhance business Accelerate business Accelerate Business Achieved re
Slide 23: FY2015 Financial Target
Ⅲ-5. FY2015 Financial Target YoY = FY15 target compared to FY14 results Unit: JPY billion Mobile-related services Target over 1 million subscription by Dec. 2015, Target revenue of FY15 Target FY14 Actual YoY approx. JPY13 billion for FY2015 (up JPY5.3 billion YoY). Expect a (Apr. 2015 (Apr. 2014
Slide 24: Forward-looking statements
※ 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
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