Internet Initiative Japan Inc. · TSE:3774

Internet Initiative Japan — FY2005 Earnings Presentation

16 slides from Internet Initiative Japan's earnings presentation, May 10, 2006

  1. Slide 1: Fourth Quarter and Full Fiscal Year Results for the Year ended March 31, 2006

    Internet Initiative Japan Inc. Fourth Quarter and Full Fiscal Year Results for the Year ended March 31, 2006 Internet Initiative Japan Inc. 2006.5.10 * Figures in the consolidated financial statements for historical quarterly figures from 1Q04 to 3Q04 have been restated the change in income tax expe

  2. Slide 2: Forward-looking Statements

    Network Initiative Forward-looking Statements Statements made in this press release regarding 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, estimates an

  3. Slide 3: FY2005 Business Overview

    Network Initiative FY2005 Business Overview Corporations Expanding Use of IP-based Systems for Mission Critical Work 9 Existing businesses starting to begin network 9 Corporate investments increasing due to the businesses for further growth recovering economy in Japan 9 Investment in Information sys

  4. Slide 4: FY2005 Business Overview

    Network Initiative FY2005 Business Overview Product Development and Solution Line-up Enhancement 9 Security related solutions line-up: DDoS solutions, quarantine network solution and database security assessment 9 E-mail related solutions line-up: Mail system outsourcing, mail archive, mail auditing

  5. Slide 5: Consolidated Results for FY2005

    Network Initiative Consolidated Results for FY2005 FY2005 FY2004 YoY (2005/4-2006/3) (2004/4-2005/3) Change % of Total % of Total % (JPY million) Target Results Revenues Results Revenues Total Revenues 48,000 49,813 100.0% 41,703 100.0% +19.4% Total Costs – 41,016 82.3% 34,795 83.4% +17.9% Gross Mar

  6. Slide 6: Consolidated Results for the Fourth Quarter of FY2005

    Network Initiative Consolidated Results for the Fourth Quarter of FY2005 4Q05 4Q04 YoY (2006/1-3) (2005/1-3) Change % of Total % of Total % (JPY million) Results Revenues Results Revenues Total Revenues 16,133 100.0% 12,254 100.0% +31.7% Total Costs 13,373 82.9% 10,012 81.7% +33.6% Gross Margin 2,76

  7. Slide 7: Consolidated Quarterly Revenues

    Network Initiative Consolidated Quarterly Revenues VAS and other Revenues Systems Integration Equipment Sales (JPY million) Internet Connectivity Services Outsourced Operation Gross Margin Ratio 2 0% 16,133 18.3% 18.7% 15,000 17.1% 17.3% 17.8% 17.2% 15.8% 12,254 11,929 11,870 14.2% 10,512 10,261 9,8

  8. Slide 8: Quarterly Operating and Net Income (Loss)

    Network Initiative Quarterly Operating and Net Income (Loss) (JPY million) (%) Gain on sale of available-for- 2500 sale securities Operating income 2,256 8% Net income 1,941 Operating Margin Ratio 5.8% (JPY million) 2000 6.0% 2,000 5.4% 6% 1,500 1,308 4.3% 1500 4.0% 1,000 1,189 743 4% 660 2.7% 2.5%

  9. Slide 9: Results by Service

    Network Initiative Results by Service Internet Connectivity and VAS < Trend of Revenues and Gross Margin Ratio> Total contracted (JPY Million) bandwidth (Gbps) 6,000 5,860 5,767 5,767 5,841 5,849 20% 5,666 5,450 5,508 194.9 5,000 185.5 14.0% 14.4% 13.2% 13.9% 13.5% 13.8% 13.0% 4,000 151.0 11.7% 3,00

  10. Slide 10: Trend of Revenues from SI and Outsourcing

    Network Initiative Trend of Revenues from SI and Outsourcing Systems Integration (SI) <Trend of Revenues and Gross Margin Ratio> (JPY million) z SI revenues totaled JPY 9.2 billion, a substantial increase 10,000 Systems integration 30% of 72.7% from 4Q04, mainly due to the typical seasonal Outsource

  11. Slide 11: Consolidated B/S and CF for FY2005

    Network Initiative Consolidated B/S and CF for FY2005 (Unit: JPY million) <Balance Sheets> March 31, 2006 March 31, 2005 Change % Cash 13,727 5,286 8,441 Available-for-sale securities 6,775 8,948 (2,173) Long/short-term borrowings 6,835 8,991 (2,156) Common stock 16,834 13,765 3,068 Additional paid-

  12. Slide 12: Other Financial Data for FY2005

    Network Initiative Other Financial Data for FY2005 (Unit: JPY million) FY2005 FY2004 Change % CAPEX 4,762 5,386 (11.6%) Deprecation and amortization 4,209 4,118 2.2% Adjusted EBITDA 6,620 5,365 +23.4% Copyright © 2006 Internet Initiative Japan Inc. 11

  13. Slide 13: Target for FY2006 Consolidated Results

    Network Initiative Target for FY2006 Consolidated Results Target for Actual Results YoY YoY Interim Period for Interim Change Target for Actual Results Change Ending Sep. 30, Period Ended % FY2006 for FY2005 % 2006 Sep. 30, 2005 Revenues 25,000 21,809 +14.6% 55,000 49,813 +10.4% Operating 1,000 754

  14. Slide 14: IIJ Acquires Patent Rights to SMF

    Network Initiative TOPIC IIJ Acquires Patent Rights to SMF SEIL Management Framework (SMF) - an innovative centralized network management system to which we acquired patent rights for its basic operation (Patent No. 3774433) <IIJ Services based on SMF> IIJ SMF Service A service to provide a central

  15. Slide 15: IIJ Group Participates in METI's RFID Pilot Project

    Network Initiative TOPIC IIJ Group Participates in METI's RFID Pilot Project IIJ provided "IIJ EPC Network Service" and Network Infrastructure for East-Asian RFID Tag Test <Pilot Project Summary> <Network> Tag IIJ EPC System VeriSign EPC System (Basic tag information (Basic tag information Knock-dow

  16. Slide 16: IIJ Adds Storage Feature to IIJ Mail Gateway Service

    Network Initiative TOPIC IIJ Adds Storage Feature to IIJ Mail Gateway Service IIJ released its Mail Archive Option, an e-mail archive feature on the enterprise mail management service, IIJ Mail Gateway Service <Features> < Search screen of mail archive > - IIJ Mail Gateway monitors e-mail between co

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