Internet Initiative Japan Inc. · TSE:3774

Internet Initiative Japan — Q1 FY2015 Earnings Presentation

19 slides from Internet Initiative Japan's earnings presentation, Aug 7, 2015

  1. Slide 1: Consolidated Financial Results for 1Q FY2015

    Consolidated Financial Results for 1Q FY2015 (First 3 months ended June 30, 2015) Internet Initiative Japan Inc. TSE1(3774), NASDAQ(IIJI) August 7, 2015

  2. Slide 2: Agenda

    Agenda Ⅰ. Summary of 1Q FY2015 Financial Results Ⅱ. Consolidated Financial Results for 1Q FY2015 Ⅲ. Reference Materials 1

  3. Slide 3: Summary of 1Q FY2015 Financial Results

    Ⅰ. Summary of 1Q FY2015 Financial Results <<1Q15 1Q15 Results> Results> < FY15 < FY15Targets Targets > > %: YoY change Revenues Revenues JPY31.46 JPY31.46 billion billion up up 14.2% 14.2%JPY139.0 JPY139.0billion billion upup 13.0% 13.0% Gross Grossmargin margin JPY5.66 JPY5.66 billion billion up up

  4. Slide 4: Consolidated Financial Results for 1Q FY2015

    Ⅱ- 1. Consolidated Financial Results for 1Q FY2015 Unit: JPY billion % of Revenues % of Revenues % of Revenues 1Q15 1Q14 YoY FY15 Target YoY Change in % Change in % (Apr. 2015 (Apr. 2014 (Apr. 2015 -Jun. 2015) -Jun. 2014) -Mar. 2016) Total Revenues 31.5 27.6 +14.2% 139.0 +13.0% 82.0% 81.9% 81.9% Tot

  5. Slide 5: Revenues

    Ⅱ- 2. Revenues Network Services Systems Integration (SI) Equipment Sales Unit: JPY million Internet Connectivity Services (Enterprise) Systems Construction YoY = 1Q15 compared to 1Q14 ATM Operation Business Internet Connectivity Services (Consumer) Systems Operation and Maintenance Outsourcing Servi

  6. 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 21.3% 22.1% 21.2% 20.4% YoY = 1Q15 compared to 1Q14 19.9% 17

  7. Slide 7: Network Services: Revenues

    Ⅱ- 4. Network Services (1)Revenues WAN Services Unit: JPY million Outsourcing Services YoY = 1Q15 compared to 1Q14 QoQ = 1Q15 compared to 4Q14 Internet Connectivity Services (Consumer) Total Contracted Internet Connectivity Services (Enterprise) Bandwidth (Gbps) 1,912.0 1,705.6 1,730.8 1,581.4 1,633

  8. Slide 8: Network Services: Cost of Revenues

    Ⅱ- 4. Network Services (2)Cost of Revenues FY14： 54,932 (20.4%) Unit: JPY million YoY = 1Q15 compared to 1Q14 13,213 13,155 13,762 14,801 14,702 (21.3%) (22.1%) (21.2%) (17.0%) (20.4%) 988 989 999 Others 911 917 Outsourcing-related costs 3,446 3,296 2,261 2,238 2,554 Personnel-related costs Network

  9. Slide 9: Systems Integration (SI): Revenues

    Ⅱ- 5. Systems Integration (SI) (1)Revenues < Systems Construction > 7,619 YoY = 1Q15 compared to 1Q14 Unit: JPY million 6,893 5,929 6,306 Systems Construction Revenues 4,734 Systems Operation and Maintenance Revenues Order backlog ※Systems construction’s order backlog and Order received order receiv

  10. Slide 10: Systems Integration (SI): Cost of Revenues

    Ⅱ- 5. Systems Integration (SI) (2)Cost of Revenues Unit: JPY million FY14： 41,562 (13.8%) YoY = 1Q15 compared to 1Q14 QoQ = 1Q15 compared to 4Q14 8,322 9,618 10,239 13,382 9,591 Purchasing costs (12.0%) (15.7%) (13.0%) (14.2%) (13.4%) Outsourcing-related costs Others Network operation-related costs

  11. Slide 11: Number of Employees

    Ⅱ- 6. Number of Employees Unit: JPY million (Number of employees) 2,353 2,523 2,546 2,818 2,835 2,975 YoY = 1Q15 compared to 1Q14 (+140 from Mar. 2015) 361 Contract worker 362 370 Full time worker 311 328 291 [Employee Distribution] Administration 2,456 2,465 2,614 11% 2,062 2,212 2,218 Sales 18% En

  12. Slide 12: SG&A Expenses/R&D

    Ⅱ- 7. SG&A Expenses/R&D Unit: JPY million FY14： 16,997(13.8%) YoY = 1Q15 compared to 1Q14 Research & development expenses 4,229 4,259 4,173 4,336 4,517 General & administrative expenses (15.4%) (14.4%) (13.6%) (12.3%) (14.4%) Sales & marketing expenses ( ) % of total revenues 107 127 77 124 113 1,82

  13. Slide 13: Operating Income and Net Income

    Ⅱ- 8 Operating Income and Net Income Operating Income Net Income Attributable to IIJ Operating Margin Ratio Unit: JPY million YoY = 1Q15 compared to 1Q14  Income before income tax expenses: FY14 Operating income: 5,075  1Q15: JPY1,278 million FY14 Net income attributable to IIJ: 3,322 (up JPY451 m

  14. Slide 14: Consolidated Balance Sheets (Summary)

    Ⅱ- 9. Consolidated Balance Sheets (Summary) Unit: JPY million March 31, June 30, Changes 2015 2015 Cash and Cash Equivalents 21,094 20,004 (1,089) Accounts Receivable 22,252 19,181 (3,070) Inventories and Prepaid Expenses (Current and Noncurrent) 7,835 10,083 +2,248 Investments in Equity Method Inve

  15. Slide 15: Consolidated Cash Flows

    Ⅱ- 10. Consolidated Cash Flows Unit: JPY million < Operating Activities > YoY = 1Q15 compared to 1Q14 FY14： 12,912 4,667 2,855 2,901 1Q15 2,490 2,498 Operating Activities Breakdown YoY Change Net income 778 +269 Prepaid expenses (software license fee, bonus etc.) 1,753 (345) 1Q14 2Q14 3Q14 4Q14 1Q15

  16. Slide 16: Other Financial Data (CAPEX etc.)

    Ⅱ- 11. Other Financial Data (CAPEX etc.) Unit: JPY million < CAPEX > < Adjusted EBITDA > Cash CAPEX Capital Lease FY14：11,835 FY14： 14,753 < Depreciation and Amortization > FY14：9,677 15

  17. Slide 17: Cloud Business Developments

    Ⅲ-1. Cloud Business Developments Cloud-related revenue (Unit: JPY billion) Breakdown of 1Q15 revenue (Unit: JPY billion) Large game customers 1Q15 cloud-related revenue recognition: General purpose SaaS 0.08 85% in systems operation and maintenance, 15% in outsourcing (groupware etc.) Business enter

  18. Slide 18: Mobile Business Developments

    Ⅲ-2. Mobile Business Developments Total subscription & revenue IIJmio mobile & IIJ Mobile subscription & revenue Total subscription (thousand) 1Q15-end Subscription IIJmio mobile (Consumer) 527 Total revenue (JPY billion) 811 (unit: thousand) : IIJ Mobile (Enterprise) 430 4Q14-end Revenue IIJ Mobile

  19. Slide 19: 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

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