Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — FY2002 Earnings Presentation
12 slides from Internet Initiative Japan's earnings presentation, May 2003
Slide 1: Internet Initiative Japan (Nasdaq: IIJI)
Internet Initiative Japan (Nasdaq: IIJI) May, 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, estima
Slide 2: 4Q02/FY2002 Highlights
4Q02/FY2002 Highlights 4Q02 Revenues totaled JPY 13 billion (US$ 110 million), an increase of 7.7% compared to 4Q01 and 23.4% from 3Q02) – Despite the lethargic Japanese economy, IIJ achieved the highest total revenue amount in the Company`s history. Operating loss narrowed to JPY 446 million ($ 3.8
Slide 3: Revenue Growth (QoQ)
Revenue Growth ( QoQ) JPY Millions 13,036 12,110 10,568 10,564 9,849 9,934 9,528 9,200 Others 8,333 8,108 7,246 7,322 VAS SI Connectivity 00 01 02 00 01 02 00 01 02 00 01 02 1Q 2Q 3Q 4Q Copyright © 2003 by Internet Initiative Japan Inc. All Rights Reserved. 2
Slide 4: Revenue Growth (Full Fiscal)
more than 10% Revenue Growth (Full Fiscal) growth expected JPY Millions 44,018 39,905 4Q ars 13,036 ye 31,876 4Q 8 for 12,110 59% 25,302 GR 3Q CA 10,563 3Q 9,934 14,769 12,323 2Q 10,568 2Q 9,528 8,533 4,058 1Q 1Q 9,849 8,332 1,099 3/1995 3/1996 3/1997 3/1998 3/1999 3/2000 3/2001 3/2002 3/2003 3/2004
Slide 5: Revenue Portfolio (FY2002)
Revenue Portfolio (FY2002) FY 1998 Before IPO FY 2002 Current SI services: 4x increase 3.9% 15.2% 31.4% 8.2% 34.1% 7.2% Copyright © 2003 by Internet Initiative Japan Inc. All Rights Reserved. 4
Slide 6: IIJ Top 150 Customers (FY2002)
IIJ Top 150 Customers (FY2002) Cross Selling Rate - Connectivity & VAS = 70.6% - Connectivity & SI = 58.2% - Connectivity & DC = 35.3% 50% from IIJ’s Top 150 Customers Others 14% Manufacturing Telecom 9% 38% Financial Services Revenues in FY2002 14% SI Venders 26% 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 for (JPY Millions) (%) FY2002 due to 7,000 Cancellations by NCC of the electric Gross Margin Ratio 16 power companies. 6,000 Shift from IIJ T1 Standard and IIJ 14 Economy to lower-priced package-type 5,000 c
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 (Number of Contracts) (Gbps) 45 (JPY Thousands) (*) Dedicated Access Service excluding 6000 IIJ Internet Data Center connectivity and other connectivity (Mbps) 2000 16 Total
Slide 9: Systems Integration Service
Systems Integration Service SI Revenues and Gross Margin (JPY Millions) (%) Revenues from the Systems Integration Business for 4Q02 increased by 33% Gross Margin Ratio sequentially Cross-selling efforts Increase in contracts for the construction of network systems for enterprises Increase in corpora
Slide 10: Equipment Sales
Equipment Sales Revenues and Gross Margin (JPY Millions) (%) Keep high level of revenues from contracts related to Systems Integration businesses for FY 2002 Gross Margin Ratio February 2003, IIJ developed SEIL Management Framework Equipment Sales Revenues Copyright © 2003 by Internet Initiative Jap
Slide 11: Operating Profit QoQ
Operating Profit QoQ Operating Profit (JPY Millions) 4Q02 Operating loss of JPY 446 million Operating margins will move into positive territory for FY2003 Copyright © 2003 by Internet Initiative Japan Inc. All Rights Reserved. 10
Slide 12: Capital Improvement Plan
Capital Improvement Plan Issuance of new shares of common stock in a private placement to third parties • Number of shares to be issued 8,400 common stocks • Issue Price JPY 418,200 per share • Amount not to be credited to the paid-in capital out of the issue price of new shares JPY 209,100 per shar
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