Internet Initiative Japan Inc. · TSE:3774
Internet Initiative Japan — FY2011 Earnings Presentation
24 slides from Internet Initiative Japan's earnings presentation, May 15, 2012
Slide 1: FY2011 Consolidated Financial Results
FY2011 Consolidated Financial Results Internet Initiative Japan Inc. 2012 5 15 2012.5.15
Slide 2: Agenda
Agenda Ⅰ. Summary of FY2011 Financial Results Ⅱ. Consolidated Financial Results for FY2011 Ⅲ. Reference Materials 1
Slide 3: Summary of FY2011 Financial Results
Ⅰ. Summary of FY2011 Financial Results ≪FY2011 Results≫ ≪FY2012 Target≫ ・Revenue JPY97.3 billion (up 18.1% YoY) JPY107 billion (up 10.0% YoY) ・Gross margin JPY20.0 billion (up 20.5% YoY) ・Operating Income JPY6.4 billion (up 53.4% YoY) JPY7.5 billion (up 18.0% YoY) ・Income I before b f income i tax t
Slide 4: Consolidated Results for FY2011
Ⅱ-１. Consolidated Results for FY2011 Unit: JPY billion % of Revenues % of Revenue s % of Reve nues FY11 Revised FY11 FY10 Y Y YoY Target （11 /4～12/3） （10/ 4～11/3） （11/4～1 2/3） Total Revenues 97.3 82.4 18.1% 97.0 79.5% 79.9% Total Costs 77.3 65.8 17.5% ― 20 5% 20.5% 20 1% 20.1% Gross Margin 20.0 16.6
Slide 5: Revenues
Ⅱ-2. Revenues Internet Connectivity Services for Corporate Use One-time Unit: JPY million Systems Construction Internet Connectivity Services for Home Use Revenues Recurring Equipment Sales Revenue Outsourcing Services WAN Services ATM Operation Business System Operation and Maintenance FY10: 82,418
Slide 6: Cost of Revenues and Gross Margin Ratio
Ⅱ-3. Cost of Revenues and Gross Margin Ratio Unit: JPY million Cost of Revenues Network Services SI Equipment Sales ATM Operation Gross Margin Ratio Business Network Services SI Total Gross Margin Ratio IIJ-Global 2Q10 * 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Revenues 1 761 1,761 5 215 5,215 5 160 5,160 5 17
Slide 7: Revenue YoY Change
Ⅱ-4. Revenue YoY Change Unit: JPY billion <By Service> FY10: +14.9 FY11: FY11 ATM operation JPY82.4 billion JPY97.3 billion business +0.8 1.3 0.5 +2.5 3.1 Cloud services 06 0.6 +0.4 30.1 SI + equipment sales (excluding Cloud services) 29.7 WAN services 25.7 16.1 +9.6 96 Internet connectivity service
Slide 8: Operating Income YoY Change
Ⅱ-5. Operating Income YoY Change Unit: JPY billion FY10: +2.2 FY11: JPY4.1 billion JPY6.4 billion <By Service> ATM operation business SI +Equipment Sales Operating Loss Network service Decrease SG&A (0.5) +0.4 (down 6.6% YoY) (1.2) +3.4 (up 9 9.5% 5% YoY) （up 1.8% YoY) 6.4 4.1 (up 53.4% YoY) (up 21.
Slide 9: Network Services (1) Revenues
Ⅱ-6. Network Services (1) Revenues Unit: JPY million Total Contracted WAN Services Bandwidth (Gbps) Outsourcing Services 853.0 857.7 791.0 820.7 Internet Connectivity Services 733.4 for Home Use 702.5 702.0 660.9 Internet Connectivity Services for Corporate Use FY10: 51,662 FY11: 63,410 6,391 6,476
Slide 10: Network Services (2) Cost of Revenues
Ⅱ-6. Network Services (2) Cost of Revenues Unit: JPY million Others YoY = 4Q11 compared to 4Q10 Outsourcing Costs QoQ = 4Q11 compared to 3Q11 Personnel Related Costs Network Operation Related Costs FY10: 41,678 FY11: 49,985 (Gross Margin Ratio: 21 21.2%) 2%) Circuit Related Costs (Gross Margin Ratio
Slide 11: System Integration (1) Revenues
Ⅱ-7. System Integration (1) Revenues YoY = 4Q11 compared to 4Q10 QoQ = 4Q11 compared to 3Q11 <Systems S t C Construction> t ti Unit: JPY million S t Systems Construction C t ti Revenues R 5,928 5,741 Systems Operation and Maintenance Revenues 5,344 4,580 4,710 4,590 Order Backlog System construction
Slide 12: System Integration (2) Cost of Revenues
Ⅱ-7. System Integration (2) Cost of Revenues Unit: JPY million YoY Y Y = 4Q11 compared d tto 4Q10 Purchasing Costs QoQ = 4Q11 compared to 3Q11 Outsourcing Costs FY10: 22,466 FY11: 24,979 (Gross Margin Ratio 23.7%) (Gross Margin Ratio：20.6%) Others 7 590 7,590 7,712 Network N kOOperation i Related Co
Slide 13: Number of Employees
Ⅱ-8. Number of Employees YoY = 4Q11 compared to 4Q10 QoQ = 4Q11 compared to 3Q11 Contract worker (personnel) Full time worker 1,944 1,953 1,955 1,941 1,923 2,000 1,687 258 243 246 250 244 [Employee Distribution] 263 1,500 Administration 14% 1,000 Sales 1,710 , , 1,709 19% Engineers 1,686 1,691 1 679
Slide 14: SG&A Expenses/R&D
Ⅱ-9. SG&A Expenses/R&D YoY = 4Q11 compared to 4Q10 QoQ = 4Q11 compared to 3Q11 Unit: JPY million Sales and Marketing Expenses IIJ-Global 2Q10* 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 General and Administrative Expenses SG&A 224 777 767 856 663 754 764 Research and Development ( ) % of Revenues Amortization of
Slide 15: Operating Income and Net Income
Ⅱ-10. Operating Income and Net Income Unit: JPY million FY10 Operating FY11 Operating Operating Income YoY = 4Q11 compared to 4Q10 Income : 4,141 Income : 6,353 Net Income Attributable to IIJ QoQ = 4Q11 compared to 3Q11 Operating Margin Ratio FY10 Net income FY11 Net income attributable to IIJ: 3,20
Slide 16: Consolidated Balance Sheets
Ⅱ-11. Consolidated Balance Sheets Unit: JPY million March 31, March 31, Changes 2011 2012 Cash and Cash Equivalents 13,314 13,537 +223 Nonmarketable equity securities Accounts Receivable 16,431 15,722 (709) JPY1,958 million Available-for-sale equity securities Inventories 601 752 +151 JPY 861 mill
Slide 17: Consolidated Cash Flows
Ⅱ-12. Consolidated Cash Flows Unit: JPY million Operating Activities FY10 : 12,564 FY11 : 11,659 5,079 FY11 Operating Activities 4,177 Increase in operating income 3 279 3,279 2,966 2,274 2,835 2,292 Decrease in accounts payable: 1,323 JPY2,929 million etc 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 I
Slide 18: Other Financial data (CAPEX etc.)
Ⅱ-13. Other Financial data (CAPEX etc.) Unit: JPY billion CAPEX （Include Capital Lease） FY10 FY11 Unit: JPY million Cloud related 1.6 4.3 FY10 : 6,752 FY11 : 10,917 ATM operation business 0.3 0.4 3,567 IIJ Global 0.1 0.4 2,878 Others 4.7 5.9 2,212 , 2,208 , 8 2,265 1,804 1,515 1,221 Adjusted EBITDA
Slide 19: Developments of IIJ GIO
Ⅲ-1. Developments of IIJ GIO ■ Business developments of IIJ GIO (JPY million) IIJ GIO Revenues (number of projects) ・FY11 Revenues: JPY3.1 billion 1,250 1200 (FY10: JPY0.6 billion) Large SNS Game Clients ・4Q11 Revenues: JPY1 JPY1.0 0 billion 1 000 1,000 1000 Enterprise Business and Others 3Q11: JP
Slide 20: Expansion of IIJ Group
Ⅲ-2. Expansion of IIJ Group IIJ Exlayer Inc. ＜IIJ Exlayer Overseas O branches＞ ・Acquired on April 2, 2012 ・Acquired the Japanese holding company and its five 100% owned overseas subsidiaries ・Formerly known as Exlayer Global has over 10 years of experience in HK overseas SI business mainly with Japa
Slide 21: Reference: FY2012 Financial Target
Ⅲ-3. Reference: FY2012 Financial Target Unit: JPY billion (Revenue Increase Factors) Continuous increase from network services YoY IIJ GIO revenues to largely increase FY12 Target FY11 Actual （12/4～13/3） （11/4～12/3） (FY12 to FY11 Acutal) (from FY11: JPY3.1 billion to FY12: over JPY7.0 billion) Tot
Slide 22: FY2012 Dividend Forecast
Ⅲ-4. FY2012 Dividend Forecast Interim Dividend Year-end Dividend JPY3,500 JPY3,250 JPY 1,750 JPY 1,750 JPY2,750 JPY 1,500 JPY2,250 , JPY2,000 JPY 1,250 JPY1,750 JPY 1,000 JPY1,500 JPY 1,000 JPY 1,750 JPY 1,500 JPY 1,500 JPY 1,250 JPY 1,000 JPY 1,000 JPY 750 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011
Slide 23: Reference: IIJ Group Companies
Ⅲ-5. Reference: IIJ Group Companies (As of May 15, 2012) Company Name Ownership Main Business Provides domestic network outsourcing related services including WAN IIJ Global Solutions Inc. service and international network related services Provides a full range of network operation and management se
Slide 24: Forward-looking Statements
※ Forward-looking Statements Statements made in this presentation regarding IIJ IIJ’ss or management management’s s intentions, intentions beliefs, beliefs expectations, or predictions for the future are forward-looking statements that are based on IIJ’s and managements’ current expectations, assump
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