For Immediate Release

Internet Initiative Japan Inc. E-mail: ir@iij.ad.jp Tel: +81-3-5205-6500 URL: http://www.iij.ad.jp/en/ir

IIJ Announces Nine Months Financial Results for the Fiscal Year Ending March 31, 2017‌ Tokyo, February 8, 2017 - Internet Initiative Japan Inc. ("IIJ" NASDAQ:IIJI, TSE:3774) today announced its consolidated financial results for the nine months of the fiscal year ending March 31, 2017 ("3Q16", from April 1, 2016 to December 31, 2016).1

Highlights of Financial Results for 3Q16

Revenues

JPY113,602 million

(up 14.3% YoY)

Operating Income

JPY3,155 million

(down 22.5% YoY)

Net Income attributable to IIJ

JPY1,910 million

(down 25.8% YoY)

Overview of 3Q16 Financial Results and Business Outlook

"Our continuous business and service developments are reflected in our strong revenue accumulation. 3Q16 three-month revenue growth year over year was 16.0%: 2Q16 12.0%, 1Q16 15.0%, 4Q15 17.2% and 3Q15 11.0%. We continue to focus on investing in the fields of cloud, mobile, security, and next generation network usage such as IoT and BigData. Mainly due to the overall cost increase along with the recent aggressive business investments and the deterioration of systems integration gross margin from 1H162, 3Q16 nine-month operating income decreased year over year," said Eijiro Katsu, President and COO of IIJ.

"Mobile services continued to be a leading revenue growth driver. 3Q16 nine-month revenue grew by 78.0% year over year to JPY19.1 billion and the total subscription as of 3Q16-end reached to

1.7 million, an increase of 59.4% year over year. Transactions by our 124 MVNE clients, including MVNOs, prominent retailers, and many cable TV operators, continued to expand. Other contributing factors for the strong 3Q16 revenue growth were an export project of our container type data center to the Republic of Laos3and continuous revenue accumulation of cloud services and non-mobile network services," said Katsu.

"We're making continuous progresses of our business developments this fiscal year. We'll be the first Japanese full-MVNO service provider as we aim to capture enterprises' mobile needs such as IoT and BigData type of usages which are expected to be implemented much more widely in the near future. We established a joint venture 4with a major Japanese broadcasting company, Nippon Television Netowrk Corporation, to become a main CDN5provider in the coming age of Internet-based broadcasting including 4K. Regarding security services, we further enhanced "IIJ DDoS Protection Services" by constructing worldwide network systems to protect our clients from global DDoS attacks. We launched "IIJ IoT Services," packaged service offering necessary function to build IoT systems. We believe our recent actions shall make our role and value as a service platform provider of network, cloud, mobile, security and network outstanding in the middle to long term. We also expect that expansion of service revenues from these continuous business developments should generate continuous gross margin improvement which leads to operating income growth going forward," concluded Koichi Suzuki, Founder, Chairman and CEO of IIJ.

1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with U.S. GAAP. All financial figures are unaudited and consolidated.

2 For details on our downward revision for FY2016 financial target, please refer to our press release titled "IIJ Revises its First Half and Full-Year Financial Targets for FY2016" which can be found at http://www.iij.ad.jp/en/ir/news/2016/pdf/FY16revision_E.pdf

3 For details on our involvement on Laos project, please refer to our press release titled "'Lao PDR Energy Efficient Datacenter Project' Cloud Datacenter Using Joint crediting Mechanism Starts Demonstration Operation" which can be found at http://www.iij.ad.jp/en/news/pressrelease/2016/1130.html

4 For details on the establishment of the joint venture, please refer to our press release titled "IIJ and Nippon TV to Establish a Joint Venture for Video Distribution Platforms" which can be found at http://www.iij.ad.jp/en/news/pressrelease/2016/1201.html

5 CDN (Contents Distribution Network) is an optimized network to distribute contents such as pictures and videos.

3Q16 Financial Results Summary Operating Results Summary

3Q15

3Q16

YoY Change

Total revenues

JPY millions

JPY millions

%

99,382

113,602

14.3

Network services

58,216

68,481

17.6

Systems integration (SI)

35,921

39,858

11.0

Equipment sales

2,365

2,207

(6.6)

ATM operation business

2,880

3,056

6.1

Total costs

81,589

95,772

17.4

Network services

47,079

56,274

19.5

Systems integration (SI)

30,455

35,644

17.0

Equipment sales

2,125

2,024

(4.7)

ATM operation business

1,930

1,830

(5.2)

Total gross margin

17,793

17,830

0.2

Network services

11,137

12,207

9.6

Systems integration (SI)

5,467

4,214

(22.9)

Equipment sales

239

183

(23.5)

ATM operation business

950

1,226

29.0

SG&A expenses and R&D

13,720

14,675

7.0

Operating income

4,073

3,155

(22.5)

Income before income tax expense

4,178

3,433

(17.8)

Net income attributable to IIJ

2,573

1,910

(25.8)

Segment Results Summary

3Q15

3Q16

Total revenues

JPY millions

JPY millions

99,382

113,602

Network services and SI business

96,789

110,831

ATM operation business

2,880

3,056

Elimination

(287)

(285)

Operating income

4,073

3,155

Network service and SI business

3,356

2,178

ATM operation business

819

1,088

Elimination

(102)

(111)

We have omitted segment analysis because most of our revenues are dominated by network services and systems integration (SI) business.

3Q16 Revenues and Income

Revenues

Total revenues were JPY113,602 million, up 14.3% YoY (JPY99,382 million for 3Q15).

Network services revenue was JPY68,481 million, up 17.6% YoY (JPY58,216 million for 3Q15).

Revenues for Internet connectivity services for enterprise were JPY16,461 million, up 27.9% YoY from JPY12,871 million for 3Q15 mainly due to an increase in mobile-related services revenues along with an expansion of MVNE business clients' business transaction.

Revenues for Internet connectivity services for consumers were JPY15,903 million, up 48.5% YoY from JPY10,708 million for 3Q15, mainly due to the revenue growth of "IIJmio Mobile Services," consumer mobile services which offer inexpensive data communication and voice services with SIM cards.

Revenues for WAN services were JPY19,848 million, up 5.4% YoY compared to JPY18,826 million for 3Q15.

Revenues for Outsourcing services were JPY16,269 million, up 2.9% YoY from JPY15,811 million for 3Q15.

Network Services Revenues Breakdown

3Q15

3Q16

YoY %

Change

Internet connectivity services (Enterprise)

JPY millions

12,871

JPY millions

16,461

27.9

IP service*1

7,219

7,331

1.5

IIJ FiberAccess/F and IIJ DSL/F

2,309

2,279

(1.3)

IIJ Mobile service (Enterprise)

3,140

6,680

112.8

IIJ Mobile MVNO Platform Service*2

1,283

4,358

239.5

Others

203

171

(15.8)

Internet connectivity services (Consumer)

10,708

15,903

48.5

IIJ

8,767

14,290

63.0

IIJmio Mobile Service*3

7,595

12,437

63.7

hi-ho

1,941

1,613

(16.9)

WAN services

18,826

19,848

5.4

Outsourcing services

15,811

16,269

2.9

Total network services

58,216

68,481

17.6

*1. IP service revenues include revenues from the data center connectivity service.

*2. From 1Q16, the revenue from "IIJ Mobile MVNO Platform Service", which is included in "IIJ Mobile service (Enterprise)," is disclosed. "IIJ Mobile MVNO Platform Service" provides MVNO platform to our MVNE clients.

*3. From 1Q16, the revenue from "IIJmio Mobile Service" (formerly known as "IIJmio High Speed Mobile Service" until September 30, 2016), which is included in "Internet connectivity services (Consumer)" provided by IIJ, is disclosed.

Number of Contracts and Subscription for Connectivity Services*1

as of Dec. 31, 2015

as of Dec. 31, 2016

YoY Change

Internet connectivity services (Enterprise)

412,615

824,546

411,931

IP service (1Gbps-)

342

413

71

IP service (100Mbps-999Mbps)

518

577

59

IP service (-99Mbps)

702

622

(80)

IIJ Data center connectivity service

272

258

(14)

IIJ FiberAccess/F and IIJ DSL/F

74,326

72,132

(2,194)

IIJ Mobile service (Enterprise)

335,193

749,484

414,291

IIJ Mobile MVNO Platform Service*2

181,859

501,374

319,515

Others

1,262

1,060

(202)

Internet connectivity services (Consumer)

1,165,667

1,377,529

211,862

IIJ

1,015,994

1,241,399

225,405

IIJmio Mobile Service*3

685,044

912,394

227,350

hi-ho

149,673

136,130

(13,543)

Total contracted bandwidth*4

2,089.9Gbps

2,636.7Gbps

546.8Gbps

*1. Numbers in the table above show number of contracts except for "IIJ Mobile service (Enterprise)," "IIJ" and "hi-ho" which show number of subscriptions.

*2. From 1Q16, the number of subscription for "IIJ Mobile MVNO Platform Service", which is included in "IIJ Mobile service (Enterprise)", is disclosed.

*3. From 1Q16, the number of subscription for "IIJmio Mobile Service" (formerly known as "IIJmio High Speed Mobile Service" until September 30, 2016), which is included in "Internet connectivity services (Consumer)" provided by IIJ, is disclosed.

*4. Regarding IP service, data center connectivity service and IIJ FiberAccess/F and IIJ DSL/F of Internet connectivity services (Enterprise), total contracted bandwidths are calculated by multiplying number of contracts by contracted bandwidths respectively.

SI revenues were JPY39,858 million, up 11.0% YoY (JPY35,921 million for 3Q15).

Systems construction revenue, a one-time revenue, was JPY13,973 million, up 21.0% YoY, mainly due to the revenue recognition of an export project of our container type data center in 3Q16. Systems operation and maintenance revenue, a recurring revenue, was JPY25,885 million, up 6.2% YoY, mainly due to an increase in private cloud services' revenues although certain relatively large systems operation and maintenance projects were cancelled in 1H16.

Orders received for SI and equipment sales totaled JPY51,730 million, up 19.6% YoY; orders received for systems construction and equipment sales were JPY21,031 million, up 4.3% YoY and orders received for systems operation and maintenance were JPY30,699 million, up 33.0% YoY.

Order backlog for SI and equipment sales as of December 31, 2016 amounted to JPY43,309 million, up 27.3% YoY; order backlog for systems construction and equipment sales was JPY10,928 million, down 0.5% YoY and order backlog for systems operation and maintenance was JPY32,381 million, up 40.6% YoY.

Equipment sales revenues were JPY2,207 million, down 6.6% YoY (JPY2,365 million for 3Q15).

AT M operation business revenues were JPY3,056 million, up 6.1% YoY (JPY2,880 million for 3Q15). As of December 31, 2016, 1,066 ATMs have been placed.

Cost and expense

Total cost of revenues was JPY95,772 million, up 17.4% YoY (JPY81,589 million for 3Q15).

Cost of network services revenue was JPY56,274 million, up 19.5% YoY (JPY47,079 million for 3Q15). There were an increase in outsourcing-related costs with our mobile infrastructure enhancement along with our mobile-related revenue increase, an increase in circuit-related costs along with our WAN services revenue increase, and an increase in network operation-related costs with our network enhancement and the launch of "IIJ Omnibus Service." Gross margin was JPY12,207 million, up 9.6% YoY and gross margin ratio was 17.8% compared to 19.1% in 3Q15.

Cost of SI revenues was JPY35,644 million, up 17.0% YoY (JPY30,455 million for 3Q15). There were an increase in outsourcing-related and purchasing costs along with our SI revenue increase, an increase in personnel-related and an increase in network operation-related costs mainly along with the

launch of "IIJ GIO Infrastructure P2." Gross margin was JPY4,214 million, down 22.9% YoY and gross margin ratio was 10.6% compared to 15.2% in 3Q15. It was mainly due to profit deterioration of our cloud-related services and especially 1H16 profit deterioration resulted from low productivity of systems engineers and the delay in offering some functions of our ASP-type foreign exchange system.

Cost of equipment sales revenues was JPY2,024 million, down 4.7% YoY (JPY2,125 million for 3Q15). Gross margin was JPY183 million (JPY239 million for 3Q15) and gross margin ratio was 8.3% compared to 10.1% in 3Q15.

Cost of ATM operation business revenues was JPY1,830 million, down 5.2% YoY (JPY1,930 million for 3Q15). Gross margin was JPY1,226 million (JPY950 million for 3Q15) and gross margin ratio was 40.1% compared to 33.0% in 3Q15.

SG&A and R&D expenses

SG&A and R&D expenses in total were JPY14,675 million, up 7.0% YoY (JPY13,720 million for 3Q15).

Sales and marketing expenses were JPY8,392 million, up 7.0% YoY (JPY7,842 million for 3Q15) mainly due to increases in sales commission expenses and advertising expenses.

General and administrative expenses were JPY5,928 million, up 7.2% YoY (JPY5,532 million for 3Q15) mainly due to increases in office rent expenses, commission expenses and taxes and public dues.

Research and development expenses were JPY355 million, up 2.5% YoY (JPY346 million for 3Q15).

Operating income

Operating income was JPY3,155 million, down 22.5% YoY (JPY4,073 million for 3Q15).

Other income (expenses)

Other income (expenses) was an income of JPY278 million (an income of JPY105 million for 3Q15), mainly because of net gain on sales of other investments of JPY214 million (JPY24 million for 3Q15), distribution from fund investment of JPY208 million (included in other-net, JPY144 million for 3Q15), dividend income of JPY106 million from other investments (JPY88 million for 3Q15), interest expense of JPY218 million (JPY171 million for 3Q15) and foreign exchange losses of JPY23 million (JPY11 million for 3Q15).

Income before income tax expenses

Income before income tax expenses was JPY3,433 million, down 17.8% YoY (JPY4,178 million for 3Q15) .

Net income

Income tax expense was JPY1,466 million (JPY1,697 million for 3Q15).

Equity in net income of equity method investees was JPY69 million (JPY207 million for 3Q15) mainly due to net income of Internet Multifeed Co.

As a result of the above, net income was JPY2,036 million, down 24.2% YoY (JPY2,688 million for 3Q15).

Net income attributable to IIJ

Net income attributable to non-controlling interests was JPY126 million mainly related to net income of Trust Networks Inc. (JPY115 million for 3Q15).

Net income attributable to IIJ was JPY1,910 million, down 25.8% YoY (JPY2,573 million for 3Q15).

3Q16 Balance Sheets and Cash Flows

Balance sheets

As of December 31, 2016, the balance of total assets was JPY130,915 million, increased by JPY13,081 million from the balance as of March 31, 2016 of JPY117,835 million.

As of December 31, 2016, the balance of current assets was JPY60,683 million, increased by JPY7,277 million from the balance as of March 31, 2016 of JPY53,406 million. The major breakdown of current assets was an increase in prepaid expenses by JPY2,410 million to JPY7,180 million, an increase in cash and cash equivalents by JPY1,697 million to JPY21,266 million and an increase in inventories by JPY1,572 million to JPY3,576 million. As of December 31, 2016, the balance of noncurrent assets was JPY70,233 million, increased by JPY5,804 million from the balance as of March 31, 2016 of JPY64,429 million. The major breakdown of noncurrent assets was an increase in property and equipment by JPY2,757 million to JPY37,081 million, an increase in other investments by JPY1,362 million to JPY7,310 million mainly due to change an increase in the fair value of available-for-sale securities, and increase in prepaid expenses-noncurrent by JPY1,291 million to JPY6,278 million. Other investments as of December 31, 2016, mainly consisted of JPY5,258 million in available-for-sale securities (including JPY4,920 million of strategic shareholdings), JPY1,124 million in nonmarketable equity securities and JPY929 million in investments in funds, including some through a trust. As of December 31, 2016, the major breakdown of non-amortized intangible assets was JPY6,170 million in goodwill and JPY96 million in trademark. The balance of amortized intangible assets, which was customer relationships, was JPY3,132 million

As of December 31, 2016, the balance of current liabilities was JPY36,219 million, increased by JPY153 million from the balance as of March 31, 2016 of JPY36,066 million mainly due to an increase in capital lease obligations-current portion by JPY524 million to JPY4,479 million. As of December 31, 2016, the balance of noncurrent liabilities was JPY28,931 million, increased by JPY12,506 million from the balance as of March 31, 2016 of JPY16,425 million. The major breakdown of noncurrent liabilities was an increase in long-term borrowings by JPY8,500 million to JPY8,500 million and an increase in capital lease obligations-noncurrent by JPY1,752 million to JPY9,532 million.

As of December 31, 2016, the balance of total IIJ shareholders' equity was JPY65,167 million, increased by JPY322 million from the balance as of March 31, 2016 of JPY64,845 million. There was an increase in treasury stock by JPY982 million to JPY1,374 million due to the repurchase of own shares, authorized at the meeting of IIJ's Board of Directors held on November 4, 2016. IIJ shareholders' equity ratio (total IIJ shareholders' equity divided by total assets) as of December 31, 2016 was 49.8%.

Cash flows

Cash and cash equivalents as of December 31, 2016 were JPY21,266 million (JPY18,234 million as of December 31, 2015).

Net cash provided by operating activities for 3Q16 was JPY4,408 million (net cash provided by operating activities of JPY7,811 million for 3Q15.) There were net income of JPY2,036 million, depreciation and amortization of JPY8,006 million and net cash out flow of JPY5,979 million from changes in operating assets and liabilities. As for changes in operating assets and liabilities, there were an increase in prepaid expenses (including prepaid expenses-noncurrent) in relation to up front payment for software licenses and maintenance cost for service facilities, an increase in inventories due to the increase in systems construction projects, an increase in prepaid expenses for seasonal bonus payments to our employees and an increase mainly in accounts receivable in relation to an export project of our container type data center in 3Q16.

Net cash used in investing activities for 3Q16 was JPY5,389 million (net cash used in investing activities of JPY6,634 million for 3Q15), mainly due to payments for purchase of property and equipment of JPY7,940 million (JPY8,454 million for 3Q15) and proceeds from sales of property and equipment, which include sales and leaseback, of JPY2,219 million (JPY1,093 million for 3Q15).

Net cash provided by financing activities for 3Q16 was JPY2,831 million (net cash used in financing activities of JPY4,047 million for 3Q15), mainly due to proceeds from long-term borrowings of JPY8,500

million, principal payments under capital leases of JPY3,535 million (JPY3,040 million for 3Q15), FY2015 year-end and FY2016 interim dividend payments of JPY1,126 million (JPY1,011 million for 3Q15) and payments for purchase of treasury stock of JPY982 million.

FY2016 Financial Targets On November 4, 2016, we revised our financial targets for FY2016 which was announced on May 13, 2016. Due to seasonal factors, our fourth quarter revenue and income volume tend to be the largest.

Therefore, our financial target announced on November 4, 2016 remain unchanged.

We conducted the repurchase of our own shares which was authorized at the meeting of our Board of Directors held on November 4, 2016. Final results of share repurchase is as follows; period of repurchase: from November 7, 2016 to January 31, 2017, total number of shares repurchased: 892,200 shares, aggregate repurchased amount: JPY1,499,933 thousand.

Reconciliation of Non-GAAP Financial Measures

The following table summarizes the reconciliation of adjusted EBITDA to net income attributable to IIJ in our consolidated statements of income that are prepared in accordance with U.S. GAAP.

Adjusted EBITDA

3Q15

3Q16

Adjusted EBITDA

JPY millions

JPY millions

11,367

11,161

Depreciation and Amortization

(7,294)

(8,006)

Operating Income

4,073

3,155

Other Income

105

278

Income Tax Expense

1,697

1,466

Equity in Net Income of Equity Method Investees

207

69

Net income

2,688

2,036

Less: Net income attributable to noncontrolling interests

(115)

(126)

Net Income attributable to IIJ

2,573

1,910

CAPEX

3Q15

3Q16

CAPEX, including capital leases

JPY millions

JPY millions

12,211

12,258

Acquisition of Assets by Entering into Capital Leases

3,757

5,843

Purchase of Property and Equipment

8,454

6,415

Presentation

Presentation materials will be posted on our web site (http://www.iij.ad.jp/en/ir/) on February 8, 2017.

About Internet Initiative Japan Inc.

Founded in 1992, IIJ is one of Japan's leading Internet-access and comprehensive network solutions providers. IIJ and its group companies provide total network solutions that mainly cater to high-end corporate customers. IIJ's services include high-quality Internet connectivity services, systems integration, cloud computing services, security services and mobile services. Moreover, IIJ has built one of the largest Internet backbone networks in Japan that is connected to the United States, the United Kingdom and Asia. IIJ listed on the U.S. NASDAQ Stock Market in 1999 and on the First Section of the Tokyo Stock Exchange in 2006.

For inquiries, contact:

IIJ Investor Relations

Tel: +81-3-5205-6500 E-mail: ir@iij.ad.jp URL: http://www.iij.ad.jp/en/ir

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 and projections about its business and the industry. These forward-looking statements, such as statements regarding FY2016 revenues and operating and net profitability, are subject to various risks, uncertainties and other factors that could cause IIJ's actual results to differ materially from those contained in any forward-looking statement. These risks, uncertainties and other factors include: IIJ's ability to maintain and increase revenues from higher-margin services such as systems integration and outsourcing services; the possibility that revenues from connectivity services may decline substantially as a result of competition and other factors; the ability to compete in a rapidly evolving and competitive marketplace; the impact on IIJ's profits of fluctuations in costs such as backbone costs and subcontractor costs; the impact on IIJ's profits of fluctuations in the price of available-for-sale securities; the impact of technological changes in its industry; IIJ's ability to raise additional capital to cover its indebtedness; the possibility that NTT, IIJ's largest shareholder, may decide to exercise substantial influence over IIJ; and other risks referred to from time to time in IIJ's filings on Form 20-F of its annual report and other filings with the United States Securities and Exchange Commission.

Consolidated Balance Sheets (Unaudited)‌

(As of March 31, 2016 and December 31, 2016)

As of March 31, 2016

As of December 31, 2016

Thousands of JPY

Thousands of JPY

ASSETS

19,569,095

21,266,218

CURRENT ASSETS:

Cash and cash equivalents

Accounts receivable, net of allowance for doubtful accounts of JPY 74,229 thousand and JPY 82,175 thousand

at March 31, 2016 and December 31, 2016, respectively

23,746,683

23,701,119

Inventories

2,003,573

3,575,776

Prepaid expenses-current

4,769,988

7,180,146

Deferred tax assets-current

1,481,651

957,448

Other current assets, net of allowance for doubtful accounts of

JPY 15,693 thousand and JPY 15,193 thousand at March 31, 2016

and December 31, 2016, respectively

1,834,951

4,001,890

Total current assets

53,405,941

60,682,597

INVESTMENTS IN EQUITY METHOD INVESTEES

2,979,652

3,061,198

OTHER INVESTMENTS

5,948,741

7,310,426

PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization of JPY 45,345,543 thousand and JPY 49,000,397 thousand at March 31, 2016 and December 31, 2016, respectively

34,324,150

37,081,355

GOODWILL

6,169,609

6,169,609

OTHER INTANGIBLE ASSETS-Net

3,549,459

3,263,886

GUARANTEE DEPOSITS

3,084,681

3,029,012

DEFERRED TAX ASSETS-Noncurrent

224,316

171,150

NET INVESTMENT IN SALES-TYPE LEASES-Noncurrent

2,444,848

2,044,458

Prepaid expenses-Noncurrent

4,987,193

6,277,978

OTHER ASSETS, net of allowance for doubtful accounts of JPY 61,593 thousand and JPY 61,610 thousand

at March 31, 2016 and December 31, 2016, respectively

716,314

1,823,824

TOTAL

117,834,904

130,915,493

As of March 31, 2016

As of December 31, 2016

Thousands of JPY

Thousands of JPY

LIABILITIES AND SHAREHOLDERS' EQUITY

9,250,000

9,250,000

CURRENT LIABILITIES:

Short-term borrowings

Capital lease obligations-current portion

3,954,386

4,478,624

Accounts payable-trade

13,906,703

14,045,710

Accounts payable-other

1,497,767

899,852

Income taxes payable

1,078,412

310,920

Accrued expenses

2,932,653

2,932,400

Deferred income-current

2,528,885

2,629,239

Other current liabilities

917,300

1,671,891

Total current liabilities

36,066,106

36,218,636

LONG-TERM BORROWINGS

-

8,500,000

CAPITAL LEASE OBLIGATIONS-Noncurrent

7,779,367

9,531,762

ACCRUED RETIREMENT AND PENSION COSTS-Noncurrent

3,581,426

3,751,911

DEFERRED TAX LIABILITIES-Noncurrent

710,055

863,323

DEFERRED INCOME-Noncurrent

3,092,562

3,362,629

OTHER NONCURRENT LIABILITIES

1,261,413

2,921,230

Total Liabilities

52,490,929

65,149,491

COMMITMENTS AND CONTINGENCIES

25,509,499

25,509,499

SHAREHOLDERS' EQUITY:

Common-stock

-authorized, 75,520,000 shares; issued and outstanding, 46,711,400 shares at March 31, 2016 and December 31, 2016, respectively

Additional paid-in capital

36,059,833

36,102,931

Retained earnings

2,471,276

3,255,696

Accumulated other comprehensive income

1,196,669

1,673,124

Treasury stock -758,709 shares and 1,360,809 shares held by the company at March 31, 2016 and December 31, 2016, respectively

(392,070)

(1,374,177)

Total Internet Initiative Japan Inc. shareholders' equity

64,845,207

65,167,073

NONCONTROLLING INTERESTS

498,768

598,929

Total equity

65,343,975

65,766,002

TOTAL

117,834,904

130,915,493

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Unaudited) (For the nine months ended December 31, 2015 and December 31, 2016)

Nine Months Ended

Nine Months Ended

December 31, 2015

December 31, 2016

Thousands of JPY

Thousands of JPY

REVENUES:

12,870,620

16,461,205

Network services:

Internet connectivity services (enterprise)

Internet connectivity services (consumer)

10,707,905

15,902,952

WAN services

18,826,362

19,847,736

Outsourcing services

15,810,470

16,268,643

Total

58,215,357

68,480,536

Systems integration:

11,547,216

13,972,807

Systems construction

Systems operation and maintenance

24,374,157

25,885,221

Total

35,921,373

39,858,028

Equipment sales

2,364,695

2,207,649

ATM operation business

2,880,146

3,055,739

Total revenues

99,381,571

113,601,952

COSTS AND EXPENSES:

47,078,490

56,273,528

Cost of network services

Cost of systems integration

30,454,411

35,644,158

Cost of equipment sales

2,125,085

2,024,262

Cost of ATM operation business

1,930,186

1,830,095

Total costs

81,588,172

95,772,043

Sales and marketing

7,842,190

8,392,014

General and administrative

5,532,088

5,928,165

Research and development

345,878

354,411

Total costs and expenses

95,308,328

110,446,633

OPERATING INCOME

4,073,243

3,155,319

OTHER INCOME (EXPENSES):

88,248

106,336

Dividend income

Interest income

15,371

26,781

Interest expense

(170,762)

(218,204)

Foreign exchange gain (loss), net

(11,273)

(23,072)

Net gain on sales of other investments

23,765

213,938

Impairment of other investments

-

(30,554)

Other -net

159,048

202,486

Other income -net

104,397

277,711

INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE AND EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES

4,177,640

3,433,030

INCOME TAX EXPENSE

1,696,936

1,465,852

EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES

206,823

69,244

NET INCOME

2,687,527

2,036,422

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(114,704)

(126,161)

NET INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC.

2,572,823

1,910,261

Nine Months Ended

Nine Months Ended

December 31, 2015

December 31, 2016

NET INCOME PER SHARE

45,949,250

45,846,887

BASIC WEIGHTED-AVERAGE NUMBER OF SHARES (shares)

DILUTED WEIGHTED-AVERAGE NUMBER OF SHARES (shares)

46,039,920

45,962,442

BASIC WEIGHTED-AVERAGE NUMBER OF ADS EQUIVALENTS (ADSs)

91,898,500

91,693,774

DILUTED WEIGHTED-AVERAGE NUMBER OF ADS EQUIVALENTS (ADSs)

92,079,840

91,924,884

BASIC NET INCOME PER SHARE (JPY)

55.99

41.67

DILUTED NET INCOME PER SHARE (JPY)

55.88

41.56

BASIC NET INCOME PER ADS EQUIVALENT (JPY)

28.00

20.83

DILUTED NET INCOME PER ADS EQUIVALENT (JPY)

27.94

20.78

Quarterly Consolidated Statements of Comprehensive Income (Unaudited)

Nine Months Ended

Nine Months Ended

December 31, 2015

December 31, 2016

Thousands of JPY

Thousands of JPY

NET INCOME

2,687,527

2,036,422

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:

(74,544)

(455,158)

Foreign currency translation adjustments

Unrealized holding gain (loss) on securities

(85,123)

920,735

Defined benefit pension plans

(1,246)

10,878

TOTAL COMPREHENSIVE INCOME

2,526,614

2,512,877

LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(118,662)

(126,161)

COMPREHENSIVE INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC.

2,407,952

2,386,716

Internet Initiative Japan Inc.

Consolidated Statements of Cash Flows (Unaudited)

(For the nine months ended December 31, 2015 and December 31, 2016)

Nine Months Ended

Nine Months Ended

December 31, 2015

December 31, 2016

Thousands of JPY

Thousands of JPY

OPERATING ACTIVITIES:

2,687,527

2,036,422

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

7,293,768

8,006,049

Depreciation and amortization

Provision for retirement and pension costs, less payments

141,614

188,923

Provision for allowance for doubtful accounts

26,692

19,989

Gain on sales of property and equipment

(37,972)

(15,410)

Loss on disposal of property and equipment

37,345

54,481

Net gain on sales of other investments

(23,765)

(213,938)

Impairment of other investments

-

30,554

Foreign exchange gain, net

(24,118)

(277)

Equity in net income of equity method investees, less dividends received

(158,313)

(18,162)

Deferred income tax expense

308,241

349,735

Others

(12,709)

(51,716)

Changes in operating assets and liabilities:

1,985,303

(64,287)

Decrease (increase) in accounts receivable

Decrease (increase) in net investment in sales-type lease - noncurrent

(17,099)

400,390

Increase in inventories

(1,505,965)

(1,586,556)

Increase in prepaid expenses

(1,690,890)

(2,454,437)

Increase in other current and noncurrent assets

(1,297,325)

(4,534,405)

Increase (decrease) in accounts payable

(165,442)

160,327

Increase (decrease) in income taxes payable

10,500

(767,172)

Increase in accrued expenses

228,883

18,639

Increase in deferred income-current

405,211

140,038

Increase (decrease) in deferred income-noncurrent

(175,389)

302,157

Increase (decrease) in other current and noncurrent liabilities

(204,940)

2,406,335

Net cash provided by operating activities

7,811,157

4,407,679

INVESTING ACTIVITIES:

(8,454,171)

(7,940,090)

Purchase of property and equipment

Proceeds from sales of property and equipment

1,093,078

2,219,179

Purchase of available-for-sale securities

(59,490)

-

Purchase of other investments

(273,686)

(316,171)

Investment in an equity method investee

(39,974)

(99,000)

Proceeds from sales of available-for-sale securities

141,235

-

Proceeds from sales of other investments

804,236

534,249

Payments of guarantee deposits

(21,132)

(17,102)

Refund of guarantee deposits

9,040

87,704

Payments for refundable insurance policies

(42,272)

(42,385)

Refund from insurance policies

10,108

-

Proceeds from subsidies

200,000

200,000

Other

(678)

(15,000)

Net cash used in investing activities

(6,633,706)

(5,388,616)

Nine Months Ended

Nine Months Ended

December 31, 2015

December 31, 2016

Thousands of JPY

Thousands of JPY

FINANCING ACTIVITIES:

1,550,000

8,550,000

Proceeds from issuance of short-term borrowings with initial maturities over three months and long-term borrowings

Repayments of short-term borrowings with initial maturities over three months

(1,550,000)

(50,000)

Principal payments under capital leases

(3,039,877)

(3,534,887)

Proceeds from issuance of subsidiary stock to noncontrolling interests

3,692

-

Payments for purchase of treasury stock

-

(982,107)

Dividends paid

(1,010,844)

(1,125,841)

Other

10

(26,000)

Net cash provided by (used in) financing activities

(4,047,019)

2,831,165

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

9,673

(153,105)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(2,859,895)

1,697,123

CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD

21,093,633

19,569,095

CASH AND CASH EQUIVALENTS, END OF THE PERIOD

18,233,738

21,266,218

ADDITIONAL CASH FLOW INFORMATION:

170,903

217,414

Interest paid

Income taxes paid

1,392,230

1,961,521

NONCASH INVESTING AND FINANCING ACTIVITIES:

3,757,319

5,842,869

Acquisition of assets by entering into capital leases

Facilities purchase liabilities

905,351

899,852

Asset retirement obligation

7,349

-

Going Concern Assumption (Unaudited)

Nothing to be reported.

Material Changes In Shareholders' Equity (Unaudited)

Nothing to be reported.

Segment Information (Unaudited)

Nine Months Ended December 31, 2015

Nine Months Ended December 31, 2016

Thousands of JPY

Thousands of JPY

Network service and systems integration business

96,789,223

110,830,849

Customers

96,501,425

110,546,213

Intersegment

287,798

284,636

ATM operation business

2,880,146

3,055,739

Customers

2,880,146

3,055,739

Intersegment

-

-

Elimination

(287,798)

(284,636)

Consolidated total

99,381,571

113,601,952

Business Segments: Revenues:

Segment profit or loss:

Nine Months Ended December 31, 2015

Nine Months Ended December 31, 2016

Thousands of JPY

Thousands of JPY

Network service and systems integration business

3,356,483

2,177,784

ATM operation business

818,647

1,088,056

Elimination

(101,887)

(110,521)

Consolidated operating income

4,073,243

3,155,319

Geographic information is not presented due to immateriality of revenue attributable to international operations.

Subsequent Events (Unaudited)

Nothing to be reported.

Third Quarter FY2016 Consolidated Financial Results (3 months)

The following tables are highlight data of 3rd Quarter FY2016 (3 months) consolidated financial results (unaudited, for the three months ended December 31, 2016).

Operating Results Summary

3Q15

3Q16

YoY %

Change

Total Revenues:

JPY millions

JPY millions

16.0

34,048

39,479

Network Services

20,216

23,645

17.0

Systems Integration (SI)

12,196

14,090

15.5

Equipment Sales

726

741

2.0

ATM Operation Business

910

1,003

10.3

Cost of Revenues:

27,962

33,497

19.8

Network Services

16,577

19,558

18.0

Systems Integration (SI)

10,114

12,651

25.1

Equipment Sales

645

681

5.6

ATM Operation Business

626

607

(3.1)

SG&A Expenses and R&D

4,576

4,774

4.3

Operating Income

1,510

1,208

(20.0)

Income before Income Tax Expense

1,531

1,328

(13.3)

Net Income attributable to IIJ

920

802

(12.8)

Network Service Revenue Breakdown

3Q15

3Q16

YoY %

Change

Internet Connectivity Service (Enterprise)

JPY millions

JPY millions

30.4

4,514

5,884

IP Service*1

2,446

2,457

0.5

IIJ FiberAccess/F and IIJ DSL/F

771

762

(1.2)

IIJ Mobile Service

1,228

2,608

112.4

IIJ Mobile MVNO Platform Service*2

584

1,784

205.7

Others

69

57

(17.8)

Internet Connectivity Service (Consumer)

4,111

5,575

35.6

IIJ

3,491

5,064

45.0

IIJmio Mobile Service*3

3,031

4,402

45.2

hi-ho

620

511

(17.6)

WAN Services

6,269

6,559

4.6

Outsourcing Services

5,322

5,627

5.7

Network Services Revenues

20,216

23,645

17.0

*1 IP service revenues include revenues from the data center connectivity service.

*2 From 1Q16, the revenue from "IIJ Mobile MVNO Platform Service", which is included in "IIJ Mobile service (Enterprise), " is disclosed. "IIJ Mobile MVNO Platform Service" provides MVNO platform to our MVNE clients.

*3 From 1Q16, the revenue from "IIJmio Mobile Service" (formerly known as "IIJmio High Speed Mobile Service" until September 30, 2016), which is included in "Internet connectivity services (Consumer)" provided by IIJ, is disclosed.

- 17 -

IIJ 3Q FY2016

Reconciliation of Non-GAAP Financial Measures (3rd Quarter FY2016 (3 months))

The following table summarizes the reconciliation of adjusted EBITDA to net income in our consolidated statements of income that are prepared in accordance with U.S. GAAP.

Adjusted EBITDA

3Q15

3Q16

Adjusted EBITDA

JPY millions

JPY millions

4,004

3,930

Depreciation and Amortization

(2,494)

(2,722)

Operating Income

1,510

1,208

Other Income

21

120

Income Tax Expense

657

512

Equity in Net Income of Equity Method Investees

69

27

Net income

943

843

Less: Net income attributable to noncontrolling interests

(23)

(41)

Net Income attributable to IIJ

920

802

The following table summarizes the reconciliation of capital expenditures to the purchase of property and equipment in our consolidated statements of cash flows that are prepared and presented in accordance with U.S. GAAP.

CAPEX

3Q15

3Q16

CAPEX, including capital leases

JPY millions

JPY millions

4,268

3,886

Acquisition of Assets by Entering into Capital Leases

1,135

2,051

Purchase of Property and Equipment

3,133

1,835

- 18 -

IIJ 3Q FY2016

Internet Initiative Japan Inc.

Quarterly Consolidated Statements of Income and

Quarterly Consolidated Statements of Comprehensive Income (Unaudited)

(Three Months ended December 31, 2015 and December 31, 2016)

Three Months Ended

Three Months Ended

December 31, 2015

December 31, 2016

Thousands of JPY

Thousands of JPY

REVENUES:

4,513,952

5,884,331

Network services:

Internet connectivity services (enterprise)

Internet connectivity services (consumer)

4,111,346

5,574,632

WAN services

6,268,555

6,559,024

Outsourcing services

5,321,941

5,626,783

Total

20,215,794

23,644,770

Systems integration:

3,904,016

5,389,388

Systems construction

Systems operation and maintenance

8,291,772

8,700,314

Total

12,195,788

14,089,702

Equipment sales

726,672

740,991

ATM operation business

909,583

1,003,219

Total revenues

34,047,837

39,478,682

COST AND EXPENSES:

16,577,185

19,558,238

Cost of network services

Cost of systems integration

10,113,828

12,651,235

Cost of equipment sales

644,961

681,145

Cost of ATM operation business

626,050

606,601

Total costs

27,962,024

33,497,219

Sales and marketing

2,676,708

2,756,066

General and administrative

1,785,263

1,907,809

Research and development

113,684

109,971

Total costs and expenses

32,537,679

38,271,065

OPERATING INCOME

1,510,158

1,207,617

OTHER INCOME (EXPENSE):

14,040

14,929

Dividend income

Interest income

4,259

8,263

Interest expense

(59,202)

(75,859)

Foreign exchange gain (loss), net

2,793

82,844

Net gain on sales of other investments

23,765

-

Other-net

34,870

89,881

Other income -net

20,525

120,058

INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE AND EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES

1,530,683

1,327,675

INCOME TAX EXPENSE

657,051

512,174

EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES

69,422

27,598

NET INCOME

943,054

843,099

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(22,730)

(40,772)

NET INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC.

920,324

802,327

Three Months Ended

Three Months Ended

December 31, 2015

December 31, 2016

NET INCOME PER SHARE

45,952,691

45,636,429

BASIC WEIGHTED-AVERAGE NUMBER OF

SHARES (shares)

DILUTED WEIGHTED-AVERAGE NUMBER

OF SHARES (shares)

46,048,049

45,758,296

BASIC WEIGHTED-AVERAGE NUMBER OF ADS EQUIVALENTS (ADSs)

91,905,382

91,272,858

DILUTED WEIGHTED-AVERAGE NUMBER OF ADS EQUIVALENTS (ADSs)

92,096,098

91,516,592

BASIC NET INCOME PER SHARE (JPY)

20.03

17.58

DILUTED NET INCOME PER SHARE (JPY)

19.99

17.53

BASIC NET INCOME PER ADS EQUIVALENT (JPY)

10.01

8.79

DILUTED NET INCOME PER ADS EQUIVALENT (JPY)

9.99

8.77

Quarterly Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended

Three Months Ended

December 31, 2015

December 31, 2016

Thousands of JPY

Thousands of JPY

NET INCOME

943,054

843,099

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:

(95,236)

(45,068)

Foreign currency translation adjustments

Unrealized holding gain (loss) on securities

90,452

469,974

Defined benefit pension plans

(415)

3,626

TOTAL COMPREHENSIVE INCOME

937,855

1,271,631

LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(22,730)

(40,772)

COMPREHENSIVE INCOME ATTRIBUTABLE TO INTERNET INITIATIVE JAPAN INC.

915,125

1,230,859

Internet Initiative Japan Inc.

Quarterly Consolidated Statements of Cash Flows (Unaudited)

(Three Months ended December 31, 2015 and December 31, 2016)

Three Months Ended

Three Months Ended

December 31, 2015

December 31, 2016

Thousands of JPY

Thousands of JPY

OPERATING ACTIVITIES:

943,054

843,099

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

2,493,478

2,722,545

Depreciation and amortization

Provision for retirement and pension costs, less payments

71,204

66,477

Provision for allowance for doubtful accounts

3,380

14,856

Gain on sales of property and equipment

(17,030)

(7,706)

Loss on disposal of property and equipment

5,493

18,825

Net gain on sales of other investments

(23,765)

-

Foreign exchange gain, net

(25,102)

(83,375)

Equity in net income of equity method investees, less dividends received

(69,422)

(27,598)

Deferred income tax expense

190,568

66,553

Other

2,337

(46,536)

Changes in operating assets and liabilities:

(179,928)

(560,123)

Increase in accounts receivable

Decrease (increase) in net investment in sales-type lease - noncurrent

(13,836)

101,218

Increase in inventories

(676,714)

(874,042)

Increase in prepaid expenses

(523,982)

(1,046,904)

Increase in other current and noncurrent assets

(1,012,756)

(2,849,833)

Increase (decrease) in accounts payable

187,324

(357,834)

Decrease in income taxes payable

(289,427)

(174,286)

Increase in accrued expenses

68,502

65,056

Increase in deferred income-current

191,119

92,031

Increase (decrease) in deferred income-noncurrent

(111,647)

178,857

Increase in other current and noncurrent liabilities

518,229

2,193,546

Net cash provided by operating activities

1,731,079

334,826

INVESTING ACTIVITIES:

(3,132,977)

(2,581,985)

Purchase of property and equipment

Proceeds from sales of property and equipment

603,115

1,009,711

Purchase of other investments

(26,704)

(29,113)

Investment in an equity method investee

-

(99,000)

Proceeds from sales of other investments

501,330

229,707

Payments of guarantee deposits

(4,070)

(2,699)

Refund of guarantee deposits

4,722

10,228

Payments for refundable insurance policies

(14,091)

(14,204)

Other

-

(15,000)

Net cash used in investing activities

(2,068,675)

(1,492,355)

Three Months Ended

Three Months Ended

December 31, 2015

December 31, 2016

Thousands of JPY

Thousands of JPY

FINANCING ACTIVITIES:

50,000

5,550,000

Proceeds from issuance of short-term borrowings with initial maturities over three months and long-term borrowings

Repayments of short-term borrowings with initial maturities over three months

(50,000)

(50,000)

Principal payments under capital leases

(1,020,122)

(1,221,124)

Proceeds from issuance of subsidiary stock to noncontrolling interests

3,692

-

Payments for purchase of treasury stock

-

(982,107)

Dividends paid

(505,479)

(620,361)

Net cash used in financing activities

(1,521,909)

2,676,408

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

(5,226)

79,517

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(1,864,731)

1,598,396

CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD

20,098,469

19,667,822

CASH AND CASH EQUIVALENTS, END OF THE PERIOD

18,233,738

21,266,218

Note: The following information is provided to disclose Internet Initiative Japan Inc. ("IIJ") financial results (unaudited) for the nine months ended December 31, 2016 ("3Q16") in the form defined by the Tokyo Stock Exchange.

Consolidated Financial Results for the Nine Months ended December 31, 2016 [Under accounting principles generally accepted in the United States ("U.S. GAAP")]

February 8, 2017

Company name: Internet Initiative Japan Inc. Exchange listed: Tokyo Stock Exchange First Section Stock code number: 3774

URL: http://www.iij.ad.jp/

Representative: Eijiro Katsu, President and Representative Director Contact: Akihisa Watai, Managing Director and CFO

TEL: (03) 5205-6500

Scheduled date for filing of quarterly report (Shihanki -houkokusho) to Japan's regulatory organization: February 14, 2017 Scheduled date for dividend payment: -

Supplemental material on annual results: Yes

Presentation on quarterly report: Yes (for institutional investors and analysts)

(Amounts of less than JPY one million are rounded)

  1. Consolidated Financial Results for the Nine Months ended December 31, 2016 (April 1, 2016 to December 31, 2016)

  2. Consolidated Results of Operations (% shown is YoY change)

    Total revenues

    Operating income

    Income before income tax expense

    Net income attributable to IIJ

    Nine Months Ended December 31, 2016

    JPY millions

    %

    JPY millions

    %

    JPY millions

    %

    JPY millions

    %

    113,602

    14.3

    3,155

    (22.5)

    3,433

    (17.8)

    1,910

    (25.8)

    Nine Months Ended December 31, 2015

    99,382

    13.1

    4,073

    7.6

    4,178

    7.4

    2,573

    11.2

    (Note1) Total comprehensive income attributable to IIJ

    For the nine months ended December 31, 2016: JP2,387 million (down 0.9% YoY) For the nine months ended December 31, 2015: JPY2,408 million (up 3.7% YoY)

    (Note2) Income before income tax expense represents income from operations before income tax expense and equity in net income in equity method investees, respectively, in IIJ's consolidated financial statements.

    Basic net income attributable to IIJ per share

    Diluted net income attributable to IIJ per share

    Nine Months Ended December 31, 2016

    JPY

    JPY

    41.67

    41.56

    Nine Months Ended December 31, 2015

    55.99

    55.88

  3. Consolidated Financial Position

  4. Total assets

    Total equity

    Total IIJ shareholders' equity

    Total IIJ shareholders' equity to total assets

    As of December 31, 2016

    JPY millions

    JPY millions

    JPY millions

    %

    130,915

    65,766

    65,167

    49.8

    As of March 31, 2016

    117,835

    65,344

    64,845

    55.0

  5. Dividends

    Dividend per Shares

    1Q-end

    2Q-end

    3Q-end

    Year-end

    Total

    Fiscal Year Ended March 31, 2016

    JPY

    JPY

    JPY

    JPY

    JPY

    -

    11.00

    -

    11.00

    22.00

    Fiscal Year Ended March 31, 2017

    -

    13.50

    -

    Fiscal Year Ending March 31, 2017 (forecast)

    13.50

    27.00

    (Note) Change from the latest released dividend forecasts: No.

  6. Target of Consolidated Financial Results for the Fiscal Year Ending March 31, 2017

  7. (April 1, 2016 through March 31, 2017) (% shown is YoYchange)

    Total Revenues

    Operating Income

    Income before Income Tax Expense (Benefit)

    Net Income attributable to IIJ

    Basic Net Income attributable to IIJ per Share

    Fiscal Year Ending March 31, 2017

    JPY

    millions

    %

    JPY

    millions

    %

    JPY

    millions

    %

    JPY

    millions

    %

    JPY

    158,000

    12.3

    5,000

    (18.6)

    5,100

    (17.7)

    3,000

    (25.7)

    65.71

    (Note1) Changes from the latest forecasts released: No

    * Notes

    1. Changes in significant subsidiaries for the nine months ended December 31, 2016

      (Changes in significant subsidiaries for the nine months ended December 31, 2016 which resulted in changes in scope of consolidation): None

    2. Application of simplified or exceptional accounting: No

    3. Changes in significant accounting and reporting policies for the consolidated financial statements

    4. Changes due to the revision of accounting standards: No

    5. Others: No

    6. Number of shares outstanding (shares of common stock)

    7. The number of shares outstanding (inclusive of treasury stock): As of December 31, 2016: 46,711,400 shares

      As of March 31, 2016: 46,711,400 shares

    8. The number of treasury stock:

      As of December 31, 2016: 1,360,809 shares

      As of March 31, 2016: 758,709 shares

    9. The weighted average number of shares outstanding:

      For the nine months ended December 31, 2016: 45,846,887 shares For the nine months ended December 31, 2015: 45,949,250 shares

    10. Regarding the basic net income attributable to IIJ per share and the repurchase of own shares:

    11. The basic net income attributable to IIJ per share for the fiscal year ending March 31, 2017 disclosed in this document was calculated by taking the repurchase of own shares into consideration. (Period of repurchase: from November 7, 2016 to January 31, 2017, total number of shares repurchased: 892,200 shares, total amount repurchased: JPY1,499,933 thousand.)

    IIJ - Internet Initiative Japan Inc. published this content on 08 February 2017 and is solely responsible for the information contained herein.
    Distributed by Public, unedited and unaltered, on 08 February 2017 03:11:08 UTC.

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