Consolidated Financial Results for 1Q22
(April 1, 2022 to June 30, 2022)
Internet Initiative Japan Inc. (IIJ)
The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774)
August 5, 2022
Disclaimer
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 about its business and the industry. These forward-looking statements, such as statements regarding revenues, 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.
© Internet Initiative Japan Inc.
Outline
Ⅰ . Summary of 1Q22 | P. 2 |
Ⅱ. Consolidated Financial Results for 1Q22 | P. 3 - 16 |
Ⅲ. Service & Business Developments etc. | P. 17 - 19 |
Appendix | P. 20 - 30 |
• FY22(FY2022) means a fiscal year ending March 31, 2023. Others alike
© Internet Initiative Japan Inc. | 1 |
Ⅰ . Summary of 1Q22
Unit: ¥ (JPY) billion (bn) +/-. %, YoY = Year over year comparison Net Profit is "Profit for the period attributable to owners of the parent"
FY22 started as planed from 1Q Strong demands for NW Services continued Revenues ¥58.19 bn +9.8% Operating Profit ¥5.03 bn +15.3%
Acquired and accumulated multi-year-fixed contracts NW replacement and other projects that are to make revenue contribution from 2Q. Stronger than expected SI construction order-received
As enterprise network becoming advanced and complex, opportunities to propose and acquire such projects that require NW services & SI visibly increasing in the recent years
Revenues | Gross Profit | Operating Profit |
Network Service
Mobile
SI
Equity method investee
DeCurret Stock Split
Following 4Q21 momentum, acquired multi-year-fixed contracts such as NW replacement Total contracted revenue: ¥3.5 bn (9 projects, 3-5 years)
- Acquired projects such as security-related projects for enterprises, construction of governmental information platform system, enhancement of Internet gateway for large financial institution and others
- Cloud connectivity service "IIJ Private Backbone Service/Smart HUB" launched in June 2022 to further enhance overall network service lineups
- 1Q22 IP and WAN service revenues slightly decreased QoQ as expected mainly because a certain large project's initial revenue concentrated in 4Q21
Consumer: Customer acquisition pace improved under changing competitive landscape. Stronger than expected start
Enterprise: Revenue and subscription to grow by continuously accumulating IoT usages such as for network cameras
- 1Q22-endtotal mobile subs: 3,616 thousand (+118 thousand QoQ) of which, consumers +36 thousand QoQ (4Q21-end +17 thousand QoQ), of which enterprise mobile (excl. MVNE) +83 thousand QoQ
- Strategy to offer value-added solutions such as multi-carrier (mobile carriers redundancy) and eSIM for back-up has been successful and attracting users
Started with strong demand Construction: Order-received +23.1%, Order backlog +40.7%
Preparation for the service launch: Granted a patent for "Two-tiered Digital Currency Platform" and executing various PoCs
Scheduled to conduct a stock split at a ratio of two-for-one with an effective date of October 1, 2022
© Internet Initiative Japan Inc. | 2 |
Ⅱ- 1. Consolidated Financial Results
Unit: ¥ (JPY) billion YoY = Year over year comparison
% of revenue | % of revenue | % of revenue | % of revenue | |||||||
1Q22 | 1Q21 | YoY | FY2022 1H | YoY | FY2022 | YoY | ||||
Results | Results | Targets | Targets | |||||||
(Announced in May 2022) | (Announced in May 2022) | |||||||||
Apr. 2022 - June 2022 | Apr. 2021 - June 2021 | Apr. 2022 - Sep. 2022 | Apr. 2022 - Mar. 2023 | |||||||
Revenues | 58.19 | 52.97 | +9.8% | +5.22 | 117.0 | +7.3% | +7.95 | 250.0 | +10.5% | +23.66 |
78.2% | 78.4% | 77.7% | 76.9% | |||||||
Cost of Revenues | 45.49 | 41.55 | +9.5% | +3.94 | 90.9 | +5.7% | +4.93 | 192.2 | +10.0% | +17.49 |
21.8% | 21.6% | 22.3% | 23.1% | |||||||
Gross Profit | 12.70 | 11.43 | +11.1% | +1.27 | 26.1 | +13.1% | +3.01 | 57.8 | +12.0% | +6.17 |
13.2% | 13.3% | 13.2% | 12.2% | |||||||
SG&A etc. | 7.67 | 7.07 | +8.6% | +0.61 | 15.4 | +11.7% | +1.62 | 30.6 | +9.0% | +2.52 |
8.6% | 8.2% | 9.1% | 10.9% | |||||||
Operating Profit | 5.03 | 4.36 | +15.3% | +0.67 | 10.7 | +15.0% | +1.40 | 27.2 | +15.5% | +3.65 |
11.4% | 10.1% | 8.8% | 10.5% | |||||||
Profit before tax | 6.62 | 5.35 | +23.8% | +1.27 | 10.3 | (1.3%) | (0.13) | 26.3 | +8.8% | +2.14 |
7.5% | 6.6% | 5.8% | 7.0% | |||||||
Net Profit | 4.39 | 3.51 | +25.2% | +0.88 | 6.8 | (1.3%) | (0.09) | 17.5 | +11.7% | +1.83 |
- SG&A etc. represents the sum of SG&A, which includes R&D expenses, and other income/expenses
- Net profit is "Profit for the period/year attributable to owners of the parent"
© Internet Initiative Japan Inc. | 3 |
Ⅱ- 2. Year over Year Analysis
Unit: ¥ (JPY) billion (bn) GP = Gross Profit YoY = Year over year comparison
Revenues
1Q21 | +5.22 | 1Q22 |
52.97 | 58.19 | |
- NW services (excl. Mobile) revenues are calculated by deducting the below mentioned Mobile services revenues from total NW services revenues. The revenues include non-mobile consumer revenue which is a small amount
- Mobile services revenues include IIJ Mobile Services (including MVNE) and IIJmio (consumer mobile)
Operating Profit
1Q21
4.36
+0.67 | 1Q22 |
5.03 | |
NW services (excl. Mobile) contributed for about a little less than +¥1 billion YoY gross margin increase
• SG&A etc. in this slide represents the sum of SG&A, which includes R&D expenses, and other income/expenses | 4 |
© Internet Initiative Japan Inc. |
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IIJ - Internet Initiative Japan Inc. published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 03:50:06 UTC.