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Investor Presentaiton

IV-2. Service & Business Developments Security largely growing with ongoing strong demands Security Services (recurring) revenue In addition to conventional services such as Mail and Web security services which we have been providing since the 2000s, SOC (Security Operation Center) and SASE services are also contributing to the strong revenue growth 6.07 Unit: (JPY) billion % Year over year comparison Acquired several large projects requiring both NW &SI Meeting demands for enterprise NW systems that are becoming more complexed and diversified with in- house developed NW services and SI SecureMX Mail security Web security IIJ UOM Service System monitoring & operation Secure Web Gateway CASB main IIJ C-SOC SOC MVISIO INA Shadow IT visualization & control INA Remote VPN Connec for Test environment MFW DR HIJ GIO Production environment MFW IN GIO DLP DNS/Web/Log MFW HUGIO DLP DNS/Web/Lo PVA AWS Microsoft Azure DNS/Web/Log PVA Cloud hub laaS DR (Western Japan region) 9999) laaS production environment (Eastern Japan region) goog Carrier redundancy laaS test (Eastern Japan region) I 4.38 ! 5.04 (+18.2%) 4.82 4.56 4.66 (+15.0%) (+11.9%) (+13.1%) (+12.0%) (+13.5%), 5.72 (+25.9%) 5.39 (+22.7%) Microsoft 365 Internet INA I FY20: 18.42 (+12.7%) FY21: 22.22 (+20.6%) AD FW(FG MVP/SW Closed network MVP/SW FW(FG) • Total Security Business (Services + SI) 1Q20 2Q20 3Q20 4Q20 5.01 5.30 5.44 5.72 1Q21 2Q21 3Q21 4Q21 5.73 6.19 6.48 7.05 FY21: 25.44 (+18.5%) FW(PA) Internal system DC (Disaster Recovery Site) SW Branch offices FY20:21.47 (+12.0%) Security service revenue (recurring) is 100% recognized in Outsourcing services Security services is a general term for individual security service such as mail security, firewall, Web filtering, DDoS protection, SOC service, Endpoint (EDR) and SASE SASE (Secure Access Service Edge) is a concept to shift controls of network and security on the route to Cloud services to enable secure access from any points, instead of the conventional centralized management through headquarters or data centers FY21 Security Service Revenue Breakdown Mail Full-outsourcing of mail systems, protected delivery/anti-threat email, sandboxing, etc. DDoS protection, IPS/IDS, WAF etc. Full-outsource of web security, URL filtering etc Others 7% FW 12% Mail 31% Network Web Web GW Gateway 20% Network 29% FW Managed firewall services, Anomaly detection etc Others SOC etc. FW PA) Internal system DC Outside of office Internet IIJ Private Backbone Services CASB Secure Web Gateway SWG bypass Unified Operation and Maintenance FW Cloud proxy HIJ GIO IIJ Private Backbone Service IUJ GIO Citrix Cloud for Azure Virtual Desktop(CTX) Boarder FW Azure Citrix Cloud Closed Connectivity (carrier redundancy) FW VPN equipment DC HQ/ branch offices Internet Initiative Japan Inc. 19
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