Consolidated Financial Results for FY2020 slide image

Consolidated Financial Results for FY2020

Systems Integration (SI) Appendix Offer Sl as a cross selling element to fully meet Japanese enterprise' IT needs Sl clients are companies already using our network services Do not depend on particular industry to generate revenue, just like the overall customer portfolio, because IIJ offers systems needed by any industry like Office IT. ➤ Most of SI projects are Internet related such as Office IT, online service platforms, large-scale website, etc. Internal system and/or large-scale application development, main frame related projects are covered by legacy system integrators Sometimes co-work with legacy Sler on large-scale projects in which they cover application development part and IIJ covers Internet related system construction Business Model Revenue • Cost Construction (one-time): recorded upon constructed system is received by a client. Operation and Maintenance (recurring): systems constructed by IIJ will be operated and maintained by IIJ as well • Profit • • Each SI project's cost differ. Make estimate for each project ✓ Costs are consisted of purchasing, outsourcing personnel, personnel, and depreciation and amortization SI profitability to improve as we accumulate the revenue of operation and maintenance, which profitability is higher than construction profitability Construction profitability is lower because of bidding process etc. Internet Initiative Japan Inc. 58
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