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Investor Presentaiton

V. Financial Targets for FY22 (1) % of Revenues FY22 Targets (Apr. 2022 Mar. 2023) % of Revenues FY21 Results (Apr. 2021 Mar. 2022) Unit: (JPY) billion (bn) YoY Year over year comp % of Revenues YOY FY22 1H Target (Apr. 2022 Sep. 2022) YOY Revenues Gross Profit SG&A etc. 250.0 23.1% 57.8 12.2% 30.6 226.3 +10.5% +23.7 117.0 +7.3% +7.9 22.8% 22.3% 51.6 +12.0% +6.2 26.1 +13.1% +3.0 12.4% 13.2% 28.1 +9.0% +2.5 15.4 +11.7% +1.6 10.9% 10.4% 9.1% Operating Profit 27.2 23.5 +15.5% +3.7 10.7 +15.0% +1.4 Shares of profit (loss) of investments accounted for using equity method investees (0.4) (2.3) +19.3 (0.2) +2.0 10.7% 8.8% Profit before tax +8.8% +2.1 10.3 (1.3%) -0.1 6.9% 5.8% Net Profit 15.7 +11.7% +1.8 6.8 (1.3%) -0.1 NW services (excluding mobile) Mobile SI ATM 10.5% 26.3 7.0% 17.5 Assumption for Revenue Accelerate with large-scale NW replacement projects in addition to strong revenue accumulation trend following FY21 While enterprise mobile to largely grow, total mobile revenue to decrease by \0.5 bn or slightly more as migration to cheaper new plan (GigaPlans) continues etc. Increase with demands for NW integration & large-scale NW replacement projects requiring both NW services and SI etc. Same level as FY21 24.2 Assumption for Gross Profit Structurally and continuously expand with revenue growth Smaller than FY21 profit as no onetime impact upon the unit charge finalization is taken into consideration (in FY21, we had approx. ¥1.08 bn of profit contribution) & onetime profit related to voice-purchasing cost down impact would be smaller in FY22 Increase as Sl revenue volume to expand and gross margin to slightly improve • • • Other assumptions SG&As: increase due to enhanced recruitment & promotion Share of loss of investments accounted for using equity method investees to be smaller as DeCurret related loss would be smaller (Plan: DeCurret's loss to be around \0.7 bn) Net addition of employees: approx. 290 including 178 newly graduates CAPEX: approx. ¥21.5 bn including approx. ¥5.0 bn for Shiroi DC 2nd site • Same level as FY21 Internet Initiative Japan Inc. SG&A etc. shows the sum of SG&A, which includes R&D expenses, and other income/expenses Net profit is "Profit for the year attributable to owners of the parent❞ 21 24
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