Consolidated Financial Results for FY2020
Services and Business Developments
IP service revenue growth rate accelerating
Triggered by expansion of IT usages, in/out enterprises'
Internet traffic is increasing. Higher bandwidth by
enterprises is to continue
bn = billion
(*) Based on IFRS except for FY16 (U.S.GAAP)
Financials
Accumulating large scale projects by cross-selling NW&SI
Meeting enterprise NW systems that are becoming more
complexed and diversified with in-house developed NW
services and SI
Received a multiple year project (total revenue ¥5.4 bn)
Backup, BCR
East Japan
region
West Japan
region
Number of
791
769
contracts for
743
greater or equi
709
690
to 1Gbps as of
40-end
9.77
10.14
10.57
Revenues
(+1.0%)
(+3.8%)
(+4.2%)
10.70
(+1.2%)
12.17
(+13.7%)
II multi product
Controller service
Internet
Future expansion
3.18
Web Security
Internet Gateway
(unit: \bn)
2.44
2.55
2.65
2.71
Sandbox
Firewall
04Q
3.14
2.46
2.56
2.71
2.68
AWS
GCP
Unified Operation Mngt. (UOM)
Security operation center
3Q
Multi-Cloud
2.47
2.51
2.63
2.68
2.97
20
10
2.40
2.49
2.58
2.63
2.88
Private WAN
(Carrier B)
Public servers
Security for
II] Backbone
public severs
IIJ Omnibus
IIJ Omnibus
Closed WAN
(Carrier A)
Mobile WAN
200
II C-SOC
FY16
FY17
FY18
FY19
FY20
Close network
IIJ GIO
•
IP service is bandwidth guaranteed dedicated Internet connectivity services for
enterprises. Contracts are based on bandwidth and enterprises use the service for
their core and main Internet connectivity
IP service revenue is 100% recognized in Internet connectivity services (Enterprise)
Overseas business
FY20: Revenue ¥8.32 bn, Operating Profit ¥0.38 bn
➤ Due to the COVID-19 pandemic, weak SI revenue, accumulate recurring
revenues such as NW services
➤ Along with service accumulation and cost control, profit grew
Plan to enhance ASEAN business with M&A of prominent
Singaporean Sler
➤ PTC SYSTEM (S) a new consolidated subsidiary (Apr. 2021)
Acquisition price: SGD44 million
➤ Most recent earnings (preliminary) Revenues: SGD100.4 million, Profit
before tax: SGD5.1 million
FY21 Target: Revenue ¥18 bn, Operating Profit ¥0.9 bn
(approx.)
➤ Amid the ongoing uncertainty under the COVID-19 pandemic, expect to
have group synergy with PTC and accumulation of recurring revenue
such as global SASE services
DeCurret
11J mobile
1J mobile
Client's branches (overseas)
Client's branches (over 100)
Client's datacenter
IIJ mabile
Raised funds (Mar. 2021) by ¥6.7 bn to set up digital currency
business and enhance partnership (IIJ invested ¥2 bn)
➤ New shareholders: NTT, SBI HD, Japan Post Bank, Mitsubishi Corp.
SECOM
➤ Former head of FSA, Mr. Endo, became DeCurret's special advisor
Equity in net loss of DeCurret (unit: \ million)
4Q19
403
1Q20
306
2Q20 3Q20 4Q20
273 207 193
➤ Along with transaction increase, loss is gradually
diminishing, Started offering order book trading
services which show competitive pricing
- expect to start up cryptocurrency trading business
FY21 Target: turned positive in 4Q
•
Other than left, in
4Q20, gain on
changes in equity
of ¥349 million
arisen from the
issuance of
common stock is
recognized
➤Will use 38.2% to calculate equity in net profit (loss) of DeCurret
O Internet Initiative Japan Inc.
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