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Investor Presentaiton

III - 6. Systems Integration (SI) (2) Cost of Revenues Purchasing costs (Equipment etc.) Outsourcing-related costs (SI-related outsourcing personnel costs etc.) Others Network operation-related costs (Depreciation cost such as for cloud facility, data center leasing cost etc.) Personnel-related costs (SI-related engineers' personnel cost) FY20: 71,197 [+5.3%] FY21: 80,396 [+12.9%] 16,884 16,506 18,282 19,525 17,960 20,380 20,529 21,527 5,460 5,064 5,324 4,742 5,371 3,538 4,141 3,056 7,513 7,501 6,880 5,813 6,223 6,324 6,751 6,888 1,590 1,680 1,483 2,978 2,951 2,922 2,801 1,891 1,917 2,755 2,154 2,517 2,739 2,754 2,943 2,971 2,469 2,686 2,614 2,711 2,861 2,907 2,865 2,843 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Number of SI-related outsourcing personnel 1Q20- 2Q20- 3Q20- 4Q20- 1Q21- 2Q21- end end end end end end 1,094 1,181 1,236 1,270 1,244 1,300 (unit: personnel) 3Q21- 4Q21- end end 1,302 1,319 Unit: (JPY) million [ ], YoY = Year over year comparison ➤ Cost of revenues related to PTC is mainly recognized in purchasing costs, outsourcing-related costs and personnel related costs • 1Q: ¥1.16 billion, 2Q: ¥2.16 billion, 3Q: ¥1.39 billion, 4Q: ¥1.41 billion (FY21: ¥6.12 billion) ➤ 4Q21 gross profit ratio increased mainly because the ratio of purchasing cost to the systems construction revenue was small ➤ Others increased mainly due to an increase in license costs along with expansion of multi-cloud demands ➤ No significant increase in network operation-related costs Internet Initiative Japan Inc. 11
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