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Investor Presentaiton

II - 8. SG&A Research & development expenses Commission expenses Others Personnel expenses ( ) % of total revenues Unit: (JPY) million [ ], YoY Year over year comparison FY20: 25,491 [+5.9%] 6,049 6,075 6,204 7,163 (12.0%) (11.8%) (11.4%) (12.6%) FY21: 27,969 [+9.7%] 7,083 6,707 6,704 7,476 (13.4%) (12.0%) (11.9%) (12.3%) 127 139 125 124 130 111 110 112 1,164 1,012 1,491 979 846 880 850 833 2,902 2,519 2,668 2,683 2,474 2,388 2,596 2,993 2,584 2,727 2,663 2,867 3,043 3,086 3,060 3,175 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Other than as provided to the left, we had ¥0.11 billion of expenses, as other income/expenses (net) in FY21 (FY20: ¥0.54 billion of expenses) Of which, FY21 disposal loss on fixed assets was ¥0.22 billion (FY20: ¥0.64 billion) ➤ Research & development expenses mainly consist of personnel expenses of IIJ Innovation Institute, a wholly owned subsidiary IIJ absorbed IIJ Innovation Institute on Apr. 1, 2022 Commission expenses are mainly consumer sales commission and recruitment expenses. In 4Q21, mobile marketing expenses increased due to a seasonal factor ➤ FY21 Others slightly increased mainly due to advertisements for consumer business ➤ PTC's SG&A etc. has been added from 1Q21 1Q: ¥0.09 billion, 2Q: ¥0.11 billion, 3Q: ¥0.12 billion, 4Q: 0.13 billion (FY21: ¥0.45 billion) FY22 Outlook Expect the YoY increase to become large mainly due to enhanced recruitment and promotion SG&A etc. in this slide shows the sum of SG&A which includes R&D expenses (not including other income/expenses) Internet Initiative Japan Inc. 13
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