Consolidated Financial Results for FY2020 slide image

Consolidated Financial Results for FY2020

Business through affiliated companies: FinTech Business (1) Company Profile Name Est. Capital Directors DeCurret Inc. January 2018 JPY8.6 billion (including capital reserve) President: Kazuhiro Tokita (from IIJ) Part-time directors: IIJ CEO, IIJ COO, IIJ CFO Equity in net loss related to DeCurret (unit: JPY million) Crypto Asset Exchange Services (BtoC) Growth Strategy First & new licensed service provider after the FSA enacted registration process Exchange various crypto assets (BTC, BCH, LTC, XRP, ETH) ✓ Highly reliable system, low bid-ask spread, and meeting • security requirement such as AML/KYC Trading system leveraging the existing IIJ Raptor: 4Q19 1Q20 403 2Q20 3Q20 4Q20 306 273 207 193 \IIJ ownership: 4Q19 30.0%, from 1Q20 41.6%, from 1Q21 38.2% is planned to be used to recognize gain and loss Other than above, in 4Q20, gain on changes in equity of ¥349 million arisen from the issuance of common stock is recognized ✓ Top share ASP FX (Foreign Exchange) system in Japan, proving to 22 major Japanese financial institutions. ✓ Core-engine, dealing system, connecting multiple FX exchanges, investor service platform, operator management function etc. Approx. 70% of DeCurret service system is leveraged from the existing IIJ Raptor system ✓ Launched order book trading services from Apr. 2021 Digital Currency Settlement Platform Business (mainly BtoB) Executing many and various PoCs with business partners and shareholders KDDI Kansai Electric Power DAIDO LIFE INSURANCE TOYOTA SYSTEMS Local governments Automated digital currency settlement Automated settlement of P2P electricity trading Use digital currency for BtoB transaction Automated settlement for employee benefit programs Digital coupon systems And many more Active discussion with core players on how to set up digital currency platform infrastructure in Japan . ➤ Digital Currency Study Group: From June to September 2020 Members: Mega banks, Seven Bank, JR East, KDDI, NTT Group, FSA, MIC, Bank of Japan, MOF, METI etc. The Study Group developed into Digital Currency Forum Members: the Study Group members and leading companies from various industries Internet Initiative Japan Inc. Main discussion topics: examination of practicality of digital currencies in each use case, requirement definition, design, and development of common and additional areas, identification of issues and solutions for the actual operation of digital currencies, and creation of standards 25
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