Consolidated Financial Results for FY2020 slide image

Consolidated Financial Results for FY2020

Monthly Recurring Revenue Comprehensive Line-ups of IT services Revenue category Network services Internet connectivity services for enterprise Internet connectivity services for consumers FY20 revenue IP 12.2 40.3 25.7 WAN 25.0 Mobile Mobile About Core service providing from the inception of the company, highly reliable dedicated connectivity services for enterprise (multi-carrier, redundancy etc. ) IoT/M2M-related 24.5 MVNE 23.0 7.8 16.7 Inexpensive SIM services (mainly data), Direct sale (via IIJ web), Indirect sale (via sales partners such as retailers) Closed network used to connect multiple sites In-house developed Internet-related various service line-ups (Security, datacenter, remote access related etc.) Unit: JPY billion Competitive Advantages Business Situation & Outlook Matured market (new entry difficult) ➤ Blue-chip client base ➤ Expect the revenue to continuously increase along with traffic volume and contracted bandwidth increase Strong revenue growth in FY20 ➤ Expect profitability and mobile infrastructure utilization to improve as we gather various traffic such as loT, enterprise, consumers • • IoT/M2M: Expect the demand to expand in the middle to long term MVNE/Consumer: Focus on expanding sales channel under severe competition Stable market for long-term, Large clients migrated to mobile in FY19 Outsourcing 35.7 Acquire enterprise demand by cross- selling services. Continuous service development is important Security 18.4 Public Cloud 2.8 ➤ Demands for security and remote access to increase continuously 84 % Operation and Maintenance Promote cloud shift with our abundant, highly reliable, value-added private cloud related service line-ups ➤ Expect great business opportunity in 51.5 From construction 28.1 Private Cloud the middle-to-long term as internal IT systems migrating to cloud 23.5 SI Construction (including Equipment sales) 31.8 System construction related to office IT, security, Cloud, lot. Internet-related construction such as Online banking & brokerage academic backbone network for university, and E-commerce site Internet Initiative Japan Inc. ➤ Systems to be converted to cloud Through providing SI, offer greater value as loT and cloud usage penetrate One time revenue 8
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