Business Operation | Investor Relations

Planning and implementation of mid-term plan

IIJ steers management by formulating, executing, and managing the mid-term plan in a three- or five-year cycle, in light of market conditions, technological trends, customer demand, and the competitive situation. During the mid-term planning processes, IIJ determines a business portfolio based on the business environment, competitor trends, management resources, and the cost of capital etc., and then formulates each business strategy, technology development roadmap, and investment plan accordingly. The progress of the mid-term plan is managed by each department using KPIs and other indicators. The progresses in each field and changes in the market environment are reported to the meeting of the Board of Directors and the management meeting etc. where they are discussed and reviewed in order to achieve the plan.

Regular reports to Board of Directors, etc.

	weekly	monthly	quarterly	semi-annually
Mid-term plan	-	-	●	〇●

(*)○Board of Directors, ●management meeting, etc.

Annual budget and action plan

The annual budget is planned based on the accumulation of individual budgets prepared by each department in accordance with the target image instructed by management to be achieved. Each department also prepares an action plan to achieve its budget. The progress of business performance is reviewed weekly by management, and instructions are given to modify action plans in response to changes in business circumstances. In addition, the progress of business performance is reported to and discussed at the meeting of the Board of Directors on a monthly basis, and the progress of action plans is reported to the meeting of the Board of Directors on a semiannual basis for discussion and consideration toward the achievement of the plans. Group companies also discuss and consider them to achieve the plan.

Regular reports to Board of Directors, etc.

	weekly	monthly	quarterly	semi-annually
Annual budget and results	●	〇●	〇●	〇●
Action plan	-	-	●	〇●

(*)○Board of Directors, ●management meeting, etc.

Decision-making process at management meetings

The roles of each department and manager are clarified in accordance with the "Rules of Segregation of Duties" and the "Rules of Administrative Authorities," and authorities are appropriately transferred based on them to achieve an efficient companywide decision-making process. As for executing the budget, management meetings are held weekly in which management discusses managerial subjects and makes decisions in line with business circumstances and necessary actions relating to business operations are continuously taken in a timely and proper manner, such as monitoring the progress of new service development and revising the direction of business operations.

Items to be approved at and reported to management meetings

Type	Detail
Approval of Policy	Approval of the approach, policy, strategy and others such as new business and service development, policy for existing business/existing service renewal, formulation of business plan, introduction of new system, and revision of important rule.
Approval of expenditure	Approval of cash expenditures in accordance with the administrative authority rules.
Items to be reported	Report and discussion on progress of projects after the approval of policy and cash expenditures, and others to be reported requested by management. (results against plans, issues, and forecasts etc.)

Training for officers and employees

IIJ has established a training system that enables each officer and employee to acquire necessary skills and knowledge in a timely manner, based on their requirements for each role and grade so that they can fulfill their required roles at a high level. The main training programs are as follows.

Training programs by positon (Leadership program and management program)
Expertise and skills development programs (Sales training program, technical training program, and IIJ's services training program etc.)
Global career development programs (Global challenge program and global career system)
Supports for self-development (Support system for acquiring qualifications, business skills training program and English training program)
Harassment related program, mental health related program and career development training
Compliance related programs such as the "Code of Ethics," the "Anti-bribery Rule," and the prevention of insider trading (*)

(*)All officers and employees including contractors and temporary workers need to take compliance training programs