QAs from earnings release meetings and others

June 27, 2024: 32nd Ordinary General Meeting of Shareholders

(*) This is a summary of questions and answers took place at the Briefing.

Question: Please explain your future overseas business strategy.

Answer: In the fiscal year ended March 31, 2024 (FY23), our overseas business revenue (*) increased significantly by 38.1% year-over-year, reaching JPY35.3 billion. Our overseas business primarily provides network (NW) services and system integration (SI) to Japanese companies operating overseas, as well as to local companies in the ASEAN region through joint ventures for local partners. Moving forward, we will focus, for example, on expanding our business for local companies in the ASEAN region, where demand is expected to increase.

• (*)Overseas revenue is recognized under NW services and SI

Question: While steady business growth and operations provide reassurance, the realistic goal-setting gives an impression of a conservative company.

Answer: I would like to share two episodes that demonstrate our corporate culture. When asked mid-careers about their impressions after joining IIJ, many of them commented that they find IIJ's atmosphere very flexible, allowing them to work on what they want to do. Additionally, on our 30th anniversary, a group of young employees autonomously established a set of guiding principles for employees called "Backbone of IIJ." This guideline includes keywords such as "challenge," "curiosity," "passion," "responsibility," and "respect." We pride ourselves on maintaining a corporate culture that encourages taking on new challenges, even after more than 30 years since our founding.

Question: Please explain your future growth strategy

Answer: As Japan begins transitioning to a full-scale networked society and ICT utilization advances further, we believe IIJ will play an increasingly important role as one of the few providers of high-quality, reliable internet connectivity services. Moving forward, we will continue to aim for steady business expansion by developing and offering high-quality and reliable services, and providing NW and system construction and operation.

Question: We understand that there is a trend towards reducing strategic shareholdings in the broader context. Please comment on how IIJ is going to handle this issue.

Answer: We cannot comment specifically on individual cases.

Question: In your "Mid-to-Long-Term Vision," you have disclosed a target of achieving consolidated revenue of JPY500 billion. Could you explain the timing of achieving such a target?

Answer: During the period of the previous Mid-term Plan (FY21~FY23), our revenue increased by approximately 1.3 times to JPY276.1 billion. In the current Mid-term Plan (FY24~FY26), we are targeting the revenue of JPY380 billion for FY26, an approximately 1.4 times increase. Achieving the revenue of JPY500 billion as a milestone could be considered feasible in the next Mid-term Plan period.