Highlights of Financial Results for FY2022 | ||||||
Total revenues | up | 11.7% | YoY2 | |||
Operating profit | up | 15.6% | YoY | |||
Profit before tax | up | 13.0% | YoY | |||
Net profit3 | up | 20.2% | YoY | |||
Annual cash dividend | ||||||
Highlights of Financial Targets for FY2023 (fiscal year ending | ||||||
Total revenues | up | 13.2% | YoY | |||
Operating profit | up | 15.7% | YoY | |||
Profit before tax | up | 11.1% | YoY | |||
Net profit3 | up | 10.0% | YoY | |||
Annual cash dividend | ||||||
Overview of FY2022 Financial Results and Business Outlook
“We had a strong year of accelerating revenues growth of 11.7% YoY with the operating profit growth of 15.6% YoY even after the COVID-19 pandemic calming down. These results would convince that our recent growth is not a temporary outcome during the pandemic, but a consistent one. Recently, we have acquired several large scale projects that require comprehensive network services together with systems integration, adding to the constant accumulation of monthly recurring revenues; some projects have started to increase our revenues from the latter half of this fiscal year and the others would contribute after this fiscal year. With regards to network services, for making our competitive advantages more prominent, we have continuously expanded our services line-up and enhanced existing services. We have also strengthened our network infrastructure such as our own data centers and Internet backbone for absorbing growing demands. As for FY2023, we target the total revenues of
“We have started to see that networks and systems among Japanese enterprises and governmental organizations have been changing gradually. As Internet related technologies such as Cloud and remote access have begun to be adopted, enterprise systems need to combine internal networks with external services through Internet. At the same time, advanced security measures have become more essential toward various Internet threats. These changes distinguish our stable and secure network services and operation capabilities accumulated for around thirty years. Under these business circumstance, we have increased recruitment activities and approximately 1.4 times more new graduates joined this April compared to that of the last year. We have confidence in further expanding our role of supporting Japanese enterprises’ networks and systems,” concluded
____________________________
1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with IFRS, unaudited and consolidated.
2 YoY is an abbreviation for year over year change.
3 Net profit is “profit for the year attributable to owners of the parent.”
4 IIJ conducted a stock split at a ratio of two-for-one with an effective date of
FY2022 Financial Results Summary
We have omitted segment analysis because most of our revenues are dominated by network services and systems integration (SI) business.
Operating Results Summary | |||||||
FY2021 | FY2022 | YoY Change | |||||
JPY millions | JPY millions | % | |||||
Total revenues | 226,335 | 252,708 | 11.7 | ||||
Network services | 128,213 | 138,922 | 8.4 | ||||
Systems integration (SI) | 95,338 | 110,944 | 16.4 | ||||
ATM operation business | 2,784 | 2,842 | 2.1 | ||||
Total costs | (174,707 | ) | (194,800 | ) | 11.5 | ||
Network services | (92,595 | ) | (100,776 | ) | 8.8 | ||
Systems integration (SI) | (80,396 | ) | (92,391 | ) | 14.9 | ||
ATM operation business | (1,716 | ) | (1,633 | ) | (4.8 | ) | |
Total gross profit | 51,628 | 57,908 | 12.2 | ||||
Network services | 35,618 | 38,146 | 7.1 | ||||
Systems integration (SI) | 14,942 | 18,553 | 24.2 | ||||
ATM operation business | 1,068 | 1,209 | 13.2 | ||||
SG&A, R&D, and other operating income (expenses) | (28,081 | ) | (30,687 | ) | 9.3 | ||
Operating profit | 23,547 | 27,221 | 15.6 | ||||
Profit before tax | 24,162 | 27,309 | 13.0 | ||||
Profit for the year attributable to owners of the parent | 15,672 | 18,838 | 20.2 | ||||
(Note) Systems integration includes equipment sales. |
Segment Results Summary | |||||
FY2021 | FY2022 | ||||
JPY millions | JPY millions | ||||
Total revenues | 226,335 | 252,708 | |||
Network services and SI business | 223,678 | 249,970 | |||
ATM operation business | 2,784 | 2,842 | |||
Elimination | (127 | ) | (104 | ) | |
Operating profit | 23,547 | 27,221 | |||
Network services and SI business | 22,799 | 26,322 | |||
ATM operation business | 834 | 919 | |||
Elimination | (86 | ) | (20 | ) |
FY2022 Revenues and Income
Revenues
Total revenues were
Network services revenue was
Revenues for Internet connectivity services for enterprise were
Revenues for Internet connectivity services for consumers were
Revenues for Outsourcing services were
Revenues for WAN services were
Network Services Revenues Breakdown | |||||||
FY2021 | FY2022 | YoY Change | |||||
JPY millions | JPY millions | % | |||||
Total network services | 128,213 | 138,922 | 8.4 | ||||
Internet connectivity services (enterprise) | 37,911 | 40,253 | 6.2 | ||||
IP services (including data center connectivity services) | 13,683 | 14,835 | 8.4 | ||||
IIJ Mobile Services | 20,351 | 21,249 | 4.4 | ||||
Enterprise mobile services (IoT usages etc.) | 10,257 | 11,179 | 9.0 | ||||
IIJ Mobile MVNO Platform Service (MVNE) | 10,094 | 10,070 | (0.2 | ) | |||
Others | 3,877 | 4,169 | 7.5 | ||||
Internet connectivity services (consumer) | 23,376 | 24,235 | 3.7 | ||||
IIJmio Mobile Services | 20,365 | 21,025 | 3.2 | ||||
Others | 3,011 | 3,210 | 6.6 | ||||
Outsourcing services | 40,523 | 46,808 | 15.5 | ||||
WAN services | 26,403 | 27,626 | 4.6 | ||||
Number of Contracts and Subscription for Connectivity Services (Note 1) | |||||||
As of | As of | YoY Change | |||||
Internet connectivity services (enterprise) | 2,500,116 | 3,026,149 | 526,033 | ||||
IP service (greater than or equal to 1Gbps) (Note2) | 786 | 1,356 | 570 | ||||
IP service (less than 1Gbps) (Note2) | 1,250 | 1,409 | 159 | ||||
IIJ Mobile Services | 2,407,083 | 2,929,646 | 522,563 | ||||
Enterprise mobile services (IoT usages etc.) | 1,374,055 | 1,809,816 | 435,761 | ||||
IIJ Mobile MVNO Platform Service (MVNE) | 1,033,028 | 1,119,830 | 86,802 | ||||
Others | 90,997 | 93,738 | 2,741 | ||||
Internet connectivity services (consumer) | 1,437,107 | 1,547,206 | 110,099 | ||||
IIJmio Mobile Services | 1,090,208 | 1,206,321 | 116,113 | ||||
Others | 346,899 | 340,885 | (6,014 | ) | |||
Total contracted bandwidth (Gbps) (Note 3) | 7,641.6 | 8,814.3 | 1,172.7 | ||||
(Notes) | |||||||
1. | Numbers in the table above show number of contracts except for “IIJ Mobile Services (enterprise)” and “IIJmio Mobile Services” which show number of subscriptions. | ||||||
2. | The numbers of IP service contracts include the numbers of IIJ data center connectivity service contracts. The number of IP services (greater than or equal to 1Gbps) contracts as of | ||||||
3. | Total contracted bandwidth is calculated by multiplying number of contracts under “Internet connectivity services (enterprise)” except for “IIJ Mobile Services” and the contracted bandwidths of the services respectively. Total contracted bandwidth as of | ||||||
SI revenues, including equipment sales, were
Systems construction and equipment sales, a one-time revenue, was
Orders received for SI, including equipment sales, totaled
Order backlog for SI, including equipment sales, as of
ATM operation business revenues were
Cost of sales
Total cost of sales was
Cost of network services revenue was
Cost of SI revenues, including equipment sales was
Cost of ATM operation business revenues was
Selling, general and administrative expenses and other operating income and expenses
Selling, general and administrative expenses, including research and development expenses, totaled
Other operating income was
Other operating expenses was
Operating profit
Operating profit was
Finance income and expenses, and share of profit (loss) of investments accounted for using equity method
Finance income was
Finance expense was
Share of loss of investments accounted for using equity method was
Profit before tax
Profit before tax was
Profit for the year
Income tax expense was
Profit for the year attributable to non-controlling interests was
Profit for the year attributable to owners of parent was
Financial Position as of
As of
As of
As of
As of
As of
As of
FY2022 Cash Flows
Cash and cash equivalents as of
Net cash provided by operating activities for FY2022 was
Net cash used in investing activities for FY2022 was
Net cash used in financing activities for FY2022 was
Outlook for FY2023 and three-year mid-term plan (FY2021-FY2023)
With regard to our outlook for FY2023, we expect revenue growth and profit expansion to advance furthermore as we expect steady revenue growth of enterprise network services as well as the contribution from large complex projects requiring network services and systems integration.
Our consolidated financial targets for FY2023 are as follows: total revenues of
As for the three-year mid-term plan (FY2021-FY2023), we have updated the revised financial targets, which were announced in
Dividend Policy, FY2022 Dividend and FY2023 Dividend Forecast
The basic dividend policy of IIJ is that IIJ pays dividends to its shareholders continuously and stably while considering the need to have retained earnings for the enhancement of financial position, medium- to long-term business expansion, future business investment and others.
Based on the Articles of Incorporation of IIJ, the frequency of dividend payments is twice each fiscal year, an interim dividend and a year-end dividend. The interim dividend is decided by the meeting of the board directors of IIJ and the year-end dividend is approved at IIJ’s general meeting of shareholders.
As for FY2022, considering this basic policy, our interim dividend was
As for FY2023, our interim and year-end dividend forecasts are
Presentation
Presentation materials will be posted on our web site (https://www.iij.ad.jp/en/ir/) on
About
Founded in 1992, IIJ is one of Japan’s leading Internet-access and comprehensive network solutions providers. IIJ and its group companies provide total network solutions that mainly cater to high-end corporate customers. IIJ's services include high-quality Internet connectivity services, mobile services, security services, cloud computing services, and systems integration. Moreover, IIJ operates one of the largest Internet backbone networks in
For inquiries, contact:
IIJ Investor Relations Tel: +81-3-5205-6500 E-mail: ir@iij.ad.jp URL: https://www.iij.ad.jp/en/ir
Disclaimer:
Statements made in this press release regarding IIJ’s or management’s intentions, beliefs, expectations, or predictions for the future are forward-looking statements that are based on IIJ’s and managements’ current expectations, assumptions, estimates and projections about its business and the industry. These forward-looking statements, such as statements regarding revenues and profits, are subject to various risks, uncertainties and other factors that could cause IIJ’s actual results to differ materially from those contained in any forward-looking statement.
Consolidated Statements of Financial Position (Unaudited) | ||||||
Millions of yen | Millions of yen | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | 47,391 | 42,472 | ||||
Trade receivables | 37,649 | 41,340 | ||||
Inventories | 2,608 | 3,188 | ||||
Prepaid expenses | 13,553 | 15,341 | ||||
Contract assets | 1,870 | 2,178 | ||||
Other financial assets | 1,295 | 1,918 | ||||
Other current assets | 119 | 241 | ||||
Total current assets | 104,485 | 106,678 | ||||
Non-current assets | ||||||
Tangible assets | 17,846 | 23,321 | ||||
Right-of-use assets | 44,874 | 46,675 | ||||
9,479 | 9,859 | |||||
Intangible assets | 16,424 | 16,616 | ||||
Investments accounted for using equity method | 5,830 | 5,785 | ||||
Prepaid expenses | 10,452 | 12,579 | ||||
Contract assets | 69 | 106 | ||||
Other investments | 17,410 | 19,150 | ||||
Deferred tax assets | 183 | 200 | ||||
Other financial assets | 4,245 | 4,637 | ||||
Other non-current assets | 508 | 587 | ||||
Total non-current assets | 127,320 | 139,515 | ||||
Total assets | 231,805 | 246,193 | ||||
Millions of yen | Millions of yen | |||||
Liabilities and Equity | ||||||
Liabilities | ||||||
Current liabilities | ||||||
Trade and other payables | 20,742 | 22,313 | ||||
Borrowings | 16,370 | 16,828 | ||||
Income taxes payable | 5,795 | 4,034 | ||||
Contract liabilities | 9,571 | 10,169 | ||||
Deferred income | 65 | 79 | ||||
Other financial liabilities | 17,035 | 18,105 | ||||
Other current liabilities | 7,199 | 6,336 | ||||
Total current liabilities | 76,777 | 77,864 | ||||
Non-current liabilities | ||||||
Borrowings | 5,500 | 3,602 | ||||
Retirement benefit liabilities | 4,395 | 4,513 | ||||
Provisions | 786 | 794 | ||||
Contract liabilities | 7,429 | 7,411 | ||||
Deferred income | 340 | 319 | ||||
Deferred tax liabilities | 641 | 610 | ||||
Other financial liabilities | 30,146 | 30,695 | ||||
Other non-current liabilities | 1,170 | 1,083 | ||||
Total non-current liabilities | 50,407 | 49,027 | ||||
Total liabilities | 127,184 | 126,891 | ||||
Equity | ||||||
Share capital | 25,562 | 25,562 | ||||
Share premium | 36,518 | 36,738 | ||||
Retained earnings | 37,024 | 51,077 | ||||
Other components of equity | 6,275 | 6,571 | ||||
(1,851 | ) | (1,831 | ) | |||
Total equity attributable to owners of the parent | 103,528 | 118,117 | ||||
Non-controlling interests | 1,093 | 1,185 | ||||
Total equity | 104,621 | 119,302 | ||||
Total liabilities and equity | 231,805 | 246,193 | ||||
Consolidated Statements of Profit or Loss (Unaudited) | ||||||
For the year ended | For the year ended | |||||
Millions of yen | Millions of yen | |||||
Revenues | ||||||
Network services | 128,213 | 138,922 | ||||
System integration | 95,338 | 110,944 | ||||
ATM operation business | 2,784 | 2,842 | ||||
Total revenues | 226,335 | 252,708 | ||||
Cost of sales | ||||||
Cost of network services | (92,595 | ) | (100,776 | ) | ||
Cost of systems integration | (80,396 | ) | (92,391 | ) | ||
Cost of ATM operation business | (1,716 | ) | (1,633 | ) | ||
Total cost of sales | (174,707 | ) | (194,800 | ) | ||
Gross Profit | 51,628 | 57,908 | ||||
Selling, general and administrative expenses | (27,969 | ) | (30,897 | ) | ||
Other operating income | 171 | 281 | ||||
Other operating expenses | (283 | ) | (71 | ) | ||
Operating Profit | 23,547 | 27,221 | ||||
Finance income | 3,506 | 844 | ||||
Finance expenses | (556 | ) | (552 | ) | ||
Share of profit (loss) of investments accounted for using equity method | (2,335 | ) | (204 | ) | ||
Profit (loss) before tax | 24,162 | 27,309 | ||||
Income tax expense | (8,362 | ) | (8,330 | ) | ||
Profit (loss) for the year | 15,800 | 18,979 | ||||
Profit (loss) for the year attributable to: | ||||||
Owners of the parent | 15,672 | 18,838 | ||||
Non-controlling interests | 128 | 141 | ||||
Total | 15,800 | 18,979 | ||||
Earnings per share | ||||||
Basic earnings per share (yen) | 86.78 | 104.26 | ||||
Diluted earnings per share (yen) | 86.37 | 103.75 | ||||
※IIJ conducted a stock split at a ratio of two-for-one with an effective date of | ||||||
Basic earnings per share and diluted earnings per share are calculated as if the stock split had been conducted at the beginning of the previous fiscal year. |
Consolidated Statements of Comprehensive Income (Unaudited) | ||||||
For the year ended | For the year ended | |||||
Millions of yen | Millions of yen | |||||
Profit (loss) for the year | 15,800 | 18,979 | ||||
Other comprehensive income, net of tax | ||||||
Items that will not be reclassified to profit or loss | ||||||
Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income | 691 | (447 | ) | |||
Remeasurement of defined benefit plans | 141 | 116 | ||||
Total items that will not be reclassified to profit or loss | 832 | (331 | ) | |||
Items that may be reclassified to profit or loss | ||||||
Exchange differences on translation of foreign operations | 695 | 736 | ||||
Financial assets measured at fair value through other comprehensive income | (1 | ) | (5 | ) | ||
Share of other comprehensive income of investments accounted for using equity method | 25 | 12 | ||||
Total of items that may be reclassified to profit or loss | 719 | 743 | ||||
Total other comprehensive income, net of tax | 1,551 | 412 | ||||
Other comprehensive income for the year | 17,351 | 19,391 | ||||
Other comprehensive income for the year attributable to: | ||||||
Owners of the parent | 17,223 | 19,250 | ||||
Non-controlling interest | 128 | 141 | ||||
Other comprehensive income for the year | 17,351 | 19,391 | ||||
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) | ||||||||||||||||||||||
For the year ended | ||||||||||||||||||||||
Owners of the parent’s shareholders’ equity | Non-controlling interests | Total equity | ||||||||||||||||||||
Share capital | Share premium | Retained earnings | Other components of equity | Total | ||||||||||||||||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | |||||||||||||||
Balance, | 25,531 | 36,389 | 25,047 | 4,865 | (1,875 | ) | 89,956 | 1,015 | 90,972 | |||||||||||||
Comprehensive income | ||||||||||||||||||||||
Profit for the year | - | - | 15,672 | - | - | 15,672 | 128 | 15,800 | ||||||||||||||
Other comprehensive income | - | - | - | 1,551 | - | 1,551 | - | 1,551 | ||||||||||||||
Total comprehensive income | - | - | 15,672 | 1,551 | - | 17,223 | 128 | 17,351 | ||||||||||||||
Transactions with owners | ||||||||||||||||||||||
Issuance of common stock | 31 | (31 | ) | - | - | - | 0 | - | 0 | |||||||||||||
Disposal of treasury shares | - | 82 | - | - | 24 | 106 | - | 106 | ||||||||||||||
Dividends paid | - | - | (3,836 | ) | - | - | (3,836 | ) | (49 | ) | (3,885 | ) | ||||||||||
Stock-based compensation | - | 83 | - | - | - | 83 | - | 83 | ||||||||||||||
Transfer from other components of equity to retained earnings | - | - | 141 | (141 | ) | - | - | - | - | |||||||||||||
Other | - | (5 | ) | - | - | - | (5 | ) | (1 | ) | (6 | ) | ||||||||||
Total transactions with owners | 31 | 129 | (3,695 | ) | (141 | ) | 24 | (3,652 | ) | (50 | ) | (3,702 | ) | |||||||||
Balance, | 25,562 | 36,518 | 37,024 | 6,275 | (1,851 | ) | 103,528 | 1,093 | 104,621 | |||||||||||||
For the year ended | ||||||||||||||||||||||
Owners of the parent’s shareholders’ equity | Non-controlling interests | Total equity | ||||||||||||||||||||
Share capital | Share premium | Retained earnings | Other components of equity | Total | ||||||||||||||||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | |||||||||||||||
Balance, | 25,562 | 36,518 | 37,024 | 6,275 | (1,851 | ) | 103,528 | 1,093 | 104,621 | |||||||||||||
Comprehensive income | ||||||||||||||||||||||
Profit for the year | - | - | 18,838 | - | - | 18,838 | 141 | 18,979 | ||||||||||||||
Other comprehensive income | - | - | - | 412 | - | 412 | - | 412 | ||||||||||||||
Total comprehensive income | - | - | 18,838 | 412 | - | 19,250 | 141 | 19,391 | ||||||||||||||
Transactions with owners | ||||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | 0 | 0 | - | 0 | ||||||||||||||
Disposal of treasury shares | - | 141 | - | - | 20 | 161 | - | 161 | ||||||||||||||
Dividends paid | - | - | (4,901 | ) | - | - | (4,901 | ) | (49 | ) | (4,950 | ) | ||||||||||
Stock-based compensation | - | 79 | - | - | - | 79 | - | 79 | ||||||||||||||
Transfer from other components of equity to retained earnings | - | - | 116 | (116 | ) | - | - | - | - | |||||||||||||
Total transactions with owners | - | 220 | (4,785 | ) | (116 | ) | 20 | (4,661 | ) | (49 | ) | (4,710 | ) | |||||||||
Balance, | 25,562 | 36,738 | 51,077 | 6,571 | (1,831 | ) | 118,117 | 1,185 | 119,302 | |||||||||||||
Consolidated Statements of Cash Flows (Unaudited) | ||||||
For the year ended | For the year ended | |||||
Millions of yen | Millions of yen | |||||
Cash flows from operating activities | ||||||
Profit (loss) before tax | 24,162 | 27,309 | ||||
Adjustments | ||||||
Depreciation and amortization | 28,444 | 28,801 | ||||
Loss (gain) on sales/disposals of property and equipment | 219 | (127 | ) | |||
Shares of loss (profit) of investments accounted for using equity method | 2,335 | 204 | ||||
Finance income | (3,439 | ) | (845 | ) | ||
Finance expenses | 538 | 552 | ||||
Other | 241 | 571 | ||||
Changes in working capital | ||||||
Decrease (increase) in trade receivables | (1,404 | ) | (3,432 | ) | ||
Decrease (increase) in inventories | (423 | ) | (565 | ) | ||
Decrease (increase) in prepaid expenses | (1,414 | ) | (3,525 | ) | ||
Decrease (increase) in contract assets | (610 | ) | (346 | ) | ||
Decrease (increase) in other assets | 163 | (119 | ) | |||
Decrease (increase) in other financial assets | 834 | (609 | ) | |||
Increase (decrease) in trade and other payables | 552 | 1,417 | ||||
Increase (decrease) in contract liabilities | (163 | ) | 206 | |||
Increase (decrease) in deferred income | (10 | ) | (1 | ) | ||
Increase (decrease) in other liabilities | (877 | ) | (1,044 | ) | ||
Increase (decrease) in other financial liabilities | 28 | 19 | ||||
Increase (decrease) in retirement benefit liabilities | 432 | 287 | ||||
Subtotal | 49,608 | 48,753 | ||||
Interest and dividends received | 191 | 263 | ||||
Interest paid | (526 | ) | (529 | ) | ||
Income taxes paid | (5,700 | ) | (9,958 | ) | ||
Cash flows from operating activities | 43,573 | 38,529 | ||||
Cash flows from investing activities | ||||||
Purchases of tangible assets | (6,783 | ) | (11,787 | ) | ||
Proceeds from sales of tangible assets | 2,150 | 1,546 | ||||
Purchases of intangible assets | (4,734 | ) | (5,471 | ) | ||
Purchase of a subsidiary | (2,612 | ) | - | |||
Purchase of investments accounted for using equity method | - | (261 | ) | |||
Proceeds from sale of investments accounted for using equity method | 780 | - | ||||
Purchases of other investments | (717 | ) | (2,511 | ) | ||
Proceeds from sales of other investments | 105 | 124 | ||||
Payments for leasehold deposits and guarantee deposits | (103 | ) | (69 | ) | ||
Proceeds from collection of leasehold deposits and guarantee deposits | 150 | 68 | ||||
Payments for refundable insurance policies | (75 | ) | (75 | ) | ||
Proceeds from subsidies | - | 38 | ||||
Other | 1 | 12 | ||||
Cash flows from investing activities | (11,838 | ) | (18,386 | ) | ||
Cash flows from financing activities | ||||||
Proceeds from long-term borrowings | - | 178 | ||||
Repayment of long-term borrowings | (5,170 | ) | (1,515 | ) | ||
Net increase (decrease) in short-term borrowings | 1,480 | (100 | ) | |||
Proceeds from other financial liabilities | 261 | - | ||||
Payments of other financial liabilities | (19,983 | ) | (19,344 | ) | ||
Dividends paid | (3,836 | ) | (4,901 | ) | ||
Other | (48 | ) | (49 | ) | ||
Cash flows from financing activities | (27,296 | ) | (25,731 | ) | ||
Effect of exchange rate changes on cash and cash equivalents | 485 | 669 | ||||
Net increase (decrease) in cash and cash equivalents | 4,924 | (4,919 | ) | |||
Cash and cash equivalents, beginning of the year | 42,467 | 47,391 | ||||
Cash and cash equivalents, end of the year | 47,391 | 42,472 | ||||
Notes to Condensed Consolidated Financial Statements (Unaudited)
Going Concern Assumption
Nothing to be reported.
Changes in Accounting Policies
Nothing to be reported.
Segment Information
IIJ and its subsidiaries (collectively “the Company”) primarily operates its network service and system integration business, which provides a comprehensive range of network solutions to meet its customers’ needs by cross-selling a variety of services, including Internet connectivity services, WAN services, outsourcing services, systems integration and sales of network-related equipment, and the ATM operation business. Therefore, the Company defined two reportable segments: “Network service and systems integration business” and “ATM operation business.”
Segment information for the Company is as follows:
Fiscal year ended | ||||||||||||
Reportable segments | ||||||||||||
Network service and systems integration business | ATM operation business | Adjustments | Consolidated | |||||||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |||||||||
Revenue | ||||||||||||
Customers | 223,551 | 2,784 | - | 226,335 | ||||||||
Intersegment transactions | 127 | - | (127 | ) | - | |||||||
Total revenue | 223,678 | 2,784 | (127 | ) | 226,335 | |||||||
Segment operating profit | 22,799 | 834 | (86 | ) | 23,547 | |||||||
Finance income | 3,506 | |||||||||||
Finance expense | (556 | ) | ||||||||||
Share of profit (loss) of investments accounted for using the equity method | (2,335 | ) | ||||||||||
Profit before tax | 24,162 | |||||||||||
Fiscal year ended | ||||||||||||
Reportable segments | ||||||||||||
Network service and systems integration business | ATM operation business | Adjustments | Consolidated | |||||||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |||||||||
Revenue | ||||||||||||
Customers | 249,866 | 2,842 | - | 252,708 | ||||||||
Intersegment transactions | 104 | - | (104 | ) | - | |||||||
Total revenue | 249,970 | 2,842 | (104 | ) | 252,708 | |||||||
Segment operating profit | 26,322 | 919 | (20 | ) | 27,221 | |||||||
Finance income | 844 | |||||||||||
Finance expense | (552 | ) | ||||||||||
Share of profit (loss) of investments accounted for using the equity method | (204 | ) | ||||||||||
Profit before tax | 27,309 | |||||||||||
Intersegment transactions are based on market price. Substantially all revenues are from customers operating in
Major customers information is not provided because there is no single external customer that accounts for 10% or more of the Company's revenue.
Earnings per share
Basic earnings per share attributable to owners of the parent and diluted earnings per share attributable to owners of the parent for the years ended
For the year ended | For the year ended | |||
Numerator: | ||||
Basic earnings attributable to owners of the parent (millions of yen) | 15,672 | 18,838 | ||
Denominator: | ||||
Weighted average number of shares ― basic (shares) | 180,592,178 | 180,683,190 | ||
Dilution arising from stock options (shares) | 861,626 | 892,705 | ||
Weighted average number of shares ― diluted (shares) | 181,453,804 | 181,575,895 | ||
Earnings per share attributable to owners of the parent | ||||
Basic (yen) | 86.78 | 104.26 | ||
Diluted (yen) | 86.37 | 103.75 |
Stock split
IIJ conducted a stock split at a ratio of two-for-one with an effective date of January
Subsequent Events
Nothing to be reported.
Note: The following information is provided to disclose
Consolidated Financial Results for the Fiscal Year ended
Company name:
Exchange listed:
Ticker symbol: 3774
URL: https://www.iij.ad.jp/
Representative:
Contact:
TEL: (03) 5205-6500
Scheduled date for annual general shareholders’ meeting:
Scheduled date for dividend payment:
Scheduled date for filing of annual securities report (Yuka-shoken-houkokusho) to Japan’s regulatory organization:
Supplemental material on annual results: Yes
Presentation on annual results: Yes (for institutional investors and analysts)
(Amounts of less than
1. Consolidated Financial Results for the Fiscal Year ended
(1) Consolidated Results of Operations (% shown is YoY change)
Revenues | Operating profit | Profit (loss) before tax | Profit (loss) for the year | Profit (loss) attributable to owners of the parent | Other comprehensive income | |||||||
JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | |
Fiscal Year ended | 252,708 | 11.7 | 27,221 | 15.6 | 27,309 | 13.0 | 18,979 | 20.1 | 18,838 | 20.2 | 19,391 | 11.8 |
Fiscal Year ended | 226,335 | 6.3 | 23,547 | 65.3 | 24,162 | 72.2 | 15,800 | 61.2 | 15,672 | 61.4 | 17,351 | 40.3 |
Basic earnings per share | Diluted earnings per share | Rate of return on equity | Ratio of profit before taxes to total assets | Ratio of operating profit to revenues | |
JPY | JPY | % | % | % | |
Fiscal Year ended | 104.26 | 103.75 | 17.0 | 11.4 | 10.8 |
Fiscal Year ended | 86.78 | 86.37 | 16.2 | 10.7 | 10.4 |
(Reference) Share of profit (loss) of investments accounted for using equity method
Fiscal year ended
(Note) IIJ conducted a stock split at a ratio of two-for-one with an effective date of
(2) Consolidated Financial Position
Total assets | Total equity | Total equity attributable to owners of the parent | Ratio of owners' equity to total assets | Owners' equity per share | |
JPY millions | JPY millions | JPY millions | % | JPY | |
As of | 246,193 | 119,302 | 118,117 | 48.0 | 653.67 |
As of | 231,805 | 104,621 | 103,528 | 44.7 | 573.16 |
(Note) IIJ conducted a stock split at a ratio of two-for-one with an effective date of
(3) Consolidated Cash Flow
Operating activities | Investing activities | Financing activities | Cash and cash equivalents (end of the year) | |||
JPY millions | JPY millions | JPY millions | JPY millions | |||
Fiscal year ended | 38,529 | (18,386 | ) | (25,731 | ) | 42,472 |
Fiscal year ended | 43,573 | (11,838 | ) | (27,296 | ) | 47,391 |
2.Dividends
Dividend per Shares | Total cash dividends for the year | Payout Ratio (consolidated) | Ratio of Dividends to Shareholder's Equity (consolidated) | |||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | ||||
JPY | JPY | JPY | JPY | JPY | JPY millions | % | % | |
Fiscal Year Ended | ― | 23.00 | ― | 25.00 | 48.00 | 4,335 | 27.7 | 4.5 |
Fiscal Year Ended | ― | 29.25 | ― | 14.63 | ― | 5,286 | 28.1 | 4.8 |
Fiscal Year Ending (forecast) | ― | 17.18 | ― | 17.18 | 34.36 | 30.0 |
(Note) IIJ conducted a stock split at a ratio of two-for-one with an effective date of
3.Targets of Consolidated Financial Results for the Fiscal Year ending
(
(% shown is YoY change)
Revenues | Operating profit | Profit (loss) before tax | Profit (loss) for the year attributable to owners of the parent | Basic earnings per share | |||||
JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | JPY | |
Interim Period Ending | 138,000 | 13.1 | 13,400 | 19.9 | 13,000 | 1.1 | 8,850 | 2.5 | 48.98 |
Fiscal Year Ending | 286,000 | 13.2 | 31,500 | 15.7 | 30,350 | 11.1 | 20,720 | 10.0 | 114.67 |
* Notes:
(1) Changes in significant subsidiaries: None
(2) Changes in accounting policies and estimate
- Changes in accounting policies required by IFRS: None
- Other changes in accounting policies: None
- Changes in accounting estimates: None
(3) Number of shares issued (common stock)
- Number of shares issued (inclusive of treasury stock):
As ofMarch 31, 2023 : 187,069,600 shares
As ofMarch 31, 2022 : 187,069,600 shares - Number of treasury stock:
As ofMarch 31, 2023 : 6,371,732 shares
As ofMarch 31, 2022 : 6,443,334 shares - Number of weighted average shares outstanding:
For the fiscal year endedMarch 31, 2023 : 180,683,190 shares
For the fiscal year endedMarch 31, 2022 : 180,592,178 shares
* IIJ conducted a stock split at a ratio of two-for-one with an effective date of
* Status of Audit Procedures
This document is not subject to the audit procedures by certified public accountant or independent auditor.
* Explanation on the Appropriate Use of Future Outlook and other special instructions
i) Forward-looking statements
Forward-looking statements disclosed in this document are based on IIJ Group’s expectation, estimates, and projections based on information available to
ii) Adoption of IFRS
We have adopted IFRS from the Annual Securities Report (Yuka-shoken-houkokusho) for the fiscal year ended
iii) Others
Presentation material will be disclosed on TDnet as well as posted on our website on
[English Translation]
Company name:
Company representative:
(Ticker symbol: 3774, The Prime Market of the
Contact:
TEL: 81-3-5205-6500
Information Pertaining to Our Largest Shareholder
1. About Our Largest Shareholder (As of
Relationship | Its Ownership Percentage (%) | Securities Exchanges where its Shares are Listed | |||
Direct ownership | Indirect ownership | Total | |||
Nippon Telegraph and Telephone Corporation (“NTT”) | IIJ is | 22.4 | 4.5 | 26.9 | (The Prime Market) |
2. Position of the
The ownership percentage by
3. Business Relationship with
IIJ uses services provided by
Source:
2023 GlobeNewswire, Inc., source