Highlights of Financial Results for 1Q-3Q22 | FY22 Targets | |||||||||
Total revenues | up | 11.9 | % | YoY2 | up | 10.5 | % | YoY | ||
Operating profit | up | 15.3 | % | YoY | up | 15.5 | % | YoY | ||
Profit before tax | up | 8.1 | % | YoY | up | 8.8 | % | YoY | ||
Net profit3 | up | 11.6 | % | YoY | up | 11.7 | % | YoY | ||
Overview of 1Q-3Q22 Financial Results and Business Outlook
“In this nine-month period, we have seen strong revenue growth of 11.9% year over year with consistent penetration of IT utilization among Japanese enterprises and governmental organizations. Continuous accumulation of our network services’ monthly recurring revenues and system integration projects brought this favorable result, and also several large network-replacement transactions we acquired around the last fiscal year-end began to contribute to the revenue from this third quarter. At the same time, we have continuously developed new network services such as “IIJ Cloud Data Platform Service4,” “IIJ Private Backbone Service/Smart HUB5,” “IIJ Secure Access Service6” and “IIJ Mobile Service/TypeD for IIJmio Biz7” to further enhance our recurring revenue business model. In addition, we have recently acquired large scale projects such as several information systems replacement projects from a broadcasting company, a core system construction project for a financial group, a network replacement project with a multi-year contract and a data center construction project in overseas. Those would accelerate our revenue growth further in the next fiscal year and onward,” said
“Our outstanding competitive advantage is to provide reliable network and services operation, realized by our robust Internet infrastructure and technology expertise that we have accumulated since our inception. Network would become faster and faster as well as CPU, storage capacity would be tremendously large, and AI would be widely adopted, which may change some current business players’ competitiveness in near future. Even in such a dynamic transition, we believe that our stable and secure network operation capabilities would continue to be required and also become more prominent advantage. Overlooking today’s overall market landscape in
______________________
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 For details, please refer to our press release titled “IIJ Launches IIJ Cloud Data Platform Service to Facilitate On-Premise and Multi-Cloud Data Integration” https://www.iij.ad.jp/en/news/pressrelease/2022/1212.html.
5 For details, please refer to our press release titled “Launch IIJ Private Backbone Service/Smart HUB, A New Flexible Cloud Connection Service with High Performance Broadband Over 10Gbps” https://www.iij.ad.jp/en/news/pressrelease/2022/0615-2.html.
6 For details, please refer to our press release titled “IIJ to Start Providing New SASE Service, IIJ Secure Access Service” https://www.iij.ad.jp/en/news/pressrelease/2022/0830.html.
7 For details, please refer to our website https://www.iij.ad.jp/news/pressrelease/2023/0117.html (Japanese text only).
1Q-3Q22 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 | |||||||
1Q-3Q21 | 1Q-3Q22 | YoY Change | |||||
JPY millions | JPY millions | % | |||||
Total revenues | 165,600 | 185,339 | 11.9 | ||||
Network services | 95,097 | 102,744 | 8.0 | ||||
Systems integration (SI) | 68,413 | 80,477 | 17.6 | ||||
ATM operation business | 2,090 | 2,118 | 1.3 | ||||
Total costs | (128,816 | ) | (143,683 | ) | 11.5 | ||
Network services | (68,653 | ) | (74,627 | ) | 8.7 | ||
Systems integration (SI) | (58,869 | ) | (67,835 | ) | 15.2 | ||
ATM operation business | (1,294 | ) | (1,221 | ) | (5.6 | ) | |
Total gross profit | 36,784 | 41,656 | 13.2 | ||||
Network services | 26,444 | 28,117 | 6.3 | ||||
Systems integration (SI) | 9,544 | 12,642 | 32.5 | ||||
ATM operation business | 796 | 897 | 12.7 | ||||
SG&A, R&D, and other operating income (expenses) | (20,486 | ) | (22,866 | ) | 11.6 | ||
Operating profit | 16,298 | 18,790 | 15.3 | ||||
Profit before tax | 17,597 | 19,018 | 8.1 | ||||
Profit for the period attributable to owners of the parent | 11,522 | 12,854 | 11.6 | ||||
(Note) Systems integration includes equipment sales. |
Segment Results Summary | |||||
1Q-3Q21 | 1Q-3Q22 | ||||
JPY millions | JPY millions | ||||
Total revenues | 165,600 | 185,339 | |||
Network services and SI business | 163,606 | 183,300 | |||
ATM operation business | 2,090 | 2,118 | |||
Elimination | (96 | ) | (79 | ) | |
Operating profit | 16,298 | 18,790 | |||
Network services and SI business | 15,747 | 18,117 | |||
ATM operation business | 617 | 693 | |||
Elimination | (66 | ) | (20 | ) |
1Q-3Q22 Revenues and Income
Revenues
Total revenues were
Network services revenues were
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 | |||||||
1Q-3Q21 | 1Q-3Q22 | YoY Change | |||||
JPY millions | JPY millions | % | |||||
Total network services | 95,097 | 102,744 | 8.0 | ||||
Internet connectivity services (enterprise) | 28,082 | 29,504 | 5.1 | ||||
IP services (including data center connectivity services) | 10,069 | 10,862 | 7.9 | ||||
IIJ Mobile Services | 15,132 | 15,548 | 2.7 | ||||
Enterprise mobile services (IoT usages etc.) | 7,516 | 8,149 | 8.4 | ||||
IIJ Mobile MVNO Platform Service (MVNE) | 7,616 | 7,399 | (2.8 | ) | |||
Others | 2,881 | 3,094 | 7.4 | ||||
Internet connectivity services (consumer) | 17,780 | 18,335 | 3.1 | ||||
IIJmio Mobile Services | 15,555 | 15,941 | 2.5 | ||||
Others | 2,225 | 2,394 | 7.6 | ||||
Outsourcing services | 29,831 | 34,359 | 15.2 | ||||
WAN services | 19,404 | 20,546 | 5.9 | ||||
Number of Contracts and Subscription for Connectivity Services (Note 1) | |||||||
As of | As of | YoY Change | |||||
Internet connectivity services (enterprise) | 2,394,237 | 2,867,238 | 473,001 | ||||
IP service (greater than or equal to 1Gbps) (Note2) | 751 | 1,341 | 590 | ||||
IP service (less than 1Gbps) (Note2) | 1,206 | 1,334 | 128 | ||||
IIJ Mobile Services | 2,302,538 | 2,771,263 | 468,725 | ||||
Enterprise mobile services (IoT usages etc.) | 1,319,918 | 1,685,333 | 365,415 | ||||
IIJ Mobile MVNO Platform Service (MVNE) | 982,620 | 1,085,930 | 103,310 | ||||
Others | 89,742 | 93,300 | 3,558 | ||||
Internet connectivity services (consumer) | 1,419,277 | 1,538,622 | 119,345 | ||||
IIJmio Mobile Services | 1,072,920 | 1,196,683 | 123,763 | ||||
Others | 346,357 | 341,939 | (4,418 | ) | |||
Total contracted bandwidth (Gbps) (Note 3) | 7,346.5 | 8,727.3 | 1,380.8 | ||||
(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 period
Income tax expense was
Profit for the period attributable to non-controlling interests was
Profit for the period attributable to owners of the parent was
Financial Position as of
As of
As of
As of
As of
As of
As of
1Q-3Q22 Cash Flows
Cash and cash equivalents as of
Net cash provided by operating activities for 1Q-3Q22 was
Net cash used in investing activities for 1Q-3Q22 was
Net cash used in financing activities for 1Q-3Q22 was
Future Prospects including FY2022 Financial Targets
1Q-3Q22 financial results were in line with our plan with continued revenue growth. Therefore, FY2022 financial targets remain unchanged.
Presentation
Presentation materials will be posted on our web site (https://www.iij.ad.jp/en/ir/) on
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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.
Condensed Consolidated Statements of Financial Position (Unaudited) | ||||||
Millions of yen | Millions of yen | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | 47,391 | 41,327 | ||||
Trade receivables | 37,649 | 36,079 | ||||
Inventories | 2,608 | 4,290 | ||||
Prepaid expenses | 13,553 | 15,907 | ||||
Contract assets | 1,870 | 3,318 | ||||
Other financial assets | 1,295 | 1,926 | ||||
Other current assets | 119 | 301 | ||||
Total current assets | 104,485 | 103,148 | ||||
Non-current assets | ||||||
Tangible assets | 17,846 | 22,902 | ||||
Right-of-use assets | 44,874 | 42,498 | ||||
9,479 | 9,790 | |||||
Intangible assets | 16,424 | 16,200 | ||||
Investments accounted for using equity method | 5,830 | 5,598 | ||||
Prepaid expenses | 10,452 | 11,850 | ||||
Contract assets | 69 | 47 | ||||
Other investments | 17,410 | 17,689 | ||||
Deferred tax assets | 183 | 193 | ||||
Other financial assets | 4,245 | 4,375 | ||||
Other non-current assets | 508 | 568 | ||||
Total non-current assets | 127,320 | 131,710 | ||||
Total assets | 231,805 | 234,858 | ||||
Millions of yen | Millions of yen | |||||
Liabilities and Equity | ||||||
Liabilities | ||||||
Current liabilities | ||||||
Trade and other payables | 20,742 | 23,819 | ||||
Borrowings | 16,370 | 16,770 | ||||
Income taxes payable | 5,795 | 1,978 | ||||
Contract liabilities | 9,571 | 9,758 | ||||
Deferred income | 65 | 102 | ||||
Other financial liabilities | 17,035 | 15,775 | ||||
Other current liabilities | 7,199 | 5,900 | ||||
Total current liabilities | 76,777 | 74,102 | ||||
Non-current liabilities | ||||||
Borrowings | 5,500 | 3,671 | ||||
Retirement benefit liabilities | 4,395 | 4,578 | ||||
Provisions | 786 | 789 | ||||
Contract liabilities | 7,429 | 6,926 | ||||
Deferred income | 340 | 297 | ||||
Deferred tax liabilities | 641 | 515 | ||||
Other financial liabilities | 30,146 | 29,674 | ||||
Other non-current liabilities | 1,170 | 1,141 | ||||
Total non-current liabilities | 50,407 | 47,591 | ||||
Total liabilities | 127,184 | 121,693 | ||||
Equity | ||||||
Share capital | 25,562 | 25,562 | ||||
Share premium | 36,518 | 36,677 | ||||
Retained earnings | 37,024 | 44,977 | ||||
Other components of equity | 6,275 | 6,621 | ||||
(1,851 | ) | (1,831 | ) | |||
Total equity attributable to owners of the parent | 103,528 | 112,006 | ||||
Non-controlling interests | 1,093 | 1,159 | ||||
Total equity | 104,621 | 113,165 | ||||
Total liabilities and equity | 231,805 | 234,858 |
Condensed Consolidated Statements of Profit or Loss (Unaudited) | ||||
Nine Months Ended | Nine Months Ended | |||
Millions of yen | Millions of yen | |||
Revenues | ||||
Network services | 95,097 | 102,744 | ||
System integration | 68,413 | 80,477 | ||
ATM operation business | 2,090 | 2,118 | ||
Total revenues | 165,600 | 185,339 | ||
Cost of sales | ||||
Cost of network services | (68,653) | (74,627) | ||
Cost of systems integration | (58,869) | (67,835) | ||
Cost of ATM operation business | (1,294) | (1,221) | ||
Total cost of sales | (128,816) | (143,683) | ||
Gross Profit | 36,784 | 41,656 | ||
Selling, general and administrative expenses | (20,494) | (23,064) | ||
Other operating income | 125 | 246 | ||
Other operating expenses | (117) | (48) | ||
Operating Profit | 16,298 | 18,790 | ||
Finance income | 2,756 | 802 | ||
Finance expenses | (401) | (413) | ||
Share of profit (loss) of investments accounted for using equity method | (1,056) | (161) | ||
Profit (loss) before tax | 17,597 | 19,018 | ||
Income tax expense | (5,974) | (6,049) | ||
Profit (loss) for the period | 11,623 | 12,969 | ||
Profit (loss) for the period attributable to: | ||||
Owners of the parent | 11,522 | 12,854 | ||
Non-controlling interests | 101 | 115 | ||
Total | 11,623 | 12,969 | ||
Earnings per share | ||||
Basic earnings per share (yen) | 63.81 | 71.14 | ||
Diluted earnings per share (yen) | 63.50 | 70.79 | ||
※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. |
Condensed Consolidated Statements of Profit or Loss (Unaudited) | ||||||
Three Months Ended | Three Months Ended | |||||
Millions of yen | Millions of yen | |||||
Revenues | ||||||
Network services | 31,661 | 35,038 | ||||
System integration | 24,204 | 27,629 | ||||
ATM operation business | 681 | 710 | ||||
Total revenues | 56,546 | 63,377 | ||||
Cost of sales | ||||||
Cost of network services | (21,899 | ) | (24,825 | ) | ||
Cost of systems integration | (20,529 | ) | (22,978 | ) | ||
Cost of ATM operation business | (419 | ) | (409 | ) | ||
Total cost of sales | (42,847 | ) | (48,212 | ) | ||
Gross Profit | 13,699 | 15,165 | ||||
Selling, general and administrative expenses | (6,704 | ) | (7,556 | ) | ||
Other operating income | 32 | 25 | ||||
Other operating expenses | (33 | ) | (17 | ) | ||
Operating Profit | 6,994 | 7,617 | ||||
Finance income | 983 | 19 | ||||
Finance expenses | (128 | ) | (1,393 | ) | ||
Share of profit (loss) of investments accounted for using equity method | (684 | ) | (83 | ) | ||
Profit (loss) before tax | 7,165 | 6,160 | ||||
Income tax expense | (2,500 | ) | (1,931 | ) | ||
Profit (loss) for the period | 4,665 | 4,229 | ||||
Profit (loss) for the period attributable to: | ||||||
Owners of the parent | 4,630 | 4,215 | ||||
Non-controlling interests | 35 | 14 | ||||
Total | 4,665 | 4,229 | ||||
Earnings per share | ||||||
Basic earnings per share (yen) | 25.63 | 23.33 | ||||
Diluted earnings per share (yen) | 25.51 | 23.21 | ||||
※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. |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||||||
Nine Months Ended | Nine Months Ended | |||||
Millions of yen | Millions of yen | |||||
Profit (loss) | 11,623 | 12,969 | ||||
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 | 1,887 | (274 | ) | |||
Total of items that will not be reclassified to profit or loss | 1,887 | (274 | ) | |||
Items that may be reclassified to profit or loss | ||||||
Exchange differences on translation of foreign operations | 245 | 579 | ||||
Financial assets measured at fair value through other comprehensive income | (0 | ) | (3 | ) | ||
Share of other comprehensive income of investments accounted for using equity method | 19 | 44 | ||||
Total of items that may be reclassified to profit or loss | 264 | 620 | ||||
Total other comprehensive income, net of tax | 2,151 | 346 | ||||
Other comprehensive income | 13,774 | 13,315 | ||||
Other comprehensive income attributable to: | ||||||
Owners of the parent | 13,673 | 13,200 | ||||
Non-controlling interest | 101 | 115 | ||||
Other comprehensive income | 13,774 | 13,315 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||||||
Three Months Ended | Three Months Ended | |||||
Millions of yen | Millions of yen | |||||
Profit (loss) | 4,665 | 4,229 | ||||
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 | (121 | ) | 437 | |||
Total of items that will not be reclassified to profit or loss | (121 | ) | 437 | |||
Items that may be reclassified to profit or loss | ||||||
Exchange differences on translation of foreign operations | 227 | (433 | ) | |||
Financial assets measured at fair value through other comprehensive income | (0 | ) | (2 | ) | ||
Share of other comprehensive income of investments accounted for using equity method | 6 | 10 | ||||
Total of items that may be reclassified to profit or loss | 233 | (425 | ) | |||
Total other comprehensive income, net of tax | 112 | 12 | ||||
Other comprehensive income | 4,777 | 4,241 | ||||
Other comprehensive income attributable to: | ||||||
Owners of the parent | 4,742 | 4,227 | ||||
Non-controlling interest | 35 | 14 | ||||
Other comprehensive income | 4,777 | 4,241 |
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) | |||||||||||||||||||||
Nine months 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 | ) | 89,957 | 1,015 | 90,972 | ||||||||||||
Comprehensive income | |||||||||||||||||||||
Profit (loss) | - | - | 11,522 | - | - | 11,522 | 101 | 11,623 | |||||||||||||
Other comprehensive income | - | - | - | 2,151 | - | 2,151 | - | 2,151 | |||||||||||||
Total comprehensive income | - | - | 11,522 | 2,151 | - | 13,673 | 101 | 13,774 | |||||||||||||
Transactions with owners | |||||||||||||||||||||
Issuance of common stock | 31 | (31 | ) | - | - | - | 0 | - | 0 | ||||||||||||
Disposal of treasury shares | - | 53 | - | - | 24 | 77 | - | 77 | |||||||||||||
Dividends paid | - | - | (3,836 | ) | - | - | (3,836 | ) | (49 | ) | (3,885 | ) | |||||||||
Stock-based compensation | - | 61 | - | - | - | 61 | - | 61 | |||||||||||||
Other | - | (5 | ) | - | - | - | (5 | ) | (2 | ) | (7 | ) | |||||||||
Total transactions with owners | 31 | 78 | (3,836 | ) | - | 24 | (3,703 | ) | (51 | ) | (3,754 | ) | |||||||||
Balance, | 25,562 | 36,467 | 32,733 | 7,016 | (1,851 | ) | 99,927 | 1,065 | 100,992 | ||||||||||||
Nine months 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 (loss) | - | - | 12,854 | - | - | 12,854 | 115 | 12,969 | |||||||||||||
Other comprehensive income | - | - | - | 346 | - | 346 | - | 346 | |||||||||||||
Total comprehensive income | - | - | 12,854 | 346 | - | 13,200 | 115 | 13,315 | |||||||||||||
Transactions with owners | |||||||||||||||||||||
Purchase of treasury stock | - | - | - | - | 0 | 0 | - | 0 | |||||||||||||
Disposal of treasury shares | - | 99 | - | - | 20 | 119 | - | 119 | |||||||||||||
Dividends paid | - | - | (4,901 | ) | - | - | (4,901 | ) | (49 | ) | (4,950 | ) | |||||||||
Stock-based compensation | - | 60 | - | - | - | 60 | - | 60 | |||||||||||||
Total transactions with owners | - | 159 | (4,901 | ) | - | 20 | (4,722 | ) | (49 | ) | (4,771 | ) | |||||||||
Balance, | 25,562 | 36,677 | 44,977 | 6,621 | (1,831 | ) | 112,006 | 1,159 | 113,165 |
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||
Nine Months Ended | Nine Months Ended | |||||
Millions of yen | Millions of yen | |||||
Cash flows from operating activities | ||||||
Profit (loss) before tax | 17,597 | 19,018 | ||||
Adjustments | ||||||
Depreciation and amortization | 21,088 | 21,254 | ||||
Loss (gain) on sales/disposals of property and equipment | 98 | (143 | ) | |||
Shares of loss (profit) of investments accounted for using equity method | 1,056 | 161 | ||||
Finance income | (2,776 | ) | (802 | ) | ||
Finance expenses | 401 | 413 | ||||
Other | 112 | 475 | ||||
Changes in working capital | ||||||
Decrease (increase) in trade receivables | 4,277 | 1,784 | ||||
Decrease (increase) in inventories | (208 | ) | (1,669 | ) | ||
Decrease (increase) in prepaid expenses | (2,114 | ) | (3,440 | ) | ||
Decrease (increase) in contract assets | (1,442 | ) | (1,426 | ) | ||
Decrease (increase) in other assets | (102 | ) | (183 | ) | ||
Decrease (increase) in other financial assets | (563 | ) | (745 | ) | ||
Increase (decrease) in trade and other payables | (606 | ) | 3,516 | |||
Increase (decrease) in contract liabilities | (562 | ) | (577 | ) | ||
Increase (decrease) in deferred income | (8 | ) | (1 | ) | ||
Increase (decrease) in other liabilities | (1,152 | ) | (1,402 | ) | ||
Increase (decrease) in other financial liabilities | 851 | 969 | ||||
Increase (decrease) in retirement benefit liabilities | 332 | 183 | ||||
Subtotal | 36,279 | 37,385 | ||||
Interest and dividends received | 170 | 201 | ||||
Interest paid | (398 | ) | (401 | ) | ||
Income taxes paid | (5,680 | ) | (9,871 | ) | ||
Cash flows from operating activities | 30,370 | 27,314 | ||||
Cash flows from investing activities | ||||||
Purchases of tangible assets | (4,893 | ) | (9,760 | ) | ||
Proceeds from sales of tangible assets | 1,776 | 1,216 | ||||
Purchases of intangible assets | (3,627 | ) | (4,150 | ) | ||
Proceeds from sales of intangible assets | 0 | - | ||||
Purchase of a subsidiary | (2,612 | ) | - | |||
Purchases of other investments | (574 | ) | (397 | ) | ||
Proceeds from sales of other investments | 104 | 19 | ||||
Payments for leasehold deposits and guarantee deposits | (91 | ) | (49 | ) | ||
Proceeds from collection of leasehold deposits and guarantee deposits | 141 | 16 | ||||
Payments for refundable insurance policies | (56 | ) | (56 | ) | ||
Other | 0 | 1 | ||||
Cash flows from investing activities | (9,832 | ) | (13,160 | ) | ||
Cash flows from financing activities | ||||||
Proceeds from long-term borrowings | - | 179 | ||||
Repayment of long-term borrowings | (5,170 | ) | (1,500 | ) | ||
Net increase (decrease) in short-term borrowings | 1,480 | (100 | ) | |||
Payments of other financial liabilities | (14,665 | ) | (14,396 | ) | ||
Dividends paid | (3,836 | ) | (4,901 | ) | ||
Other | (48 | ) | (48 | ) | ||
Cash flows from financing activities | (22,240 | ) | (20,766 | ) | ||
Effect of exchange rate changes on cash and cash equivalents | 195 | 548 | ||||
Net increase (decrease) in cash and cash equivalents | (1,507 | ) | (6,064 | ) | ||
Cash and cash equivalents, beginning of the period | 42,467 | 47,391 | ||||
Cash and cash equivalents, end of the period | 40,960 | 41,327 |
Notes to Condensed Consolidated Financial Statements (Unaudited)
Going Concern Assumption
Nothing to be reported.
Material Changes in Shareholders’ Equity
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:
Nine months ended | |||||||||
Reportable segments | |||||||||
Network service and systems integration business | ATM operation business | Adjustments | Consolidated | ||||||
Millons of yen | Millons of yen | Millons of yen | Millons of yen | ||||||
Revenue | |||||||||
Customers | 163,510 | 2,090 | - | 165,600 | |||||
Intersegment transactions | 96 | - | (96 | ) | - | ||||
Total revenue | 163,606 | 2,090 | (96 | ) | 165,600 | ||||
Segment operating profit | 15,747 | 617 | (66 | ) | 16,298 | ||||
Finance income | 2,756 | ||||||||
Finance expense | (401 | ) | |||||||
Share of profit (loss) of investments accounted for using the equity method | (1,056 | ) | |||||||
Profit before tax | 17,597 | ||||||||
Nine months ended | |||||||||
Reportable segments | |||||||||
Network service and systems integration business | ATM operation business | Adjustments | Consolidated | ||||||
Millons of yen | Millons of yen | Millons of yen | Millons of yen | ||||||
Revenue | |||||||||
Customers | 183,221 | 2,118 | - | 185,339 | |||||
Intersegment transactions | 79 | - | (79 | ) | - | ||||
Total revenue | 183,300 | 2,118 | (79 | ) | 185,339 | ||||
Segment operating profit | 18,117 | 693 | (20 | ) | 18,790 | ||||
Finance income | 802 | ||||||||
Finance expense | (413 | ) | |||||||
Share of profit (loss) of investments accounted for using the equity method | (161 | ) | |||||||
Profit before tax | 19,018 |
Intersegment transactions are based on market price.
Subsequent Events
Nothing to be reported.
Note: The following information is provided to disclose
Consolidated Financial Results for the Nine Months ended
Company name:
Exchange listed:
Ticker symbol: 3774
URL: https://www.iij.ad.jp/
Representative:
Contact:
TEL: +81-3-5205-6500
Scheduled date for filing of quarterly report (Shihanki-houkokusho) to Japan’s regulatory organization:
Scheduled date for dividend payment: -
Supplemental material on quarterly results: Yes
Presentation on quarterly results: Yes (for institutional investors and analysts)
(Amounts of less than
1. Consolidated Financial Results for the Nine Months ended
(1) Consolidated Results of Operations | (% shown is YoY change) | ||||||||||||
Revenues | Operating profit | Profit (loss) before tax | Profit (loss) for the period | Profit (loss) attributable to owners of the parent | Other comprehensive income | ||||||||
JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | ||
Nine Months ended | 185,339 | 11.9 | 18,790 | 15.3 | 19,018 | 8.1 | 12,969 | 11.6 | 12,854 | 11.6 | 13,315 | (3.3 | ) |
Nine Months ended | 165,600 | 6.1 | 16,298 | 60.9 | 17,597 | 90.7 | 11,623 | 95.5 | 11,522 | 96.1 | 13,774 | 81.7 |
Basic earnings per share | Diluted earnings per share | |
JPY | JPY | |
Nine Months ended | 71.14 | 70.79 |
Nine Months ended | 63.81 | 63.50 |
(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 | |
JPY millions | JPY millions | JPY millions | % | |
As of | 234,858 | 113,165 | 112,006 | 47.7 |
As of | 231,805 | 104,621 | 103,528 | 44.7 |
2.Dividends
Annual Dividends | |||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |
JPY | JPY | JPY | JPY | JPY | |
Fiscal Year Ended March 31, 2022 | ― | 23.00 | ― | 25.00 | 48.00 |
Fiscal Year Ending March 31, 2023 | ― | 29.25 | ― | ||
Fiscal Year Ending March 31, 2023 (forecast) | 14.63 | ― |
(Notes)
1. Changes from the latest forecasts disclosed: None
2. IIJ conducted a stock split at a ratio of two-for-one effective as 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 | |
Fiscal Year Ending | 250,000 | 10.5 | 27,200 | 15.5 | 26,300 | 8.8 | 17,500 | 11.7 | 96.89 |
(Notes)
- Changes from the latest forecasts disclosed: None
- IIJ conducted a stock split at a ratio of two-for-one with an effective date of
October 1, 2022 . The target of basic earnings per share is the amount after the stock split. - As for the details about our financial targets for the fiscal year ending
March 31, 2023 , please refer to “Future Prospects including FY2022 Financial Targets” which is disclosed on page 8 of this earnings release.
* 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 ofDecember 31, 2022 : 187,069,600 shares
As ofMarch 31, 2022 : 187,069,600 shares - Number of treasury stock:
As ofDecember 31, 2022 : 6,371,696 shares
As ofMarch 31, 2022 : 6,443,334 shares - Number of weighted average common shares outstanding:
For the nine months endedDecember 31, 2022 : 180,678,380 shares
For the nine months endedDecember 31, 2021 : 180,581,022 shares
* IIJ conducted a stock split at a ratio of two-for-one with an effective date ofOctober 1, 2022 . Accordingly, number of shares issued, number of treasury stock and number of weighted average common shares outstanding above have been calculated as if the stock split had been conducted at the beginning of the previous consolidated fiscal year, respectively.
* 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) Change in the unit of presentation for monetary amounts
Amounts of accounts and other items presented in our condensed quarterly consolidated financial statements were previously stated in thousands of yen, but effective from the first quarter ended
iii) Others
Presentation material will be disclosed on TDnet as well as posted on our website on
Source:
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