IIJ Announces Nine Months Financial Results for the Fiscal Year Ending March 31, 2018

TOKYO, Feb. 08, 2018 (GLOBE NEWSWIRE) -- Internet Initiative Japan Inc. ("IIJ")(NASDAQ:IIJI) (TSE:3774) today announced its nine months consolidated financial results for the fiscal year ending March 31, 2018 (“3Q17” from April 1, 2017 to December 31, 2017).1

Highlights of Financial Results for 3Q17
RevenuesJPY127.6 billion (up 12.3% YoY)
Operating IncomeJPY3.8 billion (up 19.7% YoY)
Income before Income Tax ExpenseJPY4.3 billion (up 26.1% YoY)
Net Income attributable to IIJJPY2.7 billion (up 40.7% YoY)
Financial Targets for FY2017
RevenuesJPY176.0 billion (up 11.5% YoY)
Operating IncomeJPY6.5 billion (up 26.6% YoY)
Income before Income Tax Expense JPY6.5 billion (up 19.8% YoY)
Net Income attributable to IIJJPY4.0 billion (up 26.3% YoY)

Overview of 3Q17 Financial Results and Business Outlook

“To launch cryptocurrency exchange and settlement business, we established an equity method investee by partnering with prominent Japanese companies from various industries: Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation, Daiwa Securities Group, Nomura Holdings, Dai-ichi Life Insurance Company, Nippon Life Insurance Company, Mitsui Sumitomo Insurance Company, Sompo Holdings, Tokio Marine & Nichido Fire Insurance Company, East Japan Railway Company, ITOCHU Corporation, ITOCHU Techno-Solutions Corporation, K-Opticom Corporation, QTnet, Bic Camera, DENTSU, Mitsui Fudosan, and Yamato Holdings. DeCurret, IIJ’s 35% equity method investee with capital of JPY5.23 billion,2 will offer BtoC cryptocurrency exchange services from the latter half of FY2018 and BtoBtoC and BtoC cryptocurrency settlement services from FY2019. Based on our existing ASP FX trading system, which has been used by thirteen major Japanese financial institutions, DeCurret should be able to develop highly reliable and scalable cryptocurrency exchange system and services, incorporating Anti-Money Laundering (AML) and Know Your Customer (KYC) and other necessary and critical security requirements.3 We see a great growth opportunity in settlement business as conventional financial infrastructure needs to be changed dramatically, especially in Japan where cash is a predominantly major payment method.4 We’re very excited about working together with so many outstanding Japanese companies to create a new standard for cryptocurrency settlements which is thought to be a new social infrastructure,” said Koichi Suzuki, Founder, CEO and Chairman of IIJ.
“As for the three months financial results, revenue and operating income increased year over year by 13.0% and 20.9% respectively. Network services, especially security-related services, which was supported by the strong demands, and mobile services, led the revenue growth. Accordingly with our mobile business growth strategy, our enterprise mobile revenue strongly grew by 45.2% year over year as MVNE and IoT/M2M transactions continued to expand. SI revenue increased by 8.6% YoY as we continued to accumulate projects. Operating income grew as gross margin of both network services and SI expanded by 13.6% and 13.0% year over year,” said Eijiro Katsu, COO and President of IIJ.
“We decided to build our own data center and we’ve acquired the land of approximately 40 thousand m2.5 The main purpose is to integrate our racks that are currently spread out in the metropolitan area’s data centers for more effective operation. The new data center, which ultimately can accommodate up to 6,000 racks, allows gradual expansion of capacity as we’ll place system module-based data centers developed from our container-based data center technology accumulated from our Matsue Data Center Park since 2011. We estimate the future data center facility cost should be approximately 20% lower by having our own data center than continuously expanding leasing space. We’ll also ensure business expansion scalability for the future by having this new data center,” concluded Katsu.
“We continuously enhance our existing business such as cloud, mobile, security and SI, and we’re also making further business developments like FinTech project this time. Our invisible yet very essential business assets such as Internet technology, network and system infrastructure, SI expertise, brand of reliability, and long-term relationship with prominent Japanese blue-chips let us develop and expand our business foundation. We shall continue to pursue these strategies going forward,” concluded Katsu.

__________________________

1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with U.S. GAAP, unaudited and consolidated.
2 The capital is JPY5.23 billion as of the mid-February when all the capital partners make payments.
3 The service, IIJ Raptor Service, was launched in 2010 and its customers include Nomura Scurities and Sony Bank.
4 According to the Ministry of Economy, Trade and Industry who published a report in May 2017, as for 2015, 19% of settlement was through non-cash in Japan compared to 41% in the U.S.A. and 55% in China.
5 The new data center will be located in Chiba prefecture, just east of Tokyo. As of December 2017, there are 21 data centers operated by IIJ in Japan. 20 of them are leased by data center owners and 1 data center owned by IIJ in Shimane prefecture.

3Q17 Financial Results Summary

Operating Results Summary

3Q163Q17YoY Change
JPY millionsJPY millions%
Total revenues113,602127,61212.3
Network services68,48180,00016.8
Systems integration (SI)39,85842,3016.1
Equipment sales2,2072,2753.1
ATM operation business3,0563,036(0.6)
Total costs95,772107,85612.6
Network services56,27466,10917.5
Systems integration (SI)35,64437,8986.3
Equipment sales2,0242,0531.4
ATM operation business1,8301,796(1.9)
Total gross margin17,83019,75610.8
Network services12,20713,89113.8
Systems integration (SI)4,2144,4034.5
Equipment sales18322221.0
ATM operation business1,2261,2401.2
SG&A expenses and R&D14,67515,9808.9
Operating income3,1553,77619.7
Income before income tax expense3,4334,32926.1
Net income attributable to IIJ1,9102,68840.7


Segment Results Summary
3Q163Q17
JPY millionsJPY millions
Total revenues113,602 127,612
Network services and SI business110,831 124,835
ATM operation business3,056 3,036
Elimination(285)(259)
Operating income3,155 3,776
Network service and SI business2,178 2,782
ATM operation business1,088 1,123
Elimination(111)(129)

We have omitted segment analysis because most of our revenues are dominated by network services and systems integration (SI) business.

3Q17 Revenues and Income

Revenues

Total revenues were JPY127,612 million, up 12.3% YoY (JPY113,602 million for 3Q16).

Network services revenue was JPY80,000 million, up 16.8% YoY (JPY68,481 million for 3Q16).

Revenues for Internet connectivity services for enterprise were JPY20,418 million, up 24.0% YoY from JPY16,461 million for 3Q16, mainly due to an increase in mobile-related services revenues along with an expansion of MVNE business clients’ transactions.

Revenues for Internet connectivity services for consumers were JPY18,707 million, up 17.6% YoY from JPY15,903 million for 3Q16, mainly due to the revenue growth of “IIJmio Mobile Service,” consumer mobile services which offer inexpensive data communication and voice services with SIM cards.

Revenues for WAN services were JPY21,676 million, up 9.2% YoY compared to JPY19,848 million for 3Q16.

Revenues for Outsourcing services were JPY19,199 million, up 18.0% YoY from JPY16,269 million for 3Q16, mainly due to an increase in security-related services revenues.

Network Services Revenues Breakdown
3Q163Q17YoY
Change
JPY millionsJPY millions%
Internet connectivity services (Enterprise)16,46120,41824.0
IP service*7,3317,5533.0
IIJ FiberAccess/F and IIJ DSL/F2,2792,262(0.8)
IIJ Mobile service (Enterprise)6,68010,43656.2
IIJ Mobile MVNO Platform Service 4,3587,74277.7
Others171167(2.7)
Internet connectivity services (Consumer)15,90318,70717.6
IIJ14,29017,39421.7
IIJmio Mobile Service12,43715,34223.4
hi-ho1,6131,313(18.6)
WAN services19,84821,6769.2
Outsourcing services16,26919,19918.0
Total network services68,48180,00016.8
* IP service revenues include revenues from the data center connectivity service.


Number of Contracts and Subscription for Connectivity Services*1

as of
December 31, 2016
as of
December 31, 2017
YoY
Change
Internet connectivity services (Enterprise)824,5461,246,898422,352
IP service (1Gbps-)41346148
IP service (100Mbps-999Mbps)57764366
IP service (-99Mbps)6226275
IIJ Data center connectivity service258243(15)
IIJ FiberAccess/F and IIJ DSL/F72,13270,778(1,354)
IIJ Mobile service (Enterprise)749,4841,173,563424,079
IIJ Mobile MVNO Platform Service*2501,374744,332242,958
Others1,060583(477)
Internet connectivity services (Consumer) 1,377,5291,349,664(27,865)
IIJ*21,241,3991,349,664108,265
IIJmio Mobile Service912,394986,76774,373
hi-ho*2 136,130-(136,130)
Total contracted bandwidth*32,636.7Gbps3,085.3Gbps448.6Gbps
*1. Numbers in the table above show number of contracts except for “IIJ Mobile service (Enterprise),” “IIJ” and “hi-ho” which show number of subscriptions.
*2. On December 31, 2017, IIJ sold all the shares of common stock of hi-ho which was IIJ’s wholly owned subsidiary. Accordingly, hi-ho’s subscription for “Internet connectivity services (Consumer)” decreased to zero, hi-ho’s mobile service subscription of 14,735 was reclassed to “IIJ Mobile MVNO Platform Service” and a part of hi-ho’s subscription other than mobile service subscription of 47,683 is included in IIJ’s subscrfiption for “Internet connectivity services (Consumer).”
*3. Regarding IP service, data center connectivity service and IIJ FiberAccess/F and IIJ DSL/F of Internet connectivity services (Enterprise), total contracted bandwidths are calculated by multiplying number of contracts by contracted bandwidths respectively.

SI revenues were JPY42,301 million, up 6.1% YoY (JPY39,858 million for 3Q16).

Systems construction revenue, a one-time revenue, was JPY14,530 million, up 4.0% YoY (JPY13,973 million for 3Q16). Systems operation and maintenance revenue, a recurring revenue, was JPY27,771 million, up 7.3% YoY (JPY25,885 million for 3Q16), mainly due to continued accumulation of the orders and an increase in private cloud services’ revenues.

Orders received for SI and equipment sales totaled JPY48,228 million, down 6.8% YoY (JPY51,730 million for 3Q16); orders received for systems construction and equipment sales were JPY19,201 million, down 8.7% YoY (JPY21,031 million for 3Q16) and orders received for systems operation and maintenance were JPY29,027 million, down 5.4% YoY (JPY30,699 million for 3Q16).

Order backlog for SI and equipment sales as of December 31, 2017 amounted to JPY45,153 million, up 4.3% YoY (JPY43,309 million as of December 31, 2016); order backlog for systems construction and equipment sales was JPY9,574 million, down 12.4% YoY (JPY10,928 million as of December 31, 2016) and order backlog for systems operation and maintenance was JPY35,579 million, up 9.9% YoY (JPY32,381 million as of December 31, 2016).

Equipment sales revenues were JPY2,275 million, up 3.1% YoY (JPY2,207 million for 3Q16).

ATM operation business revenues were JPY3,036 million, down 0.6% YoY (JPY3,056 million for 3Q16). As of December 31, 2017, 1,101 ATMs have been placed.

Cost and expense

Total cost of revenues was JPY107,856 million, up 12.6% YoY (JPY95,772 million for 3Q16).

Cost of network services revenue was JPY66,109 million, up 17.5% YoY (JPY56,274 million for 3Q16). There were an increase in outsourcing-related costs due to our mobile services and an increase in circuit-related costs. Gross margin was JPY13,891 million, up 13.8% YoY (JPY12,207 million for 3Q16) and gross margin ratio was 17.4% compared to 17.8% in 3Q16.

Cost of SI revenues was JPY37,898 million, up 6.3% YoY (JPY35,644 million for 3Q16). There were an increase in outsourcing-related costs along with our SI revenue increase. Gross margin was JPY4,403 million, up 4.5% YoY (JPY4,214 million for 3Q16) and gross margin ratio was 10.4% compared to 10.6% in 3Q16.

Cost of equipment sales revenues was JPY2,053 million, up 1.4% YoY (JPY2,024 million for 3Q16). Gross margin was JPY222 million (JPY183 million for 3Q16) and gross margin ratio was 9.8% compared to 8.3% in 3Q16.

Cost of ATM operation business revenues was JPY1,796 million, down 1.9% YoY (JPY1,830 million for 3Q16). Gross margin was JPY1,240 million (JPY1,226 million for 3Q16) and gross margin ratio was 40.8% compared to 40.1% in 16.

SG&A and R&D expenses

SG&A and R&D expenses in total were JPY15,980 million, up 8.9% YoY (JPY14,675 million for 3Q16).

Sales and marketing expenses were JPY9,551 million, up 13.8% YoY (JPY8,392 million for 3Q16) mainly due to increases in advertising expenses, sales commission expenses, and personnel-related expenses.

General and administrative expenses were JPY6,070 million, up 2.4% YoY (JPY5,928 million for 3Q16) mainly due to increases in personnel-related expenses.

Research and development expenses were JPY359 million, up 1.3% YoY (JPY355 million for 3Q16).

Operating income

Operating income was JPY3,776 million, up 19.7% YoY (JPY3,155 million for 3Q16).

Other income (expenses)

Other income (expenses) was an income of JPY553 million (an income of JPY278 million for 3Q16), mainly because of net gain on sales of other investments, including available-for-sale securities, of JPY373 million (JPY214 million for 3Q16), distribution from fund investment of JPY196 million (included in other-net of JPY173 million, JPY208 million for 3Q16), interest expense of JPY276 million (JPY218 million for 3Q16), dividend income of JPY231 million (JP106 million for 3Q16), and foreign exchange gains of JPY29 million (foreign exchange losses of JPY23 million for 3Q16).

Income before income tax expenses

Income before income tax expenses was JPY4,329 million, up 26.1% YoY (JPY3,433 million for 3Q16).

Net income

Income tax expense was JPY1,614 million (JPY1,466 million for 3Q16).

Equity in net income of equity method investees was JPY101 million (JPY69 million for 3Q16) mainly due to net income of Internet Multifeed Co.

As a result of the above, net income was JPY2,816 million, up 38.3% YoY (JPY2,036 million for 3Q16).

Net income attributable to IIJ

Net income attributable to non-controlling interests was JPY128 million (JPY126 million for 3Q16) mainly related to net income of Trust Networks Inc.

Net income attributable to IIJ was JPY2,688 million, up 40.7% YoY (JPY1,910 million for 3Q16).

3Q17 Balance Sheets

Balance sheets

As of December 31, 2017, the balance of total assets was JPY150,273 million, increased by JPY12,877 million from the balance as of March 31, 2017 of JPY137,395 million.

As of December 31, 2017, the balance of current assets was JPY68,061 million, increased by JPY4,340 million from the balance as of March 31, 2017 of JPY63,722 million. The major breakdown of current assets was an increase in inventories by JPY1,531 million to JPY4,329 million, an increase in prepaid expenses by JPY1,343 million to JPY8,954 million and an increase in cash and cash equivalents by JPY1,086 million to JPY23,044 million. As of December 31, 2017, the balance of noncurrent assets was JPY82,211 million, increased by JPY8,538 million from the balance as of March 31, 2017 of JPY73,673 million. The major breakdown of noncurrent assets was property and equipment of JPY45,125 million, increased by JPY5,349 million, including JPY1,205 million by purchase of land, from the balance as of March 31, 2017, and other investments of JPY10,933 million,increased by JPY3,008 million mainly due to an increase in the fair value of available-for-sale securities. Other investments as of December 31, 2017, consisted of JPY8,786 million in available-for-sale securities, JPY1,124 million in nonmarketable equity securities and JPY1,023 million in investments in funds, including some through a trust. As of December 31, 2017, the balance of non-amortized intangible assets was JPY6,118 million, decreased by JPY102 million from the balance as of March 31, 2017 of JPY6,220 million. The major breakdown of non-amortized intangible assets was JPY6,082 million in goodwill. The balance of amortized intangible assets, which was customer relationships, was JPY2,762 million, decreased by JPY274 million from the balance as of March 31, 2017 of JPY3,036 million.

As of December 31, 2017, the balance of current liabilities was JPY41,555 million, increased by JPY1,572 million from the balance as of March 31, 2017 of JPY39,983 million. The major breakdown of current liabilities was an increase in capital lease obligations-current portion by JPY672 million to JPY5,491 million and an increase in accounts payable (trade and other) by JPY462 million to JPY17,424 million. As of December 31, 2017, the balance of noncurrent liabilities was JPY37,672 million, increased by JPY7,640 million from the balance as of March 31, 2017 of JPY30,032 million. The major breakdown of noncurrent liabilities was an increase in long-term borrowings by JPY7,000 million to JPY15,500 million and an increase in capital lease obligations-noncurrent by JPY710 million to JPY11,095 million.

As of December 31, 2017, the balance of total IIJ shareholders’ equity was JPY70,381 million, increased by JPY3,639 million from the balance as of March 31, 2017 and IIJ shareholders’ equity ratio (total IIJ shareholders’ equity divided by total assets) as of December 31, 2017 was 46.8%.

3Q17 Cash Flows

Cash flows

Cash and cash equivalents as of December 31, 2017 were JPY23,044 million (JPY21,266 million as of December 31, 2016).

Net cash provided by operating activities for 3Q17 was JPY8,296 million (net cash provided by operating activities of JPY4,408 million for 3Q16.) There were net income of JPY2,816 million, depreciation and amortization of JPY9,156 million and net cash out flow of JPY3,486 million from changes in operating assets and liabilities. As for changes in operating assets and liabilities, there were an increase in prepaid expenses (including prepaid expense-noncurrent) in relation to up front payment for software licenses and maintenance cost for service facilities, an increase in inventories due to the increase in systems construction projects and an increase in prepaid expenses for seasonal bonus payments to our employees.

Net cash used in investing activities for 3Q17 was JPY8,272 million (net cash used in investing activities of JPY5,389 million for 3Q16), mainly due to payments for purchase of property and equipment of JPY11,785 million (JPY7,940 million for 3Q16), including JPY1,205 million by purchase of land, proceeds from sales of property and equipment, which include sales and leaseback transactions, of JPY2,757 million (JPY2,219 million for 3Q16) and proceeds from sale of stock of hi-ho (net of cash divested) of JPY726 million.

Net cash provided by financing activities for 3Q17 was JPY1,049 million (net cash provided by financing activities of JPY2,831 million for 3Q16), mainly due to procceds from long-term borrowings of JPY7,000 million, principal payments under capital leases of JPY4,230 million (JPY3,535 million for 3Q16) and FY2016 year-end and FY2017 interim dividends payments of JPY1,217 million (JPY1,126 million for 3Q16).

FY2017 Financial Targets

Due to seasonal factors, our financial results tend to be small in a first quarter and strong in strong in a fourth quarter every fiscal year. 3Q17 financial results resulted almost as planed. Our financial targets for the fiscal year ending March 31, 2018 (FY2017) announced on May 15, 2017 remain unchanged.

3Q17 Reconciliation of Non-GAAP Financial Measures

The following table summarizes the reconciliation of adjusted EBITDA to net income attributable to IIJ in our consolidated statements of income that are prepared in accordance with U.S. GAAP.

Adjusted EBITDA
3Q163Q17
JPY millionsJPY millions
Adjusted EBITDA11,161 12,932
Depreciation and Amortization(8,006)(9,156)
Operating Income3,155 3,776
Other Income278 553
Income Tax Expense1,466 1,614
Equity in Net Income of Equity Method Investees69 101
Net income2,036 2,816
Less: Net income attributable to noncontrolling interests(126)(128)
Net Income attributable to IIJ1,910 2,688


CAPEX

3Q163Q17
JPY millionsJPY millions
CAPEX, including capital leases12,25815,756
Acquisition of Assets by Entering into Capital Leases5,8435,625
Purchase of Property and Equipment6,41510,131

Presentation

Presentation materials will be posted on our web site (https://www.iij.ad.jp/en/ir/) on February 8, 2018.

About Internet Initiative Japan Inc.

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 Japan that is connected to the United States, the United Kingdom and Asia. IIJ listed on the U.S. NASDAQ Stock Market in 1999 and on the First Section of the Tokyo Stock Exchange in 2006.

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

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 FY2017 revenues and operating and net profitability, 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. These risks, uncertainties and other factors include: IIJ’s ability to maintain and increase revenues from higher-margin services such as systems integration and outsourcing services; the possibility that revenues from connectivity services may decline substantially as a result of competition and other factors; the ability to compete in a rapidly evolving and competitive marketplace; the impact on IIJ's profits of fluctuations in costs such as backbone costs and subcontractor costs; the impact on IIJ's profits of fluctuations in the price of available-for-sale securities; the impact of technological changes in its industry; IIJ’s ability to raise additional capital to cover its indebtedness; the possibility that NTT, IIJ’s largest shareholder, may decide to exercise substantial influence over IIJ; and other risks referred to from time to time in IIJ’s filings on Form 20-F of its annual report and other filings with the United States Securities and Exchange Commission.

Internet Initiative Japan Inc.
Consolidated Balance Sheets (Unaudited)
(As of March 31, 2017 and December 31, 2017)
As of March 31, 2017 As of December 31, 2017
Thousands of
JPY
Thousands of
JPY
ASSETS
CURRENT ASSETS:
Cash and cash equivalents21,958,591 23,044,148
Accounts receivable, net of allowance for doubtful accounts of
JPY 107,684 thousand and JPY 118,034 thousand
at March 31, 2017 and December 31, 2017, respectively
27,383,692 27,615,182
Inventories2,798,054 4,329,210
Prepaid expenses—current7,610,925 8,953,946
Deferred tax assets—current1,298,469 -
Other current assets, net of allowance for doubtful accounts of
JPY 15,192 thousand and JPY 720 thousand at March 31, 2017 and
December 31, 2017, respectively
2,672,008 4,118,959
Total current assets63,721,739 68,061,445
INVESTMENTS IN EQUITY METHOD INVESTEES3,150,175 3,382,804
OTHER INVESTMENTS7,924,914 10,932,942
PROPERTY AND EQUIPMENT, net of accumulated depreciation and
amortization of JPY 50,566,983 thousand and JPY 53,092,388 thousand
at March 31, 2017 and December 31, 2017, respectively
39,775,444 45,124,889
GOODWILL6,169,609 6,082,472
OTHER INTANGIBLE ASSETS—Net3,087,017 2,797,659
GUARANTEE DEPOSITS3,060,365 3,345,893
DEFERRED TAX ASSETS—Noncurrent80,566 145,141
NET INVESTMENT IN SALES-TYPE LEASES—Noncurrent2,047,682 1,676,234
Prepaid expenses—Noncurrent6,607,437 7,342,288
OTHER ASSETS, net of allowance for doubtful accounts of
JPY 61,877 thousand and JPY 60,749 thousand
at March 31, 2017 and December 31, 2017, respectively
1,770,201 1,380,815
TOTAL137,395,149 150,272,582
As of March 31, 2017 As of December 31, 2017
Thousands of
JPY
Thousands of
JPY
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings9,250,000 9,400,000
Capital lease obligations—current portion4,818,723 5,490,906
Accounts payable—trade14,653,065 15,450,618
Accounts payable—other2,308,790 1,973,532
Income taxes payable1,075,745 530,746
Accrued expenses2,755,581 3,000,449
Deferred income—current3,750,542 4,169,086
Other current liabilities1,370,661 1,539,525
Total current liabilities39,983,107 41,554,862
LONG-TERM BORROWINGS8,500,000 15,500,000
CAPITAL LEASE OBLIGATIONS—Noncurrent10,384,643 11,094,802
ACCRUED RETIREMENT AND PENSION COSTS—Noncurrent3,532,965 3,724,948
DEFERRED TAX LIABILITIES—Noncurrent963,845 780,689
DEFERRED INCOME—Noncurrent3,656,612 3,865,199
OTHER NONCURRENT LIABILITIES2,993,777 2,706,064
Total Liabilities70,014,949 79,226,564
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common-stock—authorized, 75,520,000 shares; issued and outstanding, 46,711,400 and 46,713,800 shares
at March 31, 2017 and December 31, 2017, respectively
25,509,499 25,511,804
Additional paid-in capital36,117,511 36,161,451
Retained earnings4,511,945 5,983,175
Accumulated other comprehensive income2,499,700 4,620,983
Treasury stock—1,650,909 shares held by the company at March 31, 2017 and December 31, 2017, respectively(1,896,784) (1,896,784)
Total Internet Initiative Japan Inc. shareholders' equity66,741,871 70,380,629
NONCONTROLLING INTERESTS638,329 665,389
Total equity67,380,200 71,046,018
TOTAL137,395,149 150,272,582


Internet Initiative Japan Inc.
Consolidated Statements of Income and
Consolidated Statements of Comprehensive Income (Unaudited)
(For the nine months ended December 31, 2016 and December 31, 2017)
Nine Months Ended Nine Months Ended
December 31, 2016 December 31, 2017
Thousands of
JPY
Thousands of
JPY
REVENUES:
Network services:
Internet connectivity services (enterprise)16,461,205 20,417,963
Internet connectivity services (consumer)15,902,952 18,707,332
WAN services19,847,736 21,675,903
Outsourcing services16,268,643 19,198,399
Total68,480,536 79,999,597
Systems integration:
Systems construction13,972,807 14,530,478
Systems operation and maintenance25,885,221 27,770,579
Total39,858,028 42,301,057
Equipment sales2,207,649 2,275,363
ATM operation business3,055,739 3,035,957
Total revenues113,601,952 127,611,974
COSTS AND EXPENSES:
Cost of network services56,273,528 66,109,118
Cost of systems integration35,644,158 37,897,888
Cost of equipment sales2,024,262 2,053,432
Cost of ATM operation business1,830,095 1,795,912
Total costs95,772,043 107,856,350
Sales and marketing8,392,014 9,550,884
General and administrative5,928,165 6,070,008
Research and development354,411 359,125
Total costs and expenses110,446,633 123,836,367
OPERATING INCOME3,155,319 3,775,607
OTHER INCOME (EXPENSES):
Dividend income106,336 230,784
Interest income26,781 23,130
Interest expense(218,204) (276,374)
Foreign exchange gain (loss), net(23,072) 28,531
Net gain on sales of other investments213,938 373,499
Impairment of other investments(30,554) -
Other —net202,486 173,396
Other income —net277,711 552,966
INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE
AND EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES
3,433,030 4,328,573
INCOME TAX EXPENSE 1,465,852 1,613,955
EQUITY IN NET INCOME OF EQUITY METHOD INVESTEES69,244 101,169
NET INCOME2,036,422 2,815,787
LESS: NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
(126,161) (127,891)
NET INCOME ATTRIBUTABLE TO INTERNET
INITIATIVE JAPAN INC.
1,910,261 2,687,896
Nine Months Ended Nine Months Ended
December 31, 2016 December 31, 2017
NET INCOME PER SHARE
BASIC WEIGHTED-AVERAGE NUMBER OF SHARES (shares)45,846,887 45,062,874
DILUTED WEIGHTED-AVERAGE NUMBER OF SHARES (shares)45,962,442 45,211,765
BASIC WEIGHTED-AVERAGE NUMBER OF
ADS EQUIVALENTS (ADSs)
91,693,774 90,125,748
DILUTED WEIGHTED-AVERAGE NUMBER OF
ADS EQUIVALENTS (ADSs)
91,924,884 90,423,530
BASIC NET INCOME PER SHARE (JPY)41.67 59.65
DILUTED NET INCOME PER SHARE (JPY)41.56 59.45
BASIC NET INCOME PER ADS EQUIVALENT (JPY)20.83 29.82
DILUTED NET INCOME PER ADS EQUIVALENT (JPY)20.78 29.73
Quarterly Consolidated Statements of Comprehensive Income (Unaudited)
Nine Months Ended Nine Months Ended
December 31, 2016 December 31, 2017
Thousands of
JPY
Thousands of
JPY
NET INCOME2,036,422 2,815,787
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation adjustments(455,158) (13,401)
Unrealized holding gain on securities920,735 2,132,187
Defined benefit pension plans10,878 2,497
TOTAL COMPREHENSIVE INCOME 2,512,877 4,937,070
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
(126,161) (127,891)
COMPREHENSIVE INCOME ATTRIBUTABLE TO
INTERNET INITIATIVE JAPAN INC.
2,386,716 4,809,179


Internet Initiative Japan Inc.
Consolidated Statements of Cash Flows (Unaudited)
(For the nine months ended December 31, 2016 and December 31, 2017)
Nine Months Ended Nine Months Ended
December 31, 2016 December 31, 2017
Thousands of
JPY
Thousands of
JPY
OPERATING ACTIVITIES:
Net income2,036,422 2,815,787
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization8,006,049 9,155,860
Provision for retirement and pension costs, less payments188,923 196,199
Provision for allowance for doubtful accounts19,989 67,931
Gain on sales of property and equipment(15,410) (13,636)
Loss on disposal of property and equipment54,481 62,391
Net gain on sales of other investments(213,938) (373,499)
Impairment of other investments30,554 -
Foreign exchange gain, net(277) (11,011)
Equity in net income of equity method investees, less dividends received(18,162) (49,978)
Deferred income tax expense (benefit)349,735 (23,009)
Others(51,716) (45,309)
Changes in operating assets and liabilities net of effects from divestitures of a company :
Increase in accounts receivable(64,287) (589,876)
Decrease in net investment in sales-type lease — noncurrent400,390 371,448
Increase in inventories(1,586,556) (1,528,797)
Increase in prepaid expenses(2,454,437) (1,355,406)
Increase in other current and noncurrent assets(4,534,405) (1,992,382)
Increase in accounts payable160,327 898,983
Decrease in income taxes payable(767,172) (535,204)
Increase in accrued expenses18,639 241,367
Increase in deferred income—current140,038 419,937
Increase in deferred income—noncurrent302,157 236,485
Increase in other current and noncurrent liabilities2,406,335 347,722
Net cash provided by operating activities4,407,679 8,296,003
INVESTING ACTIVITIES:
Purchase of property and equipment(7,940,090) (11,785,162)
Proceeds from sales of property and equipment2,219,179 2,756,719
Purchase of other investments(316,171) (131,118)
Investment in an equity method investee(99,000) (174,808)
Proceeds from sales of available-for-sale securities- 460,017
Proceeds from sales of other investments534,249 156,266
Payments of guarantee deposits(17,102) (298,145)
Refund of guarantee deposits87,704 20,833
Payments for refundable insurance policies(42,385) (42,272)
Proceeds from sale of stock of a subsidiary, net of cash divested- 726,081
Proceeds from subsidies200,000 48,976
Other(15,000) (9,710)
Net cash used in investing activities(5,388,616) (8,272,323)
Nine Months Ended Nine Months Ended
December 31, 2016 December 31, 2017
Thousands of
JPY
Thousands of
JPY
FINANCING ACTIVITIES:
Proceeds from short-term borrowings with initial maturities over three months and long-term borrowings8,550,000 9,550,000
Repayments of short-term borrowings with initial maturities over three months(50,000) (2,550,000)
Principal payments under capital leases(3,534,887) (4,229,975)
Repayments of long-term accounts payable- (406,251)
Payments for purchase of treasury stock(982,107) -
Dividends paid(1,125,841) (1,216,666)
Other(26,000) (97,660)
Net cash provided by financing activities2,831,165 1,049,448
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS(153,105) 12,429
NET INCREASE IN CASH AND CASH EQUIVALENTS.1,697,123 1,085,557
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD19,569,095 21,958,591
CASH AND CASH EQUIVALENTS, END OF THE PERIOD21,266,218 23,044,148
ADDITIONAL CASH FLOW INFORMATION:
Interest paid217,414 270,664
Income taxes paid1,961,521 1,914,600
NONCASH INVESTING AND FINANCING ACTIVITIES:
Acquisition of assets by entering into capital leases5,842,869 5,625,021
Facilities purchase liabilities899,852 1,973,532
Asset retirement obligation- 49,609


Going Concern Assumption (Unaudited)
Nothing to be reported.
Material Changes In Shareholders' Equity (Unaudited)
Nothing to be reported.
Segment Information (Unaudited)
Business Segments:
Revenues:
Nine Months Ended Nine Months Ended
December 31, 2016December 31, 2017
Thousands of JPYThousands of JPY
Network service and systems integration business110,830,849 124,834,793
Customers110,546,213 124,576,017
Intersegment284,636 258,776
ATM operation business3,055,739 3,035,957
Customers3,055,739 3,035,957
Intersegment- -
Elimination(284,636)(258,776)
Consolidated total113,601,952 127,611,974
Segment profit or loss:
Nine Months Ended Nine Months Ended
December 31, 2016December 31, 2017
Thousands of JPYThousands of JPY
Network service and systems integration business2,177,784 2,781,424
ATM operation business1,088,056 1,123,290
Elimination(110,521)(129,107)
Consolidated operating income3,155,319 3,775,607
Geographic information is not presented due to immateriality of revenue attributable to international operations.
Subsequent Events (Unaudited)
Nothing to be reported.

Third Quarter FY2017 Consolidated Financial Results (3 months)
The following tables are highlight data of 3rd Quarter FY2017 (3 months) consolidated financial results (unaudited, for the three months ended December 31, 2017).

Operating Results Summary
3Q163Q17YoY
Change
JPY millionsJPY millions%
Total Revenues:39,47944,62413.0
Network Services23,64527,71417.2
Systems Integration (SI)14,09015,3028.6
Equipment Sales741616(16.9)
ATM Operation Business1,003992(1.1)
Cost of Revenues:33,49737,89413.1
Network Services19,55823,07318.0
Systems Integration (SI)12,65113,6778.1
Equipment Sales681548(19.5)
ATM Operation Business607596(1.7)
SG&A Expenses and R&D4,7745,27010.4
Operating Income1,2081,46020.9
Income before Income Tax Expense1,3281,86040.1
Net Income attributable to IIJ8021,20049.6


Network Service Revenue Breakdown

3Q163Q17YoY
Change
JPY millionsJPY millions%
Internet Connectivity Service (Enterprise)5,8847,15221.5
IP Service*2,4572,5574.0
IIJ FiberAccess/F and IIJ DSL/F762752(1.2)
IIJ Mobile Service2,6083,78745.2
IIJ Mobile MVNO Platform Service1,7842,82258.2
Others5756(2.1)
Internet Connectivity Service (Consumer)5,5756,35614.0
IIJ5,0645,93617.2
IIJmio Mobile Service4,4025,25519.4
hi-ho511420(17.9)
WAN Services6,5597,59315.8
Outsourcing Services5,6276,61317.5
Network Services Revenues23,64527,71417.2
* IP service revenues include revenues from the data center connectivity service.


Reconciliation of Non-GAAP Financial Measures
(3rd Quarter FY2017 (3 months))
The following table summarizes the reconciliation of adjusted EBITDA to net income in our consolidated statements of income that are prepared in accordance with U.S. GAAP.

Adjusted EBITDA
3Q163Q17
JPY millionsJPY millions
Adjusted EBITDA3,930 4,594
Depreciation and Amortization(2,722)(3,134)
Operating Income1,208 1,460
Other Income (Expense)120 400
Income Tax Expense (Benefit)512 645
Equity in Net Income of Equity Method Investees27 24
Net income843 1,239
Less: Net income attributable to noncontrolling interests(41)(39)
Net Income attributable to IIJ802 1,200

The following table summarizes the reconciliation of capital expenditures to the purchase of property and equipment in our consolidated statements of cash flows that are prepared and presented in accordance with U.S. GAAP.

CAPEX
3Q163Q17
JPY millionsJPY millions
CAPEX, including capital leases3,8866,410
Acquisition of Assets by Entering into Capital Leases2,0511,218
Purchase of Property and Equipment1,8355,192


Internet Initiative Japan Inc.
Quarterly Consolidated Statements of Income and
Quarterly Consolidated Statements of Comprehensive Income (Unaudited)
(Three Months ended December 31, 2016 and December 31, 2017)
Three Months Ended Three Months Ended
December 31, 2016 December 31, 2017
Thousands of
JPY
Thousands of
JPY
REVENUES:
Network services:
Internet connectivity services (enterprise)5,884,331 7,152,000
Internet connectivity services (consumer)5,574,632 6,355,678
WAN services6,559,024 7,592,525
Outsourcing services5,626,783 6,613,953
Total23,644,770 27,714,156
Systems integration:
Systems construction5,389,388 5,722,530
Systems operation and maintenance8,700,314 9,579,514
Total14,089,702 15,302,044
Equipment sales740,991 615,444
ATM operation business1,003,219 992,045
Total revenues39,478,682 44,623,689
COST AND EXPENSES:
Cost of network services19,558,238 23,072,762
Cost of systems integration12,651,235 13,676,673
Cost of equipment sales681,145 548,271
Cost of ATM operation business606,601 596,164
Total costs33,497,219 37,893,870
Sales and marketing2,756,066 3,223,719
General and administrative1,907,809 1,938,024
Research and development109,971 107,998
Total costs and expenses38,271,065 43,163,611
OPERATING INCOME1,207,617 1,460,078
OTHER INCOME (EXPENSE):
Dividend income14,929 33,721
Interest income8,263 7,354
Interest expense(75,859) (92,009)
Foreign exchange gain, net82,844 9,823
Net gain on sales of other investments- 373,499
Other—net89,881 67,308
Other income —net120,058 399,696
INCOME FROM OPERATIONS BEFORE INCOME
TAX EXPENSE AND EQUITY IN NET INCOME
OF EQUITY METHOD INVESTEES
1,327,675 1,859,774
INCOME TAX EXPENSE512,174 644,428
EQUITY IN NET INCOME OF EQUITY
METHOD INVESTEES
27,598 23,830
NET INCOME843,099 1,239,176
LESS: NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
(40,772) (39,249)
NET INCOME ATTRIBUTABLE TO
INTERNET INITIATIVE JAPAN INC.
802,327 1,199,927
Three Months Ended Three Months Ended
December 31, 2016 December 31, 2017
NET INCOME PER SHARE
BASIC WEIGHTED-AVERAGE NUMBER OF
SHARES (shares)
45,636,429 45,062,891
DILUTED WEIGHTED-AVERAGE NUMBER
OF SHARES (shares)
45,758,296 45,220,584
BASIC WEIGHTED-AVERAGE NUMBER OF
ADS EQUIVALENTS (ADSs)
91,272,858 90,125,782
DILUTED WEIGHTED-AVERAGE NUMBER
OF ADS EQUIVALENTS (ADSs)
91,516,592 90,441,168
BASIC NET INCOME PER SHARE (JPY)17.58 26.63
DILUTED NET INCOME PER SHARE (JPY)17.53 26.53
BASIC NET INCOME PER ADS
EQUIVALENT (JPY)
8.79 13.31
DILUTED NET INCOME PER ADS
EQUIVALENT (JPY)
8.77 13.27
Quarterly Consolidated Statements of Comprehensive Income (Unaudited)
Three Months Ended Three Months Ended
December 31, 2016 December 31, 2017
Thousands of
JPY
Thousands of
JPY
NET INCOME843,099 1,239,176
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation adjustments(45,068) 41,807
Unrealized holding gain on securities469,974 955,606
Defined benefit pension plans3,626 809
TOTAL COMPREHENSIVE INCOME 1,271,631 2,237,398
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
(40,772) (39,249)
COMPREHENSIVE INCOME ATTRIBUTABLE TO
INTERNET INITIATIVE JAPAN INC.
1,230,859 2,198,149


Internet Initiative Japan Inc.
Consolidated Statements of Cash Flows (Unaudited)
(Three Months ended December 31, 2016 and December 31, 2017)
Three Months Ended Three Months Ended
December 31, 2016 December 31, 2017
Thousands of
JPY
Thousands of
JPY
OPERATING ACTIVITIES:
Net income843,099 1,239,176
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization2,722,545 3,133,980
Provision for retirement and pension costs, less payments66,477 69,420
Provision for allowance for doubtful accounts14,856 22,695
Loss (gain) on sales of property and equipment(7,706) 868
Loss on disposal of property and equipment18,825 25,237
Net gain on sales of other investments- (373,499)
Foreign exchange gain, net(83,375) (2,553)
Equity in net income of equity method investees, less dividends received(27,598) (23,830)
Deferred income tax expense66,553 112,939
Other(46,536) (37,280)
Changes in operating assets and liabilities net of effects from divestitures of a company :
Increase in accounts receivable(560,123) (1,690,935)
Decrease (increase) in net investment in sales-type lease — noncurrent101,218 (17,142)
Increase in inventories(874,042) (165,796)
Increase in prepaid expenses(1,046,904) (208,278)
Increase in other current and noncurrent assets(2,849,833) (927,696)
Increase (decrease) in accounts payable(357,834) 686,591
Decrease in income taxes payable(174,286) (473,059)
Increase in accrued expenses65,056 16,453
Increase (decrease) in deferred income—current92,031 (5,671)
Increase in deferred income—noncurrent178,857 447,996
Increase in other current and noncurrent liabilities2,193,546 364,106
Net cash provided by operating activities334,826 2,193,722
INVESTING ACTIVITIES:
Purchase of property and equipment(2,581,985) (5,361,874)
Proceeds from sales of property and equipment1,009,711 372,958
Purchase of other investments(29,113) (73,629)
Investment in an equity method investee(99,000) -
Proceeds from sales of available-for-sale securities- 460,017
Proceeds from sales of other investments229,707 122,810
Payments of guarantee deposits(2,699) (4,112)
Refund of guarantee deposits10,228 5,557
Payments for refundable insurance policies(14,204) (14,091)
Proceeds from sale of stock of a subsidiary, net of cash divested- 726,081
Other(15,000) (6,710)
Net cash used in investing activities(1,492,355) (3,772,993)
Three Months Ended Three Months Ended
December 31, 2016 December 31, 2017
Thousands of
JPY
Thousands of
JPY
FINANCING ACTIVITIES:
Proceeds from short-term borrowings with initial maturities over three months and long-term borrowings5,550,000 7,050,000
Net increase in short-term borrowings with initial maturities less than three months- 2,500,000
Repayments of short-term borrowings with initial maturities over three months(50,000) (2,550,000)
Principal payments under capital leases(1,221,124) (1,465,754)
Repayments of long-term accounts payable- (202,979)
Payments for purchase of treasury stock(982,107) -
Dividends paid(620,361) (608,349)
Net cash provided by financing activities2,676,408 4,722,918
EFFECT OF EXCHANGE RATE CHANGES ON
CASH AND CASH EQUIVALENTS
79,517 29,470
NET INCREASE IN CASH AND CASH EQUIVALENTS1,598,396 3,173,117
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD19,667,822 19,871,031
CASH AND CASH EQUIVALENTS, END OF THE PERIOD21,266,218 23,044,148

Note: The following information is provided to disclose Internet Initiative Japan Inc. ("IIJ") financial results (unaudited) for the nine months ended December 31, 2017 (“3Q17”) in the form defined by the Tokyo Stock Exchange.

Consolidated Financial Results for the Nine Months ended December 31, 2017
[Under accounting principles generally accepted in the United States ("U.S. GAAP")]

February 8, 2018

Company name: Internet Initiative Japan Inc.
Exchange listed: Tokyo Stock Exchange First Section
Stock code number: 3774
URL: https://www.iij.ad.jp/
Representative: Eijiro Katsu, President and Representative Director
Contact: Akihisa Watai, Managing Director and CFO
TEL: (03) 5205-6500
Scheduled date for filing of quarterly report (Shihanki-houkokusho) to Japan’s regulatory organization: February 14, 2018
Scheduled date for dividend payment: -
Supplemental material on quarterly results: Yes
Presentation on quarterly report: Yes (for institutional investors and analysts)

(Amounts of less than JPY one million are rounded)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2017
(April 1, 2017 to December 31, 2017)

(1) Consolidated Results of Operations (% shown is YoY change)
Total revenuesOperating incomeIncome before
income tax expense
Net income
attributable to IIJ
JPY millions%JPY millions%JPY millions%JPY millions%
Nine months ended December 31, 2017127,61212.33,77619.7 4,32926.1 2,68840.7
Nine months ended December 31, 2016113,60214.33,155(22.5)3,433(17.8)1,910(25.8)

(Note1) Total comprehensive income attributable to IIJ
For the nine months ended December 31, 2017: JPY4,809 million (up 101.5% YoY)
For the nine months ended December 31, 2016: JPY2,387 million (down 0.9% YoY)
(Note2) Income before income tax expense represents income from operations before income tax expense and equity in net income in equity method investees, respectively, in IIJ's consolidated financial statements.


Basic net income attributable to IIJ per shareDiluted net income
attributable to IIJ per share
JPYJPY
Nine months ended December 31, 201759.6559.45
Nine months ended December 31, 201641.6741.56


(2) Consolidated Financial Position
Total assetsTotal equityTotal IIJ shareholders' equityTotal IIJ shareholders' equity to total assets
JPY millionsJPY millionsJPY millions%
As of December 31, 2017150,27371,04670,38146.8
As of March 31, 2017137,39567,38066,74248.6

2. Dividends

Dividend per Shares
1Q-end2Q-end3Q-endYear-endTotal
JPYJPYJPYJPYJPY
Fiscal Year Ended
March 31, 2017
-13.50-13.5027.00
Fiscal Year Ending
March 31, 2018
-13.50-
Fiscal Year Ending
March 31, 2018
(forecast)
13.5027.00
(Note) Change from the latest released dividend forecasts: No.

3. Target of Consolidated Financial Results for the Fiscal Year Ending March 31, 2018

(April 1, 2017 through March 31, 2018)(% shown is YoY change)
Total
Revenues
Operating

Income
Income before Income Tax
Expense (Benefit)
Net Income attributable to IIJBasic Net Income attributable to IIJ per Share
JPY millions%JPY millions%JPY millions%JPY millions%JPY
Fiscal Year Ending March 31, 2018176,00011.56,50026.66,50019.84,00026.388.77
(Note1) Changes from the latest forecasts released: No

* Notes

(1) Changes in significant subsidiaries for the nine months ended December 31, 2017
(Changes in significant subsidiaries for the nine months ended December 31, 2017 which resulted in changes in scope of consolidation): None
(2) Changes in significant accounting and reporting policies for the consolidated financial statements
1 )Changes due to the revision of accounting standards: Yes
In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17 “Balance Sheet Classification of Deferred Taxes.” This ASU requires that deferred tax assets and liabilities be classified as noncurrent on the consolidated balance sheet. IIJ adopted this ASU from the first quarter beginning April 1, 2017, on a prospective basis, and did not retrospectively adjust the consolidated balance sheet as of March 31, 2017. As of March 31, 2017, the balance of current deferred tax assets and liabilities amounted to JPY1,298,469 thousand and JPY108,994 thousand, respectively.
2 )Others: No
(3) Number of shares outstanding (shares of common stock)
1 )The number of shares outstanding (inclusive of treasury stock):
As of December 31, 2017: 46,713,800 shares
As of March 31, 2017: 46,711,400 shares
2 )The number of treasury stock:
As of December 31, 2017: 1,650,909 shares
As of March 31, 2017: 1,650,909 shares
3 )The weighted average number of shares outstanding:
For the nine months ended December 31, 2017: 45,062,874 shares
For the nine months ended December 31, 2016: 45,846,887 shares

Internet Initiative Japan Inc.
E-mail: ir@iij.ad.jp Tel: +81-3-5205-6500
URL: https://www.iij.ad.jp/en/ir

Source:Internet Initiative Japan, Inc.