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Related Party Transactions

Related Party Transactions

While NTT Group is a major shareholder of IIJ, there is no director sent to IIJ Group, and there is no written or oral contract that restricts IIJ Group business due to NTT Group’s investment relationship. The Relationship between IIJ Group and NTT Group is based on the understandings that it is important to facilitate business development in the field of Internet, there is no area to avoid competition, and both parties cooperate with each other in areas where mutually beneficial relationships can be built, and compete with each other in the area of free competition.

NTT Group which owns NTT DoCoMo is the largest carrier in Japan. The volume of transaction with NTT Group, just like with other carriers, is expected to continue on a reasonable scale. The volume of transaction between IIJ Group and NTT Group is as blow.

Transaction FY2020 FY2021
Revenues generated from NTT Group
  • Network services
  • Systems integration and others
JPY 4,812 million
(Ratio to consolidated revenues: 2.3%)
JPY4,235 million
(Ratio to consolidated revenues: 1.9%)
Purchasing, Procurement and others from NTT Group
  • Domestic and overseas backbone circuits and others
  • Mobile communication related costs
JPY 40,795 million
(Ratio to consolidated cost of sales and SG&A: 20.5%)
JPY28,319 million
(Ratio to consolidated cost of sales and SG&A: 14.0%)
Financial transaction costs with NTT Group
  • Finance lease transaction
JPY47 million JPY38 million

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