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  6. FY21 Financial Results Briefing (Online)

QAs from earnings release meetings and others

May 13, 2022:FY21 Financial Results Briefing (Online)

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

Question: Please explain why MVNE's 4Q21-end subscription and 4Q21 revenue increased from the previous quarter.
Answer: It is mainly because our MVNE clients to whom we provide our mobile services started to launch their price-competitive mobile services from the latter half of FY21.
Question: As for your financial target for FY22, Network (NW) services' year over year gross profit increase seems conservative. Please explain your assumptions.
Answer: Our FY22 NW services' gross profit outlook does not include a onetime impact upon mobile data’s unit charge finalization. (In FY21, we had such onetime profit contribution of approximately JPY1.08 billion) Also, the planned year over year revenue increase in NW services (excluding mobile services) largely includes a revenue growth of WAN services which require circuit purchasing.
Question: While your peers seem to be having difficulty in recruiting, IIJ's number of employee has been steadily increasing every year. What kind of initiatives do you take for human recourses?
Answer: As one of our business philosophies states that "To provide meaningful opportunities for growth to our employees (a place where human resources with diversified talents and values can play an active role), we continuously enhance our personnel system and training programs to realize such environment. We believe that through these initiatives, we are achieving constant increase of employees and lower turnover rates than the industry’s average.
Question: What is IIJ's thoughts on MNOs' aggressive discount on devices including iPhones that is currently taking place?
Answer: We think that excessive discount is a problem for fair competition and needs to be fixed. We have been making our concerns public through the Ministry of Internal Affairs and Communications' ("MIC") "Working Group on Verification of Competition Rules" to which IIJ is a member of.
*The text is only available in Japanese but you can find the materials related to the working group mentioned above.
Question: What is your intention in inviting Mr. Taniwaki, a former Vice-Minister for Policy Coordination of Posts and Telecommunications of the MIC, as an executive vice president
Answer: We would like Mr. Taniwaki to strengthen our management system and business execution based on his profound knowledge of telecommunication as a senior management, through which we believe it would lead to enhancing our company foundation and realizing long-term growth.

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