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Management Message

To our shareholders

photo:Chairman & CEO:Koichi Suzuki ,President & COO:Eijiro Katsu

Koichi Suzuki (Left) , Eijiro Katsu (Right)

We would like to express our gratitude for your continued support.

With increased network communication speeds and significant improvements in computing performance, social systems and mechanisms are being transformed with the use of IT. This trend is expected to continue, gradually resulting in a networked society.

IIJ was established in 1992 with the business philosophy (purpose) of building and developing Internet infrastructure in Japan. Today, the Internet has become a social infrastructure that is used by everyone every day, often without even realizing it. If we take a look at how our behavior patterns have changed so markedly over the past 30 years, we would be surprised at the magnitude of that change. Today, the mission of the IIJ Group has evolved to play an important role in supporting to realize the networked society through initiatives in Internet technology.

Given these changes in the society, we achieved a structural increase in profit in FY2020 as our ongoing business strategy enhancement and execution led to strong growth in enterprise recurring revenues. Total revenue was JPY213,002 million, up 4.2% year over year (“YoY”), operating profit was JPY14,248 million, up 73.2% YoY, and net profit was JPY9,712 million, up 142.4% YoY. Profits in particular significantly exceeded our initial expectation. We have been working on further expanding our network service line-up and enhancing service functions through our ongoing development efforts, and were also able to maintain stable network operation costs with economies of scale. These financial results benefited from higher demand for IT services and network use from society and enterprises, triggered also by the COVID-19 pandemic. Although there were external factors associated with the COVID-19 pandemic, the shift to IT adoption is unlikely to recede or halt. Consequently, we expect that demand will remain strong. Considering our business developments and financial results, we paid an interim dividend that was revised upward from the initial forecast and revised the year-end dividend forecast upward from the initial forecast. In addition, we revised the year-end dividend upward from the revised forecast. Accordingly, the total and annual dividend per share is JPY29.75 (post-stock-split base), which is 2.2 times compared to the amount of the previous fiscal year.

To continuously pursue and realize its business philosophy, the IIJ Group shall continue to develop high value-added services, operate a highly reliable network, meet customers’ needs for network or IT services and contribute to the development of the networked society. This is also how we intend to expand our business and increase our corporate value.

We sincerely appreciate your continued support.

June 2021

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