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Management Message

To our shareholders

June 2024

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

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

The consolidated fiscal year ended March 31, 2024 (“FY2023”) was the final fiscal year of our group’s three-year mid-term plan. During these three years, IT utilization among Japanese enterprises, which had generally been slow to progress, has rapidly accelerated, triggered by the COVID-19, and strong demands have continued even after its pandemic subsided. In such a market environment, compared to the final fiscal year of the previous mid-term plan, FY2023 consolidated total revenue increased approximately 1.3 times to JPY276.1 billion, operating profit increased approximately 2.0 times to JPY29.0 billion, and operating profit margin increased from 6.7% to 10.5% mainly due to an increase in gross profit margin from the accumulation of monthly network service revenue and an increase in revenue from systems integration. The number of employees at the end of FY2023 also increased approximately 1.3 times to 4,803 personnel over the three years. Recently, we have acquired many complex and large-scale projects with multi-year contracts through “Service Integration” model by which we incorporate our monthly network services into systems integration mainly due to strong demands of large-scale internal and external network construction projects, and we will continuously accelerate our business growth.

We have formulated and disclosed the Mid-to-Long Term Vision that includes growth to consolidated total revenue volume of JPY500.0 billion as a milestone we should aim for in the mid-to-long term. We have also formulated “IIJ Group Mid-term Plan (FY2024-FY2026)” as an important growth path and process to reach toward the Mid-to-Long Term Vision. The new med-term plan has three pillars: further enhancement of the existing core business areas mainly through the Service Integration strategy, creation of new growth area, and enhancement of business foundation, particularly human capital. We aim to increase consolidated total revenue to JPY380 billion and operating profit to JPY46 billion in FY2026. Through these realizations, we will strive to further develop Japan's network society, and enhance the business growth and corporate value of our group.

We sincerely appreciate your continued understanding and support.

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