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© Internet Initiative Japan Inc. Internet Initiative Japan Inc. (IIJ) The Prime Market of the Tokyo Stock Exchange (Ticker symbol: 3774) August 7, 2026 Presentation Material for Consolidated Financial Results for 1Q26 (April 1, 2026 to June 30, 2026) Disclaimer Statements made in this presentation regarding IIJ’s or managements’ 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 revenues, 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.
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© Internet Initiative Japan Inc. 1 • FY26 stands for a fiscal year from Apr. 1, 2026 to Mar. 31, 2027. 1Q26 stands for 1Q of FY26. • Abbreviation: NW for network, SI for systems integration, DC for data center, HD for holdings, PF for platform, ¥ (JPY) bn for JPY billion, O&M for systems operation and maintenance Outline P. 2 ~ P. 31Q26 Summary, Business ProgressⅠ. P. 4 ~ P. 18Financial ResultsⅡ. P. 19 ~ P. 28Appendix P. 29 ~ P. 45 【Reference】 Presentation material for company profile
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© Internet Initiative Japan Inc. 2 Strong Domestic and Overseas Demand Drives 1Q Revenue Above Plan, Profit on Track Seeing Continued Solid Demand while Developing Growth Initiatives toward the Next Mid-term Plan 1Q Revenue YoY NW Services (excluding Mobile) ¥31.63 bn +7.2% ・IP ¥4.73 bn +3.6% ・Outsourcing ¥17.73 bn +11.5% ◆ Moderate 1Q growth in monthly recurring revenue, reflecting seasonal factors at the start of the new fiscal year ◆ Continuously expanding service line-ups and enhancing functionality. Plan to launch SCS Evaluation System support solution(*1) ◆ Ongoing development of next-generation core integrated security services. Launch planned in 4Q26 Mobile/IoT ¥14.47 bn +11.3% ・Enterprise ¥4.62 bn +15.1% ・MVNE ¥3.19 bn +10.4% ・Consumer ¥6.67 bn +9.1% ◆ Strong enterprise IoT demand continued to drive growth ◆ Strong mobile revenue and subscriptions, while gross profit declined QoQ and YoY mainly due to the year-on-year change in mobile data interconnectivity unit charge and higher device marketing costs SI ¥50.74 bn +51.2% ・Construction ¥24.19 bn +106.9% ・O&M ¥26.55 bn +21.4% SG&A etc. ¥11.38 bn +6.8% ◆ Human capital-related: 277 new graduates joined in Apr. 2026 (269 in Apr. 2025), Average annual salary increased by approx. 6% (IIJ)（*3） ◆ DCP (*4) : To promote adoption of tokenized deposits DCJPY(*5), expanding collaboration with financial institutions and corporates. Following the planned FY26 DCJPY issuance by Japan Post Bank, advancing payment commercialization with Hokuriku Bank targeting FY27 *1: Plan to launch a support solution for compliance with METI’s Supply Chain Security Evaluation System *2: Large-scale project s are defined as those with total contract value exceeding ¥1.0 bn. The value includes NW Services *3: Includes the revision of the salary table *4: Equity-method affiliate DeCurret Holdings, Inc. changed its trade name to DCP Co., Ltd. on July 1, 2026 *5: A digital currency that tokenizes bank deposit on the blockchain 1Q Business Status Ⅰ- 1. 1Q26 Summary Unit: ¥ (JPY) billion YoY = Year over year comparison Net Profit is “Profit for the period attributable to owners of the parent” +27.1% +9.2% +16.4% Revenue Operating Profit Net Profit +126.3%¥47.96 bn+135.5%¥40.21 bn +24.1%¥131.59 bn+10.4%¥31.17 bn Order-received Order-backlog Construction O&M Order trends Large-scale projects(*2) 1Q Order-received 1Q revenue NW construction and operation for a public institution (¥1.5 bn, 5 yrs) Mobile device procurement (¥1.7 bn) EC infrastructure construction (¥6.0 bn, by PTC) Large-scale GPU infrastructure construction (¥12.0 bn, 5 yrs, by PTC) Projects
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© Internet Initiative Japan Inc. 3 Ⅰ- 2. Business Progress Advancing Final-year Execution of the Current Mid-term Plan while Shaping the Next Three-year Growth Plan (Announcement planned in May 2027) *1: Offering approach: An approach that starts with solving customer issues by combining NW, security, cloud, operations, AI and other capabilities into reproducible solutions, then channels the resulting know-how into enhancing the features and competitiveness of our own in-house developed services *2: DXP: Abbreviation for DX Platform. Integrates network, security, multi-cloud and other capabilities to support enterprise DX initiatives *3: SIO: Abbreviation for Strategic IT Outsourcing. It’s a service through which IIJ manages customers’ IT infrastructure operations so that clients’ IT teams can shift their resources to strategic priorities *4: Watt-Bit：An initiative aimed at enabling efficient AI processing through distributed DCs by optimizing the integration of power and telecommunications infrastructure *5: Equity-method affiliate DeCurret Holdings, Inc. changed its trade name to DCP Co., Ltd. on July 1, 2026 *6: SSBJ: Japan‘s sustainability disclosure standards based on ISSB standards *7: STRIGHT: Helps organizations obtain and manage user consent while balancing privacy compliance and website user experience • Core strengths and business structure remain unchanged. Growth to accelerate through business area expansion and service value enhancement • Targeting consolidated revenue of over ¥500.0 bn in FY29, with greater operating leverage and profit scalability • Expanding business model and strengthening operating foundations in each area to support long-term growth Business Direction Further Enhancing the Value through our Offering Approach (*1) Strengthening Capabilities through Practical Use of AI NW Service/Solution Ongoing development of next-generation core integrated security services. As the core DXP (*2) strategy solution, launch planned in 4Q26 Security services expanding to become comprehensive cyber security business by including assessment and consulting-based security solutions Expanding vertical platforms and solutions, such as financial authentication by leveraging NW Infrastructure Strengthening IoT competitiveness through DOCOMO/KDDI multi-carrier. Expanding bandwidth in line with growing subscriptions Sustained growth in monthly recurring revenue through our in-house developed NW service model, enabling timely feature enhancements and value-added offerings to meet evolving customer needs Preparing pricing policy for NW service price revisions from the start of 1Q27 Integration Differentiating through Service Integration strategy amid strong demand for internal and external NW infrastructure renewal and operations, leading to larger customer engagements Advancing SIO (*3) for enterprise IT infrastructure operations outsourcing that is becoming complicated and advanced. Focusing on securing flagship projects Strategically partnering for new technologies. As one example, investing in and partnering with the U.S. video analytics AI developer AGI7. Promoting Physical AI solutions in Japan NW/System Infrastructure Expanding Internet backbone and system infrastructure to meet growing demand Shiroi DC 3 rd site on track for FY26-end completion. Developing both centralized and edge DC infrastructure Advancing an internal project to modernize our service delivery platforms Optimizing procurement through advance hardware purchasing and price pass-through Moving Watt-Bit collaboration (*4) from proof-of-concept to practical deployment SI demand for zero-trust and AI/GPU system infrastructure is increasing on top of existing demand Further enhancing existing business areas by providing AI operations capabilities and services, including management and governance Addressing human capital bottlenecks through AI-driven development and operations. Targeting approx. 30% of company-wide operations to be AI-enabled by the end of FY29 Strengthening the Corporate Foundation Bringing Together Group Companies’ Capabilities Improving productivity by consolidating back-office functions and leveraging AI Providing IT outsourcing operations engineers Advancing next-generation settlem ent services using tokenized deposits DCJPY. Collaboration with financial institutions and general enterprises New Business Initiatives Expanding a multi-professional collaboration platform for healthcare and local governments Promoting “STRIGHT”(*7), a website cookie consent management tool, with the goal of becoming an industry standard Reinforcing our corporate foundation through next-generation talent development, operational resilience, and SSBJ readiness, etc. IIJ Engineering IIJ Protech DCP(*5) Healthcare Security Governance
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© Internet Initiative Japan Inc. 4 % of revenue % of revenue % of revenue % of revenue 1Q26 Results 1Q25 Results Apr. 2026 - Jun. 2026 A pr. 2025 - Jun. 2025 97.60 76.82 +27.1% +20.78 +11.2% +11.5% 81.6% 78.3% 78.3% 77.7% 79.63 60.13 +32.4% +19.51 +11.2% +11.2% 18.4% 21.7% 21.7% 22.3% 17.97 16.69 +7.7% +1.28 +11.2% +12.5% 11.7% 13.9% 13.2% 12.3% 11.38 10.66 +6.8% +0.72 +20.1% +14.2% 6.7% 7.9% 8.5% 10.0% 6.59 6.03 +9.2% +0.56 (0.2%) +10.5% 6.9% 7.5% 7.8% 9.6% 6.71 5.74 +17.0% +0.98 (7.3%) +5.0% 4.5% 4.9% 5.3% 6.5% 4.40 3.78 +16.4% +0.62 (4.8%) +3.4% YoY YoY YoY 1H26 Forecast FY26 Forecast (Announced in May 2026) (Announced in May 2026) Apr. 2026 - Sep. 2026 A pr. 2026 - Mar. 2027 Net Profit 9.6 180.0 385.0 Gross Profit 39.1 85.7 Cost of Revenues 141.0 299.3 Revenues Operating Profit 15.4 Profit before tax 14.1 SG&A etc. 23.7 25.0 37.0 38.5 47.2 Ⅱ- 1. Consolidated Financial Results Unit: ¥ (JPY) billion YoY = Year over year comparison • SG&A etc. represents the sum of SG&A, which includes R&D expenses, and other income/expenses
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© Internet Initiative Japan Inc. 5 +20.78 Unit: ¥ (JPY) billion (bn) GP = Gross Profit O/M = Operation and Maintenance YoY = Year over year comparison • NW services (excl. Mobile) revenues are calculated by deducting t he below mentioned Mobile services revenues from total NW services revenues. The revenues include non-mobile consumer revenue which is a small amount • NW services gross profit consists of gross profit related to NW revenues (excl. Mobile) and Mobile revenues (The two services h ave costs in common and cannot be broken down in accounting terms) • SG&A, etc. in this slide represents the sum of SG&A, which includes R&D expenses, and other income/expenses Operating Profit Revenues 97.60 6.03 6.59 1Q25 1Q26 1Q26 +0.56 Ⅱ- 2. Year over Year Analysis 76.82 1Q25 Recognition of two large-scale construction project revenues. Accumulation of recurring O&M revenue (+0.97 in 1Q25) (+1.56 in 1Q25) (+0.03 in 1Q25) (+1.01 in 1Q25) (+0.03 in 1Q25) (+1.32 in 1Q25) (+1.00 in 1Q25) (+2.46 in 1Q25) Gross margin temporarily declined mainly due to revenue recognition of two large-scale hardware-intensive construction projects with high procurement ratios IP and Outsourcing services steadily grew Consumer and enterprise IoT grew 1Q25 operating profit increased by ¥1.55 bn YoY, including a rebound from the approx. ¥1.2 bn of negative profit impact related to VMware in 1Q24 1Q25 gross profit increase includes a rebound from the VMware-related negative profit impact (NW: approx. ¥0.3 bn, SI: approx. ¥0.9 bn) in 1Q24
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© Internet Initiative Japan Inc. 6 Ⅱ- 3. Revenues Network (NW) Services ATM Operation Business Systems Integration (SI) Outsourcing Service Internet Connectivity Services (Enterprise) WAN Service Internet Connectivity Services (Consumer) Systems Operation and Maintenance Systems Construction (including equipment sales) • One-time revenue, systems construction revenues which include equi pment sales, is mainly recognized when systems and/or equipment are delivered and accepted by customers (Some revenues on a percentage-of-progress basis based on cost progression) • Recurring revenue represents the following revenues: Internet Connectivity Services (Enterprise), Internet Connectivity Servic es (Consumer), Outsourcing Services, WAN Services, and Systems Operation and Maintenance • Mobile services revenues include IIJ Mobile Services (including MVNE) and IIJmio (consumer mobile) Unit: ¥ (JPY) million [ ], YoY = Year over year comparison 42,512 44,535 45,074 46,617 46,101 33,560 39,784 41,614 48,681 50,739749 770 733 766 764 76,821 85,089 87,421 96,064 97,604 1Q25 2Q25 3Q25 4Q25 1Q26 Recurring revenue 1Q26: ¥72.65 bn, +12.8%YoY (+9.7%YoY in 1Q25) 74.4% of 1Q26 total revenue One-time revenue 1Q26: ¥24.19 bn, +106.9%YoY (-7.3%YoY in 1Q25) • Revenue recognition of two large-scale projects EC infrastructure construction: ¥6.0 bn Mobile device procurement for a financial institution: ¥1.7 bn • Construction revenue growth would have been +41.5%YoY excluding these two projects 24.8% of 1Q26 total revenue NW Services revenue 1Q26: ¥31.63 bn, +7.2%YoY (+9.1%YoY in 1Q25) Mobile Services revenue 1Q26: ¥14.47 bn, +11.3%YoY (+8.3%YoY in 1Q25) (excluding Mobile Services) FY25: 345,395 [+9.0%]
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© Internet Initiative Japan Inc. 7 Ⅱ- 4. Cost of Revenues & Gross Profit Ratio Gross margin: Total NW (Network) Services SI (Systems Integration)Cost of revenues: ATM Operation Business SI (Systems Integration)NW (Network) Services Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison 21.7% 21.7% 21.8% 22.9% 18.4% 14.1% 15.2% 15.8% 18.4% 11.7% 27.3% 27.0% 27.0% 27.2% 25.3% Total gross profit 1Q26: ¥17.97 bn, Gross Margin 18.4% +¥1.28 bn, +7.7%YoY Gross profit for NW services 1Q26: ¥11.68 bn, Gross Margin 25.3% +¥0.08 bn, +0.7%YoY • Fixed-type costs such as maintenance fee, outsourcing and personnel-related costs have been increasing slightly, reflecting seasonal factors at the start of the new fiscal year • Mobile gross profit declined QoQ and YoY mainly due to increased device procurement costs and the year-on-year change in mobile data interconnectivity unit charge • Preparing pricing policy for NW service price revisions from the start of 1Q27 Gross profit for SI 1Q26: ¥5.93 bn, Gross Margin 11.7% +¥1.20 bn, +25.2%YoY • Gross margin temporarily declined due to revenue recognition of two large- scale hardware-intensive projects(*) FY25: 269,228 [+8.4%] 30,912 32,522 32,921 33,953 34,419 28,822 33,736 35,038 39,745 44,805 394 396 384 405 409 60,128 66,654 68,343 74,103 79,633 1Q25 2Q25 3Q25 4Q25 1Q26 (*) SI gross profit is generated from both hardware and labor portions. The procurement-based hardware portion generally tends to have a lower margin than the labor portion.
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© Internet Initiative Japan Inc. 8 Ⅱ- 5. Network (NW) Services (1) Revenues Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison Outsourcing Services Internet Connectivity (consumer) Services WAN (Wide Area Network) Services Total Contracted Bandwidth (Gbps) Internet Connectivity (enterprise) Services • Total contracted bandwidth is calculated by multiplying number of contracts by contracted bandwidths for IP service and broadb and services respectively which are both under Internet connectivity services for enterprise • IP (Internet Protocol) Service is bandwidth guaranteed dedicated Internet connectivity services for enterprises. Contracts are based on bandwidth and enterprises use the service for their core and main Internet connectivity • Enterprise mobile primarily refers to direct offerings for IoT and similar usages • MVNE (sales of service to other MVNOs) refers to IIJ Mobile MVNO Platform Service • 2Q25 enterprise mobile revenue included a one-time contribution of approx. ¥0.4 bn from device sales Internet Connectivity (enterprise) Services 1Q26: ¥13.79 bn, +8.3%YoY (+9.4%YoY in 1Q25) (*) • Of which, IP Service: ¥4.73 bn, +3.6%YoY (+9.5%YoY in 1Q25) • Of which, Enterprise mobile: ¥4.62 bn, +15.1%YoY (+13.6%YoY in 1Q25) • Of which, MVNE: ¥3.19 bn, +10.4%YoY (+4.2%YoY in 1Q25) Internet Connectivity (consumer) Services 1Q26: ¥7.46 bn, +7.2%YoY (+5.4%YoY in 1Q25) • Of which, consumer mobile (IIJmio): ¥6.67 bn, +9.1%YoY (+7.0%YoY in 1Q25) Outsourcing Services 1Q26: ¥17.73 bn, +11.5%YoY (+13.7%YoY in 1Q25)(*) • Of which, security: ¥10.75 bn, +12.4%YoY (+11.2%YoY in 1Q25) WAN Services 1Q26: ¥7.12 bn, +2.7%YoY (+1.3%YoY in 1Q25) FY25: 178,738 [+9.9%] (*) 1Q25 YoY growth rate was positively impacted by the price revision on certain NW services implemented in Oct. 2024 12,731 13,653 13,615 13,892 13,794 6,958 7,054 7,305 7,354 7,462 15,898 16,743 16,958 18,023 17,730 6,925 7,085 7,196 7,348 7,115 42,512 44,535 45,074 46,617 46,101 1Q25 2Q25 3Q25 4Q25 1Q26 14,329 14,947 15,788 16,532 19,533 Significant increase in contracted bandwidth from a major customer No significant change in the revenue level, as 1Q is the start of the new fiscal year
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© Internet Initiative Japan Inc. 9 6,785 7,063 7,148 7,358 7,187 2,744 2,747 2,737 2,889 2,810 6,359 7,229 7,232 7,655 7,857 7,845 8,140 8,452 8,602 9,148 7,179 7,343 7,352 7,449 7,417 30,912 32,522 32,921 33,953 34,419 1Q25 2Q25 3Q25 4Q25 1Q26 Ⅱ- 5. Network (NW) Services (2) Cost of Revenues Others Outsourcing-related costs (mobile infrastructure related costs such as interconnectivity charge and voice communication services, outsourcing personnel costs, etc.) Personnel-related costs (NW services related engineers’ personnel cost) Network operation-related costs (depreciation cost for network equipment, DC leasing costs, etc.) Circuit-related costs (Internet backbone, WAN lines, etc.) Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison 1Q26 Circuit-related costs: ¥7.42 bn, +3.3%YoY (+1.8%YoY in 1Q25) • Internet backbone circuit cost remains stable by leveraging scale merit with one of the largest Internet backbone networks • Fluctuates in line with WAN service revenue 1Q26 Outsourcing-related costs: ¥9.15 bn, +16.6%YoY (+11.0%YoY in 1Q25) • Mobile data connectivity and voice-related costs continued to rise, in line with growth in mobile subscriber acquisitions 1Q26 Others: ¥7.86 bn, +23.6%YoY (+22.8%YoY in 1Q25) • License fees such as SASE increased along with related revenue growth • Increased mobile device purchasing costs: approx. +¥0.5 bn YoY (1Q25: approx. +¥0.3 bn YoY, 2Q25: approx. +¥1.0 bn YoY, 3Q25: approx. +¥0.6 bn YoY, 4Q25: approx.+¥0.2 bn YoY) 1Q26 Personnel-related costs: ¥2.81 bn, +2.4%YoY (+7.4%YoY in 1Q25) • Increased mainly due to increased headcount and the revision of salary table at the beginning of the fiscal year 1Q26 Network operation-related costs: ¥7.19 bn, +5.9%YoY (+3.3%YoY in 1Q25) • Depreciation costs remained roughly flat FY25: 130,308 [+11.1%]
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© Internet Initiative Japan Inc. 10 6.11 6.18 6.45 6.54 6.67 2.89 2.94 3.09 3.07 3.19 4.01 4.78 4.60 4.81 4.62 13.01 13.90 14.13 14.41 14.47 1Q25 2Q25 3Q25 4Q25 1Q26 Enterprise mobile MVNE IIJmio 3,174 3,303 3,500 3,573 3,509 1,350 1,382 1,395 1,430 1,453 1,249 1,303 1,373 1,366 1,402 Enterprise mobile IIJmio MVNE Ⅱ- 5. Network (NW) Services (3) Security and Mobile/IoT Unit: ¥ (JPY) billion [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison 9.57 10.11 10.47 10.76 10.75 1Q25 2Q25 3Q25 4Q25 1Q26 SOC and others SASE Web GW Firewall NW Mail Security Business Mobile/IoT Business Ongoing strong demand drives stable growth in security services (MRR) Subscriptions (unit: thousand) Revenues (unit: ¥ bn) 1Q26-end4Q25-end3Q25-end2Q25-end1Q25-end 211212207205202Number of MVNE clients (unit: companies) (IIJ C-SOC Service, Endpoint Security, and others) (Operation of Prisma Access, Zscaler and others, IIJ Secure Access Service, and others) (IIJ Secure Web GW Service, and others) (IIJ Managed Firewall Service, and others) (IIJ DDoS Protection Service, IPS/IDS, WAF, and others) (IIJ Secure MX Service, and others) • Approx. ¥1.5 bn of enterprise mobile device revenue originally expected as NW Service revenue was recognized in SI construction (1Q26, ¥1.7 bn) • Enterprise Mobile and MVNE refer to direct service offerings for IoT and other device connectivity use cases and IIJ Mobile MVNOP l a t f o r m Services provided to other MVNO operators, respectively. • 2Q25 enterprise mobile revenue included a contribution of approx. ¥0.4 bn from device sales • Security services (monthly recurring revenue) is recognized as Outsourcing services revenue FY25: 40.91 [+13.8%] FY25: 55.46 [+10.3%] • Continuous demand to connect devices such as IoT devic es, taxi tablets, security cameras, dashboard cameras • SoftSIM multi-carrier support l aunched (Apr. 2026), expanding opportunities in the corporate IoT market • 1Q revenue and subscription declined QoQ due to the contract cancellation of a specific customer engaged in the inbound tourists business Enterprise • Launched an unlimited-data prepai d SIM service for inbound tourists to Japan through Bic Camera in June 2026 Consumer • Steady growth in new MVNO clients is dr iving an increase in customers and subscriptionsMVNE Growing Demand for Cybersecurity • Strong demand for “IIJ Security Doctor,” launched in Nov. 2025, which supports customers' security operations and strategy development through IIJ's cybersecurity experts; business scope is expanding into security assessments and consulting services. • Plan to launch “IIJ SCS Assessment Solution” to support compliance with the METI-led Supply Chain Security Assessment Program • Developing next-generation core integrated security services. Launch planned in 4Q26
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© Internet Initiative Japan Inc. 11 *1: Approx. ¥1.5 bn of enterprise mobile device revenue which was originally expected as NW Service revenue was recognized in SI construction (1Q26, ¥1.7 bn) *2: Large-scale projects are defined as those exceeding ¥1.0 bn in total contract value. The value includes NW services revenue 8,489 8,878 9,351 10,180 10,258 13,382 14,299 15,455 15,734 16,291 21,871 23,177 24,806 25,914 26,549 106,011 108,678 111,745 126,972 131,594 1Q25 2Q25 3Q25 4Q25 1Q26 11,689 16,607 16,808 22,767 24,190 21,189 24,237 29,199 31,938 47,956 1Q25 2Q25 3Q25 4Q25 1Q26 Ⅱ- 6. Systems Integration (SI) (1) Revenues Order backlog Revenues Orders received Systems operation & maintenance revenues for on-premise system Systems Construction revenues (including equipment sales) Cloud revenues such as private cloud which are recognized as systems operation & maintenance revenues 40,208 (incl. ¥18.0 bn of 3 large projects) 25,506 (incl. ¥3.0 bn of certain large projects) 21,770 (incl. ¥4.5 bn of certain large projects) 19,655 (incl. ¥1.0 bn of certain large projects) 17,073 FY25: 84,004 [+38.1%] 31,171 (incl. ¥3.0 bn of 2 certain large projects) 41,141 (incl. ¥1.0 bn of certain large projects) 27,87325,84428,244 FY25: 123,102 [+26.9%] Favorable demand situation: strong demand to construct core NW/system from all industries Large-scale projects （*２） acquired from 1Q26 onward • NW construction & operation for a public institution (¥1.5 bn, 5 yrs, mostly NW services) • Acquired system infrastructure demand such as constructing GPU infrastructure in Singapore through a subsidiary PTC GPU infrastructure construction ¥12.0 bn (construction: ¥10.0 bn, O&M: ¥2.0 bn), 5 yrs, Plan to recognize certain revenue in 2Q26 Several other projects such as GPU infrastructure also under discussion EC infrastructure construction ¥6.0 bn, order received and revenue were recognized in 1Q26 • Breakdown of 1Q26 cloud revenue: 94.9% O&M, 5.1% Outsourcing services Systems Construction (one-time) Systems Operation & Maintenance (recurring) Continued strong revenue growth including the start of O&M for large-scale projects Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison FY25: 67,871 [-1.3%] FY25: 95,768 [+16.0%] Cloud Service Revenue (recurring) 1Q264Q25 3Q252Q251Q25 8.68.27.87.36.9Private Cloud Own service, multi-cloud, etc. 1.51.81.41.41.3Raptor FX system services for financial institutions 0.80.80.80.80.8Others Own public cloud, overseas cloud, etc. 10.810.79.99.49.1Total Unit: JPY bn Mobile device (*1) approx. ¥1.7 bn Large project from PTC approx. ¥6.0 bn [-7.3%] [+106.9%] [+11.4%] [+21.4%]
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© Internet Initiative Japan Inc. 12 Ⅱ- 6. Systems Integration (SI) (2) Cost of Revenues Others Purchasing costs (Equipment, etc.) Outsourcing-related costs (SI-related outsourcing personnel costs, etc.) Personnel-related costs (SI-related engineers’ personnel cost) Network operation-related costs (Depreciation cost such as for cloud facility, DC leasing cost, etc.) Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison % of SI construction revenues( ) 3,645 3,828 3,881 4,040 4,236 2,514 2,354 2,476 2,260 2,389 5,007 5,496 6,033 6,695 6,837 11,401 12,477 12,397 13,425 13,597 6,255 9,581 10,251 13,325 17,746 28,822 33,736 35,038 39,745 44,805 1Q25 2Q25 3Q25 4Q25 1Q26 1Q26 Purchasing costs: ¥17.75 bn, +183.7%YoY (-16.5%YoY in 1Q25) • Higher procurement ratio in 1Q26 due to growth in hardware-intensive construction projects 1Q26 Outsourcing-related costs: ¥13.60 bn, +19.3%YoY (+16.4%YoY in 1Q25) • Linked to the size of project and revenue to a certain degree 1Q26 Others: ¥6.84 bn, +36.5%YoY (-13.6%YoY in 1Q25) • Include license purchasing costs and others 1Q26 Network operation-related costs: ¥2.39 bn, -5.0%YoY (+2.3%YoY in 1Q25) • No significant change on a quarterly basis 1Q26 Personnel-related costs: ¥4.24 bn, +16.2%YoY (+3.5%YoY in 1Q25) • Increased mainly due to increased headcount and the revision of salary table at the beginning of the fiscal year Due to many ongoing projects including ones before order-received, the number of outsourcing personnel has been at a high level Number of SI-related outsourcing personnel (unit: personnel) 1Q26-end4Q25-end3Q25-end2Q25-end1Q25-end 1,5571,6331,6071,6031,578 (53.5%) FY25: 137,341 [+6.0%] (57.7%) (61.0%) (58.5%) (73.4%)
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© Internet Initiative Japan Inc. 13 4,688 4,729 4,664 5,249 5,340 4,513 2,939 3,943 4,689 4,532 1,307 1,257 1,291 1,419 1,337 154 153 156 181 174 10,662 9,078 10,054 11,538 11,383 1Q25 2Q25 3Q25 4Q25 1Q26 Ⅱ- 7. SG&A, etc. Commission expenses Research & development expenses Others (including other income and other expenses) Personnel-related expenses % of total revenues( ) Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison QoQ = Quarter over quarter comparison • Above figures are SG&A expenses plus other income and other expenses • 1Q personnel-related and other expenses increase mainly due to an increase in training and human capital development expenses along with the entry of new graduates. Such expenses decrease in 2Q QoQ as expenses for new graduate engineers are recorded as cost of revenues from 2Q • 2Q25 other income included a one-time gain of ¥1.17 bn from the revision of retirement benefit plans (IIJ) • 4Q25 personnel-related expenses increased QoQ mainly due to year-end bonuses (13.9%) (10.7%) FY25: 41,332 [+7.9%] (11.5%) (12.0%) 1Q26 Research & development expenses: ¥0.17 bn,+13.0%YoY (+4.8%YoY in 1Q25) • Mainly personnel expenses of research institute division. No major changes 1Q26 Commission expenses: ¥1.34 bn, +2.3%YoY (+1.9%YoY in 1Q25) • Mainly recruitment expenses and credit card fees for consumers 1Q26 Others: ¥4.53 bn,+0.4%YoY (+14.2%YoY in 1Q25) • 1Q training expenses increased temporarily due to new graduate hire 1Q26 Personnel-related expenses (salary, employee benefits, etc.) : ¥5.34 bn,+13.9%YoY (+9.8%YoY in 1Q25) • Upward trend, mainly due to the salary table revision and hiring of new graduate at the beginning of new fiscal year (11.7%)
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© Internet Initiative Japan Inc. 14 5,255 5,240 5,265 5,279 5,576 249 251 249 254 242 5,504 5,491 5,514 5,533 5,818 Jun. 2025 Sep. 2025 Dec. 2025 Mar. 2026 Jun. 2026 Engineers 70% Sales 20% Admin. 10% Ⅱ- 8. Human Capital Disclosure Contract worker (personnel) Full-time worker (personnel) Unit: ¥ (JPY) million Personnel-related Costs & Expenses (consolidated basis)Number of Employees (consolidated basis) FY26 • Number of employees to increase by approx. 400 personnel, including 277 new graduates • Average annual salary increased by approx. 6%, including the salary table revision, in Apr. 2026 (IIJ) Turnover Rates Lower than the industry average turnover (*) Number of New Graduates Employee Survey Achieved FY24 and FY27 targets a year in advance • Initial targets: FY24 over 6%, FY27 over 8% Unit: personnel Breakdown of Employees FY25 employee survey indicates high overall satisfaction level: 3.8 (out of 5) (consolidated basis) Ratio of Female Managers Apr. 2026 Apr. 2025 Apr. 2024 Apr. 2023 8.8%8.4%7.5%6.3% +363 YoY of which, 269 were new graduates 3.9 3.9 3.9 3.9 3.8 FY21 FY22 FY23 FY24 FY25 (*) Gain on the revision of the retirement benefit plan was not included • The Employee Survey(IIJ) is an annual engagement survey (approx. 50 questions), and each item is rated on a five-point scale: 1 (disagree), 2 (somewhat disagree), 3 (neutral), 4 (somewhat agree), and 5 (agree). The "Overall Satisfaction" is the result of a question, "I am satisfied overall.“ • The turnover rate of IIJ is calculated by dividing leavers for the fiscal year by the number of full-time employees at the beginning of that fiscal year. The industry average turnover rate of approx. 10% is announced by the Ministry of Health, Labor, and Welfare • Personnel adjustments were made at an overseas subsidiary in 2Q25 (IIJ) (IIJ) (IIJ) 178 246 307 269 277 Apr.2022 Apr.2023 Apr.2024 Apr.2025 Apr.2026 4.2% 3.8% 4.6% 3.9% 4.5% FY21 FY22 FY23 FY24 FY25 +314 YoY of which, 277 were new graduates 1Q264Q253Q252Q251Q25 12,35412,13311,27811,305(*)11,049 Consolidated personnel-related costs & expenses (YoY) (+11.8%)(+17.3%)(+9.5%)(+6.0%)(+6.9%) FY25: 45,765 (+9.9%) 12.7%12.6%12.9%13.3%14.4%% of revenue
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© Internet Initiative Japan Inc. 15 1Q26 Operating profit: ¥6.59 bn, +9.2%YoY 1Q26 Profit before tax: ¥6.71 bn, +17.0%YoY Interest expense: ¥380 million (1Q25: ¥327 million) Foreign exchange gain(loss) and valuation gain(loss) on funds • Quarterly gain(loss) are affected by foreign exchange fluctuations (FY26 business plan assumption: ¥155/USD) Share of gain(loss) of investments accounted for using equity method: -¥209 million (1Q25: -¥108 million) FY26 forecast: approx. -¥1.3 bn • DCP*-related loss: IIJ ownership: 34.8% 1Q26 Net profit: ¥4.40 bn, +16.4%YoY Ⅱ-9 .P r o f i t Operating profit Operating margin Net profit 1Q264Q253Q252Q251Q25 (282)(255)(205)(182)(174) • Net profit shows “Profit for the period attributable to owners of the parent” • Under IFRS, equity securities are measured at fair value through OCI (Other Comprehensive Income) while funds are measured through profit or loss • Equity-method affiliate DeCurret Holdings, Inc. changed its trade name to DCP Co., Ltd. on July 1, 2026 Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison 1Q264Q253Q252Q251Q25 162.39159.88156.56148.88144.81Exchange rate at the end of Q (per USD) (82)（*1）+95+24(7)(67)Foreign exchange gain(loss) +426+445+883+446(14)Valuation gain(loss) on funds, etc.（*2） FY25 Operating profit: 34,835 [+15.7%] FY25 Net profit: 24,188 [+21.3%] *1:Temporary foreign exchange loss associated with SI trade payables *2: Foreign exchange impacts were also incl uded as lots of assets are denominated in USD 6,031 9,357 9,024 10,423 6,588 3,777 6,255 6,242 7,914 4,395 1Q25 2Q25 3Q25 4Q25 1Q26 7.9% 11.0% 10.3% 10.9% 6.7% 1Q25 2Q25 3Q25 4Q25 1Q26 (186) 173 615 279 333 Finance income (expense), net (108) (118) (157) (91) (209) Share of profit (loss) of investments accounted for using equity method (1,928) (3,091) (3,173) (2,642) (2,266) Income tax expense 32 66 67 55 51 Profit (loss) for the period attributable to non-controlling interests
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© Internet Initiative Japan Inc. 16 Mar. 31, 2026 June 30, 2026 Changes Mar. 31, 2026 June 30, 2026 Changes Cash & cash equivalents 38,395 34,186 (4,209) Trade & other payables 34,478 43,360 +8,882 Trade receivables 62,084 59,344 (2,740) Borrowings (current & non-current) 35,570 35,570 - Inventories 7,132 11,848 +4,716 Contract liabilities & Deferred income (current & non-current) 39,120 47,055 +7,935 Prepaid expenses (current & non-current) 71,858 83,475 +11,617 Income taxes payable 5,119 2,466 (2,653) Tangible assets 45,114 49,819 +4,705 Retirement benefit liabilities 1,013 1,016 +3 Right-of-use assets 39,110 37,364 (1,746) Other financial liabilities (current & non-current) 60,660 60,508 (152) Of which, operating leases (rent of office, data center etc.) 22,367 21,195 (1,172) Of which, operating leases (rent of office, data center etc.) 23,122 21,965 (1,157) Of which, finance leases (network equipment etc.) 16,743 16,169 (574) Of which, finance leases (network equipment etc.) 19,896 19,198 (698) Goodwill & intangible assets 33,428 34,181 +753 Others 11,502 11,311 (191) Investments accounted for using the equity method 6,293 5,818 (475) Total liabilities: 187,462 201,286 +13,824 Investment securities (Equity) 12,106 14,596 +2,490 Share capital 25,663 25,671 +8 Other investments 12,691 13,482 +791 Share premium 35,930 35,860 (70) Others 18,722 19,645 +923 Retained earnings 98,163 99,101 +938 Other components of equity 10,006 11,939 +1,933 Treasury shares (11,755) (11,626) +129 Total equity attributable to owners of the parent: 158,007 160,945 +2,938 Non-controlling interests 1,464 1,527 +63 Total assets: 346,933 363,758 +16,825 Total liabilities and equity: 346,933 363,758 +16,825 Ⅱ- 10. Consolidated Statements of Financial Position (Summary) Unit: ¥ (JPY) million • Increase in prepaid expenses, mainly related to customer projects, licenses, and maintenance contracts; costs to be recovered over multiple years • Increase in property, plant and equipment, primarily driven by data center investments • Equity attributable to owners of the parent ratio: 45.5% (Mar. 31, 2026), 44.2% (Jun. 30, 2026)
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© Internet Initiative Japan Inc. 17 Ⅱ- 11. Consolidated Cash Flows Unit: ¥ (JPY) million YoY = Year over year comparison YoY Change 1Q26 Major Breakdown +9756,712Profit before tax +2048,167Depreciation and amortization (2,410)542Changes in operating assets & liabilities (5,999)(11,519)Of which, decrease (increase) in prepaid expenses +120(4,923)Income taxes paid YoY Change 1Q26 Major Breakdown (3,316)(7,786)Purchase of tangible assets (74)(2,001)Of which, data center-related +395(2,063)Purchase of intangible assets such as software YoY Change 1Q26 Major Breakdown +1,4402,431Proceeds from other financial liabilities (882)(6,458)Payment of operating/finance leases and other financial liabilities (361)(3,457)Dividends paid Operating Activities Investing Activities Financing Activities FY25: 50,460 FY25: (26,329) FY25: (19,110) 12,106 11,272 16,787 10,295 10,527 1Q25 2Q25 3Q25 4Q25 1Q26 (6,825) (4,618) (6,404) (8,482) (7,427) 1Q25 2Q25 3Q25 4Q25 1Q26 (7,759) 460 (7,669) (4,142) (7,472) 1Q25 2Q25 3Q25 4Q25 1Q26
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© Internet Initiative Japan Inc. 18 4,523 4,681 4,861 4,737 4,651 1Q25 2Q25 3Q25 4Q25 1Q26 FY26 CAPEX plan: approx. ¥38.0 bn • Of which, approx. ¥18.0 bn is for Shiroi data center 3 rd site construction • Cumulative total CAPEX for Shiroi DC 3 rd site of approx. ¥27.0 bn expected, progressing within the Mid-term Plan assumptions Major breakdown of CAPEX (Unit: ¥ bn) Ⅱ- 12. Other Financial Data Adjusted EBITDA Cash CAPEX CAPEX CAPEX-related depreciation and amortization Unit: ¥ (JPY) million [ ] , YoY = Year over year comparison Finance lease • Total amount of capital expenditure is the amounts of acquisition of tangible and intangible assets by cash and entering into finance leases for the fiscal year, excluding duplication due to sale and leaseback transactions and acquisition of assets that do not have the nature of investment, such as purchase of small-amount equipment • CAPEX-related depreciation and amortization is calculated by excluding depreciation and amortization of assets that do not have the nature of capital investment, such as right-of-use assets related to operating leases, small-amount equipment and customer relationship • Adjusted EBITDA is calculated by adding operating profit and CAPEX-related depreciation and amortization Notes1Q261Q25 Sustained investment4.54.3Ordinal CAPEX (NW equipment & server, etc.) Individual investment for anticipated demand 4.10.2Shiroi data center-related (Of which 3rd site) (2.1)*1.8Matsue data center-related Investment for each project0.31.0Customer-related Ad-hoc investment0.60.9Renewal of Full-MVNO 5G infrastructure Ad-hoc investment0.20.1Renewal of FX SaaS service facility FY25: 18,802 [+8.6%]FY25: 32,208 [+22.6%] FY25: 53,637 [+13.1%] 2,303 2,584 3,278 613 1,349 5,954 4,203 5,904 7,369 6,278 8,257 6,787 9,182 7,982 7,627 1Q25 2Q25 3Q25 4Q25 1Q26 10,554 14,038 13,885 15,160 11,239 1Q25 2Q25 3Q25 4Q25 1Q26 *Approx. ¥2.2 bn of subsidy income for Matsue DC
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© Internet Initiative Japan Inc. 19 NW Services • Continued accumulation of NW services through new service development and enhancement of existing offerings • Expect increasing demand driven by cybersecurity needs and industry- and domain-optimized platforms • Price revision for partial services (Apr. 2026) to add slightly less than ¥0.8 bn in revenue in a year • No consideration on mobile data interconnectivity reimbursement, same as FY25 • Approx. ¥1.5 bn of enterprise mobile device revenue will be recognized in 1Q26 • Gross margin expected to be almost at the same level as FY25 SI • Plan to recognize revenue from SI order backlog and new order acquisition • Strong demand environment expected to support continued acquisition of large-scale projects • Gross margin expected to improve slightly compared to FY25, driven by continued growth in recurring O/M revenue and scale merits Costs and SG&A • Increases in line with business growth, including headcount increase, as well as due to inflation; annual salary increase rate of approx. 6% (including revision of salary table) • Reversal impact of a one-time gain (¥1.17 bn) from the revision of retirement benefit plans in 2Q25, leading to a slight YoY decrease in 1H26 profit outlook Other • Non-operating income/expenses: Assuming exchange rate ¥155/USD, expect foreign exchange losses • Equity method income/loss is assumed to be -¥1.3 bn (including DeCurret(*): JPY -¥1.5 bn) • CAPEX: Approx. ¥38.0 bn • Net increase in consolidated employees: Approx. +400 (including 277 new graduates) Business Plan Assumptions Unit: ¥ (JPY) billion (bn) GP = Gross Profit Gross margin SI: approx. 17% NW service: approx. 27% Breakdown Cumulative (forecast)FY26 (forecast)FY25FY24 Approx. ¥27.0 bnApprox. ¥18.0 bnApprox. ¥8.5 bnApprox. ¥0.3 bn Shiroi DC 3rd site: CAPEX outlook % of total reveue % of total reveue 1H26 (Apr. 1, 2026 - Sep. 30, 2026) YoY FY26 (Apr. 1, 2026 - Mar. 31, 2027) YoY 180.0 +11.2% 385.0 +11.5% 21.7% 22.3% 39.1 +11.2% 85.7 +12.5% 13.2% 12.3% 23.7 +20.1% 47.2 +14.2% 8.5% 10.0% 15.4 (0.2%) 38.5 +10.5% Shares of profit(loss) of investments (0.7) - (1.3) - 7.8% 9.6% 14.1 (7.3%) 37.0 +5.0% 5.3% 6.5% 9.6 (4.8%) 25.0 +3.4% Dividend per share ¥21.50 +¥2.00 ¥43.00 +¥4.00 Net Profit (Profit for the period attributable to FY26 Forecast Total Revenue Gross Profit SG&A etc. Operating Profit Profit before tax FY26 Financial Targets (Remain unchanged from May 2026) 178.7 200.5 163.6 181.5 345.4 385.0 FY25 Results FY26 Forecast Revenue ATM SI NW service 48.4 54.0 26.3 30.5 76.2 85.7 FY25 Results FY26 Forecast Gross profit Approx. Approx. Approx. Approx. Appendix Approx. ¥1.5 bn of enterprise mobile device revenue originally expected as NW Service revenue was recognized in SI construction (1Q26, ¥1.7 bn) • Equity-method affiliate DeCurret Holdings, Inc. changed its trade name to DCP Co., Ltd. on July 1, 2026
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© Internet Initiative Japan Inc. 20 Operating Profit • NW services (excl. Mobile) revenues are calculated by deducting t he below mentioned Mobile services revenues from total NW services revenues. The revenues include non-mobile consumer revenue which is a small amount • Mobile services revenues include IIJ Mobile Services (including MVNE) and IIJmio (consumer mobile) Revenues 385.0 34.84 38.50 FY25 FY26 Outlook FY26 Outlook +3.66 +39.60 345.40 FY25 Unit: ¥ (JPY) billion (bn) GP = Gross Profit • NW services gross profit consists of gross profit related to NW revenues (excl. Mobile) and Mobile revenues (The two services h ave costs in common and cannot be broken down in accounting terms) • SG&A, etc. in this slide represents the sum of SG&A, which includes R&D expenses, and other income/expenses (+3.16 in FY25) (+4.55 in FY25) (+0.06 in FY25) (+3.03 in FY25) (+0.07 in FY25) (+12.33 in FY25) (+5.16 in FY25) (+11.00 in FY25) Year over Year Analysis (Remain unchanged from May 2026) Order backlog from construction revenue and SI O/M growth continues Consumer and enterprise IoT to grow Enterprise mobile device revenue of approx. ¥1.5 bn planned in 1Q26IP and Outsourcing services to steadily grow Gross margin to improve slightly There was a one-time gain from the revision of the retirement benefit plan of ¥1.17 bn in 2Q25 Gross margin to be almost at the same level as 1Q26 Appendix Recognized as SI construction revenue in 1Q26 (¥1.7 bn)
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© Internet Initiative Japan Inc. 21 14.625 17.18 17.50 19.50 21.50 14.63 17.18 17.50 19.50 21.5029.255 34.36 35.00 39.00 43.00 FY22 FY23 FY24 FY25 FY26 Year-end dividend Interim dividend Dividend per share: Basic shareholders’ return policy: Continuous and stable dividend payment while considering the need to have retained earnings for the enhancement of financial position, mid-to-long term business expansion and future investment Stock split Oct. 2022 (Forecast) Share buyback and cancellation May. 2023 FY26 Dividend Forecast (remain unchanged from May 2026) FY23 total payout ratio: 82.4% Unit: JPY (¥)Appendix
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© Internet Initiative Japan Inc. 22 AI strategy (Announced in May 2026)Appendix DevelopmentDelivery Operation Operation and Maintenance Implementation Advancing IIJ's Offering Model with AI As a network services provider, IIJ aims to create added value through AI-native service offerings and capture the transformative benefits of AI. Targeting approx. 30% of company-wide operations to be AI-enabled by the end of FY29 System Integration (SI) Back-Office Network Equipment & Hardware Network Service Infrastructure Internet Backbone Network EngineersSystems Engineers Software Network Services Delivering Added Value for Customers' SI Needs through AI AI-Enabled Productivity Gains in SI Implementation and Operations AI-Enabled Service Delivery: Advancing Operations and Creating Added Value (AI Orchestration) AI-Enabled Productivity Gains in Network Services Development and Operations AI-Enabled Productivity Gains in Back-Office Operations
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© Internet Initiative Japan Inc. 23 • Service Integration: System integration incorporating our in-house developed network service portfolio. With large-scale netwo rk renewals within customers’ organizations, business opportunities and proposal scope have expanded significantly. For details,please refer to “Timing of revenue recognition for large-scale complex flagship projects” in the past financial results presentation materials • Recorded revenues of winning large-scale projects amount over ¥1.0 bn Integrated operation system for public sector organization ¥3.0 bn, 5 yrs NW service, SI construction, SI O/M Educational information network for Chiba city ¥12.3 bn, 5 yrs NW service, SI construction, SI O/M Next generation NW renewal for system integrator ¥1.0 bn, 5 yrs NW service Enhancement of security for telecom carrier ¥1.5 bn, 5 yrs SI construction, SI O/M Next generation research platform for private university ¥1.0 bn, 5 yrs SI construction, SI O/M Construction & operation for service infrastructure for enterprise ¥4.0 bn, 5 yrs NW service, SI construction, SI O/M Large-scale server construction for AI infrastructure ¥3.0 bn, 3 yrs SI construction, SI O/M Large-scale NW renewal for prominent financial institution ¥4.0 bn, 8 yrs NW service, SI construction, SI O/M Large-scale NW renewal for manufacturer ¥3.0 bn, 5 yrs SI construction Large-scale IT infrastructure installment project ¥1.0 bn SI construction The first project of the new shared banking system platform for regional banks ¥6.0 bn, 8 yrs NW service Revenue recognition from 3Q24 Information infrastructure system for public sector organization ¥3.0 bn, 4 yrs NW service, SI construction, SI O/M Revenue recognition from 3Q24 Research platform renewal for private educational institution ¥2.0 bn, 4 yrs NW service, SI construction, SI O/M Revenue recognition from 3Q24 Remote work environment development for public sector organization ¥1.0 bn SI construction Revenue recognition from 2Q24 Remote access implementation for manufacturer ¥3.0 bn, 5 yrs NW service Revenue recognition from 3Q24 Security enhancement for manufacturer ¥1.0 bn, 3 yrs NW service Revenue recognition from 2Q24 Office IT Installation for public sector organization ¥1.0 bn, 3 yrs NW service Revenue recognition from 2Q24 Sales system renewal for service provider ¥2.0 bn, 2 yrs NW service, SI O/M Revenue recognition from 2Q24 Large-Scale Projects Becoming the New Norm (Updates semi-annually) NW service SI System infrastructure construction for a public institution ¥4.0 bn, 5 yrs NW service, SI construction, SI O/M Revenue recognition from 3Q24 Introduction of a service system for a public institution ¥1.0 bn, 5 yrs SI construction, SI O/M Revenue recognition from 4Q24 The second project of the new shared banking system platform for regional banks ¥11.0 bn, 8 yrs NW service, SI construction, SI O/M Revenue recognition from 4Q24 Remote access environment for construction company ¥2.0 bn, 5 yrs NW service, SI construction, SI O/M Revenue recognition from 2Q25 Business operation environment for public institution ¥2.0 bn, 3 yrs NW service, SI construction, SI O/M Revenue recognition from 3Q25 ICT infrastructure for public institution ¥3.0 bn, 5 yrs NW service, SI construction, SI O/M Revenue recognition from 4Q24 NW infrastructure renewal for real estate company ¥3.0 bn, 5 yrs SI construction, SI O/M Revenue recognition from 1Q25 2H251H252H241H242H231H23 Revenue recognition category Infrastructure for education service ¥1.0 bn, 5 yrs NW service, SI construction, SI O/M Revenue recognition from 1Q25 Business operation environment for public institution ¥1.0 bn, 3 yrs NW service, SI construction, SI O/M Revenue recognition from 2Q25 Global NW for Japanese megabank ¥5.5 bn, 5 yrs NW service, SI construction, SI O/M Revenue recognition from 2Q25 Security enhancement for financial institution ¥1.0 bn, 5 yrs NW service Revenue recognition from 2Q25 GIGA School infrastructure renewal for Ehime Prefecture ¥1.0 bn, 6 yrs SI construction, SI O/M Revenue recognition from 2Q26 Sales system renewal for service provider ¥1.0 bn SI construction Revenue recognition from 4Q25 Email infrastructure operations for ISP ¥1.5 bn, 2 yrs NW service, SI construction, SI O/M Revenue recognition from 4Q25 NW system construction & O/M for public sector institution ¥16.0 bn, 18 yrs NW service, SI construction, SI O/M Revenue recognition from FY29 Core system replacement for security company ¥1.0 bn, 2 yrs NW service, SI construction, SI O/M Revenue recognition from 4Q25 IT infrastructure renewal for life insurance company ¥2.0 bn, 2 yrs NW service, SI construction, SI O/M Revenue recognition from 3Q25 Office IT platform implementation for a construction company ¥6.0 bn, 3 yrs NW service Revenue recognition from 4Q25 Security enhancement for manufacturer ¥2.0 bn, 5 yrs SI construction, SI O/M Revenue recognition from 4Q25 GPU infrastructure construction (PTC) ¥12.0 bn, 5 yrs SI construction, SI O/M Revenue recognized from 2Q26 NW Infrastructure construction & O/M for public Institution ¥4.0 bn, 5 yrs NW service, SI construction, SI O/M Revenue recognition from 3Q26 NW system construction & O/M for public sector institution (additional) ¥2.5 bn, 18 yrs NW Service, SI Construction, SI O/M Revenue recognition from FY29 Virtualization platform construction & O/M for public institution ¥1.0 bn, 6 yrs NW service, SI Construction, SI O/M Revenue recognition from 3Q26 Security enhancement for manufacturer ¥1.0 bn, 3 yrs SI O/M Revenue recognition from 4Q25 System construction for government agency ¥1.0 bn, 3 yrs SI Construction, SI O/M Revenue recognition from 4Q26 NW system construction & O/M for public institution ¥1.5 bn, 6 yrs SI Construction, O/M Revenue recognition from 3Q26 Appendix
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© Internet Initiative Japan Inc. 24 Typical Transitions of Service Integration ProjectsAppendix Network Services NW in center Internet 100Gbps×3 lines Cloud center 100Gbps × 3 lines (backup)100Gbps × 3 lines (main) Virtualization infrastructure School affairs support systems Base RT NW in DC Public Schools in Chiba (168 as of March 31, 2023) Internet connecting SW Base RT NW in DC 1Gbps External environment A External environment B Base L3SW Base NW BaseL3SW Base NW Base L3SW Base NW 1Gbps Learning systems Various VDI Other systems SASE Educational Information NW for Chiba city IP LAN LAN LAN Existing DC Existing DC Web Security Equipment Total NW project for a prominent company group IIJ Private Backbone Branch Group companies Other DC IIJ DC IIJ DC Carrier A Carrier B Remote access users Group companies Main office Carrier A Carrier B Group companies Approx. 700 Approx. 200 Carrier A Approx. 7,000 IP Approx. 20 Cloud service WAN Flex Mobility Cloud exchange Private access Private access Managed VPN pro Managed VPN pro Managed VPN pro Private access Shared Banking System Platform Approx. 20 WAN WAN IIJ Private Backbone Mainframe joint platform for regional financial institutions Western Japan (Main) Eastern Japan (Sub) Distributed system joint platform for regional financial institutions IIJ Shiroi DC IIJ Hakata DC Relocation destination for the financial institutions individually contracted ones Digital services platform for financial services Digital services platform for financial services IBM Cloud AWS Microsoft Azure Private connection IIJ Shiroi DC IIJ Hakata DC OA Service platform for regional financial institutions Kyndryl data centers Haga Nanko Kyndryl operation center IBM regional DX center Regional financial institutions’ own data centers Main Sub Bank B Private WAN Bank A Private WAN IIJ GIO Internet Other IIJ-original offerings WAN System Integration
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© Internet Initiative Japan Inc. 25 • Under the future cost method, MNOs are to disclose the charges for next three yrs based on their prediction about cost etc. Its calculation is (Data communication cost + profit) /demand • The charge disclosed based on the future cost method is to be finalized based on MNOs actual cost results etc. • The YoY (Year over Year) decrease percentage written under each charge is compared with the previous year charge • The charge is public information disclosed in NTT Docomo’s service terms and conditions document uploaded on NTT Docomo’s website (only available in Japanese) https://www.docomo.ne.jp/binary/pdf/corporate/disclosure/mvno/business/oroshi.pdf NTT Docomo’s Mobile data interconnectivity charge (Mbps Unit charge, monthly)Appendix FY28FY27FY26FY25FY24FY23FY22FY21Fiscal Year ¥9,488 -6.1% YoY ¥10,104 -7.6% YoY ¥10,931 +0.5% YoY New ¥12,862 -14.5% YoY ¥15,042 -24.7% YoY ¥19,979 -26.1% YoY ¥27,024 -27.5% YoY Fixed ¥9,052 -12.8% YoY ¥10,383 -4.5% YoY ¥10,874 -15.5% YoY Old ¥10,708 -1.5% YoY ¥10,874 -15.5% YoY ¥12,862 -14.5% YoY ¥11,255 -14.0% YoY ¥13,084 -16.4% YoY ¥15,644 -21.7% YoY ¥13,207 -15.9% YoY ¥15,697 -22.8% YoY ¥20,327 -24.8% YoY ¥18,014 -18.8% YoY ¥22,190 -21.8% YoY ¥28,385 -23.9% YoY To be fixed in Dec. 2026 Future cost method No one-time cost reimbursement Announced in Mar. 2024 Announced in Mar. 2023 Announced in Apr. 2022 Announced in Mar. 2021 Announced in Mar. 2025 Announced in Mar. 2026
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© Internet Initiative Japan Inc. 26 Mobile service for consumers “IIJmio GigaPlans” Price list for “IIJmio GigaPlans” ¥850With voice 2GB ¥740Data-only From ¥990 to ¥950With voice 5GB From ¥900 to ¥860Data-only From ¥1,500 to ¥1,400With voice 10GB From ¥1,400 to ¥1,300Data-only From ¥1,800 to ¥1,600 *from Mar. 2026With voice 15GB From ¥1,730 to ¥1,530 *from Mar. 2026Data-only ¥2,000With voice From 20GB to 25GB ¥1,950Data-only From ¥2,700 to ¥2,400With voice From 30GB to 35GB From ¥2,640 to ¥2,340Data-only ¥3,300With voice From 40GB to 45GB ¥3,240Data-only ¥3,900With voice From 50GB to 55GB ¥3,840Data-only Appendix GigaPlans: by data plans • The price list was updated in Mar. 2025. The 15GB plan was revised in Mar. 2026. As of Jun. 30, 2026 Tax included Shift from low bundled to mid-to high bundled plans • As of Jun. 30, 2026, 83% of IIJmio GigaPlans were with voice plan Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 27%28%28%29%30%33%2GB 43%43%43%44%44%44%5GB 12%13%14%13%13%11%10GB 8%6%4%3%3%4%15GB 8%8%8%8%8%7%25GB 2GB 27% 5GB 43% 10GB 12% 15GB 8% 25GB 8% 35GB 2% 45GB less 1% 55GB less 1%
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© Internet Initiative Japan Inc. 27 Appendix Digital Currency Business Company Profile DCJPY Network Financial Zone (FZ) Business Zone (BZ) Banks: Minting & transferring digital currency, etc. Enterprises & government agencies, etc.: Implementing the use case DCJPY: A digital currency that tokenizes bank deposit on the blockchain. Also called tokenized deposits, they can be minted, transferred, and burned on the DCJPY Network DCP Co., Ltd. (DeCurret Holdings changed its trade name to DCP Co., Ltd. on July 1, 2026) Business • Digital currency business (Electronic Payment Services Operators) • Growing number of commercialization projects driven by continued market adoption of tokenized deposit concepts • FY26 costs are expected to increase, mainly due to higher development expenses associated with the expansion of the Financial Zone, including increased development headcount • DCP related shares of loss of investments accounted for using equity method investee: FY25 ¥0.8 bn, FY26 estimated: approx. ¥1.5 bn Digital Currency Forum • DCP serves as the secretariat and examines use cases for digital currencies • Number of members: over 100 including enterprises and local governments • Observers: Financial Services Agency (FSA), Ministry of Internal Affairs and Communications (MIC), Ministry of Finance (MOF), Ministry of Economy, Trade and Industry (METI), Bank of Japan (BOJ) • Chairperson: Mr. Yamaoka (former Director-General, Payment and Settlement Systems Dept., BOJ) • Senior advisor: Mr. Endo (former Commissioner of FSA) Shareholders (42 companies) • IIJ (shareholding ratio: 34.8%), financial institutions (banks, securities, and insurance), telecom carriers, IT service providers, logistics and transportation companies, retailers, real estate firms, energy and infrastructure providers, advertising agencies, security service companies, and general trading companies, etc. Electronic payment instrument (Stable Coins )Tokenized Bank Deposits Type III: specific trust beneficiary right (money trust) Type IDCJPY Payment Services ActBanking Act, Deposit Insurance Act, etc.Legal framework Trust beneficiary interests, etc.Deposit claimsLegal nature Trust assets (deposits, etc.) Preservation through deposit, etc.Bank deposits themselves (not underlying asset)Underlying asset Trust banks & trust companies Type II funds transfer service providersBanksIssuers • Trust banks have no upper limit on transfer amounts, while trust companies have some restrictions • There is an upper limit on transfer amounts (Type II funds transfer service providers: JPY1 million maximum per transaction) • There is no upper limit on transfer amounts • Treatment equivalent to bank deposits (covered by the deposit insurance system, etc.) • Along with the expansion of BZ, use cases for digital currency are to also expand Features OverviewPartners Started digitalizing environmental value and DCJPY settlementsGMO Aozora Net Bank, IIJ Planning to launch tokenized deposits in FY26Japan Post Bank Agreed to study FX transactions using tokenized depositsSBI Shinsei Bank, Partior The first among regional banks to start joint study of DCJPY adoptionKyushu FG, Higo Bank, Kagoshima Bank Launch Proof-of-Concept for “Value-Circulating Fan Community” Utilizing Blockchain Technology GAMBA OSAKA Conducted a PoC for automating corporate invoice payments.Fast Accounting, GMO Aozora Net Bank, IIJ Exploring the use of digital currenciesJAPAN ASSOCIATION OF CHAIN DRUG STORES Commenced a PoC experiment aimed at building a new community service utilizing digital currency technology and blockchain Visual Voice Completion of the First Field Test for Security Token Payments Using Tokenized Deposits in Japan SBI Security, Daiwa Securities, SBI Shinsei Bank, BOOSTRY, Osaka Digital Exchange Basic agreement signed for commercialization of DCJPY-based payment businessHokuriku Bank Use Cases of DCJPY
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© Internet Initiative Japan Inc. 28 Established a JV for soil moisture sensing business with Sony Semiconductor Solutions CorporationAppendix Company Overview Background of Establishment / Business Development Sensiphia, Inc.Company Name IIJ: 85%, Sony Semiconductor Solutions Corporation (“Sony”) : 11%, Other: 4%Shareholders ¥559 millionCapital, etc. February 20, 2026Establishment Representative Director, President & CEO: Toru Saito (Former Deputy Division Director, IoT Business Division, Network Services Business Unit, IIJ) Representative Development, sales, and support of moisture sensors and agricultural support services using soil moisture sensing technologyBusiness Overview IIJ’s Strengths IIJ provides smart agriculture solutions that integrate communication infrastructure, sensor devices, and data management as part of its IoT business since 2019. By combining these with Sony’s technological expertise in sensor development, Sensiphia is to develop and offer products and services that enhance operational quality and efficiency in agricultural field As a data-driven agricultural support service leveraging sensor data, Sensiphia is to provide comprehensive support for irrigation optimization, efficient water usage, and yield improvement Sensiphia will initially focus on the domestic facility cultivation market, with medium- to long-term expansion plan into overseas facility cultivation and open- field agriculture Void (air gaps, gases) Measurement point (outside probe) Void (air gaps, gases) Measurement point (between probes) Conventional method (contact-type) Sensiphia method (non-contact type) Sony’s Strengths Extensive know-how in developing IoT businesses in the agriculture sector, built through collaboration with local governments nationwide in deploying communication infrastructure for agricultural areas Capability to build and operate wide-area communication infrastructure, including support for regions with poor mobile network coverage Wildlife damage prevention Paddy field management (water level sensors) Irrigation facility management River/reservoir management LPWA base station Greenhouse management Paddy field management (automatic water supply) Irrigation canal management Unique sensor technology that is less affected by soil conditions Conventional methods measure soil moisture in direct contact with the sensor and are therefore affected by soil voids, whereas the Sensiphia method measures soil moisture between sensors using RF signals, enabling stable soil moisture measurement. Measures soil moisture in direct contact with the sensor Measures soil moisture between sensors *LPWA (Low Power, Wide Area): A wireless communication technology optimized for IoT/M2M applications, characterized by low power consumption and long-range connectivity. *RF (Radio Frequency) signals: A high-frequency electromagnetic wave (radio wave) or electrical signal used for wireless communication and data transmission.
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© Internet Initiative Japan Inc. 29 【Reference】 Presentation material for company profile P. 29 ~ P. 45
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© Internet Initiative Japan Inc. 30 December 1992 (The first established full-scale ISP in Japan)Established • Number of employees (consolidated basis) is as of June 30, 2026 • Large shareholders are as of Mar. 31, 2026. Based on filings by Oasis Management Company, its ownership is 9.07% as of June 24, 2026. 5,818 (approx. 70% engineers)Number of Employees NTT Group, KDDI, Oasis Management Company, ITOCHU Techno-Solutions (CTC), Koichi Suzuki (Founder)Large Shareholders The first established full-scale ISP (Internet Service Provider) in Japan Introduce many in-house developed Internet-related network services Highly skilled IP (Internet Protocol) engineers from the inception Operate one of the largest Internet backbone networks in Japan Well recognized “IIJ” brand among Japanese blue-chip companies’ IT division Differentiate by reliability and quality of network and systems operation Long-term (approx. 30 yrs) client relationship since the establishment of IIJ Development of innovative Internet-related services Differentiate by continuous network service developments and business investments Focus on Cloud, mobile, security, solutions related to Big Data, IoT and data governance Always ahead of telecom carriers and systems integrators (SIers) with regards to services development and operation Company Profile IIJ has been taking initiatives in Internet Infrastructure field in Japan Approx. 80% recurring revenue Stable and Scalable Business Foundation MSCI’s ESG rating: AA (as of Mar. 2026) Company Profile
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© Internet Initiative Japan Inc. 31 Management structure (As of June 26, 2026) Takashi Tsukamoto (since 2017) Former Chairman of Mizuho Financial Group, Inc. Former President and CEO of Mizuho Bank, Ltd. Kazuo Tsukuda (since 2020) Former Chairman and Representative Director of Mitsubishi Heavy Industries, Ltd. Yoichiro Iwama (since 2021) Former President and Representative Director of Tokio Marine Asset Management Co., Ltd. Atsushi Okamoto (since 2022) Former President and CEO of Iwanami Shoten, Publishers Kaori Tonosu (since 2022) Former Board Member of Deloitte Touche Tohmatsu LLC Joined MIC in 1984 and led major telecom reforms including NTT’s restructuring and mobile policy initiatives. Served as Vice-Minister for Policy Coordination in 2019, promoting lower mobile charges. Joined IIJ in 2022 as Executive VP, driving growth in cybersecurity and digital transformation. Koichi Suzuki Representative Director, Chairman, Executive Officer, Co-CEO Yasuhiko Taniwaki Representative Director, President, Executive Officer, Co-CEO & COO Koichi Kitamura Vice President Executive Officer Akihisa Watai Vice President Executive Officer CFO Junichi Shimagami Vice President Executive Officer CTO Masayoshi Tobita Masako Tanaka Shio Harada Kumiko Aso Female Attorney at law Female CPA Female Outside Directors (50.0%, 5 out of 10) Ratio of outside directors 50.0% Ratio of female directors and auditors 28.6% Independent Independent Independent Independent Independent Outside Auditors To develop network infrastructure through technological innovation We are committed to the ongoing pursuit of initiatives in the field of Internet technology to open the future of the digital society through new value created by ever faster networks and computing. To provide solutions (IT services) that supports a networked society We continuously develop and introduce highly reliable and value-added IT services that anticipate changes taking place around the world, to support the use of networks by society and individuals. 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 aim to offer meaningful working opportunities for growth through business, in which our staff can take a proactive approach to technical innovation and social contribution and actively demonstrate their abilities with pride and a sense of satisfaction. We aspire to be a company where employees are never satisfied with the status quo, and are always thinking about the future world, contributing to social development, and achieving personal growth through work that has value for society. IIJ’s Business Philosophy Board of Directors (10 members) Board of Company Auditors (4 members) About President Taniwaki (Since Apr. 2025) Director Compensation Revamped the director compensation system in FY24. Restricted stock-based compensation is linked to both annual performance and the Mid-term Plan. With regard to Mid-term Plan-linked compensation, the directors are evaluated mainly based on financial performance (revenue, operating profit, and segment performance overseen by each director), engagement metrics (including employee satisfaction), ROE (19%), sustainability targets. Company Profile Female
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© Internet Initiative Japan Inc. 32 FY1994 FY2000 FY2005 FY2010 FY2015 FY2020 FY2025 Advancement of DX in post- pandemic era Shift to Network- Centric Architectures EMERGE Network enhancement, Cloud, consumer mobile, IoT …. Birth Earned enduring client base Transition Change in business model Mobile services Outsourcing services (including Security services) Systems construction (including equipment sales) Systems operation and maintenance (including private Cloud) WAN services BLOOM Harvesting the flower of Total Network Solution Provider Systems Integration (SI) revenue: Network (NW) services revenue: Increase in number of ISPs in Japan IIJ launched Internet connectivity services in 1993 (NTT in 1996) Price war and market consolidation for ISPs in Japan IIJ shifted its focus to large corporates, survived the tough competition, and established market position Gradual cloud migration Launched Cloud services in 2009 Birth of the Low-Cost SIM Market Launched consumer mobile services in 2012 From ISP to Total Network Solution Provider DX triggered by the Pandemic Rapid Expansion in Demand for Remote Access Services, etc. Internet connectivity services Recurring RevenueOne time revenue Company Profile
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© Internet Initiative Japan Inc. 33 Transactions and Projects Trends Service Elements Client Base Network Engineering Capabilities Internet/Network Large-scale projects Network replacement Over 2,000 talented network engineers Security Cloud MVNO IoT Professional Services Strong Demands from Finance and Public sectors IoT-related Projects to Increase Full-outsourcing Needs to Prevail System Integration Private Sectors in Japan • ICT • Finance • Services Public Sectors in Japan • Central government agencies • Local governments • Educational institutions Top MVNO by market share • Over 30%* • Over 200 MVNE clients Approx. 16,000 clients Longstanding client relationships High penetration to top tier 10 companies each industry Continue to meet Internet-related demands Exceptionally low churn Advancing large-account strategy Overseas Business • Supporting Japanese companies operating overseas • Developing IIJ’s local businesses in ASEAN Provide total solution as one suite Large-scale Service Integration projects increasing SI to enhance network service business development In-house development of a wide range of network services Dedicated Internet connectivity Cloud network optimization WAN Broadband connectivity Proprietary router Wireless LAN SOC Mail security SASE Secure web gateway Managed firewall Zero Trust File servers Backup servers Dedicated cloud connectivity Virtualization platform Multi-cloud Data integration platform Private network SIM 5G IMSI Mobile router eSIM Mult-carrier LoRa WAN Paddy field management Agriculture IoT Smart meter Consultation Operation and maintenance Cloud integration IT consulting Full- outsourcing of IT operation • Construction • Retail • Manufacturing Revenue (¥ bn) Large-scale projects revenue (¥ bn) Factory automation Transportati on data log Network availability; 99.9999% Fully redundant configuration through multicarrier architecture, etc. Low HR turnover rate: 3-4% Established service brand in Japan Support desk Backoffice system Data Centers One of the largest Internet backbone networks in Japan Servers Network equipment Proven operational excellence in network services *MM Research Institute, as of Mar. 31, 2025 Company ProfileNetwork Engineering Capabilities as Our Core Value - Business Model - 126.8 178.7 83.3 163.6 FY20 FY25 NW service SI 10 9.76.8 14.5 FY24 FY25 One-time Recurring
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© Internet Initiative Japan Inc. 34 Unit: ¥ (JPY) billion (bn)Extensive Service Lineups Company Profile Various in-house developed Internet-related service line-ups • IIJ’s flagship service since the inception • Highly reliable dedicated connectivity services with multi-carrier redundancy • Bandwidth-based contracts driving scalable revenue growth • Traditional method of connecting multiple sites via intranet and closed networks • Direct procurement of dedicated WAN lines • Primarily network integration projects, including server setup About Business situation, growth drivers and outlook • Matured market (hard to entry) • Very low churn rate, loyal clients for over 30 years • Expect Internet traffic volume to continuously increase along with cloud penetration, CDN, SaaS, DX, etc. • Unified mobile infrastructure for enterprise, MVNE and consumer Traffic management strategy • Current infrastructure provisioning based on peak consumer traffic patterns. Peak demand concentrated during commuting hours and lunchtime • Leading market share in Japan’s consumer MVNO segment • Stable market • Positioned as a cross-selling element • Have been developing services based on the Zero Trust concept • Drive enterprise growth through cross-selling • Ongoing service development is key • Security demand is expected to remain strong • Strong mid-to-long business opportunity driven by cloud migration of internal IT systems • Revenue expected to grow steadily as construction projects accumulate • Securing large-scale projects as Japanese enterprises shift to network-based systems requiring integrated network functions IP Security On-premise Systems Private Cloud, etc. • Provide SIM with monthly data limits (voice as option) • Operation and maintenance of deployed systems Enterprise mobile MVNE IP • Promote cloud migration with robust, reliable and value-driven capabilities Mobile Mobile Mobile • Managed security services, Security Operation Center services and so many more 18.64 30.17 25.28 18.20 11.98 40.91 58.87 36.90 (Others) Broadband Internet services, etc. (Others) Broadband Internet services and email services for households, etc. YoY growth +10.0% +6.9% +3.4% +14.3% +16.0% -1.3% (Internet Protocol) • Provide data connectivity for mainly IoT usages • Provide mobile services for other MVNOs +7.6% +17.6% +5.2% +7.9% +13.8% (Others) NW monitoring, VPN services, public cloud services, and many more +21.3% +8.5% Recurring revenue One time revenue Cost Structure Mostly common costs Cost plusSI Construction (including equipment sales) Operation and Maintenance Network services Internet connectivity services for enterprise Internet connectivity services for consumers WAN Outsourcing Revenue category FY25 revenue (Wide Area Network) 53.89 28.67 28.55 67.62 95.77 67.87 80% Gross Margin 27.1% 16.1%
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© Internet Initiative Japan Inc. 35 28.1 34.2 38.4 41.3 48.5 58.9 26.2 28.7 32.4 33.4 36.5 39.1 18.4 22.2 26.7 30.9 35.9 40.9 14.5 15.4 17.2 19.3 20.7 24.5 25.0 26.4 27.6 28.4 27.6 28.6 47.5 40.7 42.3 46.1 50.3 55.5 15.8 17.6 19.0 20.5 22.1 23.7 213.0 226.3 252.7 276.1 316.8 345.4 14.2 23.5 27.2 29.0 30.1 34.8 FY20 FY21 FY22 FY23 FY24 FY25 Internet connectivity services for enterprises (excl. mobile) Mobile services Internet connectivity services for consumers (excl. mobile) WAN services Outsourcing services (excl. Cloud and Security) Security services Cloud services Systems Operation and maintenance (excl. cloud) Systems construction ATM operation business Operating profit Unit: ¥ (JPY) billion (bn) % = Year over year change • WAN revenue decreased year over year in FY20 mainly due to certain large customers’ migration to our mobile services (cheaper than WAN to connect multiple sites) • During FY20, ATM operation business was impacted by the COVID-19 pandemic due for example to the store closure and smaller number of users coming to stores • Mobile revenue decreased year over year in FY21 due to ARPU decrease for consumers and change in unit charge for MVNE clients • Systems construction and systems operation & maintenance revenue increase for FY21 includes PTC revenue which became IIJ’s consolidated subsidiary from Apr. 2021 • FY24 Operating margin includes the significant increase of VMware licenses (+4.2%) (+6.3%) (+9.2%) Recurring Revenue (+14.8%) Recurring Revenue Accumulation & Expansion of Economies of Scale One time revenue (6.7%) (10.4%) (10.8%) (10.5%) (9.5%) (%) Operating Margin Company Profile (+11.7%) (+9.0%) (10.1%)
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© Internet Initiative Japan Inc. 36 FY25FY24FY23FY22FY21 345.4316.8276.1252.7226.3Total Revenue +9.0%+14.8%+9.2%+11.7%+6.3%YoY 178.7162.6151.3138.9128.2NW services +9.9%+7.4%+8.9%+8.4%+1.1%YoY 123.3112.3105.296.687.5NW services (excl. Mobile services) +9.8%+6.7%+8.9%+10.5%+10.3%YoY 55.550.346.142.340.7Mobile services +10.3%+9.0%+9.1%+3.8%(14.3%)YoY 163.6151.3121.8110.995.3SI +8.2%+24.2%+9.8%+16.4%+14.5%YoY 34.830.129.027.223.5Operating Profit +15.7%+3.7%+6.6%+15.6%+65.3%YoY 10.1%9.5%10.5%10.8%10.4%Operating Margin 24.219.919.818.915.7Net Profit +21.3%+0.5%+5.2%+20.3%+61.4%YoY 16.2%15.0%16.3%17.0%16.2%ROE 27.1%27.8%28.7%27.5%27.8%NW service gross margin 16.1%14.4%15.6%16.7%15.7%SI gross margin 32.226.322.520.816.1CAPEX 13.615.012.99.79.0NW services, etc. 11.64.75.75.61.6Shiroi, Matsue DCs 3.42.01.52.02.3Cloud 3.64.62.43.53.2SI, others Various Network Services Asset Opened SOC (Mar. 2017) Launched full-MVNO (Mar. 2018) Launched Flex Mobility (Dec. 2018) Launched Omnibus (Sep. 2015) Launched GIO P2 (Oct. 2015) Opened Shiroi DC (May 2019) Launched enterprise eSIM (Apr. 2021) Enhanced Omnibus (Oct. 2018) Launched UOM (Apr. 2017) Enhanced SWG (Dec. 2020) Launched GIO P2 Gen.2 (Oct. 2021) Launched Smart HUB (Jun. 2022) Launched “Security Doctor” (Nov. 2025) Launched CDP (Dec. 2022) Shiroi DC 2nd site started operation (Jul. 2023) Shiroi DC 3rd site construction started (Jun. 2025) Enhanced SOC (May 2021) Matsue DC new building operation began (Jun. 2025) Unit: ¥ (JPY) billion (bn) Company ProfileFinancial Performance
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© Internet Initiative Japan Inc. 37 Against telecom carriers, IIJ • Has highly skilled IP (Internet Protocol) engineers • Is faster to move than bureaucratic organizations • Focuses on blue-chip companies’ IT needs with SI Against systems integrators (SIers), IIJ • Operates one of the largest Internet backbone (SIers do not) • Has NW services asset and development capability (SIers do not) • Focuses on Internet-related open type systems Legacy Network Services i.e. telephone Legacy Systems i.e. mainframe IP services Security services Mobile services Network Integration Systems Operation Private Cloud SIersTelecom Carriers IIJ deals with newer systems and growing IT market (Not involved in heavy and legacy systems) Competitive Advantages Company Profile
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© Internet Initiative Japan Inc. 38 Initiate the market by continuously developing innovative various network-related services & solution in-house Service & Solution Development Capability Company Profile
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© Internet Initiative Japan Inc. 39 Number of IIJ Group’s clients: approx. 16,000 as of March 31, 2026 Through reliable operation, continuous use of Internet connectivity services since the inception of IIJ Our reliable infrastructure operation and cross-sell strategy have led to low churn rate Excellent Customer Base Cover Most of Top Revenue Companies • Top ten firms in each industry taken from annual revenues are selected by IIJ based on the Yahoo! Japan Finance website (finance/sales/whole market/daily) • The service penetration and the revenue distributions are based on IIJ’s FY25 Client Distribution by Industry Client Distribution by Revenue Volume Company Profile ICT 30% Finance, Insuarance 19% Public, Education 14% Service 12% Manufacturing 12% Construction, Real estate 7% Retail 4% Others 1% Top 1-100 48% Top 101-200 13% Top 201-300 8% Top 301-400 5% Top 401-500 4% Top 501- 22%
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© Internet Initiative Japan Inc. 40 Further enhancement of the existing core business area Accelerate business scale expansion toward the Mid-to-long Term Vision by advancing the business structure transformation in FY23 Revenue growth led by integration and profit growth through economies of scale as a NW service operator Creation of new growth area Enhancement of business foundation Total Revenue Operating Profit ROENet Profit 1.4 times FY26 ¥380.0 bnFY23 ¥276.1 bn FY26 over ¥30.0 bn FY26 19%FY23 16.3% • Continuous expansion of human resources • Develop next-generation human resources for long term growth • Maintain & enhance top-tier engineering capabilities & expand that to multiple layer • Appropriate management of increasing SI-related working capital • Investment allocation Shiroi DC & growth areas • Increase payout ratio when the Mid-to-long Term Vision is realized • Focus on strengthening cyber-security service development • Respond to DX progress with DWP lineup • Develop services that would be PF for AI, data lake, etc. • Pursuit M&A opportunities as a supplemental means of expanding domestic resources & technology • Leverage residual borrowing capability (up to ¥70.0 bn is envisioned image) • Strengthen governance in line with growth • Contribute to the productivity of future society through continuous stable NW operation • Introduce a new executive compensation scheme linked to the new Mid-term Plan • Higher efficiency for service development & operation by new technology such as AI • Implement appropriate pricing in response to inflation & cost increase • Comprehensive outsourcing of client’s NW and open systems • Add large volume revenue to the multi-industry recurring revenue base • Stable additional profit source for the future ・Accelerate NW service accumulation through Service Integration • Demonstrate the strength of stable NW operation in the DX era • Construct the third site of Shiroi DC for long-term growth • Deploy full-MVNO 5G SA Human Capital 1.3 times FY26-end around6,100FY23-end 4,803 • Accelerate revenue growth by rolling out NW construction/renewal projects to various industry, enhancing account sales & PM, expanding human resource • Enhance SI project management SI as Revenue driver Promotion of large transactions & clients Enhancement of Service Control NW service as Profit driver Further enhancement of service development & operation Thorough expansion of Human Capital Maintain & improve Sustainability /Governance Complement growth through M&As Enhancement of cash control • Operate data utilization business, generate meaningful data, data distribution mechanisms & operations, etc. Study & create business models in conjunction with the existing infrastructure & services • First in Japan to issue commercial digital currency as a practical case (scheduled in Jul. 2024) Digitalized token of environmental value transaction • Within FY26, anticipate loss to shrink & become profitable on a monthly basis • Executing STO (*2) of digital currency, invoice chain (*3) , web3/NFT (*4) & other practical projects *1:Equity-method affiliate DeCurret Holdings, Inc. changed its trade name to DCP Co., Ltd. on July 1, 2026 *2: STO (Security Token Offering): securities issued using electronic means such as blockchain, replacing traditional mechanism of stocks and bonds *3: Invoice chain: concept of industry standard systems for corporate intercompany reimbursement *4: NFT(Non-Fungible Token): Token issued on the blockchain that can prove uniqueness and cannot be replaced Initiatives for Data-driven society Achieve the spread of Digital Currency in Japan (Equity method investee: DeCurret(*1)) FY26 ¥46.0 bnFY23 ¥29.0 bn 1.6 times +2.7 pt. FY23 ¥19.8 bn 1.5 times Continuous expansion of NW infrastructure Pursuit of differentiation Consolidated base Net Profit is “Profit for the period attributable to owners of the parent” “times” are calculated by comparing FY26/FY26-end to FY23/FY23-end The figures below are all assumed targets Generation of data Distribution of data Utilization of data Solve social issues Establishment and Maturity of Data-driven society Use of generated data for various purposes Involvement of many stakeholders New insights Advancement of problem solving Opportunities for new data utilization Mid-term Plan (FY24~ FY26) Company Profile FY26 forecast ¥385.0 bn FY26 forecast ¥38.5 bn FY26 forecast ¥25.0 bn FY26 forecast 15.8% FY26 forecast around 5,930
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© Internet Initiative Japan Inc. 41 14.3 29.0 46.0 27.2 43.5 12.1 19.040.3 63.9 SI NW Services 126.8 151.3 83.3 121.8 213.0 276.1 380.0 SI NW Services Breakdown image of financial outlook Total Revenue Gross Profit Operating Profit FY20 (one before previous Mid-term plan’s final FY) FY23 (Previous Mid-term plans’ final FY) FY26 Outlook (New Mid-term’s last FY) Mid-term Plan’s Financial Outlook Cash out Investment: approx. ¥90.0 bn Ordinal NW infrastructure, etc. approx. ¥51.0 bn Stable with economies of scale Shiroi DC 3rd Site construction approx. ¥30.0 bn Mainly for own services Strategic investment for new growth areas Overview Shiroi DC 3rd site construction Start the construction within the new Mid-term plan period, but the schedule is undetermined • First site: CAPEX approx. ¥8.3 bn, No. of racks: approx. 700, started operating from May 2019 • Second site: CAPEX approx. ¥12.8 bn (plan), No. of racks: approx. 1,100, started operating from Jul. 2023 Increase in working capital & lease obligations Increase in work in process, prepayments, etc. due to an increase in large scale multi-year SI projects • The impact of increased working capital should gradually be reduced due to the constant revenue recognition of large-scale projects Capital allocation (FY24-FY26, 3 yrs in total) Cash in Cash generated from business approx. ¥134.0 bn(*) Debt Up to approx. ¥65.0 bn Strategic Investment Specific investment details have not fixed and will be discussed going forward M&As M&As to be conducted in sequence with borrowing capacity • Maintain debt/equity ratio & financial discipline, Up to ¥70.0 bn of additional debt could be implemented for M&As Approx. ¥24.0 bn Payout ratio 30% Dividend up to ¥70.0 bnM&As Approx. ¥1.5 bnScheduled repayment of long-term borrowing Approx. ¥13.0 bnAlong with an increase in large complex project Increase in working capital and lease obligation (*) post-tax, pre-depreciation FY26 Outlook (New Mid-term’s last FY) FY20 (one before previous Mid-term plan’s final FY) FY23 (Previous Mid-term plans’ final FY) FY26 Outlook (New Mid-term’s last FY) FY20 (one before previous Mid-term plan’s final FY) FY23 (Previous Mid-term plans’ final FY) CAGR 9.0% CAGR 16.6% 12.0%10.5%6.7%Operating Margin Unit: ¥ (JPY) billion Company Profile FY26 Forecast ¥385.0 bn FY26 Forecast ¥85.7 bn FY26 Forecast ¥38.5 bn Profit level trending below expectations Execution progressing as planned Pipeline exists, but M&A execution remains uncertain Slightly less than 1.5x Slightly less than 1.3x Slightly less than 1.5x Slightly less than 1.2x Slightly more than 1.5x Slightly more than 1.4x Slightly more than 1.6x Slightly less than 1.6x CAGR 11.2% CAGR slightly more than 13%
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© Internet Initiative Japan Inc. 42 Previous Mid-term (FY21-FY23) Established profit base by enterprise recurring revenue growth • Enhancement of NW infrastructure & service lineup • Profit expansion through economies of scale by recurring revenue accumulation • Increase in large scale projects through NW renewals, etc. • Cloud, security & IoT demands • Started expansion of overseas business, including M&As • Expansion of human resources • Initiatives for digital currency and other new business areas Accelerate business expansion by focusing on the existing core areas Pursue business scale for long term growth • Further enhancement of the existing core business areas • Creation of new growth areas • Enhancement of business foundation Mid-to-long Term Vision Total revenue around ¥500.0 bn Operating Margin 12% ~ 15% • Strongest focus on the core areas as NW operator & IT provider Positioned as one of the leading IT providers in Japan Reliable NW operation & service as differentiator Enlarge SI business driven by Service Integration Expand large customer base to realize business scale • Provide NW platforms which support the NW society Create optimal NW & security platforms for the spread of AI & the advent of data-driven society, etc. • Maintain and develop IIJ corporate culture as a challenger Unchanged since the inception, diverse employees take on new challenges autonomously Beyond 5,000 Deliver added value as an IT full outsourcer for infrastructure operation to support realization of NW society • Develop integrated PF to enable processing various types of data, together with security & high performance. IIJ to become a full outsourced IT providers equipped with DC (including edge computing) & cloud resources, including wired and wireless NWs • Achieve high profit margins by managing large customers’ NW & IT scopes as fully outsource • Leadership including M&As amidst a changing industry landscape • Become leading IT service provider by leveraging domestic knowledge & SWOT in ASEAN Mid-term (FY24-FY26) Execute actions early to realize revenue volume of ¥500 bn Payout ratio Operating Margin Targets (consolidated) Total Revenue ¥276.1 bn 10.5% ¥380.0 bn 12% 30% ¥500.0 bn 12% ~ 15% 30% ~ 40% FY23 result Initial Mid-Term Plan targets for FY26 Payout ratio to gradually increase along with an increase in business scale The figures mentioned below are all assumed status and image Mid-to-long Term Vision *5,000 is derived from the Japanese unit of ¥5,000 oku (oku = one hundred million) which is ¥500 bn Company Profile ¥385.0 bn 10.0% 30.5% FY26 forecast
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© Internet Initiative Japan Inc. 43 Enterprise internal NW & systems in Japan becoming to change Network System Telecom Carriers SIers 30 yrs ago Nowadays IIJ SIersTelecom Carriers • Dedicated/Closed NW • Narrow bandwidth High Speed/Capacity Network CPU/Storage Performance Improve • On-premise • Mainframe / WS Internet Usages Progressed Security for various incidents Gradual Cloud Shift IT adoption at last forced by Pandemic Preliminary IoT usages • Legacy systems to decrease • Not own network and network services • Consumer business focused historically • Lack of network engineers • Infrastructure provider Data Analysis and AI Emergence of Internet robust and complexed systems Struggling switch to open systems Labor shortage requires more IT Every CEO says DX (Digital Transformation) Internet traffic continues to increase Cyber security demands 5G SA adoption and advanced IoT projects Legacy NW and Systems to be reformed Cloud systems penetration Importance of stable operation of large-scale NW remains unchanged Network System convergence IIJ covered external NW with Internet Carriers & SIers covered internal NW & systems IIJ’s opportunities rise to cover entire NW & system utilizing various NW functions • Accumulate NW infrastructure & NW Services Asset • Have loyal clients with Internet access contracts • Business scopes to expand from external network to total network and Systems Birth of IIJ Stick to legacy NW systems Finally systems & NW began to change in Japan after the COVID-19 Company Profile
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© Internet Initiative Japan Inc. 44 Data Centers (DCs) Company Profile IIJ operates 13 DCs in Japan, 2 of which are owned by IIJ (as of Aug. 2026), the remaining facilities are leased from DC owners on floor-by-floor basis IIJ is expanding its owned DC capacity in response to growing demands for its services By gradually migrating from leased spaces to owned DCs, IIJ expects to achieve higher operational efficiency Shiroi DCC (opened in May 2019)Matsue DCP (opened in Apr. 2011) Used as facilities to accommodate in-house service infrastructure (cloud, network, security, etc.) Objective Shiroi City, Chiba PrefectureMatsue City, Shimane PrefectureLocation • Energy-efficient technologies including external air cooling • System module approach allows flexible and low-cost capacity expansion • Use of lithium-ion batteries to reduce peak power demand during summer • Renewable energy generation via on- site solar panels • Direct procurement of non-fossil certificates to supply effectively renewable energy • Supports diversified colocation needs • Container-type DC modules and system modules developed by IIJ • First deployment in Japan of IIJ’s external air-cooling container unit • Modular container-based design enables phased expansion in line with demand • Renewable energy generated via on- site large-scale solar panels • Dedicated containers for individual customers also available Features Approx. 40,000m2Approx. 16,000m2Land Approx. 1,800 racks •1 st site: approx. 700 racks (since May 2019) •2 nd site: approx. 1,100 racks (since Jul. 2023) Approx. 700 racks •S i t e 1 IT module: approx. 100 racks (since Apr. 2011) System module: approx. 300 racks (since Jun. 2025) •S i t e 2 Approx. 300 racks (since Nov. 2013) Capacity •2 nd site is to be fully occupied around FY26 by IIJ’s own service facilities and collocation •3 rd site construction Expected CAPEX: approx.¥27.0 bn Started constructing from Jun. 2025 Scheduled operation from FY26 Construction area: approx. 5,400m2 Approx. 1,000 racks • System module building started operations (Jun. 2025) Recent Developments 2 DCs owned by IIJ TCFD TargetsMeasures To increase the renewable energy usage rate of DCs (Scope 1 and 2) to 85% in FY30Usage of renewable energy FY25: 65%FY24: 55%FY23: 50%Results To keep the PUE of the DC at or below the industry's highest level (1.4) until FY30 through continuous technological innovation Improvement of energy conservation FY25FY24FY23Results 1.381.341.33Matsue DCP 1.311.321.36Shiroi DCC • PUE (Power Usage Effectiveness) is a metric that shows how efficiently electricity is used at a data center. The closer to 1.0 is considered to be good. A PUE of 1.4 or below is generally considered best-in-class in the industry. • TCFD: Task Force on Climate-related Financial Disclosures • Scope 1 and 2 (Greenhouse gas emissions by a company): Direct emissions from the use of fuels and industrial processes at the company and indirect emissions from the use of electricity and heat purchased by the company (as defined by the GHG Protocol) Initiatives for Environment Sapporo Higashi DC Shiroi DCC Matsue DCP Fukuoka Airport DC Osaka Yokohama Tokyo Shibuya DC Ikebukuro DC Nerima DCMitaka DC Shinsaibashi DC Dojima DC Kozu DC Yokohama DC 1 (Kohoku) Yokohama DC 2 (Tsuzuki)
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© Internet Initiative Japan Inc. 45 0 2 04 06 08 0 0 100 200 300 • Source: INTERNET MULTIFEED CO., IX = Internet Exchange Historical traffic data of major domestic IX Market Environment & Growth Forecast, etc. Nationwide survey on IT department 2025 SIM type MVNO market share in Japan Mar. 31, 2026Mar. 31, 2025Mar. 31, 2024 24.9%IIJ24.5%IIJ21.8%IIJ1st 8.2%Optage8.6%Optage9.8%NTT DOCOMO2nd 5.6%NTT DOCOMO7.5%NTT DOCOMO8.8%Optage3rd 4.8%NTT DOCOMO Business5.2%NTT DOCOMO Business5.6%Fujitsu4th 4.8%Japan Communications 4.7%Aeon Retail4.7%Aeon Retail5th • Source: The Ministry of Internal Affairs and Communications • NTT DOCOMO refers to NTT Resonant in periods prior to the merger • NTT DOCOMO Business refers to NTT Communications in periods prior to the company name change Maintain top share in the domestic SIM-type MVNO market • Source: Internet Initiative Japan “Nationwide survey on IT department 2025,” Questionnaire conducted by IIJ since 2021 targeting IT departments of companies, etc. Challenges for IT department Operation where IT department spends the most time Company Profile Consideration for the existing systems replacement Internal inquiry response Consideration for new system implementation Security measures System operation and monitoring Shortage of personnel in the IT Department Lack of progress in developing talent within the IT Department Inability to formulate a medium-to-long-term IT strategy Failure to make a direct contribution to revenue Low internal presence of the IT Department Mar. 2021 Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Jun. 2026 Peak traffic
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© Internet Initiative Japan Inc.