QAs from earnings release meetings and others

May 13, 2025：4Q24 Financial Results Briefing (Online)

(*)This is a summary of questions and answers took place at the Briefing.
FY24 stands for a fiscal year ended March 31, 2025, 1H24 stands for the first half of FY24, 2H24 stands for the latter half of FY24, and FY25 a fiscal year ending March 31, 2026.

Question: In light of the recent information security incident, you mentioned that enhanced security measures will be implemented. Could you explain the expected impact on your business performance going forward?

Answer: While we anticipate a certain increase in costs associated with strengthening our security measures in response to this incident, such investments are part of our ongoing efforts conducted annually. These anticipated costs have already been factored into the FY2025 earnings forecast announced today.

Question: Amid ongoing price increases by Mobile Network Operators (MNOs), what are your thoughts on the future development of consumer mobile services?

Answer: In March 2025, we revised the pricing of our consumer mobile service, "IIJmio Giga Plan." The key points of this revision were the enhancement of low-capacity plans, such as the 2GB and 5GB options, which are in high demand, and the provision of more attractive medium to large-capacity plans. We have felt a positive response during the spring sales season and plan to continue expanding our services based on this revised plan to meet the expectations of more customers.

Question: With the increasing number of MVNE service customers, could you share your outlook on this segment?

Answer: In April 2025, we launched "JAL Mobile" service, and going forward, we will continue to support the entry of diverse MVNO players. Through these efforts, we aim to further fulfill our role as an MVNE that promotes the expansion of the MVNO market.

Question:Your SI revenue forecast for FY25 appears conservative compared to the previous year. Could you explain the factors behind this outlook?

Answer:SI revenue in FY24 reached a high level, primarily due to the recognition of revenue from a large-scale project with Chiba City (approximately JPY5.0 billion in system construction revenue), as well as a notable concentration of revenue from SI backlog recognized in 4Q24. Taking these factors into account, along with ongoing macroeconomic uncertainties, we have formulated a cautious yet balanced SI revenue forecast for FY25.

Question: In your current Mid-term Plan, which concludes in FY26, you have set targets of JPY360.0 billion in revenue and JPY46.0 billion in operating profit. Could you share your sense of progress toward achieving these goals after completing the first year, FY24?

Answer: We recognize that operating profit for FY24 fell slightly short of the Mid-term Plan, primarily due to the significant price increase of VMware licenses and our corresponding response efforts. However, demand remains strong, and the acquisition of large-scale projects continues on a regular basis. Monthly recurring revenue associated with these projects is steadily increasing. In addition, we are accelerating the accumulation of a wide range of network services. Through these efforts, we aim to regain alignment with the plan over FY25 and FY26 and achieve our Mid-term targets.