Comprehensive Network Solutions Built on Technical Expertise and Customer Base

「In addition to continued strong demand for network and systems construction across a range of industries, several large projects centered on hardware installations contributed to systems construction revenue in the first half.」

「Most recently, the Company also won an overseas GPU construction project worth approximately ¥12 billion.」

「During the six-month period ended the current interim period, demand for network construction and related services remained extremely strong, and large-scale service integration(*4) projects progressed across a range of industries.」

「Most recently, the Company jointly won its first project for a regional financial institution for the “Distributed Infrastructure Joint Platform(*4)” with IBM Japan, Ltd. and MUFG Bank, Ltd. The project has a total value of approximately ¥6 billion over 8 years.」

「The Company won numerous large-scale, multiyear projects with total contract values ranging from several billion yen to more than ¥10 billion.」

「During the nine-month period ended the third quarter, demand for the construction of internal and external networks for corporations, government agencies and other entities remained strong, and the Group focused on these areas through “service integration,” incorporating monthly network services into systems integration. Following the first-half order for a network construction project for a public institution with a total contract value of approximately ¥12.3 billion, during the third quarter the Group won projects including a service platform construction and operation project for a service provider with a total contract value of approximately ¥4 billion and a network renewal project for a major financial institution with a total contract value of approximately ¥4 billion.」

「In general, corporate internal networks, which had centered on closed networks, are evolving into multifunctional networks incorporating Internet technologies. For such network renewal projects, the Group primarily provides services through a model known as “service integration,” incorporating monthly network services into systems integration.」

「Order activity is brisk, with several medium- and large-scale network upgrade projects for operating companies, including major financial institutions, currently under way.」

「The company is promoting the ongoing development and functional expansion of highly reliable, high-value-added network-related services and their combined provision to customers through solutions and systems integration.」

「In the third quarter, monthly revenue from large-scale network upgrade projects and other projects combining the network services portfolio with systems integration, won at the end of the previous fiscal year and the beginning of the current fiscal year, also began to be recognized as expected,」

「In systems construction, combined projects with network services increased. In systems operation and maintenance, in addition to growth in post-construction operation projects, revenue from cloud computing-related services continued to increase, driven by rising demand for multi-cloud services (*10), among other factors.」

「In addition to continued growth in IP services (*6), security-related services, and WAN services (*7), there was an increase in projects such as network upgrades combining these services.」

「In the network services field, as corporate IT adoption advanced in response to the COVID-19 pandemic, revenue growth accelerated for corporate network services, including IP services, security-related services, and corporate mobile services, driving an increase in operating income.」

「Internally developed services, including cloud exchange, SD-WAN, and remote access, responded to demand for projects involving the migration of corporate systems and replacement of networks accompanying the spread of cloud computing, driving revenue growth.」

「In the network services field, the lineup of internally developed services, including the core internet connectivity service, private connectivity using SD-WAN functionality, cloud exchange, VPN-related services including mobile connectivity, and various security-related services, is effectively addressing demand from companies and government agencies for the review and enhancement of internal networks, multi-cloud connectivity, and the use of applications such as videoconferencing systems and Microsoft 365.」

「The network services and SI businesses provide comprehensive solutions tailored to customer needs, primarily by combining network services, consisting of internet connectivity, WAN, and outsourcing services, among others, with systems integration services.」

「The network services and SI businesses provide comprehensive solutions tailored to customer needs, primarily by combining network services, consisting of internet connectivity, WAN, and outsourcing services, among others, with systems integration services.」

「In corporate network services, recurring revenue grew steadily from the beginning of the fiscal year through the combined provision of internet connectivity services, outsourced services such as security, and cloud computing-related services.」

「In corporate network services, the IIJ Omnibus service was enhanced with SD-LAN functionality and other features, enabling more flexible construction of corporate networks, and the company began providing VPN services with the IIJ Flex Mobility Service, which provides high-speed connections to internal systems for remote work and other purposes.」

「The IIJ Omnibus service (*4) was enhanced with SD-LAN (*5) functionality, enabling more flexible construction and operation of corporate networks.」

「The IIJ Omnibus service continued to win network upgrade projects and other business, while further functionality enhancements were advanced,」

「The company also continued to expand the functionality of the IIJ Omnibus service and won numerous projects involving multi-site connectivity and upgrades to existing networks.」

「In corporate network services, demand for enterprise WAN upgrades and inter-cloud connectivity through the IIJ Omnibus service remained strong,」

「In corporate network services, use of the IIJ Omnibus service for enterprise WAN upgrades and inter-cloud connectivity increased,」

「Information security cloud projects for local governments, combining virtual desktops, internet environments, security, systems operations and maintenance, among other services, also drove revenue growth from the previous quarter.」

「Primarily in Japan, the group combines the various services described above relating to its network services and SI businesses. For example, it provides WAN services such as internet connectivity and VPN services connecting multiple customer sites; houses customer servers and other equipment at data centers; operates and manages customers’ routers and other network equipment; provides outsourcing services for the operation of customers’ email systems and other systems, as well as security-related outsourcing services; and undertakes systems integration to design, build, and operate those network systems. In this way, the group is developing highly reliable, high-value-added network-related services and promoting their combined provision to customers through solutions and systems integration.」

「In corporate network services, business discussions involving connections to several hundred sites and other projects increased for the IIJ Omnibus service, a focus area, and revenue is gradually building.」

「In corporate network services, the number of multi-service WAN projects using the IIJ Omnibus service increased, and the company expects revenue to expand going forward.」

「The group works with its consolidated subsidiaries and other entities to provide customers with comprehensive network solutions as a group.」