Internet Initiative Japan Inc ADR 2024年度报告

Annual Securities Report (The 33rdBusiness Term)From April 1, 2024 to March 31, 2025 Internet Initiative Japan Inc. Note for readers of this English translation This is an English translation of the Annual Securities Report (Yuka-shoken-houkokusho) of Internet Initiative Japan Inc. (“IIJ”) filed with theDirector-General of the Kanto Local Finance Bureau in Japan through EDINET (Electronic Disclosure for Investors’ NETwork). This translationincludes an English translation of the audit report of KPMG AZSA LLC, IIJ’s accounting auditor, of the financial statements included in theJapanese original Annual Securities Report. KPMG AZSA LLC has not audited and makes no warranty as to the accuracy or otherwise of thetranslation of the financial statements of other financial information included in this English translation of the Annual Securities Report. This document has been translated from the Japanese original for reference purpose only. In the event of any discrepancy between this Englishtranslation and the Japanese original, the Japanese original shall prevail. TABLE OF CONTENTS Annual Securities Report (Translation)COVER....................................................................................................................................................................................1PART 1 Information on the Company......................................................................................................................................2Item 1. Overview of the Company.......................................................................................................................................21 Selected Financial Data.............................................................................................................................................22 Corporate History......................................................................................................................................................43 Description of Business ............................................................................................................................................64 Information on Affiliates...........................................................................................................................................155 Employees.................................................................................................................................................................17Item 2. Business Overview ..................................................................................................................................................191 Management Policy, Business Environment and Challenges....................................................................................192 Sustainability ............................................................................................................................................................233 Risk Factors ..............................................................................................................................................................284 Management’s Analysis of Financial Position, Results of Operations and Cash Flows ............................................415 Material Contracts, etc............................................................................................................................................506 Research and development........................................................................................................................................50Item 3. Property and Equipment ..........................................................................................................................................521 Overview of Capital Investments..............................................................................................................................522 Overview of Major Facilities ....................................................................................................................................523 Planned Capital Investments and Disposals of Property ...........................................................................................53Item 4. Information on IIJ....................................................................................................................................................541 Information on IIJ’s Shares .......................................................................................................................................542 Information on Acquisitions of Treasury Stock.........................................................................................................653 Dividend Policy ........................................................................................................................................................664 Corporate Governance ..............................