Kddi Corporation · TSE:9433
Kddi — H1 FY2005 Earnings Presentation
36 slides from Kddi's earnings presentation, Oct 28, 2004
Slide 1: Ubiquitous Solution Company KDDI Corporation
IR Ubiquitous Solution Company KDDI CORPORATION 2005 3 2004 10 28
Slide 2: Slide 2
Slide 3: Results highlights and FY2005 outlook
1.1. 2005 3 1 au BBC 6.1% 2.7% 2 au 16.3% 11.4% 1X WIN 53.1% WIN 9 119 3G 1X WIN 9 87.2% 3 BBC & ADSL BB 4 2004 12 100% 5 2004 10 1 6 9 1 106 BBC 1
Slide 4: au subscribers and ARPU
1.2. 2005 3 1 au Dau 420 140 220 250 + 30 ARPU 7,140 7,190 + 50 DBBC& -120 150 2 202 176 150 3 1 2 2
Slide 5: au design project
1.3. 2005 3 1 2 au EZ TM au design project talby 3G 3 BBC & 4 TU-KA 3
Slide 6: Consolidated results: FCF and EBITDA
2. 40,000 4,000 30,000 3,000 20,000 2,000 10,000 1,000 0 0 04.3 05.3 04.3 05.3 04.3 05.3 05.3 13,866 28,461 14,713 6.1% 28,990 28,990 1,582 2,921 1,624 2.7% 3,090 3,090 11.4% 10.3% 11.0% - 10.7% 10.7% 1,482 2,745 1,563 5.4% 3,000 3,000 859 1,170 778 -9.3% 1,980 2,130 FCF 2,468 4,042 1,131 -54.2% 4,0
Slide 7: au segment results
3. au 30,000 3,000 25,000 2,500 20,000 2,000 15,000 1,500 10,000 1,000 5,000 500 0 0 04.3 05.3 04.3 05.3 04.3 05.3 05.3 04.3 05.3 05.3 8,647 18,251 10,053 20,490 20,070 15,263 16,959 18,189 19,460 19,150 1,289 2,395 1,436 2,930 2,790 292 361 421 470 450 14.9% 13.1% 14.3% 14.3% 13.9% W IN(EV-DO) 0 34
Slide 8: BBC segment results
4. BBC 8,000 200 6,000 100 4,000 0 2,000 -100 0 -200 04.3 05.3 04.3 05.3 04.3 05.3 05.3 04.3 05.3 05.3 2,754 5,425 2,499 4,970 5,150 DION 2,489 2,687 2,873 2,880 2,900 108 164 16 -120 30 ADSL 777 1,109 1,428 1,530 1,650 3.9% 3.0% 0.6% -2.4% 0.6% FTTH ( ) - 23 60 100 200 103 158 22 -120 30 0 9 * 44 -
Slide 9: BBC segment results (2)
4. BBC 05.3 2,499 2,471 4,970 28 110 65 Ether/IP-VPN 15 2,483 2,607 5,090 124 60 70 16 136 120 152 7
Slide 10: Fixed communications results
5. 4,000 400 3,000 300 2,000 200 1,000 100 0 0 04.3 05.3 04.3 05.3 04.3 05.3 05.3 04.3 05.3 05.3 1,418 2,765 1,197 2,320 2,540 3,699 3,632 3,588 3,520 3,550 79 154 108 170 160 ARPU 5,100 5,020 4,630 4,470 4,710 5.6% 5.6% 9.0% 7.3% 6.3% 57 114 94 150 140 49 91 63 100 90 FCF 272 550 279 540 520 EBITDA
Slide 11: Segment results: FCF, EBITDA, AirH"
6. 2,500 250 2,000 200 1,500 150 1,000 100 500 50 0 0 04.3 05.3 04.3 05.3 04.3 05.3 05.3 04.3 05.3 05.3 957 1,840 869 869 900 2,938 2,897 2,926 - - 110 211 55 55 80 AirH" 890 990 1,101 - - 11.5% 11.5% 6.3% 6.3% 8.9% 101 190 49 49 70 ARPU 4,840 4,750 4,430 - - 103 191 40 40 70 FCF 252 472 209 209 220
Slide 12: Other results and balance sheet
7. 04.3 05.3 05.3 738 2,533 1,155 3,100 3,120 au 412 1,612 870 2,000 2,000 BBC& 171 551 171 820 820 55 147 31 90 90 40 129 50 50 70 1,833 3,657 1,833 3,520 3,590 au 910 1,849 993 2,020 2,020 BBC& 436 841 387 800 860 268 538 236 470 480 194 387 187 187 190 12,985 11,798 10,106 8,710 8,710 au BBC& 7,9
Slide 13: au / BBC / TU-KA
au BBC TU-KA 11
Slide 14: au and BB strategy
1. 04.3 05.3 06.3 1X 3 WIN WIN au FMC OFFICE WISE BBC BB & TU-KA 100% PHS 12
Slide 15: Subscriber and revenue chart
2. 20% 1 7,000 6,000 5,800 5,000 2,400 4,000 3,600 3,000 2,095 1,000 1,790 2,400 2,000 895 1,200 1,000 2,400 895 895 1,200 0 02.3 03.3 04.3 05.3 13
Slide 16: MNP, IP and spectrum
3. 2005 MNP 2005 2004 5 MNP 2006 IP 3G 2004 9 1.7GHz 2GHz 2004 8 FTTH 160 800MHz NTT FTTH FTTH 14
Slide 17: au subscriber trends
1.1. * * 45,000 40,000 35,000 30,000 0 03.3 04.3 05.3 03.3 04.3 05.3 05.3 4,050 3,840 4,280 4,000 1,800 2,040 2,080 40,000 36,000 38,000 36,000 37,000 36,000 38,000 1,010 1,057 1,130 1,110 490 567 548 15
Slide 18: 1X and WIN handset mix
1.2. 9 1,819 100% 500 1x WIN 80% 400 60% 300 40% 200 20% 100 0% 0 4/‘02 9/‘02 3/‘03 9/‘03 3/‘04 9/’04 03.3 04.3 05.3 < / > <41.3% / 19.4%> <53.1% / 21.7%> <49.6% / 20.8%> < - / - > 16
Slide 19: Churn rate
1.3. 3.0% 2.5% 2.0% 1.8% 1.7% 1.8% 2.0% 1.56%1.54% 1.48% 1.40% 1.40% 1.49% 1.5% 1.0% 0.5% 0.05 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 03.3 04.3 05.3 <1.8%> <1.49%> 17
Slide 20: ARPU
1.4. ARPU ARPU 14,000 Total ARPU WIN ARPU 11,610 11,550 11,190 12,000 10,000 7,560 7,660 7,640 7,420 7,480 7,540 7,490 7,280 7,260 7,300 90 7,190 (+50) 7,060 8,000 90 7,150 7,270 6,000 6,420 6,420 6,320 5,990 5,930 5,900 5,830 5,560 5,540 5,570 5,440 4,000 (+100) 2,000 4,550 4,400 3,920 1,140 1,240
Slide 21: WIN handset lineup
2.1. WIN D05 3 98% WIN = 1 4 & 04 8 1 ~ D04 ~ EZ D04 11 ~ EZ TM D05 ~ FeliCa 06 FeliCa WIN 19
Slide 22: WIN subscribers (1)
2.2. WIN (1) WIN 81% WIN 3,500 3,000 2,500 4 2,000 3 1,500 1 1,000 2 500 0 12/‘03 3/‘04 6/’04 9/’04 3/’05 343 573 1,191 3,000 87% 83% 81% % 20
Slide 23: WIN subscribers (2)
2.2. WIN (2) WIN WIN+ ARPU 2,300 2,000 EZweb 300 33% WIN WIN ARPU 2,300 2,300 33% 53% 47% 67% 04.8 WIN 2Q/05.3 7 ARPU 21
Slide 24: EZ services
2.3. EZ TM EZ TM WIN WIN 11 CD 6 1 22
Slide 25: EZ services (2)
2.4. EZ 2003 10 9 20 QR EZ 9 xx 7 / I/F I/F EZ 7 23
Slide 26: 1X WIN data services (1)
3. (1) 50 1X WIN 2 04 9 60 2,000 50 1,450 1,500 40 1,250 1,000 800 720 20 500 400 360 0 0 04.3/ 05.3/ 1X WIN EZweb 24
Slide 27: Data services (2)
3. (2) 16 (x10 ) 50,000 8 7 9 10 40,000 30,000 20,000 10,000 0 1.7 1.3 12/'03 3/'04 6/'04 9/'04 25
Slide 28: BREW
4. z z z BREW z z z PF PF BREW BREW OEM OEM 26
Slide 29: BB broadband strategy
1. BBC & BB 06.3 07.3 05.3 ADSL BB BB ADSL 900 300 1000 2,700 4,900 VoIP BB ADSL VoIP 27
Slide 30: IP telephony (1)
2.1. IP BBC & 06.3 IP 08.3 IP IP NTT 2003.10 2004.10 2005.02KDDI 2006.3 IP 2008.3 IP 2004.03 2005.03 2006.03 2007.03 2008.03 2009.03 28
Slide 31: IP telephony (2)
2.2. IP BBC & IP IP 50% 20% NTT NTT NTT NTT NGW Network Gateway 29
Slide 32: Access charges
2.3. BBC & AC NTT AC NTT AC KDDI KDDI AC KDDI 1,419 NTT AC KDDI NTT 30
Slide 33: BBC schedule
2.4. BBC & 2004.3 2005.3 2006.3 2007.3 ~ 10 10 2 1 2006.3 75% 31
Slide 34: FTTH
3. BBC & (FTTH) - 10 - ( 44 53 - 9 100MbpsVDSL - LAN HGW HGW Home GateWay GE PON 32
Slide 35: TU-KA 2G
TU-KA TU-KA 2G S 11 30% 30 25% 40 20% 50 60 15% 10% • 20 5% 0% 10 3/'02 9/'02 3/'03 9/'03 3/'04 9/'04 • 33
Slide 36: Ubiquitous Solution Company
Ubiquitous Solution Company