Slide 1: KDDI Ubiquitous Solution Company
Ubiquitous Solution Company KDDI 2010 3 2 2009 4 -9 2009 10 23
Slide 2: Designing The Future
Designing The Future
Slide 3: Results highlights FY2010.3 first half
1.1. 2010 3 1 ¾ -1.4% -4.5% 53.4% 2 ¾ -1.7% -5.5% ¾9 au 3,123 28.5% ¾ -14% 477 ¾9 83 ¾8 2 3 ¾ -2.0% 223 ¾9 570 FTTH 132 4 25 1 6,500 1,000 FTTH 2
Slide 4: Business strategy and FTTH
1.2. 2010 3 1 2 ¾ ¾ 3 ¾ 2011 3 - NW - FTTH - ¾ FTTH CTC 1 ¾ ICT 2 4 ¾ ¾ UQ WiMAX 1 2 Information and Communication Technology 3
Slide 5: Consolidated results
2. 40,000 5,000 -4.5% -1.4% 4,000 30,000 3,000 59.3% 53.4% 20,000 50.0% 49.5% 2,000 10,000 1,000 0 0 09.3 10.3 09.3 10.3 09.3 10.3 17,473 34,975 17,231 -1.4% 49.5% 34,800 2,629 4,432 2,510 -4.5% 53.4% 4,700 15.0% 12.7% 14.6% - - 13.5% 2,622 4,405 2,415 -7.9% 53.7% 4,500 1,511 2,227 1,453 -3.9% 57.0%
Slide 6: Mobile business results
3. 40,000 6,000 -5.5% 5,000 30,000 -1.7% 4,000 57.4% 53.3% 20,000 3,000 50.0% 50.5% 2,000 10,000 1,000 0 0 09.3 10.3 09.3 10.3 09.3 10.3 09.3 10.3 13,607 27,192 13,379 -1.7% 50.5% 26,500 30,452 30,843 31,233 31,600 2,879 5,015 2,720 -5.5% 53.3% 5,100 882 923 999 1,000 21.2% 18.4% 20.3% - - 19.2% WIN
Slide 7: Operating income trend
3,000 113 2,879 352 2,800 8 2,720 2,600 310 239 09.3 10.3 2,400 2,2000 6
Slide 8: Fixed-line business results
4. 10,000 -2.0% 0 8,000 -200 6,000 -400 49.9% 47.1% 4,000 -600 2,000 -800 N.A. 0 -1,000 09.3 10.3 09.3 10.3 09.3 10.3 09.3 10.3 4,231 8,487 4,149 -2.0% 47.1% 8,800 ADSL 1,303 1,224 1,135 1,080 -252 -566 -223 - - -400 FTTH 967 1,099 1,319 1,520 -6.0% -6.7% -5.4% - - -4.5% 3,251 3,130 3,000 2,850 1 -2
Slide 9: Mobile and FTTH subscriber breakdown
5. 800MHz 2GHz 800MHz EV-DO 5,000 2,000 800MHz 1X FTTH 4,000 1,192 1,500 3,000 1,000 981 2,000 2,001 493 500 381 1,000 1,003 1,066 425 357 270 0 0 29 1 09.3 10.3 ( ) 09.3 10.3 ( ) 33 10 09.3 10.3 ( ) 2,661 5,751 2,525 -5.1% 46.8% 5,400 2,042 4,321 1,863 -8.7% 46.9% 3,970 606 1,406 651 +7.5% 46.5% 1,
Slide 10: Designing The Future
Designing The Future Moa
Slide 11: Mobile subscriber trends
1.1. 390 18.2% IP 319 38.8% IP 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% -20% KDDI -20% KDDI NTT NTT -40% -40% -60% -60% 3/'08 6/'08 9/'08 12/'08 3/'09 6/'09 9/'09 3/'08 6/'08 9/'08 12/'08 3/'09 6/'09 9/'09 09.3 10.3 09.3 10.3 504 10.6% 390 18.2% 678 27.1% 319 38.8% 10
Slide 12: Churn rate
1.2. 2Q 0.72% 0.03 1.5% 1.0% 0.87% 0.75% 0.77% 0.72% 0.65% 0.64% 0.5% 0.03 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 09.3 10.3 <0.76%> <0.55%> 11
Slide 13: Handset sales and acquisition costs
1.3. 2Q 44,000 7 8 2 9 * * 50,000 50,000 40,000 40,000 30,000 30,000 20,000 20,000 10,000 10,000 0 0 1Q 2Q 3Q 4Q 1Q 2Q 7 8 9 09.3 10.3 2Q 09.3 10.3 1Q 2Q 3Q 4Q 1Q 2Q 4,250 3,610 1,290 1,040 790 1,140 900 1,120 39,000 36,000 45,000 38,000 32,000 41,000 41,000 44,000 1,081 1,000 286 270 245 280 221
Slide 14: ARPU
1.4. ARPU 2Q ARPU 5,600 Total ARPU 160 8,000 136 139 140 135 138 142 MOU 140 120 5,900 5,940 5,870 5,600 5,600 6,000 5,500 5,420 100 80 3,710 3,730 3,650 3,280 3,350 3,330 3,170 4,000 60 40 2,000 20 2,190 2,210 2,220 2,220 2,250 2,270 2,250 0 0 1Q 2Q 3Q 4Q 1Q 2Q 10.3 09.3 10.3 09.3 10.3 340 5.7% 5
Slide 15: WIN subscribers
1.5. WIN 9 WIN au 78% 71% WIN 100% 35,000 30,000 80% 74% 74% 73% 72% 72% 71% 71% 26,700 25,000 24,391 60% 22,722 23,440 20,000 20,473 21,096 21,799 19,695 15,000 40% 10,000 20% 5,000 0% 0 3/'08 6/'08 9/'08 12/'08 3/'09 6/'09 9/'09 3/'10 WIN au 65% 68% 69% 71% 74% 76% 78% 84% 14
Slide 16: au handset mix
1.6. au 2Q 90% 2Q 39% 2Q 100% 14% 10% 25% 80% 41% 28% 60% 74% 24 96% 86% 90% 40% 75% 59% 61% 4% 18 20% 26% 7% 12 0% 4% 1Q 2Q 3Q 4Q 1Q 2Q 09.3 10.3 15
Slide 17: Subscriber targets 1X and WIN
2. 10.3 45,000 41,000 40,000 - / 43,000 41,000 40,000 40,000 - 1X WIN 0 35,000 - au 09.3 10.3 16
Slide 18: au handset lineup
3.1. ~ ~ 12 8 / 09 10 20 12 CA003 SH003 SH006 8 & CA004 SH004 S001 SA001 T003 SH005 S002 PLY WiMAX E07K DATA01 DATA02 DATA03 DATA04 PRISMOID K004 20 S001 EXILIM EXILIM BRAVIA Cyber-shot AQUOS SHOT 17
Slide 19: MNP and au services
3.2. ~ ~ 8 2 MNP 11 E MNP 20.0 8 15.0 E 1 10.0 11 9 5.0 E EZ WIN 0.0 780 2 315 30 21 -5.0 1,095 4 5 6 7 8 9 * 1 Web 2 18
Slide 20: LISMO and au Smart Sports
3.3. ~ ~ LISMO au Smart Sports LISMO 2,000 au Smart Sports 150 LISMO! LISMO Video LISMO Book 10 WEB 9 au Shopping Mall 200 au one Brand Garden 1 200 19
Slide 21: FMC and WiMAX
4. FMC KDDI + WiMAX WiMAX - FMC - MM 2009 9+1234 91234 WiMAX au MM IT MM IT 20
Slide 22: FTTH subscribers
1. 9 570 FTTH one 100 30 1Q 10 FTTH 8,000 FTTH 120 (CTC) 112 108 one (5,950) 100 30 (5,587) (5,700) 28 6,000 (5,178) (5,265)(5,342) (5,082) 1,520 80 (4,827) 1,211 1,319 74 967 1,025 1,099 916 710 59 58 60 26 4,000 51 2,850 26 23 3,065 3,000 40 22 82 80 3,201 3,130 3,279 3,269 3,251 2,000 48 20 34
Slide 23: au and KDDI FMC initiatives
2. au 001 au KDDI FMC au 11 KDDI ¾ - au 11 10 au 001 6 - au 9 : au 001 au 12 : GLOBAL PASSPORT NTT ¾ 001 au -8 TVCM * HP au FTTH au au 22
Slide 24: ICT business
3. ICT 49 63 SI KDDI Global Interlink Powered Ethernet TELEHOUSE KDDI Ethernet 2009 5 No.1 2009 9 TELEHOUSE LONDON 2008 Docklands West Others (2010 3 13.6% Company A KDDI 2009 9 10 27.3% 59.1% 2009 23
Slide 25: Network investment history
4.1. NW ~ ~ 2000 NW NW NW 01.3 02.3 03.3 04.3 05.3 06.3 07.3 08.3 09.3 10.3 DDI KDD IDO 3 NW NW NW NW NW NW CATV WiMAX 3G Mobile NW NW 24
Slide 26: Network plan toward 2016
4.2. NW ~ ~ NW 2016 3 NW 2016 3 250 250 140 140 26,000 26,000 km km 22,000 22,000 km km NW 25
Slide 27: Network rollout steps
4.3. NW ~ ~ 10.3 11.3 10.3 11.3 16.3 Step 1 Step 2 10.3 400 * 300 11.3 - - 26
Slide 28: Network investment outlook
5. NW 2012 3 200 100 00 09.3 -100 11.3 -200 NW -300 150 -400 400 -500 250 -600 566 * 09.3 10.3 ( ) 11.3 ( ) 27
Slide 29: Capex and shareholder return trends
20% 25 1 1,000 1 12,000 5 25% 30% 1 21.0% 22.0% 21.5% 12,000 22.4% 11,000 10,500 20.8% 9,500 21.2% 8,000 5,500 6,900 5,500 5,500 5,000 16.8% 4,500 1,000 3,600 3,500 17.5% 1,790 2,095 1,000 5,000 5,500 5,500 2,400 4,500 895 1,200 3,500 2,400 895 895 1,200 02.3 03.3 04.3 05.3 06.3 07.3 08.3 09.3
Slide 30: Designing The Future
Designing The Future Designing The Future 29