Kddi Corporation · TSE:9433

Kddi — H1 FY2006 Earnings Presentation

33 slides from Kddi's earnings presentation, Oct 21, 2005

  1. Slide 1: KDDI CORPORATION Ubiquitous Solution Company

    IR Ubiquitous Solution Company KDDI CORPORATION 2006 3 2005 10 21

  2. Slide 2: 1

    1

  3. Slide 3: Results highlights and forecast

    1.1. 2006 3 1 ¾au PHS 0.2% +2.6% 2 au ¾ +10.4% +29.0% ¾ 2,000 9 28 ¾9 23.2% 54.5% ¾WIN 9 555 82% 3 ¾ 3 10 1 KDDI 4 ¾ 295 ¾ 9 68 2

  4. Slide 4: Business environment and initiatives

    1.2. 2006 3 1 ¾ ¾ KDDI FMC 2 au ¾EZ au ¾MNP ¾ ¾ 3 ¾ au 4 ¾ ¾ FTTH 3

  5. Slide 5: Results by segment: summary and FCF, EBITDA

    2. 40,000 4,000 30,000 3,000 50.4% 49.4% 54.8% 57.7% 20,000 2,000 (54.0%) (48.9%) 10,000 1,000 0 0 05.3 06.3 05.3 06.3 05.3 05.3 06.3 05.3 06.3 14,713 29,200 14,688 -0.2% 49.4% 29,760 13,845 6.1% 1,624 2,962 1,667 2.6% 57.7% 2,890 1,570 6.2% 11.0% 10.1% 11.3% - - 9.7% 11.3% - 1,563 2,863 1,649 5.5%

  6. Slide 6: au business results

    3. au 30,000 3,000 20,000 2,000 59.0% 52.6% 48.4% 49.8% 10,000 1,000 0 0 05.3 06.3 05.3 06.3 05.3 06.3 05.3 06.3 10,123 20,927 11,178 49.8% 22,450 18,189 19,542 20,704 21,540 1,436 2,731 1,852 59.0% 3,140 421 487 548 610 14.2% 13.1% 16.6% - 14.0% WIN(EV-DO) 1,191 3,252 5,550 7,660 1,413 2,699 1,846

  7. Slide 7: PDC business results

    4. PDC 4,000 400 3,000 300 2,000 200 51.5% 49.6% 61.1% 75.4% 1,000 100 0 0 05.3 06.3 05.3 06.3 05.3 06.3 05.3 06.3 1,192 2,314 1,013 49.6% 2,040 PDC 3,588 3,590 3,528 3,490 113 184 106 75.4% 140 ARPU 4,630 4,470 4,080 4,040 9.5% 8.0% 10.4% - 6.9% 94 152 97 74.3% 130 53 105 67 - 80 FCF 279 581 257 -

  8. Slide 8: Fixed communications business results

    5. 8,000 200 6,000 0 4,000 -200 49.8% 46.8% 2,000 -400 0 -600 05.3 06.3 05.3 06.3 N.A. 05.3 06.3 05.3 06.3 2,968 5,960 2,862 46.8% 6,120 DION 1 2,873 2,885 2,850 2,880 24 -3 -295 - -420 ADSL 1,428 1,494 1,495 1,500 0.8% -0.1% -10.3% - -6.9% FTTH ( ) 60 91 138 180 30 -4 -290 - -430 44 79 134 - -80 -4

  9. Slide 9: Capital expenditure and 2GHz, 800MHz

    6. 2GHz au 800MHz EV-DO CDN 3,000 800MHz 1X 2,000 2,500 480 1,500 2,000 180 1,500 1,000 670 1,000 339 40 370 216 2 500 209 500 1,010 290 24 576 96 IP 90 120 185 45 0 0 05.3 06.3 05.3 06.3 05.3 06.3 ( ) 1,155 3,424 1,761 40.0% 4,400 au 870 2,335 1,172 41.8% 2,800 31 77 11 28.5% 40 172 866 559 37.3% 1

  10. Slide 10: au and PDC

    au PDC 9

  11. Slide 11: Subscribers and churn

    1.1. * * 45,000 40,000 35,000 30,000 0 1Q 2Q 3Q 4Q 1Q 2Q 05.3 06.3 05.3 06.3 ( ) 1Q 2Q 3Q 4Q 1Q 2Q 4,440 4,570 940 1,140 1,120 1,240 1,020 1,190 38,000 38,000 37,000 39,000 39,000 38,000 38,000 37,000 1,159 1,210 255 293 287 323 270 322 10

  12. Slide 12: Subscriber share and churn rate

    1.2. 100% 500 2.0% 80% 400 1.49% 1.51% 1.40% 1.37% 1.5% 1.26% 1.21% 60% 300 1.0% 40% 200 0.5% 20% 100 0.28 0.0% 0% 0 1Q 2Q 3Q 4Q 1Q 2Q 3/'04 9/'04 3/'05 9/'05 05.3 06.3 05.3 / 06.3 / <50.4%> <54.5%> <1.44%> <22.5%> <23.2%> 11

  13. Slide 13: ARPU

    1.3. ARPU Total ARPU WIN ARPU 190 14,000 169 171 167 11,550 11,190 159 163 +20 12,000 170 158 10,570 10,160 MoU 9,970 9,990 10,000 150 +140 7,260 7,300 7,190 7,190 7,150 7,270 8,000 6,960 7,050 6,810 130 6,970 6,640 6,480 6,530 6,000 110 5,540 5,570 5,470 5,180 5,240 5,300 5,020 4,000 90 4,400 3,920

  14. Slide 14: WIN (1)

    2. WIN (1) 05.5 3/’06 WIN 766 100% 87% 8,000 83% 81% * 83% 82% 79% 77% 80% 6,000 60% 5,550 4,000 40% 4,319 3,252 2,000 20% 2,032 343 573 1,191 0% 0 3/'04 6/'04 9/'04 12/'04 3/'05 6/'05 9/'05 05.6 05.3 WIN 05.5 6% 13

  15. Slide 15: WIN (2)

    2. WIN (2) WIN ARPU WIN 12,000 9,990 10,000 8,000 7,190 6,530 6,000 5,300 50% 50% 4,000 2,000 3,460 1,890 0 WIN ARPU 06.3 2Q ARPU 06.3 2Q 14

  16. Slide 16: WIN (3)

    2. WIN (3) WIN ARPU 1X WIN ARPU 1,500 1,000 500 0 12/'03 4/'04 8/'04 12/'04 4/'05 8/'05 500 1,000 1,500 2,000 2,500 WIN ARPU 15

  17. Slide 17: Evolution of 3G (1)

    3. (1) & PCSV CDMA2000 1xEV-DO 1xEV-DO cdmaOne Rev.0 1x Rev.A 1998 2002 2003 2006 Evolution PCSV PC site viewer 16

  18. Slide 18: 1x EV-DO (2)

    3. (2) 2004 11 10 DL2,000 1x EV-DO 394 17

  19. Slide 19: KDDI services (1)

    4. (1) 77 06.3/ 100 80 60 40 470 20 0 05.3/ 06.3/ 1 KDDI 18

  20. Slide 20: KDDI services (2)

    4. (2) DL 2,500 600 2,000 500 400 1,500 300 1,000 200 500 100 0 0 12/'04 3/'05 6/'05 9/'05 3/'04 9/'04 3/'05 9/'05 2000 550 * 05 9 28 05 9 6 *KDDI ComicSurfing 394 05 9 19

  21. Slide 21: izihe Ale

    izihe Ale BeZi-Rstc

  22. Slide 22: KCP (KDDI Common Platform)

    5. z zKCP KCP (KDDI Common Platform ¾ CDMA 5 -WIN05 2 -06 ¾ 22 EZweb EZweb IMAP IMAP EZ EZ EZ EZ FM FM KDDI Task Mgr KCP(BREW+KTM) OEM Baseband chip 2005 11 21

  23. Slide 23: Handset lineup

    6. AiR ED mtr +h —-+ 60 au CDMA 1X [¥R-k7SY) AC OBFERH 1,500Rn(H#a1,575m) 3,4005 (#i 3,570) ORAM GL eMRH 107/10 (RIA10.5F) 10 22

  24. Slide 24: MNP and au

    7. au MNP au au au PDC ‹ ‹ 05 10 11 ‹ ¾ au ¾ 1 2 23

  25. Slide 25: Subscriber net additions

    1. 9 68 2,500 2,200 2,000 1,500 1,000 677 500 408 41 0 3/'05 6/'05 9/'05 3/'06( ) GC 300 720 870 1,400 05.9 1,362 ¾ 24

  26. Slide 26: Fixed-line results

    2. 06 1 1 ¾ 04.3 05.3 06.3 - Ether 43.8% up( 1 ) - 3,600 up 3 169,327 117,561 130,000 - 430 up * -7,876 2,608 15,100 * -12,056 -708 13,000 ¾ -14,376 -80,347 N.A. 25

  27. Slide 27: FMC

    1. KDDI au 27% 30% FTTH FMC FY04 FY05 FMC 05.10 KDDI 04.10 FTTH 06.1 26

  28. Slide 28: IP-based MMD architecture

    2.1. IP MMD: MultiMedia Domain Mobile IMS: IP Multimedia Subsystem NGN: Next Generation Network CDMA2000 MMD (3GPP2) GSM IMS (3GPP) IP Fixed NGN (ITU-T) IP FMC 27

  29. Slide 29: GC CDN content delivery

    2.2. IP GC CDN Contents Delivery Network 2008 3 IP au IP CDN GC au EV-DO NTT NTT Network Gateway FTTH 28

  30. Slide 30: IP network and MMD

    2.3. IP FMC PSTN VoIP MMD MG SG/MG/MGC SBC SW NGN / MMD HSS/AAA MSC SIP IP PDSN CDN NGW CDMA2000 EV-DO RAN 1x RAN 802.11 DION IP au au VoIP NGN (Next Generation Network: ) LAN MMD (MultiMedia Domain: ) MG/SG (Media Gateway/Signaling Gateway) 1xEV-DO 1xEV-DO CDMA2000 CDMA2000 HSS Home Subscriber Serv

  31. Slide 31: MNP and 3G, FTTH

    3. MNP „ „ 2004 5 MNP 2005 10 25 2006 „ „ 2006 3G „ „ FTTH 2005 8 1.7GHz 2GHz 2005 6 FTTH 340 9 „ 1.7GHz 2 2GHz (TDD) 1 NTT FTTH „ FTTH 30

  32. Slide 32: Dividends and capital returns

    4. 1 8,000 21.2% 17.7% 6,900 7,000 6,000 3,500 3,500 16.8% 4,000 3,600 17.5% 1,000 1,790 2,095 2,400 2,000 3,500 895 1,200 2,400 895 895 1,200 0 02.3 03.3 04.3 05.3 06.3 02.3 31

  33. Slide 33: Ubiquitous Solution Company

    Ubiquitous Solution Company 32

KDDI — H1 FY2006 Earnings Presentation on 6ix