Slide 1: KDDI CORPORATION Ubiquitous Solution Company
Ubiquitous Solution Company KDDI CORPORATION 2008 3 1 2007 7 23
Slide 2: Designing The Future
Designing The Future
Slide 3: Q1 highlights
1. 1 1 ¾ au +5.7% +15.6% 2 au ¾ +5.5% +16.7% ¾6 29.3% au 28.7% 0.6% 1Q 38.9% au 59.3% -20.3% 1 ¾1Q MNP 2 19.2 au 20.0 -0.9 ¾au WIN 6 1,575 77% ¾ au 1Q 17 230 2005 10 2008 3 3 ¾ 131 ¾6 KDDI 300 301 one FTTH 64 4 JCN 6 27 1 2 MNP Mobile Number Portability 2
Slide 4: Consolidated results Q1
2. 50,000 5,000 +5.7% +15.6% 40,000 4,000 30,000 3,000 20,000 2,000 35.4% 36.1% 10,000 23.9% 24.1% 1,000 1Q 1Q 1Q 1Q 0 0 07.3 08.3 07.3 08.3 07.3 08.3 1Q 1Q 7,984 33,353 8,441 5.7% 24.1% 35,000 1,219 3,447 1,409 15.6% 36.1% 3,900 15.3% 10.3% 16.7% - - 11.1% 1,224 3,509 1,427 16.6% 36.6% 3,900 756 1,
Slide 5: Mobile business (au / PDC) results
3. / au PDC 50,000 5,000 +16.7% 40,000 4,000 + 5.5% 30,000 3,000 20,000 2,000 34.5% 33.6% 10,000 23.9% 24.4% 1,000 1Q 1Q 1Q 1Q 0 0 07.3 08.3 07.3 08.3 07.3 08.3 07.3 08.3 1Q 1Q 1Q 1Q 6,398 26,774 6,748 5.5% 24.4% 27,630 25,957 28,188 28,709 30,000 au 6,140 26,106 6,700 9.1% 24.3% 27,560 607 699 736
Slide 6: Fixed-line business results
4. 10,000 0 1Q 1Q 8,000 -1.3% -200 6,000 -400 4,000 -600 25.0% 24.1% 2,000 -800 1Q 1Q 0 -1,000 07.3 08.3 07.3 08.3 N.A. 07.3 08.3 07.3 08.3 1Q 1Q 1Q 1Q 1,788 7,144 1,765 -1.3% 24.1% 7,330 ADSL 1,555 1,512 1,495 1,500 -99 -490 -131 - - -560 one(FTTH) 181 * 592 635 900 -5.5% -6.9% -7.4% - - -7.6% KDDI
Slide 7: Other segment results
5. IP 2GHz CDN 800MHz EV-DO 4,000 1,500 KDDI 800MHz 1X FTTH 3,000 1,084 1,000 2,000 1,315 649 500 1,000 200 203 28 35 184 689 95 330 68 33 61 0 19 0 07.3 08.3 ( ) 30 07.3 08.3 ( ) 08.3 FTTH 07.3 08.3 ( ) 1Q 1Q 750 4,385 888 18.4% 17.8% 5,000 514 3,289 610 18.7% 16.5% 3,700 184 880 245 33.3% 21.0% 1,
Slide 8: au / Mobile (PDC)
au / (PDC) 7
Slide 9: au subscriber net additions and MNP
1.1. KDDI(au ) au 100% 1,000 au MNP au MNP 80% 800 au 60% 600 40% 400 20% 200 0% 0 -20% -200 -40% -400 3/'06 6/'06 9/'06 12/'06 3/'07 6/'07 07.3 / 08.3 / 1Q 275 55.8% 52 38.9% au 93.7% -37.9% au 59.3% -20.3% 2,819 29.1% 2,871 29.3% au 28.2% 0.9% au 28.7% 0.6% 1Q 8
Slide 10: au MNP subscriber movement Q1
1.2. au 1Q au MNP 2006 10 24 2007 6 100 KDDI +1,008 au +1,054 -46 MNP MNP 793 08.3 /1Q 37 390 200 166 1,338 917 07.3 /1Q 21 510 386 1,077 0 200 400 600 800 1,000 1,200 MNP MNP 9
Slide 11: au churn rate
1.3. au au 2.0% 1.5% 1.04% 1.07% 1.00% 0.97% 0.95% 1.0% 0.5% 0.07 0.0% 1Q 2Q 3Q 4Q 1Q 07.3 08.3 <1.02%> <1.04%> 10
Slide 12: au handset sales
1.4. au au * * 40,000 35,000 30,000 1Q 2Q 3Q 4Q 1Q 07.3 08.3 07.3 08.3 1Q 2Q 3Q 4Q 1Q 5,680 5,650 1,240 1,290 1,450 1,700 1,240 37,000 36,000 38,000 37,000 35,000 37,000 35,000 1,555 1,570 327 352 411 465 353 11
Slide 13: au ARPU
1.5. au ARPU au Total ARPU WIN ARPU 180 10,000 9,070 8,850 160 150 150 MoU 8,610 8,310 148 8,160 140 139 8,000 140 6,810 6,700 6,600 6,380 6,430 6,150 5,580 120 120 140 110 80 5,400 5,180 4,960 6,000 4,890 100 4,840 4,700 4,570 4,320 4,350 4,100 4,000 80 60 3,490 3,450 3,430 3,350 3,270 2,000 40 1,9
Slide 14: WIN handset share
1.6. WIN au 6 WIN au 56% 77% WIN 100% 25,000 81% 80% 79% 78% 77% 77% 80% 18,750 20,000 15,753 14,549 60% 15,000 12,520 10,770 9,460 40% 8,280 10,000 20% 5,000 0% 0 3/'06 6/'06 9/'06 12/'06 3/'07 6/'07 3/'08 WIN au 36% 40% 44% 49% 53% 56% 63% 13
Slide 15: au network evolution cdmaOne to CDMA2000
2. au & LISMO - 07 15 - WIN12 7 2006 9 BCMCS cdmaOne CDMA2000 1xEV-DO 1xEV-DO 1x Rev.0 Rev.A 1998 2002 2003 2006 12 Evolution 14
Slide 16: BCMCS and EZ services
3. au BCMCS* 2006 9 EZ 2007 6 83% 369 *Broadcast Multicast Service EZ 8 EZ EZ 2007 6 5,000 100% 100% 83% 85% 86% 84% 83% 82% 82% 82% 80% 4,000 80% 80% 3,694 3,000 60% 60% EZ - 2,716 36% 40% 32% 34% 2,000 40% 28% 21% 36% 14% 1,000 20% 20% 30% 795 21% 21% 16% 0 0% 0% 11% 18 19-29 30 40 50 60 12/'06 3/
Slide 17: au Q1 subscriber trend
4. au 1Q 17 230 2005 10 2008 3 au 5,000 4,000 2,767 349 706 1,091 3,000 1,457 2,370 1,770 3,528 2,131 3,125 1,959 2,296 2,000 2,739 1,525 2,341 1,128 1,916 779 1,000 1,428 401 268 872 761 755 780 815 788 648 471 600 0 332 9/'05 12/'05 3/'06 6/'06 9/'06 12/'06 3/'07 6/'07 16
Slide 18: KDDI fixed-line subscribers
1. KDDI KDDI 6 300 301 KDDI KDDI 4,000 3,000 3,200 Year-3 3,010 2,813 2,607 0 2,441 2,000 2,223 1,799 Year-2 Year-1 1,000 0 3/'06 6/'06 9/'06 12/'06 3/'07 6/'07 3/'08 06.3 07.3 08.3 Year-2 Year-3 17
Slide 19: one FTTH subscribers
2. one FTTH one FTTH 6 64 FTTH 06.3 one 1,200 FTTH 1,000 800 900 06.3 07.3 08.3 0 600 635 592 400 FTTH 200 490 167 181 192 216 560 613 0 3/'06 6/'06 9/'06 12/'06 3/'07 6/'07 3/'08 18
Slide 20: Designing The Future
Designing The Future Designing The Future 19