Kddi Corporation · TSE:9433
Kddi — H1 FY2009.3 Earnings Presentation
30 slides from Kddi's earnings presentation, Oct 22, 2008
Slide 1: KDDI Ubiquitous Solution Company
Ubiquitous Solution Company KDDI 2009 3 2 (2008 4 9 ) 2008 10 22
Slide 2: Designing The Future
Designing The Future
Slide 3: Results highlights and forecast for FY2009.3
1.1. 2009 3 1 ¾ +0.8% +5.3% 59.3% 2 ¾ -1.5 % +5.3% ¾9 au 3,045 29.0% ¾ 6 10 au 3 ¾ +19.3% 252 ¾9 1 518 4 ¾ au au 24 au 2 8 1 ¾ 7 17 1 FTTH 2 22 2
Slide 4: Management policy for FY2010 targets
1.2. 2009 3 1 2010 2 No.1 ¾ 2 ¾ KDDI ¾ 3 ¾ FTTH ¾ 500 ¾ ICT 1 4 ¾ FMBC 2 ¾ UQ 2009 WiMAX ¾4 2008 10 2,068.5 1 Information and Communication Technology 2 Fixed Mobile & Broadcast Convergence 3
Slide 5: Consolidated results: revenue, operating income, FCF, EBITDA
2. 40,000 +0.8% 5,000 +5.3% 4,000 30,000 3,000 62.3% 59.3% 20,000 48.2% 47.2% 2,000 10,000 1,000 0 0 08.3 09.3 08.3 09.3 08.3 09.3 09.3 17,343 35,963 17,473 +0.8% 47.2% 37,000 37,000 2,496 4,005 2,629 +5.3% 59.3% 4,430 4,430 14.4% 11.1% 15.0% - - 12.0% 12.0% 2,524 4,079 2,622 +3.9% 59.6% 4,400 4,400
Slide 6: au mobile business results
3. 40,000 6,000 +5.3% -1.5% 5,000 30,000 4,000 20,000 3,000 60.1% 57.9% 48.2% 46.7% 2,000 10,000 1,000 0 0 08.3 09.3 08.3 09.3 08.3 09.3 08.3 09.3 13,812 28,626 13,607 -1.5% 46.7% 29,110 29,217 30,339 30,452 31,600 au 13,731 28,517 13,607 -0.9% 46.7% 29,110 776 814 882 1,000 81 109 - - - - au 28,744
Slide 7: Fixed-line business results
4. 10,000 0 +19.3% 8,000 -200 6,000 -400 49.5% 4,000 49.3% -600 2,000 -800 N.A. 0 -1,000 08.3 09.3 08.3 09.3 08.3 09.3 08.3 09.3 3,546 7,186 4,231 +19.3% 49.5% 8,550 ADSL 1,471 1,396 1,303 1,280 -295 -647 -252 - - -580 FTTH 668 710 967 1,140 -8.3% -9.0% -6.0% - - -6.8% 3,172 3,279 3,251 3,080 1 -295
Slide 8: Other business results
5. 800MHz 2GHz 800MHz EV-DO 5,000 800MHz 1X 2,000 FTTH 4,000 1,500 1,288 3,000 691 1,000 2,000 502 864 1,705 884 500 1,000 414 618 232 0 174 192 0 20 08.3 60 09.3 ( ) 19 08.3 09.3 ( ) 08.3 09.3 ( ) 1,906 5,170 2,661 +39.6% 45.1% 5,900 1,411 3,917 2,042 +44.7% 46.8% 4,360 435 1,096 606 +39.3% 40.4% 1
Slide 9: Quarterly revenue and operating income
10,000 1,500 08.3 09.3 08.3 09.3 8,000 1,200 6,000 900 4,000 600 2,000 300 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 08.3 09.3 08.3 09.3 17,343 17,473 +0.8% 2,496 2,629 +5.3% 35,963 37,000 ( ) +2.9% 4,005 4,430 ( ) +10.6% 8
Slide 10: Designing The Future
Designing The Future
Slide 11: KDDI subscriber trends
1.1. KDDI 4 -23 KDDI 11 9 3,045 29.0 60% 600 40% 400 20% 200 0% 0 -20% -200 au -40% -400 -60% -600 4/'07 6/’077/'07 9/’0710/'07 12/’071/'08 3/’084/'08 6/’087/'08 9/’08 08.3 / 09.3 / 215 35.8% 11 5.3% au 46.4% -10.6% au 16.4% -11.1% 3,034 29.5% 3,045 29.0% au 29.3% 0.2% au 29.0% 1 07 12 2 2008 3 10
Slide 12: au churn rate
1.2. au 2Q 0.75% 0.28 2.0% 1.5% 0.97% 1.03% 0.89% 0.90% 0.87% 1.0% 0.75% 0.5% 0.28 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 08.3 09.3 <0.95%> <0.91%> 11
Slide 13: au handset sales and acquisition costs
1.3. au 2Q 38,000 * * 50,000 40,000 30,000 20,000 10,000 0 1Q 2Q 3Q 4Q 1Q 2Q 08.3 09.3 08.3 09.3 1Q 2Q 3Q 4Q 1Q 2Q 5,860 - 1,240 1,490 1,300 1,830 1,290 1,040 37,000 - 35,000 36,000 35,000 41,000 45,000 38,000 1,582 1,440 353 408 370 451 286 270 08.3 3Q au 2009 3 12
Slide 14: au ARPU
1.4. au ARPU ARPU Total ARPU WIN ARPU 180 10,000 160 MoU 8,160 8,000 139 139 137 136 139 7,680 7,410 8,000 140 132 7,120 7,100 120 6,430 6,400 6,230 5,990 5,900 5,940 5,660 6,000 4,890 100 4,780 4,510 4,270 4,050 4,060 80 4,350 4,270 4,090 3,820 3,710 3,730 3,480 4,000 60 40 3,270 2,000 3,220 3,170
Slide 15: WIN subscribers
1.5. WIN 9 WIN au 69% 73% WIN 100% 30,000 77% 77% 76% 75% 25,000 80% 74% 74% 73% 24,000 21,096 20,000 60% 19,695 20,473 18,126 17,063 15,000 15,753 14,549 40% 10,000 20% 5,000 0% 0 3/'07 6/'07 9/'07 12/'07 3/'08 6/'08 9/'08 3/'09 WIN au 53% 56% 59% 62% 65% 68% 69% 76% 14
Slide 16: au handset lineup
2. au 55 91 9% 45% 55% 91% W61S 08 7 1 9 30 15
Slide 17: COACH mobile phone
3. COACH Mobile Phone ©Coach, Inc. re 21 10 22 au 16
Slide 18: au Smart Sports Run&Walk
4. au Smart Sports Run&Walk 1 au Smart Sports Run&Walk 600 BEAT RUN 50 500 400 300 200 100 0 2/'08 4/'08 6/'08 8/'08 10/'08 17
Slide 19: FTTH subscribers
1. 9 518 FTTH 7,000 6,000 5,178 5,300 5,082 4,827 5,000 967 1,140 710 916 4,000 3,000 3,269 3,251 3,080 3,279 2,000 1,000 355 429 580 286 667 683 697 700 0 3/'08 6/'08 9/'08 3/'09( ) 18
Slide 20: FTTH services and speeds
2. FTTH one 10 FTTH CTC 1 + 2 1Gbps 1Gbps 7,245 2 5,985 100Mbps 100Mbps 0 0 A A 1 2 au one net A OCN 19
Slide 21: FTTH initiatives toward 2010
3. FTTH 2010 2010 FTTH CATV 0 0 0 0 20
Slide 22: FMBC initiatives
1. FMBC FMBC au KDDI 3,000 au FMBC FMC au one au one net *3 MCPC award au KDDI /ICT au au BOX FMBCFixed Mobile & FMC / WIN ) Broadcast Convergence LISMO Video FMS/FMC LISMO OFFICE FREEDOM one TV FMS: Fixed Mobile Substitution 21
Slide 23: au FMBC strategy: 2.1
2.1. au FMBC au au 24 au 8 1 KDDI au au KDDI au IP 050 au / 24 22
Slide 24: au FMBC strategy: 2.2
2.2. au FMBC au au au KDDI KDDI au au au ( ) au au 1,370 150 100 50 0 180 9/'07 9/'08 2008 8 KDDI au au 23
Slide 25: au BOX FMBC
3.1. au BOX FMBC 315 FMBC au BOX 11 au BOX au BOX PC LISMO TV TV one CD ISP CD mora for LISMO 130 ch DVD LISMO Video Store 5,000 ® 24
Slide 26: au BOX usage survey
3.2. au BOX FMBC PC TV 10 FMBC LISMO LISMO PC NO YES NO 56.5 % 43.5% 56.5% PC LISMO 8 TV NO 18.0% PC YES 82.0 % TV YES 82.0% 8 ( ) 25
Slide 27: KDDI FMBC service structure
4. KDDI FMBC 9+1234 9+1234 91234 KDDI IP au 4 1 3 2 A B 26
Slide 28: FY2010 targets
1. 2010 2010 No.1 2010 2011 3 4 6,000 ¾ ¾ FTTH ¾ FMBC ¾ ICT 27
Slide 29: Shareholder returns and dividends
2. 2010 20% 1 19.6% 21.5% 22.4% 11,000 10,500 20.8% 9,500 21.2% 8,000 6,900 5,500 5,500 5,000 16.8% 4,500 3,600 3,500 17.5% 1,790 2,095 1,000 5,000 5,500 2,400 4,500 895 1,200 3,500 2,400 895 895 1,200 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2006 3 2007 3 2002 3 28
Slide 30: Designing The Future
Designing The Future : Designing The Future 29