Kddi Corporation · TSE:9433

Kddi — Investor Presentation (October 2007)

31 slides from Kddi's investor presentation, Oct 19, 2007

  1. Slide 1: KDDI CORPORATION Ubiquitous Solution Company

    Ubiquitous Solution Company KDDI CORPORATION 2008 3 2007 10 19

  2. Slide 2: Designing The Future

    Designing The Future

  3. Slide 3: Results highlights and outlook for FY2008.3

    1.1. 2008 3 1 ¾ au +8.1% +8.8% 2 au ¾ +7.6% +12.6% ¾ +103 au +143 -40 +181 au +268 -87 ¾ MNP 1 +38.1 au +39.5 -1.4 ¾au WIN 9 1,706 76% ¾ au 27 240 2005 10 2008 3 3 ¾ -2.2% +3.3% 295 ¾9 2 317 one FTTH 67 1 MNP Mobile Number Portability 2 ADSL one 2

  4. Slide 4: FMBC/FMC and one FTTH strategy

    1.2. 2008 3 1 2010 No.1 ¾ ¾FMBC/FMC 10 1 au KNSL 2 au ¾ au ¾ No.1 ¾ 3,000 30 % ¾ au 2008 3 3 ¾ 320 ¾ 30% one FTTH 4 2.5GHz WiMAX 10 11 FMBC Fixed Mobile & Broadcast Convergence 3

  5. Slide 5: Consolidated financial results and forecast

    2. 50,000 5,000 +8.1% +8.8% 40,000 4,000 30,000 3,000 66.6% 64.0% 20,000 48.1% 49.6% 2,000 10,000 1,000 0 0 07.3 08.3 07.3 08.3 07.3 08.3 16,048 33,353 17,343 8.1% 49.6% 35,000 2,295 3,447 2,496 8.8% 64.0% 3,900 14.3% 10.3% 14.4% - - 11.1% 2,273 3,509 2,524 11.1% 64.7% 3,900 1,360 1,867 1,457 7.1% 6

  6. Slide 6: Mobile (au) segment results

    3. / au PDC 50,000 5,000 +12.6% 40,000 4,000 +7.6% 62.4% 30,000 3,000 63.0% 20,000 2,000 47.9% 50.0% 10,000 1,000 0 0 07.3 08.3 07.3 08.3 07.3 08.3 07.3 08.3 12,834 26,774 13,812 7.6% 50.0% 27,630 26,403 28,188 29,217 30,000 au 12,382 26,106 13,731 10.9% 49.8% 27,560 624 699 776 740 452 668 81 -82.2

  7. Slide 7: Fixed-line (one FTTH) segment results

    4. 10,000 0 8,000 -2.2% -200 6,000 -400 4,000 50.7% 48.4% -600 2,000 -800 0 -1,000 07.3 08.3 07.3 08.3 N.A. 07.3 08.3 07.3 08.3 3,624 7,144 3,546 -2.2% 48.4% 7,330 ADSL 1,545 1,512 1,471 1,500 -168 -490 -295 - - -560 one(FTTH) 192 1 592 668 900 -4.6% -6.9% -8.3% - - -7.6% 2 2,441 2,813 3,172 3,200 -

  8. Slide 8: Business segment results and IP

    5. IP 2GHz CDN 800MHz EV-DO 4,000 800MHz 1X 1,500 FTTH 3,000 1,084 1,000 2,000 1,315 443 649 500 1,000 139 200 322 707 35 689 95 113 68 33 0 32 0 07.3 08.3 ( ) 89 07.3 08.3 ( ) 08.3 FTTH 07.3 08.3 ( ) 1,762 4,385 1,906 8.2% 38.1% 5,000 1,218 3,289 1,411 15.8% 38.1% 3,700 444 880 435 -2.0% 37.2% 1,17

  9. Slide 9: au mobile business (PDC)

    au / (PDC) 8

  10. Slide 10: 1.1. KDDI (au) subscribers and MNP

    1.1. KDDI(au ) au 100% au MNP 1,000 au MNP 80% au 800 60% 600 40% 400 20% 200 0% 0 -20% -200 -40% -400 3/'06 6/'06 9/'06 12/'06 3/'07 6/'07 9/'07 07.3 / 08.3 / 275 55.8% 103 39.3% au 93.7% -37.9% au 54.6% -15.2% 2,819 29.1% 2,922 29.4% au 28.2% 0.9% au 28.9% 0.5% 9

  11. Slide 11: 1.2. au MNP

    1.2. au au MNP +39.5 MNP MNP 1,427 08.3 / 77 683 395 272 2,616 1,787 07.3 / 39 996 752 2,021 0 500 1,000 1,500 2,000 MNP MNP 10

  12. Slide 12: 1.3. au churn rate

    1.3. au au 2.0% 1.5% 1.04% 1.07% 1.03% 1.00% 0.97% 0.95% 1.0% 0.5% 0.08 up 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 07.3 08.3 <1.02%> <1.04%> 11

  13. Slide 13: 1.4. au handset sales

    1.4. au au * * 40,000 35,000 30,000 1Q 2Q 3Q 4Q 1Q 2Q 07.3 08.3 07.3 08.3 1Q 2Q 3Q 4Q 1Q 2Q 5,680 5,650 1,240 1,290 1,450 1,700 1,240 1,490 37,000 36,000 38,000 37,000 35,000 37,000 35,000 36,000 1,555 1,570 327 352 411 465 353 408 12

  14. Slide 14: 1.5. au ARPU

    1.5. au ARPU au Total ARPU WIN ARPU 180 10,000 9,070 8,850 MoU 8,610 160 150 150 148 8,310 8,160 8,000 140 139 139 8,000 140 6,810 6,700 6,600 6,380 6,430 6,400 120 6,150 5,580 5,400 5,180 120 140 110 80 50 4,960 4,890 4,780 6,000 100 4,840 4,700 4,570 4,320 4,350 4,270 4,100 4,000 80 60 3,490 3,450

  15. Slide 15: 1.6. WIN subscribers

    1.6. WIN au 9 WIN au 59% 76% WIN 100% 25,000 81% 80% 79% 78% 77% 77% 76% 80% 18,750 20,000 15,753 17,063 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 9/'07 3/'08 WIN au 36% 40% 44% 49% 53% 56% 59% 63% 14

  16. Slide 16: au service and technology evolution

    2. au & LISMO INFOBAR 2 - 07 9 2006 9 BCMCS cdmaOne CDMA2000 1xEV-DO 1xEV-DO 1x Rev.0 Rev. A 1998 2002 2003 2006 12 Evolution 15

  17. Slide 17: 3. 800MHz (1) au

    3. 800MHz (1) au 2012 7 800MHz KDDI 15MHz 800MHz KDDI NTT a b c c a b 810 818 860 870 885 915 925 940 948 960 KDDI PDC KDDI PDC [MHz] 2012 7 700MHzUHF 810815 830 845 860 875 890 960 [MHz] 16

  18. Slide 18: 3. 800MHz (2) au

    3. 800MHz (2) au 800MHz 2GHz / 800MHz 800MHz 2GHz 800MHz 9 1,180 2007 2012 7 2GHz 800MHz 800MHz 800MHz 15MHz 800MHz 800MHz 2GHz 800MHz 800MHz 17

  19. Slide 19: 4. au KDDI Rev. A

    4. au 07 KDDI Rev. A 3 au 05.3 100 WIN KDDI au KCP KDDI Common Platform KCP+ 100 100% 90 80% 80 60% BREW (KCP) BREW (KCP) 70 40% OS OS 60 20% MSM MSM7500TM 50 0% 05.3 06.3 07.3 08.3 18

  20. Slide 20: 5. au (1)

    5. au (1) au „ „ „ „ „ „ „ „ 19

  21. Slide 21: 5. au (2)

    5. au (2) au 2007 11 12 au au 21,000 2 2 8 S1,050 / L 2,625 S15.75 /30 / L10.5 /1 20

  22. Slide 22: 6. au 2005-2008

    6. au 27 240 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 2,296 2,402 3,125 1,959 2,000 2,739 1,525 2,341 1,128 1,916 779 1,000 1,428 401 268 182 761 755 780 815 788 648 471 872 600 291 332 473 0 9/'05 12/'05 3/'06 6/'06 9/'06 12/'06 3/'07 6/'07 9/'07 21

  23. Slide 23: Fixed-line subscriber growth Year-1 to Year-3

    1. 9 317 4,000 3,000 3,172 3,200 3,010 Year-3 2,813 2,607 2,441 0 2,000 2,223 1,799 Year-2 Year-1 1,000 0 3/'06 9/'06 3/'07 9/'07 3/'08 06.3 07.3 08.3 Year-2 Year-3 ADSL one 22

  24. Slide 24: 2. one FTTH (1)

    2. one FTTH (1) one FTTH 9 67 one 1,200 FTTH 1,000 800 900 06.3 07.3 08.3 0 600 635 668 592 400 FTTH 200 216 167 181 192 490 0 560 613 3/'06 9/'06 3/'07 9/'07 3/'08 23

  25. Slide 25: 2. one FTTH (2)

    2. one FTTH (2) one one ¾ ¾ ¾ ¾ ISP ¾ FTTH ¾ one ¾ DVD Burning ¾DION au one net ISP au FTTH DVD Burning DVD 24

  26. Slide 26: FMBC

    FMBC „ au BBC 10 1 „ KDDI FMBC PC au EZ ISP au one net BBC: Broadband & Consumer. 25

  27. Slide 27: FMC

    FMC KNSL 3 10 1 ¾ FMC ICT ¾ FMC au ICT ICT FMC FMC SOHO ICT: Information and Communication Technology. 26

  28. Slide 28: CATV

    CATV KDDI JCN MSO CATV13 9 KDDI CATV 30 9 7 VOD JCN 11/1 1 MSO Multiple System Operator 2 2007 11 1 15 27

  29. Slide 29: 2.5GHz WiMAX

    2.5GHz WiMAX 2.5GHz „Embedded < > WiMAX < > „ KDDI 32.26% MVNO WiMAX 17.65% 17.65% 17.65% 9.80% UFJ 5.00% 28

  30. Slide 30: 20% 20.3% 22.4% 10,000 20.8% 9,500 21.2% 8,000 6,900 5,000 16.8% 5,000 4,500 17.5%

    20% 1 20.3% 22.4% 10,000 20.8% 9,500 21.2% 8,000 6,900 5,000 16.8% 5,000 4,500 17.5% 3,600 3,500 2,095 1,790 2,400 1,000 5,000 4,500 895 1,200 3,500 2,400 895 895 1,200 2001 2002 2003 2004 2005 2006 2007 2008 2010 2005 2006 2001 29

  31. Slide 31: Designing The Future

    Designing The Future Designing The Future 30

KDDI — Investor Presentation (October 2007) on 6ix