Kddi Corporation · TSE:9433

Kddi — Q3 FY2007.3 Earnings Presentation

24 slides from Kddi's earnings presentation, Jan 25, 2007

  1. Slide 1: KDDI CORPORATION – Ubiquitous Solution Company

    Ubiquitous Solution Company KDDI CORPORATION 2007 3 3 2007 1 25

  2. Slide 2: Designing The Future

    Designing The Future

  3. Slide 3: 1-3Q results highlights

    1.1. 1-3Q 1 ¾ au +10.4% +22.7% 2 au ¾ +7.1% +12.1% ¾12 28.7% au 27.2% 1.5% 3Q 73.3% au 116.8% -43.5% No.1 ¾MNP 3Q 46.5 au 48.4 -1.9 ¾au WIN 12 1,252 78% ¾ au 3Q 31 177 2005 10 2008 3 3 ¾ +23.1% 255 183 ¾ 12 261 ¾ FTTH 2007 1 1 MNP Mobile Number Portability 2

  4. Slide 4: FY2007 forecast

    1.2. 2007 3 1 FTTH 32,930 33,300 + 370 3,180 3,420 +240 - + 350 - 90 FTTH 9au ARPU 6,580 6,600 + 20 9au 1.39% 1.07% 0.32 9 2,744 2,820 + 76 9 161 211 + 50 2 2008 3 360 1,860 3 4,500 3

  5. Slide 5: Consolidated results 1-3Q

    2. 40,000 4,000 +10.4% +22.7% 92.4% 30,000 3,000 73.9% 86.9% 72.9% 20,000 2,000 1-3Q 1-3Q 1-3Q 1-3Q 10,000 1,000 0 0 06.3 07.3 06.3 07.3 06.3 07.3 07.3 1-3Q 1-3Q 22,302 30,608 24,625 10.4% 73.9% 33,300 32,930 2,576 2,966 3,161 22.7% 92.4% 3,420 3,180 11.6% 9.7% 12.8% - - 10.3% 9.7% 2,559 2,940 3,196

  6. Slide 6: Mobile / au results (PDC)

    3. / au PDC 40,000 4,000 86.1% +12.1% 84.5% 30,000 +7.1% 3,000 73.5% 74.0% 20,000 2,000 1-3Q 1-3Q 10,000 1-3Q 1-3Q 1,000 0 0 06.3 07.3 06.3 07.3 06.3 07.3 07.3 06.3 07.3 07.3 1-3Q 1-3Q 18,457 25,104 19,760 7.1% 74.0% 26,720 26,360 24,695 25,439 27,226 28,200 27,440 au 17,039 23,352 19,168 12.5% 73.5

  7. Slide 7: Fixed-line results

    4. 8,000 0 +23.1% 1-3Q 6,000 75.0% -200 1-3Q 70.4% 4,000 -400 183 1-3Q 2,000 1-3Q -600 0 -800 06.3 07.3 06.3 07.3 N.A 06.3 07.3 07.3 06.3 07.3 07.3 1-3Q 1-3Q 4,358 6,193 5,364 23.1% 75.0% 7,150 7,350 DION 2,848 2,847 2,751 2,670 2,680 -438 -613 -255 - - -550 -460 ADSL 1,510 1,516 1,531 1,540 1,470 -

  8. Slide 8: Capital expenditures

    5. 2GHz CDN 4,000 800MHz EV-DO 800MHz 1X FTTH 1,500 3,000 19 803 552 1,000 2,000 397 763 42 451 272 805 500 498 1,000 1-3Q 120 415 11 1,080 490 1-3Q 66 0 0 66 56 06.3 07.3 ( ) 06.3 07.3 ( ) 10 06.3 07.3 ( ) 07.3 1-3Q 1-3Q 2,874 4,147 2,966 65.9% 4,500 4,500 1,847 2,751 2,178 65.4% 3,330 3,330 991 1,

  9. Slide 9: au / Mobile (PDC)

    au / (PDC) 8

  10. Slide 10: au subscribers and MNP

    1.1. KDDI(au ) au 100% au MNP 1,000 au MNP 80% 800 au 60% 600 40% 400 20% 200 0% 0 -20% -200 3/'05 6/'05 9/'05 12/'05 3/'06 6/'06 9/'06 12/'06 06.3 / 07.3 /3Q <48.1%> <73.3%> au 65.8% -17.7% au 116.8% -43.5% <27.7%> <28.7%> au 24.7% 3.0% au 27.2% 1.5% 9

  11. Slide 11: au 3Q MNP trends

    1.2. au 3Q au „ MNP MNP MNP 632 -148 MNP 484 07.3 /3Q 482 484 312 34 1,312 * 1,124 06.3 /3Q 499 349 19 867 * 1,051 0 200 400 600 800 1,000 1,200 1,400 MNP MNP 10

  12. Slide 12: au churn rate

    1.3. au au 2.0% 1.5% 1.26% 1.21% 1.23% 1.11% 1.04% 1.00% 0.95% 1.0% 0.5% 0.11 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 06.3 07.3 <1.20%> <1.39%> <1.07%> 11

  13. Slide 13: au handset sales and costs

    1.4. au au * * 40,000 35,000 30,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 06.3 07.3 06.3 07.3 ( ) 07.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4,920 5,730 5,510 1,020 1,190 1,190 1,520 1,240 1,290 1,450 37,000 37,000 37,000 38,000 37,000 35,000 38,000 38,000 37,000 35,000 1,325 1,569 1,492 270 322 337 396 327 352 411 12

  14. Slide 14: au ARPU

    1.5. au ARPU au Total ARPU WIN ARPU 180 12,000 159 163 159 160 151 150 150 MoU 9,970 9,990 9,680 148 9,310 10,000 9,070 8,850 8,610 140 7,050 7,190 7,090 6,840 6,810 8,000 120 6,700 6,600 6,600 6,480 6,530 6,220 120 140 + 20 5,840 5,580 5,400 100 5,180 6,000 80 5,240 5,300 5,200 4,880 4,840 4,700 4,

  15. Slide 15: WIN subscribers

    1.6. WIN au 12 78% WIN 100% 20,000 83% 82% 81% 81% 80% 79% 78% 77% 80% 14,340 16,000 12,520 60% 10,770 12,000 9,460 8,280 40% 6,750 8,000 5,550 4,319 20% 3,252 4,000 0% 0 3/'05 6/'05 9/'05 12/'05 3/'06 6/'06 9/'06 12/'06 3/'07 WIN au 17% 36% 40% 44% 49% 53% 14

  16. Slide 16: MNP and WIN strategy

    2. MNP au MNP WIN 83% WIN 80% MNP ARPU au 1,300 ARPU 2006 12 10,000 7,990 8,000 1X WIN 6,660 6,000 17% 83% 4,000 2,000 0 au MNP * 07.3 3Q MNP MNP10-11 15

  17. Slide 17: Services: LISMO, PCSV, BCMCS

    3. au & au LISTEN MOBILE SERVICE LISMO MEDIA SKIN PCSV 07 WIN 14 2006 9 BCMCS cdmaOne CDMA2000 1xEV-DO 1xEV-DO 1x Rev.0 Rev.A 1998 2002 2003 2006 12 Evolution PCSV PC site viewer 16

  18. Slide 18: au design project

    ( )au design project 4 MoMA INFOBAR talby neon 3 MEDIA SKIN MoMA INFOBAR talby neon MEDIA SKIN concept 2003 2004 2006 2005 17

  19. Slide 19: au 3Q subscriber migration

    4. au 3Q 31 177 2005 10 2008 3 au au 5,000 4,000 3,528 3,474 3,445 3,431 3,373 349 3,197 3,010 3,000 706 1,091 1,457 1,770 2,110 2,000 2,767 2,370 1,959 1,525 1,128 1,000 779 761 755 780 815 788 648 900 900 0 9/'05 12/'05 3/'06 6/'06 9/'06 12/'06 3/00 3/'07 3,528 3,125 2,739 2,341 1,916 1,428 900 18

  20. Slide 20: Fixed-line business

    1. 12 261 08.3 3,000 900 20.0% 2,750 2,607 2,441 800 9.9% 12.1%13.6%11.7% 0.0% 2,000 2,223 -0.8% -4.9% 1,799 700 -6.7% -20.0% 1,000 1,165 600 -40.0% 677 41 408 500 -60.0% 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 3/'05 9/'05 3/'06 9/'06 12/’06 3/’07 06.3 07.3 KDDI Year-3 0 Year-2 Year-1 06.3 07.3 08.3 19

  21. Slide 21: FTTH (1)

    2. FTTH (1) KDDI one 2006 6 FTTH FTTH 2007 1 1 30% Step 2 Step 1 FTTH KDDI GE-PON IP CDN KDDI * ( ) * 2007 1 1 20

  22. Slide 22: FTTH (2)

    2. FTTH (2) ¾FTTH 56 KDDI 22 34 06.12 ¾ 4Q ¾ PLC 30 120 * 20 ¾ 90 ISP 7 06.12 ¾ 550 7 JV 21

  23. Slide 23: FTTH outlook

    3. 08.3 FTTH FTTH 1 1 FTTH 06.3 05.3 06.3 07.3 FTTH 613 550 1-3Q 438 255 0 FTTH 613 22

  24. Slide 24: Designing The Future

    Designing The Future Designing The Future 23

Kddi — Q3 FY2007.3 Earnings Presentation on 6ix