Kddi Corporation · TSE:9433

Kddi — FY2005 Earnings Presentation

37 slides from Kddi's earnings presentation, Apr 28, 2005

  1. Slide 1: KDDI Corporation - Ubiquitous Solution Company

    IR Ubiquitous Solution Company KDDI CORPORATION 2005 3 2005 4 28

  2. Slide 2: Slide 2

  3. Slide 3: FY2005 results overview

    1.1. 2005 3 1 au 2.6% 1.4% 3 8,646 2 au 14.2% 14.0% TM 500 4 3 2 50.4% WIN 3 325 3 BBC & 3 4 S 5 PHS 04.10 3 05.3 KDDI KNSL KDDI- 1

  4. Slide 4: FY2006 forecast

    1.2. 2006 3 05.3 06.3 1 au 409 2 15% 417 ( ) 29,200 29,760 + 560 1,428 2,962 2,890 72 17 9au ARPU 7,170 6,810 360 1,954 2,154 + 200 9 4 220 + 216 2 au 2GHz 4,400 +976 3 FCF 976 05.3 PHS 2,037 430 3,592 2

  5. Slide 5: FY2006 business policy

    1.3. 2006 3 1 KDDI FMC 2 au EZ TM au EV-DO WIN 3 BBC & 4 TU-KA 3

  6. Slide 6: Consolidated results and forecast

    2. 40,000 4,000 30,000 3,000 20,000 2,000 10,000 1,000 0 0 04.3 05.3 06.3 04.3 05.3 06.3 05.3 04.3 05.3 06.3 05.3 06.3 28,461 29,200 2.6% 29,760 1.9% 28,332 5.0% 2,921 2,962 1.4% 2,890 -2.4% 2,907 -0.6% 10.3% 10.1% - 9.7% - 10.3% - 2,745 2,863 4.3% 2,870 0.2% 2,814 2.0% 1,170 2,006 71.4% 1,870 -6.8%

  7. Slide 7: au mobile segment results

    3. au 30,000 3,000 20,000 2,000 10,000 1,000 0 0 04.3 05.3 06.3 04.3 05.3 06.3 04.3 05.3 06.3 04.3 05.3 06.3 18,318 20,927 22,450 16,959 19,542 21,540 2,395 2,731 3,140 361 487 610 13.1% 13.1% 14.0% WIN(EV-DO) 343 3,252 7,660 2,291 2,699 3,130 1X 13,166 14,683 - 1,300 1,612 1,860 cdmaOne 3,450 1,608

  8. Slide 8: Fixed-line segment results

    4. 8,000 200 6,000 0 4,000 -200 2,000 -400 0 -600 04.3 05.3 06.3 04.3 05.3 06.3 04.3 05.3 06.3 04.3 05.3 06.3 6,231 5,960 6,120 DION 1 2,687 2,885 2,880 164 -3 -420 ADSL 1,109 1,494 1,500 2.6% -0.1% -6.9% FTTH ( ) 23 91 180 159 -4 -430 9 79 - -299 -44 -220 ( ) 0 2 41 2,200 FCF 686 -31 -1,140 EBITDA

  9. Slide 9: Fixed-line breakdown

    4. 05.3 06.3 50 8 11 5,960 6,120 + 160 KNSL/ 30 470 110 210 5,963 6,540 + 577 130 240 3 420 417 7

  10. Slide 10: Segment results

    5. 4,000 400 3,000 300 2,000 200 1,000 100 0 0 04.3 05.3 06.3 04.3 05.3 06.3 04.3 05.3 06.3 04.3 05.3 06.3 2,743 2,314 2,040 3,632 3,590 3,490 163 184 140 ARPU 5,020 4,470 4,040 5.9% 8.0% 6.9% 114 152 130 80 105 80 FCF 550 581 410 EBITDA 721 668 540 26.3% 28.9% 26.5% IR 04.3 8

  11. Slide 11: Segment results

    6. 2,500 250 2,000 200 1,500 150 1,000 100 500 50 0 0 04.3 05.3 04.3 05.3 04.3 05.3 06.3 04.3 05.3 06.3 1,840 869 - 2,897 2,926 - 211 55 - AirH" 990 1,101 - 11.5% 6.3% - ARPU 4,750 4,430 - 190 49 - 191 40 - FCF 472 209 - EBITDA 613 246 - 33.3% 28.3% - 10 05.3 9

  12. Slide 12: Capex, debt and balance sheet

    7. 04.3 05.3 06.3 2,533 3,424 4,400 au 1,612 2,335 2,800 551 866 1,500 147 77 40 129 50 - 3,657 3,499 3,350 au 1,849 2,017 2,010 839 787 920 538 466 390 387 187 - 11,798 8,646 - Debt / EBITDA 1.7 1.3 - 10 D/E 1.17 0.74 - 05.3 au 2,500 2GHz 1,000 CDN 800MHz EV-DO 800MHz 1X 480 2,000 800 180 370 1,500

  13. Slide 13: Mobile business: au and TU-KA

    au TU-KA 11

  14. Slide 14: au business strategy

    1. (1) au au FCF 12

  15. Slide 15: au strategy FY05-FY07

    1. (2) KDDI ‹ 3G FY05 FY06 MNP FY07 MNP au 13

  16. Slide 16: Subscriber growth

    1. (3) ( ) 40,000 4,000 30,000 3,000 20,000 2,000 10,000 1,000 0 0 FY00 01 02 03 04 FY05 FY06 FY07 MNP au au 14

  17. Slide 17: FMC strategy

    1. (4) FMC KDDI FMC FMC 05.5 1 / 2 / etc. / 3 etc. 15

  18. Slide 18: Capital expenditure and cost trends

    2. 05.3 20% 1 10,000 8,000 21.2% 18.3% 6,900 7,000 6,000 16.8% 3,500 4,000 3,600 17.5% 1,000 1,790 2,095 2,400 2,000 895 1,200 2,400 895 895 1,200 0 02.3 03.3 04.3 05.3 06.3 02.3 16

  19. Slide 19: MNP and 3G competitive environment

    3. MNP „ „ 2004 5 MNP 2005 10 2006 „ „ 3G „ „ FTTH 2004 9 1.7GHz 2GHz 2004 9 FTTH 200 2005 2 800MHz „ IMT-2000 NTT „ FTTH 800MHz FTTH 17

  20. Slide 20: Subscriber and sales trends

    1.1. * * 45,000 40,000 35,000 30,0000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 03.3 04.3 05.3 03.3 04.3 05.3 06.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4,050 3,840 4,440 4,570 900 900 920 1,120 940 1,140 1,120 1,240 40,000 36,000 38,000 38,000 37,000 36,000 36,000 37,000 37,000 39,000 39,000 38,000 1,010 1,057 1,159 1,210 241 249

  21. Slide 21: Churn rate

    1.2. 100% 500 2.0% 1.56% 1.54% 80% 400 1.48% 1.40%1.49% 1.51% 1.40% 1.37% 1.5% 60% 300 1.0% 40% 200 0.05 0.5% 20% 100 0% 0 0.0% 04.3 05.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q <49.6%> <50.4%> 04.3 05.3 <20.8%> <22.5%> <1.49%> <1.44%> 19

  22. Slide 22: ARPU trends

    1.3. ARPU 14,000 Total ARPU WIN ARPU 12,000 11,610 11,550 11,190 10,570 10,160 10,000 8,000 7,480 7,540 7,490 7,280 90 7,260 7,300 7,190 6,960 6,810 7,060 7,150 90 7,270 6,970 6,640 6,000 5,930 5,900 5,830 5,560 5,540 5,570 5,470 5,180 5,020 4,000 2,000 4,550 4,400 3,920 3,600 3,520 1,550 1,640 1,66

  23. Slide 23: WIN subscriber growth (1)

    2. WIN (1) 05.3 WIN 3 325 WIN 06.3 WIN WIN 06.3 766 3 3,500 3,000 4 2,500 2,000 3 1,500 1,000 2 1 500 0 12/‘03 3/‘04 6/’04 9/’04 12/’04 3/’05 343 573 1,191 2,032 3,252 87% 83% 81% 79% 77% 21

  24. Slide 24: WIN ARPU (2)

    2. WIN (2) WIN ARPU WIN 12,000 10,160 10,000 8,000 6,960 6,640 6,000 5,180 47% 53% 4,000 2,000 3,520 1,780 0 WIN ARPU 05.3 4Q ARPU 05.3 4Q 22

  25. Slide 25: WIN ARPU (3)

    2. WIN (3) WIN ARPU 1X WIN ARPU 1,500 1,000 500 0 03/12 04/4 04/8 04/12 500 1,000 1,500 2,000 2,500 WIN ARPU 23

  26. Slide 26: WIN services and handsets

    3. WIN DEV-DO 05 9 99.9% WIN DEV-DO Rev.A & 04 8 1 ~ D04 11 ~ EZ TM D05 ~ FeliCa 05 5 1 ~ 06 FeliCa WIN ~ PCSV D05 ~ PCSV PC site viewer 24

  27. Slide 27: Data services (1)

    4. (1) 05.3 100 EC 150 113 19% 100 74 05.3 50 113 56% EC 25% 0 04.3 05.3 25

  28. Slide 28: Data services (2)

    4. (2) WIN WIN ARPU 1X 3 1 05.3 250 1,600 1,380 200 1,400 1,200 150 1,000 1,070 100 800 600 680 50 400 200 310 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 0 04.3 05.3 1x WIN 1 KDDI 26

  29. Slide 29: au service screenshots

    es SFJEECRS: VEVRA&=a—-z fat HEEY 4 |B RE-— &AILFV— W\yayeus s|5t7 au style EZY-EATRE PR: PIA-TY Iz ENGLISH OVO Ft 80.4 e200" Kot parnewusuran . i 27

  30. Slide 30: Music download service (4)

    4. (4) CD ( D/L) ( ) 150 400 5 300 100 200 (04.11 50 115 70 100 02.12 4 0 0 05.3 1Q 2Q 3Q 4Q 03.3 04.3 05.3 28

  31. Slide 31: au services and FMC

    QU.,.wo0 etc PC etc FMC auG@ecords ms Y EEC auK tht sS NS ae au @Quctions EDL ERIE A 29

  32. Slide 32: BREW platform

    5. z z BREW -WIN05 2 z -06 z z PF EZweb EZweb IMAP IMAP EZ EZ 2 EZ 2 EZweb EZweb IMAP IMAP EZ FM FM BREW PF BREW OEM OEM Baseband chip Baseband chip BREW PF 30

  33. Slide 33: KDDI fixed-line business

    1. 06.3 220 KDDI 3,000 2,000 1,000 2,200 41 0 05.3 06.3 05.3 417 31

  34. Slide 34: FTTH expansion

    2. (1) 06.3 FTTH 04.3 05.3 06.3 • BB 10 10 • 2 1 • BB 05.3 06.3 20% 75% 300GC 1,800GC 32

  35. Slide 35: Content delivery network

    2. (2) GC CDN Contents Delivery Network au EV-DO IP CDN NTT NTT Network Gateway FTTH 33

  36. Slide 36: TU-KA 2G subscribers

    TU-KA TU-KA 2G 900 800 700 30 40 600 50 500 60 400 S 300 04 11 200 20 100 0 10 02/4 03/4 04/4 34

  37. Slide 37: Ubiquitous Solution Company

    Ubiquitous Solution Company

KDDI — FY2005 Earnings Presentation on 6ix