Kddi Corporation · TSE:9433
Kddi — H1 FY2007 Earnings Presentation
27 slides from Kddi's earnings presentation, Oct 20, 2006
Slide 1: KDDI Corporation - Ubiquitous Solution Company
Ubiquitous Solution Company KDDI CORPORATION 2007 3 2006 10 20
Slide 2: Designing The Future
Designing The Future
Slide 3: Highlights: au WIN, MNP, Google
1.1. 2007 3 1 ¾ au +9.3% +37.7% 2 au ¾ +5.7% +23.9% ¾9 28.1% au 26.1% 2.0% 47.7% au 88.4% -40.7% No.1 ¾au WIN 9 1,077 79% ¾ au 75 146 ¾MNP 14 ¾Google 3 06.6 Google 06.8 3 ¾ +26.6% 168 127 ¾ 9 244 ¾6 one FTTH FTTH 10 12 2
Slide 4: KDDI strategy: FMBC and BCMCS
1.2. 2007 3 1 ¾ ¾ KDDI FMBC Fixed Mobile & Broadcast Convergence 2 au ¾ MNP au ¾BCMCS 06 9 Rev.A 06 12 ¾ au ¾ MNP 3 ¾ IP FMBC ¾ ¾ FTTH 3
Slide 5: Consolidated results: FCF and EBITDA
2. 40,000 4,000 +9.3% +37.7% 30,000 3,000 72.2% 20,000 2,000 48.0% 48.7% 56.2% 10,000 1,000 0 0 06.3 07.3 06.3 07.3 06.3 07.3 14,688 30,608 16,048 9.3% 48.7% 32,930 1,667 2,966 2,295 37.7% 72.2% 3,180 11.3% 9.7% 14.3% - - 9.7% 1,649 2,940 2,273 37.8% 72.2% 3,150 1,014 1,906 1,360 34.1% - 1,860 FCF 9
Slide 6: Mobile segment results (au / PDC)
3. / au PDC 40,000 4,000 +23.9% +5.7% 30,000 3,000 68.4% 20,000 2,000 55.3% 48.3% 48.7% 10,000 1,000 0 0 06.3 07.3 06.3 07.3 06.3 07.3 06.3 07.3 12,137 25,104 12,834 5.7% 48.7% 26,360 24,231 25,439 26,403 27,440 au 11,146 23,352 12,382 11.1% 48.2% 25,670 548 586 624 670 991 1,752 452 -54.4% 65.4% 69
Slide 7: Fixed-line segment results
4. 8,000 0 +26.6% 6,000 -200 127 4,000 49.3% -400 46.2% 2,000 -600 0 -800 06.3 07.3 06.3 07.3 N.A 06.3 07.3 06.3 07.3 2,862 6,193 3,624 26.6% 49.3% 7,350 DION 2,850 2,847 2,785 2,680 -295 -613 -168 - - -460 ADSL 1,495 1,516 1,545 1,470 -10.3% -9.9% -4.6% - - -6.3% FTTH ( ) 138 167 192 290 -290 -622
Slide 8: Capital expenditure by network and segment
5. 2GHz CDN 4,000 800MHz EV-DO 800MHz 1X FTTH 1,500 3,000 19 803 552 1,000 2,000 397 42 451 272 1,000 431 500 358 365 415 1,080 3 79 40 0 0 66 343 35 06.3 07.3 ( ) 06.3 07.3 ( ) 8 06.3 07.3 ( ) 1,761 4,147 1,762 39.2% 4,500 1,183 2,751 1,218 36.6% 3,330 559 1,347 444 50.4% 880 1,666 3,357 1,583 47.5
Slide 9: Designing The Future: au / PDC
Designing The Future au /
Slide 10: au subscriber share and WIN
1.1. au 80% 800 60% 600 40% 400 20% 200 0% 0 3/'05 6/'05 9/'05 12/'05 3/'06 6/'06 9/'06 06.3 / 07.3 / au <65.8%> <88.4%> <24.7%> <26.1%> * 9
Slide 11: au churn rate
1.2. au 2.0% 1.5% 1.26% 1.21% 1.23% 1.11% 1.04% 0.95% 1.0% 0.5% 0.26 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 06.3 07.3 <1.20%> <1.39%> 10
Slide 12: au handset sales and costs
1.3. au * * 40,000 35,000 30,000 1Q 2Q 3Q 4Q 1Q 2Q 06.3 07.3 06.3 07.3 ( ) 1Q 2Q 3Q 4Q 1Q 2Q 4,920 5,510 1,020 1,190 1,190 1,520 1,240 1,290 37,000 37,000 38,000 37,000 35,000 38,000 38,000 37,000 1,325 1,492 270 322 337 396 327 352 11
Slide 13: ARPU and MoU
1.4. ARPU au 180 Total ARPU WIN ARPU 12,000 159 163 159 MoU 9,970 9,990 9,680 9,310 160 151 150 150 9,070 8,850 10,000 140 7,050 7,190 7,090 6,840 6,810 6,700 120 8,000 6,580( 460) 6,480 6,530 6,220 5,840 5,580 5,400 120 6,000 5,240 5,300 5,200 4,880 4,840 4,700 4,650 100 4,000 ( 500) 80 3,490 3,460
Slide 14: WIN subscribers
1.5. WIN au 9 79% WIN 100% 20,000 83% 82% 81% 81% 80% 77% 79% 80% 14,330 16,000 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 3/'07 WIN au 17% 36% 44% 55% 13
Slide 15: MNP (Mobile Number Portability)
2. MNP au 2006 10 24 MNP *MNP Mobile Number Portability KDDI 30% 3,000 au ¾ MNP ¾ ¾MNP ¾MNP ¾MNP 2,100 ¾ 2,835 au ¾ 14
Slide 16: au services: LISTEN MOBILE SERVICE and PCSV
3. au & au LISTEN MOBILE SERVICE PCSV WIN 14 06.8 2006 9 BCMCS cdmaOne CDMA2000 1xEV-DO 1xEV-DO 1x Rev.0 Rev.A 1998 2002 2003 2006 12 Evolution PCSV PC site viewer 15
Slide 17: au network evolution
4. au All IP HSDPA EV-DO Rev.0 HSDPA All IP Enhanced 2006 12 cdma2000 3.1Mbps 100Mbps 1.8Mbps EV-DO Rev.B 2.4Mbps EV-DO Rev.A 154kbps 10Mbps BCMCS EV-DO Rev.0 CDMA2000 1X 2003 11 2006 9 BroadCast / MultiCast Services 2002 4 evolution 16
Slide 18: Google partnership (1)
5. Google (1) au  EZweb  PC 3/4 EZweb Google EZweb 22% PC 31% Google 47% 3 4 5 6 7 8 9 3/4 7/20 9/30 17
Slide 19: Google partnership (2)
5. Google (2) au  EZweb 3 3  CM EC EZweb 3 Google Adwords Web CM EZweb 00 02 04 06 08 10 12 14 16 18 20 22 4 5 6 7 8 06.6 Google 06.8 18
Slide 20: au WIN and KDDI Common Platform (KCP)
6. au WIN KCP au 07 au 05.3 100 WIN au KCP KDDI Common Platform 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 ( ) 19
Slide 21: au handsets
7. au 10,000 9,380 8,000 06.9 6,000 ¾ 10%* 900 4,000 ¾06 +11%* 2,000 cf. 1 +5.3% 0 *KDDI 94 96 98 00 02 04 06 To be continued E03CA E02SA B01K 20
Slide 22: Fixed-line business: KDDI subscribers
1. 9 244 KDDI 3,000 900 20.0% 2,750 12.1%13.6% 9.9% 2,441 800 0.0% 2,000 2,223 -0.8% -6.7% -4.9% 1,799 700 -20.0% 1,000 1,165 600 -40.0% 677 41 408 0 500 -60.0% 3/'05 9/'05 3/'06 9/'06 3/'07 1Q 2Q 3Q 4Q 1Q 2Q 300 720 870 1,330 1,470 1,520 1,530 1,530 06.3 07.3 GC 21
Slide 23: FTTH (1)
2. FTTH (1) KDDI one 6 FTTH 06.3 07.3 08.3 05.10 06.4 06.10 07.1 1 FTTH FTTH 05.11 06.6 Step 1 Step 2 FTTH 22
Slide 24: FTTH (2)
2. FTTH (2) FTTH * 2007 1 1 30% FTTH ¾FTTH 53 ¾ KDDI 19 34 06.9 au ¾ Web ¾ISP ISP ¾ PLC * 05.3 06.3 07.3 101 203 404 -306 -358 -250 23
Slide 25: MNP and FTTH trends
1. ( ) 35,000 3,500 40,000 4,000 30,000 3,000 20,000 2,000 30,000 3,000 10,000 1,000 0 0 01.3 02.3 03.3 04.3 05.3 25,000 2,500 06.3 06.3 07.3 07.3 08.3 08.3 MNP FTTH 24
Slide 26: Supplementary data
2. 06.3 20% 1 22.4% 10,000 20.8% 9,000 8,000 21.2% 8,000 6,900 4,500 6,000 4,500 16.8% 3,500 3,600 4,000 17.5% 1,790 2,095 1,000 2,400 4,500 2,000 3,500 895 1,200 2,400 895 895 1,200 0 02.3 03.3 04.3 05.3 06.3 07.3 02.3 25
Slide 27: Designing The Future
Designing The Future Designing The Future 26