Kddi Corporation · TSE:9433

Kddi — Q3 FY2006 Earnings Presentation

22 slides from Kddi's earnings presentation, Jan 24, 2006

1. Slide 1: KDDI Corporation - Ubiquitous Solution Company

   Ubiquitous Solution Company KDDI CORPORATION 2006 3 3 2006 1 24

2. Slide 2: 1

   1

3. Slide 3: 1-3Q Highlights

   1.1. 1-3Q 1 ¾ au +1.6% +6.2% 2 au ¾ +7.5% +30.7% ¾12 27.4% au 23.9% 3.5% 1-3Q 49.2% au 63.8% -14.6% ¾au WIN 12 675 81% ¾ au 3Q 35 3 ¾ 438 ¾ 3Q 12 117 ¾ 1 1 4 ¾FMC 12 1 2

4. Slide 4: FY2006 Forecast (1)

   1.2. 2006 3 (1) 1 au 29,760 30,410 + 650 2,890 2,890 - + 210 - 210 9au ARPU 6,810 7,000 + 190 9 2,503 2,528 + 25 9 70 + 70 9 220 170 50 3

5. Slide 5: FY2006 Forecast (2)

   1.2. 2006 3 (2) 2 PDC 1,870 9 PDC 900 9 BOX 100 40% 600 9 600 PDC 3 4,400 4

6. Slide 6: Consolidated Results 1-3Q

   2. 40,000 4,000 3,000 81.9% 89.1% 30,000 75.1% 73.3% (81.5%) (74.4%) 20,000 2,000 1-3Q 1-3Q 10,000 1-3Q 1-3Q 1,000 0 0 05.3 06.3 05.3 06.3 05.3 05.3 06.3 06.3 05.3 06.3 1-3Q 1-3Q 1-3Q 21,943 29,200 22,302 1.6% 73.3% 30,410 29,760 21,074 5.8% 2,425 2,962 2,576 6.2% 89.1% 2,890 2,890 2,370 8.7% 11.1%

7. Slide 7: au / PDC Segment Results

   3. / au PDC 40,000 4,000 85.8% 30,000 3,000 78.4% 20,000 74.2% 74.2% 2,000 1-3Q 10,000 1,000 1-3Q 1-3Q 1-3Q 0 0 05.3 06.3 05.3 06.3 05.3 06.3 06.3 05.3 06.3 06.3 1-3Q 1-3Q 17,165 23,125 18,457 74.2% 24,860 - 22,359 23,132 24,695 25,280 25,030 au 15,429 20,859 17,041 - - 22,450 452 487 567 590 610 1,

8. Slide 8: Fixed-line Segment Results

   4. 8,000 200 1-3Q 0 6,000 74.5% 70.5% -200 1-3Q 4,000 -400 2,000 1-3Q 1-3Q -600 0 -800 05.3 06.3 05.3 06.3 N.A. 05.3 06.3 06.3 05.3 06.3 06.3 1-3Q 1-3Q 4,439 5,960 4,358 70.5% 6,180 6,120 DION 2,874 2,885 2,848 2,850 2,880 83 -3 -438 - -630 -420 ADSL 1,497 1,494 1,510 1,500 1,500 1.9% -0.1% -10.1% -

9. Slide 9: Capital Expenditure and Network

   5. 2GHz 800MHz EV-DO CDN 3,000 2,000 800MHz 1X 2,500 77 480 1,500 2,000 17 180 1,500 576 1,000 670 56 372 IP 2 1,000 352 370 36 1-3Q 500 200 500 1,010 290 1-3Q 845 90 323 120 59 0 0 05.3 06.3 05.3 06.3 05.3 06.3 ( ) 06.3 1-3Q 1-3Q 2,000 3,424 2,874 65.3% 4,400 4,400 1,553 2,412 1,847 65.0% 2,840 2,8

10. Slide 10: au / PDC

    au / (PDC) 9

11. Slide 11: au Subscriber Share (1.1)

    au 1.1. 100% 500 au 80% 400 60% 300 40% 200 20% 100 0% 0 3/'04 6/'04 9/'04 12/'04 3/'05 6/'05 9/'05 12/'05 * 05.3 / 06.3 /1-3Q <50.4%> <63.8%> <22.5%> <23.9%> 10

12. Slide 12: au Churn Rate (1.2)

    au 1.2. 2.0% 1.49% 1.51% 1.40% 1.37% 1.5% 1.26% 1.21% 1.11% 1.0% 0.5% 0.26 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 05.3 06.3 <1.44%> <1.20%> 11

13. Slide 13: au Subscribers and Net Additions (1.3)

    au 1.3. * * 40,000 35,000 30,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 05.3 06.3 05.3 06.3 ( ) 06.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4,440 4,880 4,570 940 1,140 1,120 1,240 1,020 1,190 1,190 38,000 37,000 38,000 37,000 39,000 39,000 38,000 38,000 37,000 35,000 1,159 1,312 1,210 255 293 287 323 270 322 337 12

14. Slide 14: ARPU and MoU (1.4)

    au 1.4. ARPU Total ARPU WIN ARPU 190 14,000 169 171 167 11,550 11,190 170 158 159 163 159 10,570 10,160 12,000 MoU 9,970 9,990 9,680 10,000 150 7,260 7,300 7,190 6,960 7,050 7,190 7,090 (+190) 7,150 7,270 8,000 130 7,000 6,970 6,640 6,480 6,530 6,220 6,000 110 5,540 5,570 5,470 5,180 5,240 5,300 5,2

15. Slide 15: WIN Subscribers (1)

    au 2. WIN (1) 05.5 3/’06 WIN 818 100% 87% 10,000 83% 81% 83%* 82% 81% 79% 77% 80% 8,000 60% 6,750 6,000 5,550 40% 4,000 4,319 3,252 20% 2,000 2,032 343 573 1,191 0% 0 3/'04 6/'04 9/'04 12/'04 3/'05 6/'05 9/'05 12/'05 05.6 05.3 WIN 05.5 6% 14

16. Slide 16: WIN ARPU (2)

    au 2. WIN (2) WIN ARPU WIN 12,000 9,680 10,000 8,000 7,090 6,220 6,000 5,200 47% 53% 4,000 2,000 3,460 1,890 0 WIN ARPU 06.3 3Q ARPU 06.3 3Q 15

17. Slide 17: WIN ARPU (3)

    au 2. WIN (3) WIN ARPU 1X WIN ARPU 1,500 1,000 500 0 12/'03 4/'04 8/'04 12/'04 4/'05 8/'05 500 1,000 1,500 2,000 2,500 WIN ARPU 16

18. Slide 18: PCSV and Mobile Service Evolution

    au 3. & au LISTEN MOBILE SERVICE PCSV CDMA2000 1xEV-DO 1xEV-DO cdmaOne Rev.0 1x Rev.A 1998 2002 2003 2006 Evolution PCSV PC site viewer 17

19. Slide 19: PDC to au Migration

    PDC 4. au MNP au au au WIN ARPU 1X WIN ARPU 8,000 6,750 6,000 5,710 1X WIN 4,000 55% 45% 2,000 0 au 06.3 3Q 10-11 ARPU 18

20. Slide 20: 3Q FTTH and Subscriber Growth

    3Q 12 117 2,000 ( ) 1,500 1,700 (+488) 1,000 1,165 (+269) 500 (+367) 677 408 41 0 3/'05 6/'05 9/'05 12/'05 3/'06( ) GC 300 720 870 1,330 1,450 (+420) (+150) (+460) 19

21. Slide 21: au BBC / FMC

    2005.12.1. FMC au BBC 20

22. Slide 22: Ubiquitous Solution Company

    Ubiquitous Solution Company 21

KDDI — Q3 FY2006 Earnings Presentation on 6ix