Slide 1: KDDI Ubiquitous Solution Company
Ubiquitous Solution Company KDDI 2009 3 2009 4 23
Slide 2: Designing The Future
Designing The Future
Slide 3: FY2009 results highlights
1.1. 2009 3 1 ¾ -2.7% +10.7% ¾4 371 ¾ 800 Hz one 100 827 2 ¾ -5.0% +10.2% ¾3 au 3,084 28.7% ¾ -32% 1,081 257 3 ¾ +18.1% 566 ¾3 534 FTTH 110 4 ¾ 2008 7 ¾ UQ WiMAX 2009 2 FTTH 2
Slide 4: FY2010 forecast
1.2. 2010 3 2009 3 2010 3 ( ) 1 -0.5% +6.0% - - FTTH 34,975 34,800 175 / -0.5% 4,432 4,700 + 268 / +6.0% 5,015 5,100 + 85 / +1.7% 566 400 + 166 / - au ARPU 5,800 5,420 380 - au 3,084 3,160 + 76 - au 1,081 1,000 81 - 534 595 + 61 - FTTH 110 152 + 42 2 800MHz 2GHz 5,400 351 3
Slide 5: FY2010 management policy: FMBC and UQ
1.3. 2010 3 1 2 ¾ No.1 ¾ 3 ¾ 2011 3 FTTH ¾ ICT 1 4 ¾ FMBC 2 ¾ ¾ UQ WiMAX ( 1) Information and Communication Technology ( 2) Fixed Mobile & Broadcast Convergence 4
Slide 6: Consolidated results: FCF and EBITDA
2. 5,000 +6.0% 40,000 -2.7% -0.5% +10.7% 4,000 30,000 3,000 20,000 2,000 10,000 1,000 0 0 08.3 09.3 10.3 08.3 09.3 10.3 08.3 09.3 10.3 35,963 34,975 -2.7% 34,800 -0.5% 4,005 4,432 10.7% 4,700 6.0% 11.1% 12.7% - 13.5% - 4,079 4,405 8.0% 4,500 2.2% 2,178 2,227 2.3% 2,550 14.5% FCF -125 -632 - 670 - EB
Slide 7: Personal services (au): FCF and EBITDA
3. 40,000 6,000 +10.2% +1.7% 5,000 30,000 -5.0% -2.5% 4,000 20,000 3,000 2,000 10,000 1,000 0 0 08.3 09.3 10.3 08.3 09.3 10.3 08.3 09.3 10.3 08.3 09.3 10.3 28,626 27,192 -5.0% 26,500 -2.5% 30,339 30,843 31,600 au 28,517 27,192 -4.6% 26,500 -2.5% 814 923 1,000 109 - - - - au 30,105 30,843 31,600 4,55
Slide 8: Fixed-line broadband: ADSL and FTTH
4. 10,000 +3.7% 0 +18.1% 8,000 -200 6,000 -400 4,000 -600 2,000 -800 N.A. 0 -1,000 08.3 09.3 10.3 08.3 09.3 10.3 08.3 09.3 10.3 08.3 09.3 10.3 7,186 8,487 18.1% 8,800 3.7% ADSL 1,396 1,224 1,080 -647 -566 - -400 - FTTH 710 1,099 1,520 -9.0% -6.7% - -4.5% - 3,279 3,130 2,850 1 -648 -616 - -530 - 286
Slide 9: Capital expenditure: 800MHz and 2GHz
5. 800MHz 2GHz 800MHz EV-DO 5,000 800MHz 1X 2,000 FTTH 4,000 1,192 1,500 1,288 3,000 1,000 981 691 2,000 2,001 3,970 864 1,400 1,705 500 1,000 1,066 425 232 0 174 0 29 08.3 60 09.3 33 10.3 ( ) 08.3 09.3 10.3 ( ) 08.3 09.3 10.3 ( ) 5,170 5,751 11.2% 5,400 -6.1% 3,917 4,321 10.3% 3,970 -8.1% 1,096 1,4
Slide 10: Free cash flow
6. 09.3 4 632 09.3 13,000 10,000 12,000 11,000 -1,617 10,000 9,000 5,000 8,000 +9,040 -5,751 7,000 6,000 5,000 EBITDA 4,000 -1,334 0 3,000 4 -890 -632 2,000 -80 FCF 1,000 0 -1,334 = -2,071 + 736 9
Slide 11: FMBC
A) ee ae ee 10
Slide 12: KDDI data and IP revenue
1.1. KDDI 09.3 504 10.6% ARPU IP 09.3 678 27.1% 09.3 ( / IP ) 2,500 2,047 2,000 1,500 1,213 1,294 IP -234 -8 999 1,000 678 504 481 500 45 0 NTT : 4,762 IP : 2,499 KDDI au+ 504 10.6% 678 27.1% : TCA 11
Slide 13: au churn rate
1.2. au 09.3 0.76% 0.19 1.5% 1.03% 0.97% 1.0% 0.89% 0.90% 0.87% 0.75% 0.77% 0.65% 0.5% 0.19 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 08.3 09.3 10.3 <0.95%> <0.76%> <0.55%> 12
Slide 14: au net additions and handset sales
1.3. au 09.3 39,000 * * 50,000 40,000 30,000 20,000 10,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 08.3 09.3 08.3 09.3 10.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 5,860 4,250 3,610 1,240 1,490 1,300 1,830 1,290 1,040 790 1,140 37,000 39,000 36,000 35,000 36,000 35,000 41,000 45,000 38,000 32,000 41,000 1,582 1,081 1,000 353 408
Slide 15: au ARPU
1.4. au ARPU 09.3 ARPU ARPU 5,800 Total ARPU WIN ARPU 180 10,000 160 MoU 8,160 8,000 139 139 137 140 135 140 132 136 139 7,680 7,410 7,120 7,100 6,950 8,000 6,430 6,400 6,230 6,670 120 5,990 5,900 5,940 5,870 5,500 5,420 4,890 4,780 6,000 100 4,510 4,270 4,050 4,060 3,940 3,700 80 4,350 4,270 4,090
Slide 16: WIN handset share
1.5. WIN 3 WIN au 74% 72% WIN 100% 35,000 77% 77% 76% 30,000 75% 74% 74% 73% 80% 72% 72% 26,700 25,000 60% 22,722 21,799 20,000 19,695 20,473 21,096 18,126 17,063 15,000 40% 15,753 14,549 10,000 20% 5,000 0% 0 3/'07 6/'07 9/'07 12/'07 3/'08 6/'08 9/'08 12/'08 3/'09 3/'10 WIN au 53% 56% 59% 62% 65% 6
Slide 17: au handset mix
1.6. au 4Q 75% 41% 71% 100% 25% 80% 41% 60% 74% 29% 96% 50% 40% 24 75% 59% 20% 26% 15% 0% 4% 12 6% 1Q 2Q 3Q 4Q 18 09.3 16
Slide 18: KDDI results by business
2. 09.3 10.3 KDDI 08.3 09.3 1,582 1,081 32% 3 131 169 +39 (4 ) (36 ) (+32 ) 19 257 +238 (4 ) (65 ) (+61 ) 17
Slide 19: KDDI
BOSET—SAZL OTB. (LauseHh-7f) 18
Slide 20: au design project
Designing The Future MA A. au design project > LISMO! as au Smart Sperte 7 lida 19
Slide 21: Subscriber growth
5. 09.3 +25% 447 E ( ) 700 E 600 570 500 447 400 359 300 272 200 175 113 100 0 05.3 06.3 07.3 08.3 09.3 10.3 ( ) 08.3 09.3 20
Slide 22: 3.9G LTE evolution
6. 3.9G LTE LTE LTE Rev. A 3G 3.5G 3.9G CDMA OFDMA LTE (OFDMA : FDD) EV-DO Rev. 0 Rev. A Multicarrier Rev. A CDMA2000 1x * CDMA FDD LTE (OFDMA : FDD) HSDPA HSPA / HSPA+ W-CDMA 2002 2004 2006 2008 2010s WiMAX (OFDMA : TDD) Wi-Fi ( ) LTE : Long Term Evolution OFDMA: Orthogonal Frequency Division Multi
Slide 23: 800MHz network buildout
7. 800MHz 09.3 10.3 ( ) 5,000 4,321 3,970 4,000 3,917 3,289 691 2,001 3,000 2,751 2,110 397 1,315 2012 1,705 LTE 2,000 1,066 680 800MHz 1,000 2GHz 0 06.3 07.3 08.3 09.3 10.3 ( ) 22
Slide 24: FTTH subscribers and CTC
1. 3 534 CTC 3Q one FTTH 1 FTTH 2 FTTH 7,000 80 (CTC) 5,950 74 one 6,000 5,265 5,342 59 58 5,082 5,178 1,520 60 26 4,827 5,000 916 967 1,025 1,099 51 710 43 26 23 4,000 40 22 2,850 33 3,000 30 3,279 3,269 3,251 3,201 3,130 48 2,000 20 12 34 35 1,020 28 1,000 355 429 517 604 286 667 683 697 712 722 9
Slide 25: FTTH strategy
2. FTTH 11.3 09.3 11.3 FTTH CATV 0 0 0 0 24
Slide 26: ICT global business
3. ICT ICT ( ) 48 (63 ) SI TEA + RJCN 1 (2008 9 ) Unity 2 (2009 4 ) * 2009 3 2010 2008 10 2009 3 London( ) Singapore( ) Paris( ) ( 1) Transit Europe Asia: Rostelecom Russia-Japan Cable Network: Rostelecom TEA RJCN 2) 25
Slide 27: FMBC services
1.1. FMBC au KDDI 3,000 FMBC FMC au one au one net *4 MCPC award au KDDI /ICT FMC au au BOX FMBCFixed Mobile & / WIN ) Broadcast Convergence LISMO Video FMS/FMC LISMO au OFFICE FREEDOM one TV FMS: Fixed Mobile Substitution 26
Slide 28: FMBC services
1.2. FMBC au FMBC au PiPit ( ) 27
Slide 29: CATV and JCN
1.1. CATV JCN 09.3 578 CATV JCN ( ) ( ) 800 100 100 740 2 578 80 600 70 60 400 381 1 42 40 25 200 20 0 0 08.3 09.3 10.3 ( ) 3/'07 3/'08 3/'09 3/'10 ( ) ( 1) KDDI 9 ( 2) 2009 4 JCN JCN 28
Slide 30: au services
1.2. au au 4 4 50 ( ) 4 4 60 50 + 40 * 20 17.9 0 9/'08 3/'09 29
Slide 31: Mobile WiMAX
1.3. Mobile WiMAX UQ 2009 2 26 7 1 2009 7 ¾ 2010 3 ¾Wi-Fi WiMAX 2011 3 ¾WiMAX PC ¾ 2013 3 90% ¾ ¾MVNO 560 14.3 1,450 14.3 ¾PC PC 14.3 1,440 30
Slide 32: KDDI and the ubiquitous society
2.1. KDDI ( ) I C T RF-ID 2004 u-Japan WEB IPv6 2001 e-Japan 1995 2000 2005 2010 KDDI 31
Slide 33: KDDI ICT strategy
2.2. KDDI KDDI ICT ICT PULL PUSH IT 32
Slide 34: Long-term financial trends
20% 1 22.0% 19.2% 21.5% 22.4% 11,000 11,000 10,500 20.8% 9,500 21.2% 8,000 6,900 5,500 5,500 5,500 5,000 16.8% 4,500 3,600 3,500 17.5% 1,790 2,095 1,000 5,000 5,500 5,500 2,400 4,500 895 1,200 3,500 2,400 895 895 1,200 02.3 03.3 04.3 05.3 06.3 07.3 08.3 09.3 10.3 06.3 07.3 02.3 33
Slide 35: Designing The Future
Designing The Future : Designing The Future 34