Slide 1: KDDI Corporation Ubiquitous Solution Company
Ubiquitous Solution Company KDDI CORPORATION 2008 3 2008 4 24
Slide 2: Designing The Future
Designing The Future
Slide 3: FY2008 results highlights
1.1. 2008 3 1 ¾ au +7.8% +16.2% 2 au ¾ +6.9% +18.0% ¾ +215 au +279 -64 MNP 1 +59.7 au +62.5 -2.8 au 3,000 ¾au WIN 3 1,970 74% ¾ 3 au 260 2005 9 3 ¾ +0.6% +3.2% 647 ¾3 2 328 FTTH one 71 1 MNP Mobile Number Portability 2 ADSL one 2
Slide 4: FY2009 forecast (1)
1.2. 2009 3 (1) 2008.3 2009.3 1 2 - au - 4 FTTH 35,963 37,000 +1,037 / + 2.9% 4,005 4,430 + 425 / +10.6% - 4,550 4,970 + 420 / + 9.2% - 647 580 + 67 / - au ARPU 6,260 5,660 600 - au 3,011 3,160 + 149 - 1,582 1,440 142 - 328 308 20 - FTTH 71 114 + 43 3
Slide 5: FY2009 forecast (2)
1.2. 2009 3 (2) 2008.3 2009.3 2 20 6 9 +130 130 3 4 1 CTC 390 75 4 au 2GHz 800MHz 5,900 +730 4
Slide 6: FY2009 and 2010 management policy
1.3. 2009 3 1 2010 2 No.1 ¾ 2 au ¾ KDDI ¾ 3 ¾ ¾ 1500 ¾ ICT 2 4 ¾UQ 2009 WiMAX ¾ 2008 1 FTTH 2 Information and Communication Technology 5
Slide 7: Consolidated results and forecast
2. 40,000 +2.9% 5,000 +7.8% +10.6% +16.2% 4,000 30,000 3,000 20,000 2,000 10,000 1,000 0 0 07.3 08.3 09.3 07.3 08.3 09.3 07.3 08.3 09.3 33,353 35,963 7.8% 37,000 2.9% 3,447 4,005 16.2% 4,430 10.6% 10.3% 11.1% - 12.0% - 3,509 4,079 16.2% 4,400 7.9% 1,867 2,178 16.6% 2,500 14.8% FCF 2,965 -125 - -170
Slide 8: Mobile segment results and forecast
3. 40,000 6,000 +9.2% +6.9% +1.7% 5,000 18.0% 30,000 4,000 20,000 3,000 2,000 10,000 1,000 0 0 07.3 08.3 09.3 07.3 08.3 09.3 07.3 08.3 09.3 07.3 08.3 09.3 26,774 28,626 6.9% 29,110 1.7% 28,188 30,339 31,600 au 26,106 28,517 9.2% 29,110 2.1% 699 814 1,000 668 109 -83.7% 0 - au 27,317 30,105 31,600 3,
Slide 9: Fixed-line segment results and forecast
4. 10,000 0 +19.0% 8,000 +0.6% -200 6,000 -400 4,000 -600 2,000 -800 N.A. 0 -1,000 07.3 08.3 09.3 07.3 08.3 09.3 07.3 08.3 09.3 07.3 08.3 09.3 7,144 7,186 0.6% 8,550 19.0% ADSL 1,512 1,396 1,280 -490 -647 - -580 - FTTH 592 710 1,140 -6.9% -9.0% - -6.8% - 2,813 3,279 3,080 1 -472 -648 - -620 - - 286
Slide 10: Capital expenditure and network investment
5. IP 2GHz CDN 800MHz EV-DO 5,000 800MHz 1X 2,000 FTTH 4,000 1,500 1,288 3,000 1,084 1,000 691 4,360 2,000 1,500 1,315 864 500 649 1,000 1,705 200 689 60 3595 68 33 232 0 0 174 07.3 08.3 09.3 ( ) 07.3 08.3 09.3 ( ) 08.3 FTTH 07.3 08.3 09.3 ( ) 4,385 5,170 17.9% 5,900 14.1% 3,289 3,917 19.1% 4,360 11
Slide 11: Designing The Future
Designing The Future 10
Slide 12: 1.1 au subscriber growth and MNP
1.1. KDDI(au ) au KDDI 215 au 3,000 3,011 au MNP 100% au MNP 1,000 80% 800 60% au 600 40% 400 20% 200 0% 0 -20% -200 -40% -400 3/'06 6/'06 9/'06 12/'06 3/'07 6/'07 9/'07 12/'07 3/'08 07.3 08.3 275 55.8% 215 35.8% au 93.7% -37.9% au 46.4% -10.6% 2,819 29.1% 3,034 29.5% au 28.2% 0.9% au 29.3% 0.2% 07
Slide 13: 1.2 au churn rate
1.2. au au 0.95% 0.07 2.0% 1.5% 1.04% 1.07% 0.95% 1.00% 0.97% 1.03% 0.89% 0.90% 1.0% 0.5% 0.07 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 07.3 08.3 09.3 <1.02%> <0.95%> <0.91%> 12
Slide 14: 1.3 au handset sales and costs
1.3. au au 37,000 * 50,000 40,000 30,000 20,000 10,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 07.3 08.3 07.3 08.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 5,680 5,860 1,240 1,290 1,450 1,700 1,240 1,490 1,300 1,830 37,000 37,000 38,000 37,000 35,000 37,000 35,000 36,000 35,000 41,000 1,555 1,582 327 352 411 465 353 408 370 451 1
Slide 15: 1.4 au ARPU
1.4. au ARPU au ARPU WIN APRU Total ARPU WIN ARPU 180 10,000 9,070 8,850 160 150 150 148 8,610 8,310 MoU 8,160 8,000 140 139 139 137 132 7,680 7,410 140 8,000 6,810 6,700 6,600 6,380 120 6,430 6,400 6,230 5,990 5,580 5,400 5,180 5,660 4,960 4,890 4,780 6,000 100 4,510 4,270 80 4,840 4,700 4,570 4,32
Slide 16: 1.5 WIN handset share
1.5. WIN au 3 WIN au 65% 74% WIN 100% 30,000 81% 80% 79% 78% 77% 77% 76% 75% 74% 25,000 80% 24,000 20,000 60% 19,695 18,126 17,063 15,000 15,753 14,549 40% 12,520 10,000 10,770 9,460 20% 8,280 5,000 0% 0 3/'06 6/'06 9/'06 12/'06 3/'07 6/'07 9/'07 12/'07 3/'08 3/'09 WIN au 36% 40% 44% 49% 53% 56% 59%
Slide 17: au services (1)
2. (1) au 3 au 100 10 TV 10 2008 3 1 5 31 au SS 2010 5 980 ( ) 1,050 ( ) 16
Slide 18: au services (2)
2. (2) au KDDI GPS BREW® E03CA BREW® KDDI MCPC award 2008 KDDI au MCPC 17
Slide 19: Fixed-line IP market
1. IP IP 100% 27.5% 80% 60% 93.3% FTTH 40% 72.5% KDDI 20% 0% 6.7% IP 3 FTTH 1987 300 7,528 20 FTTH 5,460 280 2,068 NTT B KDDI ISP au one net NTT 18
Slide 20: FTTH business
2. (1) FTTH 3 483 2003 10 one FTTH 2005 2 7,000 6,000 5,300 2005 10 4,827 5,000 1,140 710 2006 1 4,000 2007 1 3,000 3,279 3,080 2,000 2007 6 JCN CATV 1,000 580 286 2008 4 667 700 0 CTC 2008.3 2009.3 ( ) 19
Slide 21: Corporate data and VPN business
2. (2) CTC VPN VPN IP-VPN 15.3% 7.2% 1,200 28.1% 11.0% 1,000 37.2% 800 20.2% KDDI 600 13.3% NTT 400 KDDI 200 A 0 04.3 05.3 06.3 07.3 08.3 06.1 20
Slide 22: TELEHOUSE data center business
3. 39 48 250 1.5 10 TELEHOUSE TELEHOUSE SI SI SI: System Integration 21
Slide 23: Toward 2010 No.1 goals
1. 2010 2010 No.1 No.1 2010 2011.3 4 6,000 ¾ ¾ FTTH ¾ FMBC ¾ ICT FMBC: Fixed Mobile & Broadcast Convergence, ICT: Information and Communication Technology 22
Slide 24: FMC and ICT toward 2010
2. 2010 3,000 au FMC ICT 2010 4 6,000 JCN CATV UQ ( WiMAX) 2010 0 0 23
Slide 25: JCN and CATV initiatives
3. JCN 2010 KDDI JCN MSO CATV15 3 67 08.3 9 381 JCN 15 2 MSO Multiple System Operator 24
Slide 26: WiMAX and UQ initiatives
3. WiMAX 2010 2.5GHz UQ 2009 2008 2009 2010 2011 2012 2013 50% 70% 90% 4,000 14,000 18,500 09/2 23 09 2012 2008/3/17 UQ 25 25
Slide 27: Financial targets toward 2010
4. 2010 20% 1 19.6% 21.5% 22.4% 11,000 10,500 20.8% 9,500 21.2% 8,000 6,900 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 2,400 4,500 895 1,200 3,500 2,400 895 895 1,200 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2006 3 2007 3 2002 3 26
Slide 28: Designing The Future
Designing The Future Designing The Future 27