Kddi Corporation · TSE:9433

Kddi — 1-3Q FY2005.3 Earnings Presentation

22 slides from Kddi's earnings presentation, Jan 27, 2005

  1. Slide 1: KDDI CORPORATION Ubiquitous Solution Company

    Ubiquitous Solution Company KDDI CORPORATION 2005 3 3 2005 1 27

  2. Slide 2: Slide 2

  3. Slide 3: 1-3Q results highlights

    1.1. 1-3Q 1 au BBC 4.3% 3.3% PHS 277 3Q 2 au 15.5% 12.9% TM 100 1 5 04 52.2% WIN 12 203 3 BBC & 12 1 4 S 1-3Q 3Q 1

  4. Slide 4: FY2005 forecast: au subscribers and ARPU

    1.2. 2005 3 1 au 29,140 +150 2,930 160 Dau ARPU WIN 2,770 160 ARPU 7,190 7,170 20 WIN 300 320 + 20 1,130 1,160 + 30 2 au 3,400 +300 1 2 PHS 2

  5. Slide 5: Consolidated results: FCF and EBITDA

    2. 40,000 4,000 30,000 3,000 20,000 2,000 10,000 1-3Q 1-3Q 1,000 1-3Q 1-3Q 0 0 04.3 05.3 04.3 05.3 04.3 05.3 05.3 1-3Q 1-3Q 21,043 28,461 21,943 4.3% 29,140 28,990 2,347 2,921 2,425 3.3% 2,930 3,090 11.2% 10.3% 11.1% - 10.1% 10.7% 2,212 2,745 2,356 6.5% 2,850 3,000 1,234 1,170 1,541 24.9% 1,930 1,98

  6. Slide 6: au business results

    3. au 30,000 3,000 25,000 2,500 20,000 2,000 15,000 1,500 10,000 1,000 1-3Q 1-3Q 1-3Q 1-3Q 5,000 500 0 0 04.3 05.3 04.3 05.3 04.3 05.3 ( ) 05.3 04.3 05.3 05.3 1-3Q 1-3Q 3Q 3Q 13,307 18,251 15,372 20,700 20,490 15,977 16,959 18,759 19,460 19,460 1,895 2,395 2,139 2,770 2,930 326 361 452 470 470 14.2%

  7. Slide 7: BBC business results

    4. BBC 8,000 200 6,000 100 1-3Q 1-3Q 4,000 0 2,000 -100 1-3Q 1-3Q 0 -200 04.3 05.3 04.3 05.3 KDDI KDDI 04.3 05.3 ( ) 05.3 04.3 05.3 05.3 1-3Q 1-3Q 3Q 3Q 4,097 5,425 3,853 5,080 4,970 DION 2,559 2,687 2,874 2,880 2,880 163 164 83 -80 -120 ADSL 914 1,109 1,497 1,510 1,530 4.0% 3.0% 2.1% -1.6% -2.4% FT

  8. Slide 8: Fixed-line business results

    5. 4,000 400 3,000 300 2,000 200 1,000 1-3Q 100 1-3Q 1-3Q 1-3Q 0 0 04.3 05.3 04.3 05.3 04.3 05.3 ( ) 05.3 04.3 05.3 05.3 1-3Q 1-3Q 3Q 3Q 2,106 2,765 1,784 2,330 2,320 3,670 3,632 3,600 3,580 3,520 127 154 142 160 170 ARPU 5,020 5,020 4,460 4,480 4,470 6.0% 5.6% 8.0% 6.9% 7.3% 95 114 124 140 150 83 9

  9. Slide 9: Segment results: EBITDA FCF AirH

    6. 2,500 250 2,000 200 1,500 150 1,000 100 1-3Q 500 50 1-3Q 0 0 04.3 05.3 04.3 05.3 04.3 05.3 04.3 05.3 1-3Q 3Q 1,406 1,840 869 869 2,914 2,897 2,926 - 170 211 55 55 AirH" 936 990 1,101 - 12.1% 11.5% 6.3% 6.3% 156 190 49 49 ARPU 4,730 4,750 4,430 - 158 191 40 40 FCF 400 472 209 209 EBITDA 470 613 24

  10. Slide 10: Capex, debt and balance sheet

    7. 04.3 05.3 05.3 1-3Q 1-3Q 1,462 2,533 2,000 3,400 3,100 au 899 1,612 1,494 2,300 2,000 BBC& 1 320 551 337 860 820 89 147 59 90 90 2 75 129 50 50 50 2,742 3,657 2,651 3,510 3,520 au 1,376 1,849 1,503 2,020 2,020 BBC& 1 639 841 576 790 800 402 538 351 470 470 2 291 387 187 187 187 12,291 11,798 9,01

  11. Slide 11: au business

    au BBC 9

  12. Slide 12: Subscriber trends

    1.1. * * 45,000 40,000 35,000 30,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 03.3 04.3 05.3 03.3 04.3 05.3 05.3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4,050 3,840 4,450 4,280 900 900 920 1,120 940 1,140 1,120 40,000 36,000 38,000 38,000 37,000 36,000 36,000 37,000 37,000 39,000 39,000 1,010 1,057 1,160 1,130 241 249 259 307 255 293 2

  13. Slide 13: 1x WIN handset share

    1.2. 2004 52.2% 12 1,876 100% 500 1x WIN 80% 400 60% 300 40% 200 20% 100 0% 0 4/‘02 9/‘02 3/‘03 9/‘03 3/‘04 9/’04 12/’04 03.3 04.3 05.3 < / > <59.9% / 20.0%> <48.7% / 21.9%> <49.6% / 20.8%> < - / - > 2004 05.3 3Q DoCoMo Do Pa 11

  14. Slide 14: Churn rate

    1.3. 3.0% 2.5% 2.0% 1.8% 1.7%1.8% 2.0% 1.56%1.54% 1.48% 1.49% 1.40% 1.40% 1.5% 1.37% 1.0% 0.03 0.5% 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 03.3 04.3 05.3 <1.8%> <1.49%> 12

  15. Slide 15: ARPU

    1.4. ARPU 14,000 Total ARPU WIN ARPU 11,610 11,550 11,190 10,570 12,000 10,000 7,560 7,660 7,640 7,420 7,480 7,540 7,490 7,280 7,260 7,300 7,190 7,170 7,060 7,150 8,000 90 90 7,270 6,970 6,000 6,420 6,420 6,320 5,990 5,930 5,900 5,830 5,560 5,540 5,570 5,470 5,430 4,000 2,000 4,550 4,400 3,920 3,600

  16. Slide 16: WIN subscribers (1)

    2.1. WIN (1) WIN 12 200 79% WIN 3,500 3,000 4 2,500 2,000 3 1,500 1,000 1 2 500 0 12/‘03 3/‘04 6/’04 9/’04 12/’04 3/’05 343 573 1,191 2,032 3,200 87% 83% 81% 79% % 14

  17. Slide 17: WIN ARPU (2)

    2.1. WIN (2) WIN ARPU 4,500 ARPU 1X WIN ARPU 20,000 15,000 + 1,300 + 1,800 5,200 10,000 5,000 0 ARPU 2,300 2,300 4,500 4,500 04.10 WIN 9 /11 ARPU 15

  18. Slide 18: EZ TM (1)

    2.2. EZ TM (1) EZ TM 15,000 DL100 10,000 EZ TM 5,000 85% 12 0 2002.12 2003.6 2003.12 2004.6 2004 11 19 2002 12 2 DL100 2005 1 5 48 2003 1 - - 41 04.12 - 31 03.1 WIN 04 1X WIN 300 / 100 / 1.5M 2.0MB 100KB 04 12 1,430 16

  19. Slide 19: EZ TM (2)

    2.2. EZ TM (2) 1 2 37% 63% 50 5% 100% 40 12% 20 80% 30 8% 86% 30 62% 60% 13% 20 17% 40% 55% 20 20% 20% 10 20% 10 5% 0% 0% 10% 20% 30% 1 12 2 11 12 EZweb 300 4,500 17

  20. Slide 20: Business alliances: KCOM, KNSL

    BBC & 1. 4 2004 11 1 K KCOM KNSL KDDI KDDI & NW / NW / KNSL 4 / 18

  21. Slide 21: BBC and NW KNSL initiatives

    BBC & 2. - 2004 12 1 NW - 2005 2 1 : KNSL - DM& BBC - au 19

  22. Slide 22: Ubiquitous Solution Company

    Ubiquitous Solution Company

KDDI — 1-3Q FY2005.3 Earnings Presentation on 6ix