Kddi Corporation · TSE:9433

Kddi — FY2006 Earnings Presentation

30 slides from Kddi's earnings presentation, Apr 25, 2006

1. Slide 1: Ubiquitous Solution Company KDDI CORPORATION

   Ubiquitous Solution Company KDDI CORPORATION 2006 3 2006 4 25

2. Slide 2: 1

   1

3. Slide 3: FY2006.3 results highlights

   1.1. 2006 3 1 ¾ au +4.8% +0.1% 2 au ¾ +8.6% +21.3% ¾3 27.7% au 24.7% 3.0% 48.1% au 65.8% -17.7% ¾au WIN 3 828 81% ¾ au 71 3 ¾ 613 ¾ 180 ¾ 4 ¾ PDC 1,043 1,157 2

4. Slide 4: au ARPU and FTTH key indicators

   1.2. 2007 3 06.3 07.3 1 - MNP - FTTH ¾ 30,608 32,930 + 2,322 2,966 3,180 + 214 ¾ 9au ARPU 7,040 6,580 460 9 au 2,544 2,744 + 200 9 71 161 + 90 9 180 275 + 95 9FTTH 17 29 + 12 2 au 2GHz 4,500 +353 3

5. Slide 5: KDDI priorities: MNP, Rev.A, FMC

   1.3. 2007 3 1 ¾ ¾ KDDI FMC 2 au ¾MNP MNP ¾Rev.A 06 ¾ au ¾ MNP 3 ¾ IP FMC ¾ ¾ FTTH 4

6. Slide 6: Consolidated results and forecast

   2. 40,000 4,000 +7.6% +7.2% +4.8% +0.1% 30,000 3,000 20,000 2,000 10,000 1,000 0 0 05.3 06.3 07.3 05.3 06.3 07.3 05.3 05.3 06.3 07.3 05.3 06.3 29,200 30,608 4.8% 32,930 7.6% 28,332 8.0% 2,962 2,966 0.1% 3,180 7.2% 2,907 2.0% 10.1% 9.7% - 9.7% - 10.3% - 2,863 2,940 2.7% 3,150 7.1% 2,814 4.5% 2,006 1,

7. Slide 7: Mobile segment: au and PDC

   3. / au PDC 40,000 4,000 +21.3% +0.2% 30,000 +5.0% 3,000 +8.6% 20,000 2,000 10,000 1,000 0 0 05.3 06.3 07.3 05.3 06.3 07.3 05.3 06.3 07.3 05.3 06.3 07.3 23,125 25,104 8.6% 26,360 5.0% 23,132 25,439 27,440 au 20,859 23,352 12.0% 25,670 9.9% 487 586 670 2,266 1,752 -22.7% 690 -60.6% au 19,542 22,699 2

8. Slide 8: Fixed-line segment results

   4. 8,000 200 +18.7% +3.9% 0 6,000 -200 4,000 -400 2,000 -600 0 -800 05.3 06.3 07.3 05.3 06.3 07.3 N.A 05.3 06.3 07.3 05.3 06.3 07.3 5,960 6,193 3.9% 7,350 18.7% DION 2,885 2,847 2,680 -3 -613 - -460 - ADSL 1,494 1,516 1,470 -0.1% -9.9% - -6.3% - FTTH ( ) 91 167 290 -4 -622 - -480 - 79 165 - -44 264

9. Slide 9: Capital expenditure, 2GHz and 800MHz

   5. 2GHz 800MHz EV-DO CDN 3,000 800MHz 1X 19 2,000 2,500 77 803 476 1,500 2,000 178 397 552 1,500 1,000 671 451 42 1,000 366 272 500 290 500 1,010 1,080 415 90 120 66 0 0 05.3 06.3 05.3 06.3 05.3 06.3 07.3 ( ) 3,424 4,147 4,500 2,412 2,751 3,330 2,335 2,731 3,330 77 19 - 866 1,347 880 3,499 3,357 3,3

10. Slide 10: au / PDC

    au / (PDC) 9

11. Slide 11: au subscriber share trend

    au 1.1. 80% 800 au 60% 600 40% 400 20% 200 0% 0 3/'04 6/'04 9/'04 12/'04 3/'05 6/'05 9/'05 12/'05 3/'06 * 05.3 / 06.3 / <50.4%> <65.8%> <22.5%> <24.7%> 10

12. Slide 12: au churn rate

    au 1.2. 2.0% 1.49% 1.51% 1.40% 1.37% 1.5% 1.26% 1.21% 1.23% 1.11% 1.0% 0.5% 0.24 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 05.3 06.3 07.3 <1.44%> <1.20%> <1.39%> 11

13. Slide 13: au subscriber acquisition and costs

    au 1.3. * * 40,000 35,000 30,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 05.3 06.3 05.3 06.3 07.3 ( ) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4,440 4,920 5,510 940 1,140 1,120 1,240 1,020 1,190 1,190 1,520 38,000 37,000 37,000 37,000 39,000 39,000 38,000 38,000 37,000 35,000 38,000 1,159 1,325 1,492 255 293 287 323 270 322 337 3

14. Slide 14: au ARPU

    au 1.4. ARPU Total ARPU WIN ARPU 190 14,000 169 171 167 11,550 11,190 163 159 12,000 170 158 159 10,570 151 MoU 10,160 9,970 9,990 9,680 9,310 10,000 150 7,260 7,300 7,190 6,960 7,050 7,190 7,090 6,840 7,150 7,270 8,000 130 6,580 6,970 6,640 6,480 6,530 6,220 ( 460) 5,840 6,000 110 5,540 5,570 5,470

15. Slide 15: au WIN

    au 2. WIN ARPU WIN WIN 42% 58% 100% 20,000 83% 82% 81% 81% 77% 80% 16,000 06.3 4Q 14,330 60% 12,000 1X WIN ARPU 8,280 1,500 40% 6,750 8,000 5,550 1,000 4,319 500 20% 3,252 4,000 0 12/'03 4/'04 8/'04 12/'04 4/'05 8/'05 12/'05 500 0% 0 3/'05 6/'05 9/'05 12/'05 3/'06 3/'07 1,000 WIN au 17% 1,500 36% 55

16. Slide 16: au content services (1)

    au 3. (1) & 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 15

17. Slide 17: au content services (2)

    au 3. (2) WIN 7 MY LISMO LISMO PC ¾ 470 DL * DL 2 PC ¾ * DL - W41T(HDD ) 4.9DL 3/17 - LISMO 3.8DL ( ) DL - 2.9DL 06.3 06.3 harmonization WIN 7 1 2 16

18. Slide 18: au EC services (1)

    au 4. (1) 06.3 175 EC 1.5 300 240 250 EC 25% 200 175 16% 150 24% 113 9% 19% 100 26% 17% 18% 50 50% 40% 56% 0 05.3 06.3 07.3 17

19. Slide 19: au DL services (2)

    au 4. (2) DL DL ( ) DL PCSV ARPU 18

20. Slide 20: au KCP KDDI Common Platform

    au 5. KCP KDDI Common Platform WIN WIN au WIN WIN 1X - KCP - WIN • 300 •LISMO/ • HDD/PCSV/FeliCa/ 07.3 ( ) WIN 1X '06 06.3 '03 05.3 • 30 • 0% 50% 100% 19

21. Slide 21: PDC to au migration

    PDC 6. au MNP au au au WIN ARPU 1X WIN ARPU 8,000 6,420 5,530 6,000 1X WIN 4,000 54% 46% 2,000 0 au 06.3 05.10 06.1 ARPU 20

22. Slide 22: Fixed-line business (1)

    1. (1) 180 KDDI 3,000 1,500 ( ) 2,750 2,000 (+634) 1,400 1,799 (+488) 1,300 1,000 1,165 (+269) (+367) 677 1,200 41 408 0 3/'05 6/'05 9/'05 12/'05 3/'06 3/'07 1,100 300 720 870 1,330 1,470 1,530 GC 05.3 06.3 (+420) (+150) (+460) (+140) 21

23. Slide 23: Fixed-line business (2)

    1. (2) 07.3 08.3 0 06.3 07.3 08.3 Year 1 Year 2 Year 3 22

24. Slide 24: FTTH business

    2. FTTH FTTH 06.6 FTTH 07 1 1 FTTH KDDI 06.3 07.3 08.3 05.10 06.4 07.1 1 FTTH FTTH 05.11 06.6 Step 1 Step 2 FTTH 23

25. Slide 25: FTTH expansion

    3. 07.3 FTTH 08.3 FTTH FTTH FTTH 06.3 07.3 07.3 460 06.3 FTTH 613 FTTH 24

26. Slide 26: FMC

    4. IP FMC FMC 3G IP CATV IP IP FTTH CDN 25

27. Slide 27: FMC initiatives

    1. FMC / 1 05.5 05.6 3G IP 05.12 FMC / 2 etc. 06.2 LISMO PC 06.6 KDDI au * / 3 06.7 OFFICE FREEDOM etc. FMC 3G 26

28. Slide 28: MNP and FTTH

    2. ( ) 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 27

29. Slide 29: Results and targets

    3. 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 28

30. Slide 30: Ubiquitous Solution Company

    Ubiquitous Solution Company 29

KDDI — FY2006 Earnings Presentation on 6ix