Slide 1: KDDI Corporation - Ubiquitous Solution Company
Ubiquitous Solution Company KDDI CORPORATION 2005 3 1 2004 7 29
Slide 2: Slide 2
Slide 3: Q1 results highlights
1.1. 2005 3 1Q 1 au BBC 4.4% 5.3% 2 20 1 1,000 3 au 23.8% 1X 1Q 53.0% 3G 1X WIN 6 83.6% 4 BBC & AC 1Q 6 2.8 5 FCF 6 2004 3 BBC 1
Slide 4: KDDI and PHS business
1.2. 6 21 04 10 1 KDDI 60% 30% KDDI 04 12 10% PHS 2,200 KDDI 80.93% 310 2
Slide 5: Consolidated results, FCF and EBITDA
2. 40,000 4,000 30,000 3,000 20,000 2,000 10,000 1,000 1Q 1Q 1Q 1Q 0 0 04.3 05.3 04.3 05.3 PHS PHS 04.3 05.3 1Q 1Q PHS 6,897 28,461 7,201 4.4% 28,990 -830 29,820 851 2,921 896 5.3% 3,090 -110 3,200 12.3% 10.3% 12.4% - 10.7% - 10.7% 812 2,745 872 7.4% 3,000 -110 3,110 439 1,170 517 17.6% 2,130 230 1,
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 5,000 500 1Q 1Q 1Q 1Q 0 0 04.3 05.3 04.3 05.3 04.3 05.3 04.3 05.3 1Q 1Q 1Q 1Q 4,256 18,251 4,862 20,070 14,674 16,959 17,591 19,150 646 2,395 800 2,790 250 361 393 450 15.2% 13.1% 16.4% 13.9% WIN(EV-DO) 0 343 573 - 619 2,291 791
Slide 7: BBC business results
4. BBC 8,000 200 6,000 150 4,000 100 2,000 50 1Q 1Q 1Q 1Q 0 0 04.3 05.3 04.3 05.3 04.3 05.3 04.3 05.3 1Q 1Q 1Q 1Q 1,392 5,425 1,239 5,150 DION 2,430 2,687 2,760 2,900 104 164 0.1 30 ADSL 662 1,109 1,251 1,650 7.5% 3.0% 0.01% 0.6% FTTH ( ) - 23 43 200 114 158 4 30 0 9 * 28 - 65 -288 9 40 05.3 1Q FCF
Slide 8: Fixed-line business results
5. 4,000 400 3,000 300 2,000 200 1,000 100 1Q 1Q 0 1Q 1Q 0 04.3 05.3 04.3 05.3 04.3 05.3 04.3 05.3 1Q 1Q 1Q 1Q 721 2,765 611 2,540 3,740 3,632 3,606 3,550 47 154 57 160 ARPU 5,150 5,020 4,690 4,710 6.5% 5.6% 9.3% 6.3% 35 114 50 140 25 91 34 90 FCF 114 550 112 520 EBITDA 185 712 177 650 25.6% 25.7% 2
Slide 9: PHS business results
6. 2,500 250 2,000 200 1,500 150 1,000 100 500 50 1Q 1Q 1Q 1Q 0 0 04.3 05.3 04.3 05.3 PHS PHS 04.3 05.3 04.3 05.3 1Q 1Q PHS 1Q 1Q 485 1,840 441 900 -910 1,810 2,959 2,897 2,913 - 55 211 28 80 -110 190 AirH" 830 990 1,060 - 11.4% 11.5% 6.3% 8.9% - 10.5% 51 190 26 70 -100 170 ARPU 4,880 4,750 4,430 -
Slide 10: Capex, debt and financial position
7. 04.3 05.3 PHS 338 2,533 421 3,120 -110 3,230 au 167 1,612 266 2,000 2,000 BBC& 85 551 93 820 820 31 147 20 90 90 30 129 29 70 -110 180 922 3,657 920 3,590 -190 3,780 au 452 1,849 501 2,020 2,020 BBC& 227 841 199 860 860 135 538 116 480 480 97 387 93 190 -190 380 14,236 11,798 11,169 8,710 -310 9,
Slide 11: au and BBC
au BBC 9
Slide 12: Subscriber numbers
1.1. * * 45,000 40,000 35,000 30,0000 1Q 2Q 3Q 4Q 1Q 03.3 04.3 05.3 03.3 04.3 05.3 1Q 2Q 3Q 4Q 1Q 4,050 3,840 4,000 900 900 920 1,120 940 40,000 36,000 36,000 37,000 36,000 36,000 37,000 37,000 1,010 1,057 1,110 241 249 259 307 255 10
Slide 13: WIN subscribers and handset mix
1.2. 1Q 6 1,759 100% 500 1x WIN 80% 400 58.8% 58.3% 60% 300 41.0% 40% 200 20% 100 0% 0 4/‘02 9/‘02 3/‘03 9/‘03 3/‘04 6/’04 03.3 04.3 05.3 < / > <40.1% / 19.0%> <53.0% / 21.3%> <49.6% / 20.8%> < - / - > 11
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% 1.40% 1.40% 1.5% 1.0% 0.5% 0.16 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 03.3 04.3 05.3 <1.8%> <1.49%> 12
Slide 15: ARPU
1.4. ARPU WIN ARPU 83% 14,000 Total ARPU WIN ARPU 12,000 11,610 11,550 10,000 7,560 7,660 7,640 7,420 7,480 7,540 7,490 7,280 7,260 7,140 8,000 90 90 7,060 7,150 6,000 6,420 6,420 6,320 5,990 5,930 5,900 5,830 5,560 5,540 5,340 4,000 4,550 4,400 2,000 1,140 1,240 1,320 1,430 1,550 1,640 1,660 1,720
Slide 16: WIN handsets
2.1. WIN D05 3 98% = 1 4 04 7 ~ & 04 8 1 ~ D04 7 ~ EZ D04 8 ~ 14
Slide 17: WIN handset lineup
2.2. WIN BREWTM WIN W21SA W21S W21K •2.4 QVGA •2.4 QVGA •2.2 QVGA •2M •1.3M •1.3M • FM • • •EZ •EZ • •miniSDTM* • Duo* • 15
Slide 18: WIN service
2.3. WIN WIN WIN 2004 8 1 4,410 2,100 16
Slide 19: EZ content services
2.4. EZ 7 KDDI KDDI 1 © KDDI/mediba © KDDI/mediba © KDDI/mediba © KDDI/mediba © KDDI/mediba © Label mobile. Inc 17
Slide 20: WIN services and Flash
CDMA1X 2.5. WIN EZhy7X=3- EZhy7A=a— oy pes eRs Ye 9744S ? au 4—-J-KCRE 4—T—-KCRIE ‘& Bt): Rob J eyaaaza-2 TEYRARIA-Z% Ye -94 + YALE gr? OD FI" Y CHET (EZ1-F oh a an Te age ps CES Et Tg BS Bey ot B BREF. ll | ess te a: j-lash™ ~7tt' CGO! mperiennes BRE BAF Dies ee hii 18V0l.2 DB asaya 5 “ulyaykyg 4 y
Slide 21: au subscriber trend
3.1. au 20,000 200 2002.12 15,000 150 10,000 100 50 5,000 3Q 4Q 1Q 2Q 3Q 4Q 1Q 03.3 04.3 05.3 19
Slide 22: EZ service usage
3.2. EZ 6 13 2 EZ 2 2 160 1,600 140 1,400 120 1,200 100 1,000 80 800 60 600 40 400 20 200 0 0 03.12 04.3 04.6 20
Slide 23: BBC and DION ADSL
BBC & BB DION ADSL 1,500 15% 50 35 40 9.9% 10.4% 28 1,000 8.0% 8.4% 8.9% 10% 30 20 500 5% 10 0 0% 0 1Q 2Q 3Q 4Q 1Q 3Q 4Q 1Q 04.3 05.3 04.3 05.3 ADSL 21
Slide 24: Ubiquitous Solution Company
Ubiquitous Solution Company