eaccess Limited 9427

Transcription

1 eaccess Limited rd Quarter Results for FY3/2007 (4/2006 ~ 12/2006) February 8 th, 2007

2 I. FY3/2007 3Q Results Page 3 II. Operational Overview Page 11 ADSL/ISP Business Page 12 WiMAX Business Page 16 Mobile Business Page 20 2

3 I. FY3/2007 3Q Results Page 3 II. Operational Overview Page 11 ADSL/ISP Business Page 12 WiMAX Business Page 16 Mobile Business Page 20 3

4 FY3/2007 3Q Results Highlights Achieved net increase in subscriber acquisition in 3Q Improved churn rate to 1.78% in 3Q from 1.85% in 2Q Parent 3Q operating profit (YTD) increased 40% YoY to 9.54 billion yen Decline in consolidated 3Q operating profit (YTD) was in-line with forecast Plan to launch mobile data service in late March 2007 Dividend payout in 3Q is 450 yen per share 4

5 FY3/2007 3Q Financial Results Parent operating profit (YTD) increased by 40% YoY and recurring profit by 51% YoY Decline in consolidated operating profit (YTD) was in-line with our forecast Parent Consolidated (billion yen) FY3/2006 3Q (2005/4-12) (1) FY3/2007 3Q (2006/4-12) YoY Comparison FY3/2007 3Q (2006/4-12) ADSL/ISP + Mobile = Consolidated (2) Revenue % Operating profit % Recurring profit % Net Income % EBITDA % Capex % Depreciation % (1) FY3/2006 3Q included mobile losses of 0.8 billion yen at operating level and 0.9 billion yen at recurring level (2) Minority interest adjustment of 4.09 billion yen was included in the net income level. 5

6 Financial Progress Parent profit progressed better than our forecast Mobile business start-up costs were in-line with the forecast Reduced parent and consolidated full year capex forecast Parent Consolidated (billion yen) FY3/2006 3Q (2005/4-12) Forecast Progress FY3/2006 3Q (2005/4-12) Forecast* Progress Revenue % % Operating profit % NA Recurring profit % NA Net Income % NA EBITDA % NA Capex % % Depreciation % % *Consolidated financial forecast for FY3/2007 includes internal sales adjustment of 0.8 billion yen in the revenue line and minority interest adjustment of 6.8 billion yen in the net income line. 6

7 ADSL/ISP Subscriber and Revenue Achieved net increase in subscriber acquisition in 3Q ADSL/ISP Subscribers Revenue (ADSL/ISP Only) (thou. Subs) 2,400 2,000 ISP subscriber ADSL subscriber 2,167 2,159 2,175 2,187 2,190 2,173 2, (million yen) 16,000 15,219 15,132 15,149 14,000 12,000 14,853 14,291 13,962 13,855 1,600 10,000 1,200 8, ,867 1,870 1,895 1,918 1,930 1,924 1,925 6,000 4, , /1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q 2006/2Q 2006/3Q /1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q 2006/2Q 2006/3Q 7

8 Operating Profit Trend Slight decline in ADSL/ISP operating margin due to an increase in net subscriber addition Consolidated operating losses were in-line with our forecast due to mobile start-up losses Operating Profit and Operating Margin Trend (ADSL/ISP Only) Operating Profit and Operating Margin Trend (Consolidated Basis) (million yen) 5,000 Operating profit(adsl ISP) Operating margin (%)(ADSL ISP) 27.4% 30.0% (million yen) 5,000 Operating profit 30.0% 4,000 3,000 2,000 1, % 2, % 2, % 2,829 4,071 * 22.8% 22.9% 22.2% 3,262 3,200 3, % 20.0% 15.0% 10.0% 5.0% 4,000 3,000 2,000 1,000 0 Operating margin (%) 14.6% 13.1% 13.0% 1,990 1,963 2, % 3,204 * 15.1% 2, % 1, % 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% /1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q 2006/2Q 2006/3Q 0.0% -1, /1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q 2006/2Q 2006/3Q -5.0% *2005/4Q figure includes NTT charges retroactive adjustment of approx. 1,000 million yen. 8

9 Capex and Operating FCF Trend Sharp increase in capex in 3Q was related to mobile network rollout Consolidated Capex Trend Consolidated Operating Free Cash Flow Trend (million yen) 5,000 4,832 (million yen) 5,000 4,000 4,000 3,000 3,128 3,558 2,881 3,369 2,673 3,000 2,384 2,334 2,000 1,000 1,690 2,000 1,000 1,746 1,132 1,938 1, ,000-2,000-3, /1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q 2006/2Q 2006/3Q -4,000-3, /1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q 2006/2Q 2006/3Q Operating Free Cash Flow = EBITDA Capex 9

10 Balance Sheets Maintained strong cash position of billion yen, and net cash position of 84.2 billion yen on the consolidated balance sheets. <Parent> As of September 30, 2006 <Consolidated> As of September 30, 2006 (billion yen) Balance 期末残高 Balance Share of of Total 期末残高 Balance Share of Total Cash and Cash Deposit % % Debt % % Net Debt % NA Minority Interest (EMOBILE) % Total Shareholders Equity % % Total Asset % % Net Debt/Equity ratio(%) 98.2 % % -- 10

11 I. FY3/2007 3Q Results Page 3 II. Operational Overview Page 11 ADSL/ISP Business Page 12 WiMAX Business Page 16 Mobile Business Page 20 11

12 ADSL ISP Business 12

13 ADSL Target Users Gradual increase in market share in a saturated ADSL market ADSL market 14 million subs Other ADSL 競合他社 Operators 86% Competitors 86% eaccess eaccess 14% 14% ADSL service provided to METAL PLUS subscriber addition was in line with our forecast Strong demand for new 12M service Non internet users Dial up users Approx. 5 million Source: MIC Information & Communications statistics database, September

14 ADSL Churn Improvement in monthly churn in 3Q Expect monthly churn to rise in 4Q due to the usual seasonal factor 3.00% 2.50% 2.08% October: 1.89% November:1.68% December: 1.77% 2.00% 1.50% 1.89% 1.75% 1.70% 1.95% 1.85% 1.78% Full year forecast: 2.0% 1.00% 0.50% 0.00% 2005/1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q 2006/2Q 2006/3Q 14

15 ISP business (AOL) Strategy Launched EC site Jungle Mart on February 1st AOL s pilot project to shift from access business to contents business Service Offer both contents and products* under the same EC portal site Target Users Expand target users from AOL subscribers to entire Internet users. Plan to expand our target to mobile users in the future. Platform Billing platform which allow both credit and web money payments *Product sales is expected to launch during next FY3/

16 WiMAX Business 16

17 WiMAX Business Update Preparation for the 2.5GHz WiMAX license allocation in 2007 Technology Conduct 2.5GHz WiMAX field trial at 3 base stations in the Tokyo 23 wards. -High speed data communication similar speed to FTTH -All IP network hand over between different cells while moving in high speed -Cell radius similar to mobile phone -2.5GHz data access in middle to high rise building environment Site #1 Site #3 Site #2 MIC Standardization Participated in the MIC s public hearing on the 2.5GHz spectrum in 12/2006 Preparing the business plan to apply for 2.5GHz license Participated in the ITU-R in Cameroon Participated WiMAX forum in Hawaii to contribute to WiMAX standardization activities. 17

18 WiMAX Business Model Concept High Speed Access speed 37Mbps, expect increase to 75Mbps, similar to FTTH speed Always On Broadband access both at home and outside FTTH Home Outside WiMAX ADSL Flexible 10Mbps 100Mbps Creating new types of businesses Differentiation from the existing vertical business model Utilize flexible and advanced broadband application 18

19 WiMAX Business Roadmap(Plan Plan) FY3/2007 FY3/2008 Regulation Public Hearing Dec. 5th Announcement of license requirement Beauty contest License allocation BWA working group FWA working group Field Trial in Tokyo 23 wards, Technical Data collection WiMAX Antenna Field Trial Business Plan Construction of business plan WiMAX Equipment 19

20 Mobile Business 20

21 Mobile Data Service (Plan) Service Outline (Plan) Date Late March 2007 Data Speed Service Area Terminals Pricing Distribution Max 3.6Mbps (HSDPA) Metropolitan areas of Tokyo, Osaka, Nagoya Data terminals To be announced Focus on major retail stores 21

22 EMOBILE Business Plan Schedule -Y1 Y0 Y1 Y2 Y3 Y4 Y5 FY3/2006 FY3/2007 FY3/2008 FY3/2009 FY3/2010 FY3/2011 FY3/2012 Data service Operation Nov 1.7Ghz License Late Mar. Mar. Voice service Area Focus on Tokyo, Osaka, Nagoya area and other major cities Expand to nationwide Roaming agreement with NTTDoCoMo Nationwide voice service from day 1. Subs: 3.0 million Subs. 5.0 million Net profit positive Financial Financing completed Equity 143billion Bank loan 220 billion Total 363 billion EBITDA positive Revenue 300 billion yen EBITDA 100 billion yen FCF positive Bank Loan Max 7years 22

23 Target Segments of Mobile Data Service To offer PC broadband mobile computing service Internet access over PC 66.0 million Internet access over both mobile handset and PC 48.6 million Internet access over mobile handset 69.2 million EMOBILE targets Internet users who currently access Internet over both PC and mobile handsets by offering high speed access and reasonable pricing Source: MIC Information & Communications statistics database

24 Network Construction Process Accelerated civil work and equipment installation process in 3Q Expect the majority of FY3/2007 capex to be incurred in 4Q, upon the completion of the equipment installation Completed Cell Planning (Data service area) Site Acquisition In-Process Civil Work Equipment Installation Next process Tuning (Optimization) Operation Capex is recognized at this point 24

25 Disclaimer This presentation has been prepared by eaccess Ltd. ( the Company ). This presentation contains forward-looking statements, which are subject to risks, uncertainties, and assumptions. This presentation is being presented solely for your information and is subject to change without notice. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information presented. The Company accept no liability whatsoever for any losses arising from any information contained in the presentation. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares of the Company, and no part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment. 25