Ubiquitous Solution Company KDDI CORPORATION. 1st Quarter Financial Results of the Fiscal Year ended March July 31, 2003

Transcription

1 Ubiquitous Solution Company KDDI CORPORATION 1st Quarter Financial Results of the Fiscal Year ended March 24 July 31, 23 Tadashi Onodera President

2 The figures included in the following brief, including the business performance target and the target for the number of subscribers are all projected data based on the information currently available to the KDDI Group, and are subject to variable factors such as economic conditions, a competitive environment and the future prospects for newly introduced services. Accordingly, please be advised that the actual results of business performance or of the number of subscribers may differ substantially from the projections described here.

3 1. HighlightsHighlights 1 On a consolidated basis, made a good progress on both income and FCF fronts against the full-year forecast 2 Reduced debts steadily to 1,423.6B by 73.5B from March 23 3 au Business Driving force behind financial results in sales, income and FCF Achieved largest share of net adds for 3 consecutive months (1Q average: 4.1%) 4 BBC & Solution Business Despite revenue downtrend, generated income at a constant level 5 TUKA Business & Pocket Business Made a good progress in income and FCF relative to the full-year forecast Will continue to enhance customer satisfaction by building up brand strength Note: BBC is an abbreviation for BroadBand Consumers, and is equivalent to the former NW. 1

4 2. Consolidated Financial Results 3, 2,5 2, Operating revenues 2H Operating income 1,5 1, 5 1Q FY24.3(E) H 1Q FY24.3(E) FY24.3(E) 1Q (A) Operating revenues 1, , ,78. Operating income Operating margin 4.3% 5.% 12.3% 7.8% Ordinary income Net income Free Cash Flow EBITDA EBITDA margin 18.5% 2.2% 25.9% 22.7% 2

5 3. au Business 2, Operating revenues 2 Operating income 1,5 15 1, 2H 1 5 1Q FY24.3(E) FY24.3(E) 1Q (A) Operating revenues , ,686. Operating income Operating margin 1.6% 3.3% 15.2% 9.5% Ordinary income Net income Free Cash Flow EBITDA EBITDA margin 12.9% 15.1% 25.8% 21.8% Note: ARPU is calculated for ordinary handsets which exclude module-type terminals. 5 2H 1Q FY24.3(E) FY24.3(E) 1Q (A) Subs (') 13,54 14,49 14,674 15,9 module-type terminals x 2,652 6,86 8,572 - cdmaone 9,955 7,28 6,11 - PDC ARPU yen 7,61 7,57 7,48 7,14 Voice 6,42 6,28 5,93 5,61 Data 1,19 1,29 1,55 1,53 3

6 4. BBC BBC & Solution Business 8 Operating revenues 8 Operating income 6 4 2H 6 4 2H 2 1Q FY24.3(E) FY24.3(E) 1Q (A) Operating revenues Operating income Operating margin 12.6% 1.% 7.5% 4.1% Ordinary income Net income Free Cash Flow EBITDA EBITDA margin 29.1% 29.4% 24.% 21.8% 2 1Q FY24.3(E) FY24.3(E) 1Q (A) DION (') 2,27 2,373 2,43 2,75 ADSL ,2 4

7 5. TUKA Business 4 Operating revenues 15 Operating income H 1Q FY24.3(E) FY24.3(E) 1Q (A) Operating revenues Operating income Operating margin -.6% 1.9% 6.5% 2.8% Ordinary income Net income Free Cash Flow EBITDA EBITDA margin 17.9% 2.9% 25.6% 22.6% H 1Q FY24.3(E) FY24.3(E) 1Q (A) Subs (') 3,864 3,783 3,74 3,75 ARPU yen 5,37 5,33 5,15 5,3 5

8 6. Pocket Business 25 Operating revenues 25 Operating income H H 5 1Q FY24.3(E) 5 1Q FY24.3(E) FY24.3(E) 1Q (A) Operating revenues Operating income Operating margin 9.1% 1.3% 11.4% 1.8% Ordinary income Net income Free Cash Flow EBITDA EBITDA margin 3.% 31.5% 31.8% 3.5% FY24.3(E) 1Q (A) Subs (') 2,953 2,975 2,959 3,1 Air H" ,15 ARPU yen 5,8 5,1 4,88 4,78 6

9 7. Capital Capital Expenditures and others Made execution of capital expenditures at a low rate as a result of scrutiny Implemented a further reduction of debts by 73.5B from March 31 level. 1Q (A) FY24.3 (E) CAPEX (Cash basis) Consolidated au BBC & Solution TUKA Pocket Depreciation Consolidated au BBC & Solution TUKA Pocket Debts Consolidated 1, ,497. 1, ,27. au, BBC & Solution 1, TUKA Pocket Debt/EBITDA multiple

10 au Business Discussion 8

11 1. Sales Commissions Sales Commissions New purchases, switch models) yen Average commissions /unit Full-year FY22.3 2H 1Q FY24.3 FY 22.3 FY 23.3 FY 24.3 (E) 1Q (A) Sales commissions Average commissions/unit (yen) 42, 4, 36, 43, 37, 37, Number of units sold ( units) 8,7 1,1 9, 5,1 5, 2,41 9

12 2. Trend for Net Additions Achieved top share of Net Adds for 3 consecutive months in 1Q (Market share) Share of Net Adds ( subs) Share of Ending Subs No. of Net Adds FY 22.3 FY 23.3 FY 24.3 Market share of Net Adds /Ending subs: Full-year/FY22.3 <15.% / 17.7%> Full-year/ 1Q /FY24.3 <28.1% / 18.6%> <4.1%/19.%> 1

13 3. Trend for Subscribers Launch of 1x service Surpassed 9M subs (July 22) ( subs) 3G rate 58% 4/ 2 6/ 2 9/ 2 12/ 2 3/ 3 6/ 3 3/ 4E PDC cdmaone CDMA2 x totals : 6,11 : 8,572 : 14,674 ( subs) 11

14 4. Reduction of Churn (Churn) Reduced Churn rate through brand and product competitiveness Total Churn PDC CDMA) Improved.4 points yoy Full-year Churn CDMA Churn FY 22.3 FY 23.3 <Total 2.6% CDMA 2.3%> <Total 1.8% CDMA 1.7%> FY 24.3 Note: Following a termination of PDC service at the end of March 23, Total Churn equals to CDMA Churn in FY

15 5. Trend for ARPU (yen) ARPU is likely to have bottomed out ( before AC settlement) ( after AC settlement) ( after AC settlement) Total FY 23.3 FY 24.3 FY 23.3 FY 24.3 Voice Data yoy change: Total ARPU down 1.1% by 8 ( Data ARPU up 36.% by 41 ) Note: CDMA2 1x ARPU for FY24.3 is on a nation-wide basis, whereas its figures are based on subs only in the Kanto and Chubu districts. 13

16 6. MoU & Packet Usage MoU In minutes) MoU is likely to be stabilized Number of packets is still on the rise FY 22.3 FY 23.3 No.of packets/subs/day MoU No.of packets Full-year <MoU: 189mins > <No. of packets: 22 > <MoU: 182mins > <No. of packets: 286 > 14

17 7. Growth in Data Usage (1) EZweb-sub ratio is on the rise due to an expansion of data-use customer bases Packet-Discount service has increased churn-ins of high-end users No.of EZweb subs No.of Packet-Discount subs (EZweb subs / au subs) ( subs) (Packet-Discount subs / au subs) ( subs) 8% 15, 12% 2, 76% 12, 9% 1,5 72% 9, 6% 1, 68% 6, 3% 64% 3, 5 6% % (end of month) (end of month) 15

18 7. Growth in Data Usage (2) Packet-Discount subs are high-end customers in both data and voice usage No. of Packets of Packet-Discount subs ARPU of Packet-Discount subs No. of Packets /sub/ day) (yen) Voice Data au average (1Q /FY24.3 results) Packet-Discount subs (1Q /FY24.3 results) au average Packet-Discount subs 16

19 7. Growth in Data Usage (3) Increase in movi equipped handsets leading to rise in churn-ins of high-end customers No. of Packets /sub/ day) No. of Packets of movi equipped handsets Results of Chaku-Uta downloads Approx. 4. M times/month (June 23 Results) Breakdown of 1x Terminals Movi equipped handsets: Approx. 3.8M (=36%) (June 23 Results) 1x average Movi equipped handsets Other Approx. 5.49M (As of the end of June 23) 17

20 Ubiquitous Solution Company