Financial Data and Key Metrics Changes - Consolidated operating revenue for the fiscal year ending March 2023 was JPY 5,671.8 billion, an increase of 4.1% year-on-year [3][42] - Operating income reached JPY 1,075.7 billion, up 1.4% year-on-year [3][42] - The impact of fuel price hikes was negative JPY 36.3 billion, but overall profits grew due to strength in focus areas and cost efficiency efforts [5][44] Business Line Data and Key Metrics Changes - Multi-Brand Communications ARPU for fiscal year March 2023 was JPY 3,960, with a total of 31.23 million IDs [12][42] - The Business Services segment saw revenue growth of 17.6% year-on-year, with operating income expanding at a CAGR of 13% over the last five years [16][22] - The financial business reported a 17.7% year-on-year growth in finance-related value-added ARPU revenue [25] Market Data and Key Metrics Changes - IoT connections reached a total of 37 million, with expectations for expansion across all industries [8] - The company aims to increase 5G stations to approximately 90,000 by the end of March 2024, achieving over 90% population coverage [11] Company Strategy and Development Direction - KDDI Vision 2030 focuses on enhancing connectivity and contributing to a society where anyone can realize their dreams [6][7] - The company plans to invest an additional JPY 50 billion in network quality improvements over the mid-term [7] - The satellite growth strategy aims to provide new values through initiatives like drone delivery and smart fisheries [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record profits despite challenges from fuel price hikes and roaming revenue declines [41][47] - The company anticipates a rebound in communications ARPU revenue and growth in focus areas for the fiscal year ending March 2024 [30][31] - Management emphasized the importance of enhancing customer attractiveness and increasing data usage to drive ARPU growth [14][59] Other Important Information - The company aims to increase dividends for the 22nd consecutive year, targeting a DPS of JPY 140 for the fiscal year ending March 2024 [32][35] - A share buyback program of JPY 300 billion has been earmarked to enhance shareholder returns [35] Q&A Session Summary Question: What are the assumptions behind the JPY 60 billion decline in roaming revenue? - Management explained that the decline reflects reduced roaming areas due to agreements with Rakuten, but some mitigation is expected from new agreements [50][54] Question: Can you elaborate on the JPY 180 decline in ARPU in the fourth quarter? - The decline was primarily due to connection fees and retrospective billing, with expectations for a rebound in the upcoming fiscal year [68][70] Question: What is the expected balance between downgrading from au to UQ and upgrading from UQ to au? - Currently, downgrading from au to UQ is larger, but the rate of migration from UQ to au is increasing, indicating a potential shift towards equilibrium [86][87] Question: How will the marketing strategy change in the new fiscal year? - The focus will be on making au more attractive through increased marketing efficiency, with a rise in marketing costs expected compared to the previous year [79][80] Question: How does the Business Services segment differentiate itself from IT services companies? - The Business Services segment leverages its telecommunications base to provide unique solutions, particularly in IoT and digital transformation [81][82]

Financial Performance - Consolidated operating revenue increased by 42% year-over-year, reaching ¥4,1829 billion[2] - Operating income decreased by 36% year-over-year to ¥8434 billion, impacted by fuel price hikes and communication failure[2] - NEXT Core Business (DX) operating revenue increased by 174% year-over-year, totaling ¥283 billion[3] - Financial Business revenue increased by 306% year-over-year to ¥1627 billion[3] - Financial Business operating income saw a significant increase of 2208% year-over-year, reaching ¥309 billion[3] Communications ARPU - Multi-Brand total ARPU revenues decreased from ¥3916 billion to ¥3788 billion year-over-year[16] - Communications ARPU revenues decreased from ¥1630 billion to ¥1896 billion year-over-year[16] - Value-added ARPU increased by ¥170 year-over-year, driven by electricity ARPU and other services[19] - Communications ARPU decreased by ¥210 year-over-year due to brand mix[19] Business and Sustainability - NEXT Core Business accounted for over 30% of total segment sales[27] - au Jibun Bank exceeded 5 million deposit accounts[38] - au PAY members increased by 42 million year-over-year[38] - The company aims to achieve carbon neutrality and is promoting renewable energy generation[40]

KDDI Corporation (OTCPK:KDDIY) Q1 2023 Earnings Conference Call July 29, 2022 4:30 AM ET Company Participants Ikuko Hongou - General Manager, Investor Relations Shinichi Muramoto - Executive Vice President & Executive Director, Corporate Sector Toshitake Amamiya - Managing Executive Officer & Executive Director, Personal Business Keiichi Mori - Senior Managing Executive Officer & Executive Director, Solutions Business Sector Kazuyuki Yoshimura - Senior Managing Executive Officer & Director of Technology Sec ...

Financial Performance - Operating revenue increased by 40% to ¥13517 billion in FY233 Q1[3] - Operating income decreased by 08% to ¥2969 billion in FY233 Q1[3] - Profit for the period attributable to owners of the parent increased by 10% to ¥1918 billion in FY233 Q1[3] Focus Areas Performance - Business Services segment revenue increased by 55% to ¥2586 billion in FY233 Q1[3] - Business Services segment operating income increased by 26% to ¥458 billion in FY233 Q1[3] - Financial Business revenue increased to ¥646 billion in FY233 Q1[3] - Financial Business operating income increased to ¥217 billion in FY233 Q1[3] - NEXT Core Business revenue reached ¥87 billion, a 160% year-over-year increase[24] Multi-Brand IDs and Communications ARPU - Multi-Brand IDs steadily increased, driven by UQ mobile and povo[8, 9] - Communications ARPU decreased from ¥4280 to ¥3970[10] Financial and Energy Business - Financial Business operating income increased due to temporary accounting effects[17, 18] - Transaction Volume Finance of Settlement/ Loan reached ¥33 Trillion, a 330% year-over-year increase[24] - au Jibun Bank Finance Loan product's balance reached ¥18 Trillion, a ¥02 Trillion year-over-year increase[24]

KDDI Corporation (OTCPK:KDDIY) Q4 2022 Earnings Conference Call May 13, 2022 4:30 AM ET Company Participants Ikuko Hongou - General Manager, Investor Relations Makoto Takahashi - President Shinichi Muramoto - Executive Vice President & Executive Director, Corporate Sector Keiichi Mori - Senior Managing Executive Officer & Executive Director, Solutions Business Sector Toshitake Amamiya - Managing Executive Officer & Executive Director, Personal Business Conference Call Participants Daisaku Masuno - Nomura Se ...

Tomorrow, Together | --- | --- | --- | --- | |----------------------------------------------------------------------------|-------|-------|-------| | | | | | | Financial Results for the Fiscal Year Ending March 2022 May 13, 2022 | | | | | KDDI Corporation | | | | | President | | | | | | | | | Makoto Takahashi 1 Highlights of Consolidated Financial Results for FY22.3 Achieving sustainable profit growth and enhancing shareholder returns Promoted "the integration of telecommunications and life design," with gr ...

KDDI Corporation (OTCPK:KDDIY) Q3 2022 Earnings Conference Call January 28, 2022 3:30 AM ET Company Participants Ikuko Hongou – General Manager, Investor Relations Takashi Shoji – Executive Director, Personal Business and Global Consumer Business Sector Shinichi Muramoto – Executive Director, Corporate Sector Keiichi Mori – Executive Director, Solution Business Sector Kazuyuki Yoshimura – Executive Director, Technology Sector Conference Call Participants Yoshio Ando – Daiwa Securities Co., Ltd. Daisaku Masu ...

Financial Data and Key Metrics Changes - Operating income for the first half was ¥573.1 billion, achieving 54.6% of the full-year forecast, with revenue increasing but operating income decreasing [7][27] - Multi-brand communications ARPU revenue declined by ¥30.4 billion, while mobile communications revenues increased by ¥11.7 billion due to Group MVNO and roaming revenues [8][9] Business Line Data and Key Metrics Changes - Life Design Domain operating income was ¥120 billion, up ¥10 billion year-on-year, driven by a ¥4.9 billion increase in the financial business [17] - Business Services segment operating income was ¥92.3 billion, with a steady progress rate of 50.1% towards the full-year forecast [18] Market Data and Key Metrics Changes - Cumulative 5G unit sales reached 4.7 million by the end of September, with a target of 8 million units by the end of March 2022 [11] - The number of au PAY members increased by 4.3 million year-on-year, and au PAY Card members increased by 1.2 million year-on-year to 7 million [21] Company Strategy and Development Direction - The company aims to promote 5G with a multi-brand strategy, enhancing customer experience by focusing on areas frequented by customers [28] - The company is focusing on strengthening service collaboration within the Life Design Domain and expanding the Business Services segment through IoT [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the competitive environment and demographic challenges, emphasizing the need for creativity in customer engagement and service deployment [70] - The company expects to achieve its full-year targets despite lower telecom revenues, with growth anticipated in both Life Design Domain and Business Services segments [27][56] Other Important Information - The company is targeting carbon neutrality by 2030, aiming to cut CO2 emissions by 50% compared to FY 2019 [24] - The company plans to expand its DX personnel to 4,000 members by March 2024 to support growth in key segments [26] Q&A Session Summary Question: Improvement in group ID numbers in Q2 - Management noted a net decline of 20,000 in Q1 but expected positive net additions in Q2, with good prospects for growth in the third and fourth quarters [33][35] Question: Trends for povo and its initial user reactions - The number of povo subscriptions exceeded 1 million, with a growth rate of about 100,000 per month, and initial user reactions were positive [37][38] Question: Churn rate trends for au and UQ mobile - The churn rate in Q2 was 0.74, and management expressed the need for further reduction, noting that subscribers remained with au more than expected [46][50] Question: Impact of mobile service price reductions - The impact of price cuts was estimated at ¥30.4 billion, aligning with expectations, and management indicated that roaming revenues would help offset this decline [53][54] Question: Growth in Business Services segment - Management acknowledged that the growth in the Business Services segment was not as high as expected but anticipated better performance in the second half due to the absence of one-off factors [83][86] Question: Impact of energy costs on telecom business - Management indicated that the impact of rising energy costs on the telecom business would be minimal due to bilateral contracts and energy-saving technologies [95]

Financial Results for the 1st Half of the Fiscal Year Ending March 2022 (from April to September 2021) October 29, 2021 Makoto Takahashi President KDDI Corporation Index 1. Consolidated Financial Results for the 1st Half 2. Multi-Brand Strategy 3. Growth Fields 4. Initiatives for Non-Financial Activities 1. Consolidated Financial Results for the 1st Half Highlights of Consolidated Financial Results for the 1st Half Steady progress towards full-year forecast Operating Revenue Operating Income | --- | --- | | ...

Financial Data and Key Metrics Changes - KDDI's operating income increased by ¥8.5 billion year-on-year, despite a drop in multi-brand communications ARPU revenue by ¥11.7 billion [7][8] - The net decrease in revenue from telecommunication charges is expected to be around ¥60 billion to ¥70 billion for the full year [9][10] - Overall, operating revenue and profits increased by offsetting the effects of lower telecommunications revenues through growth in other fields [26][27] Business Line Data and Key Metrics Changes - The Life Design Domain, a core service area, saw transaction volumes of settlements on loans grow by 1.3 times year-on-year, reaching ¥2.5 trillion [16][17] - The Business Services segment's operating revenues increased by 18% year-on-year, driven by Corporate DX, Business DX, and business infrastructure services [20][21] - The financial business within the Life Design Domain is identified as a growth driver, with significant increases in mortgage loan disbursements [16][17] Market Data and Key Metrics Changes - The total cumulative number of 5G units sold exceeded 3.4 million, with a steady increase of 1 million units in just three months [15] - au PAY smartphone settlements membership exceeded 33 million, indicating strong customer engagement in the au Economic Zone [18] Company Strategy and Development Direction - KDDI's growth strategy focuses on enhancing customer engagement, expanding in growth fields, and promoting 5G services while cutting costs [10][11] - The company aims to strengthen its multi-brand strategy and integrate telecommunications with life design services [12][13] - KDDI is committed to achieving sustainable growth through structural reforms and cost reductions, including the discontinuation of 3G services [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the competitive environment in telecommunications and emphasized the need to enhance customer engagement to achieve sustainable growth [10][11] - The company is optimistic about achieving its full-year forecast despite challenges, citing improvements in customer churn rates since April [34][56] Other Important Information - KDDI has revised its green plan to achieve zero CO2 emissions by 2050 and aims to reduce emissions by 50% by 2030 compared to fiscal year 2019 [24][25] - The company is actively pursuing initiatives to reduce power consumption at base stations and data centers [25] Q&A Session Summary Question: Mobile telecom service revenue and multi-brand strategy - The reduction of ¥11.7 billion in mobile telecom revenue is linked to a decline in group IDs, but overall mobile telecom revenue is performing well due to increased roaming service revenue [31][32][34] Question: Cost reduction progress and life design growth - Cost reduction efforts are on track, with marketing costs being a significant factor. The Life Design Domain has seen income increases across various segments, including financial services and electricity [36][38] Question: Churn rate and measures to improve it - The churn rate has improved from 0.8% to 0.6%, with UQ mobile's popularity contributing to this trend. Management plans to continue enhancing sales operations and customer engagement [42][46] Question: Breakdown of income factors in the business services segment - A one-time income from real estate transactions last year contributed significantly to the previous year's results, while ongoing growth in the data center business is expected [72][87] Question: Competitiveness of MVNO brands - Both J:COM and BIGLOBE are experiencing growth in revenue and IDs, with J:COM leveraging its cable TV subscriber base and BIGLOBE launching new price plans to remain competitive [75][79]