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Financial Results
for the 1st Quarter of the
Fiscal Year Ending March 2018
(from April to June 2017)
KDDI Corporation
August 1, 2017
1
FY17.3 FY18.3 FY17.3 FY18.3
(E)
(E)
Progress
24.2%
1Q 1Q
FY17.3 FY18.3
(E)
1Q
Progress
23.8%
1,198.71,130.5
4,950.04,748.3
Progress
29.6%
Progress
30.1%
281.4275.1
950.0913.0
Progress
27.7%
Progress
27.2%
424.5415.3
1,530.01,524.2
Consolidated
Steady Progress towards Full-Year Forecasts
Highlights of 1Q Performance
EBITDAOperating IncomeOperating Revenue
(Billions of yen) (Billions of yen) (Billions of yen)
2
Promoting Measures for Growth Next Year and Beyond
Consolidated
Operating Income: Factor for Change,
YOY for 1Q/FY18.3
Note) <Personal> the Personal Services segment <Value> the Value Services segment <Business> the Business Services segment
275.1
281.4
+5.8
+6.2
+2.3
<Others>
+6.3
(8.0)
<Personal> <Value> <Business>
Of which,
strategic cost
approx. (5.0)
1Q/FY17.3 1Q/FY18.3
(Billions of yen)
Value-added
ARPA revenues
Mobile
communications
revenues
6/'15 6/'16 6/'17
25.73 25.58 24.96
0.16 1.07
3Mobile IDs / Mobile Communications Revenues
Stable Growth of Communications Revenues Due to
Expansion of IDs Across the Entire Consolidated Group
Mobile Communications Revenues*2
(Billions of yen)
Mobile IDs*1
(Millions)
25.74 26.0325.74
1Q/FY16.3 1Q/FY17.3 1Q/FY18.3
432.3 447.0 448.5
0.5 4.7
447.5 453.3
432.3
au accounts MVNO subscriptions au ARPA revenues MVNO revenues
Domestic
Telecom
*1) au accounts + MVNO subscriptions *2) au ARPA revenues + MVNO revenues
4
1Q/FY16.3 1Q/FY17.3 1Q/FY18.3
5,600 5,810
(Yen)
au ARPA
Steady Growth
YOY
YOY
+2.8%
5,970
Domestic
Telecom
5
Data Usage Increasing Steadily.
Promoting 20GB Plan among the Core Customer Segment
Average Monthly Data Usage Subscriptions of 20/30GB Plan
Domestic
Telecom Demand for High-Volume Data
Note) au 4G LTE smartphone
6/'14 6/'15 6/'16 6/'17
YOY
+18%
4GB
9/'16 12/'16 3/'17 6/'17
6
Members
Domestic
Telecom
Strengthen Retention of Customers
by Enhancing Customer Experience Value
9/'16 12/'16 3/'17 6/'17
Over 10 Millions
(as of July 6, 2017)
July 2017 August 2017
Gift of a Double Cheeseburger
from McDonald’s for
au smartphone users
Note) For details, please refer to the company website *For smartphone customers
Gift from Mister Donut
for au STAR*/au Smart Pass
Premium members
7
Data communication up to 1GB
per month by campaign,
Including voice calls*2
and 20GB of data
communication
Program charge of ¥390/month
paid over 24 months enables
installment payments to be
reduced by up to half*3
… …
Join Upgrade
Program EX 24 times
au Pitatto Plan au Flat Plan Upgrade Program EX
Domestic
Telecom New Price Plan
Launched New Price Plan Eliminating Data Waste
in Accordance with Customers’ Usage
¥1,980/month
*1
¥4,500/month
*1
for 1 year
by campaign,
for 1 year
*1) “Each plan (Super Kakeho)” and “Everybody discount” are applied. This plan is not available when making a new contract or upgrading models involving purchase of
iPhone 7/iPhone 7 Plus/iPhone 6s/iPhone 6s Plus/iPhone SE/iPhone 6/iPhone 6 Plus/iPhone 5s/iPhone 5c/iPhone 5. However, customers who already use one of the above
iPhones may subscribe to this plan by changing their rate plan. The iPhone trademark is used under license from Aiphone Co., Ltd
*2) Eligible for domestic calls of five minutes or less. Exclude certain calls *3)Reduction amount changes depending on the month of upgrade
Note) Indicated figures exclude taxes. Conditions apply
(au Smart Value applied) (au Smart Value applied)
-1GB
-2GB
-3GB
-5GB
-20GB
(Usage image)
8
More Than 450,000 Customers Chose
New Price Plan, within a Half Month from Launch
More than 80% of handset
purchasers chose new price plan
More than 80% of customers with
installment option subscribed
for Upgrade Program EX
Note)Results of a term from July 14 to July 30, 2017, for Android 4G LTE smartphones. Android is a trademark of Google Inc.
Domestic
Telecom New Price Plan
83% 84%
9au Economic Zone GMV / Value-Added ARPA
Substantial Growth for YOY
Life Design
Value-Added ARPA
au Economic Zone
Gross Merchandise Value*
* Including Jupiter Shop Channel and energy business, etc.
1Q/FY16.3 1Q/FY17.3 1Q/FY18.3
430
470
560
YOY
+19.1%
FY16.3 FY17.3 FY18.3
150.0 266.0 406.0
4Q
3Q
2Q
1Q
1,700.0
1,280.0
730.0
(E)
(Yen)(Billions of yen)
10
¥499/month → ¥372/month
Members*2
Life Design
(au Smart Pass)
Driving Premium Service and Increasing Subscribers Steadily
Summer campaign now underway
For maximum 3 months*1
(au Smart Pass Premium)
Security
functions
Special offers
for members
Data Recovery Support
Wi-Fi Security
Good Thing
Everyday
Note) Indicated figures exclude tax
*1) Only for first-time subscribers. For details, please refer to the company website
*2) Total of au Smart Pass and au Smart Pass Premium
6/'15 6/'16 6/'17
13.19
14.64
Of which, au Smart Pass Premium
Over 1.5M members
(as of July 15, 2017)
15.29
(Millions)
11Life Design
Number of Cards Increasing. Further Strengthening Usability
Prepaid card became available for
Apple Pay, in addition to credit card
Valid Cards
6/'15 6/'16 6/'17
12.2
17.3
18.8
0.9
1.6
2.5
Credit Card
Prepaid Card
(Millions)
13.1
18.9
21.3
Note) “Apple Pay” is a trademark of Apple Inc. in the United States and other countries
(Launched on July 4, 2017)
12Life Design
Note) “au Shopping Mall” up to December 2016. “DeNA Shopping” and “au Shopping Mall” were integrated into a new brand “Wowma!” in January 2017
Steady
Expansion
Shops Merchandise Value
6/'16 6/'17
YOY
x1.8
1Q/FY17.3 1Q/FY18.3
YOY
x2.8
13
*Consumers on meter rate lighting basis. Include “Cable Plus Denki”
Life Design (Electricity)
Subscriptions* Links with Smartphone App
Started distribution of blackout information
through “au Denki app” (from June 29, 2017)
Steady Increase in Subscriptions.
Enhancing Links with Smartphones
Blackout information
6/'16 9/'16 12/'16 3/'17 6/'17
Mandalay
Naypyidaw
Yangon
14
7/'14 6/'17
Total Subscriptions
First*1 in Myanmar
by the 4x4 MIMO Technology,
Realized max. 150Mbps*2
Global Telecommunication Business in Myanmar
Subscriptions Increased Four Times in Three Years,
Promoting LTE for Full Roll-Out
from the date
of JO contract
4 times
Approx.
24M
Approx.
6M
Newly obtained 1.8GHz band license
Launched in 3 major cities from end of May
Develop to over 30 cities by end of September
*1) KDDI own research (as of June 19, 2017)
*2) This is a “best effort service.” The speed presented is the maximum value possible under the technical standard and does not denote actual speeds in practice. Even within
the coverage area, subscribers may find the service available at significantly reduced speed depending on their usage environment and the status of their connection
15Summary
Promoting Business Strategies in Japan and Overseas
for the Medium-Term Targets
Business
Strategy
 Steady growth of domestic telecom business
 Promoting Life Design business for expansion
of au Economic Zone
 Full roll-out of LTE in telecom business in
Myanmar
1Q
Results
[Consolidated]
 Steady progress towards full-year forecasts
 Promoting measures for growth next year and
beyond
Statements made in these documents with respect to the KDDI Group‘s performance
targets, projected subscriber numbers, future forecasts and strategies that are not
historical facts are forward-looking statements about the future performance of the KDDI
Group, based on company’s assumptions and beliefs in light of the information available
at the time they were made. They therefore include certain risks and uncertainties.
Actual results can differ from these statements due to reasons including, but not limited
to, domestic and overseas economic trends, competitive position, formulation, revision or
abolition of laws and ordinances, regulations or systems, government actions or
intervention and the success or lack thereof of new services.
Consequently, please understand that there is a possibility that actual performance,
subscriber numbers, strategies and other information may differ significantly from the
forecast information contained in these materials or other envisaged situations.
Disclaimer
Financial Results for the First Quarter of the Fiscal Year Ending March 2018

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Financial Results for the First Quarter of the Fiscal Year Ending March 2018

  • 1. Financial Results for the 1st Quarter of the Fiscal Year Ending March 2018 (from April to June 2017) KDDI Corporation August 1, 2017
  • 2. 1 FY17.3 FY18.3 FY17.3 FY18.3 (E) (E) Progress 24.2% 1Q 1Q FY17.3 FY18.3 (E) 1Q Progress 23.8% 1,198.71,130.5 4,950.04,748.3 Progress 29.6% Progress 30.1% 281.4275.1 950.0913.0 Progress 27.7% Progress 27.2% 424.5415.3 1,530.01,524.2 Consolidated Steady Progress towards Full-Year Forecasts Highlights of 1Q Performance EBITDAOperating IncomeOperating Revenue (Billions of yen) (Billions of yen) (Billions of yen)
  • 3. 2 Promoting Measures for Growth Next Year and Beyond Consolidated Operating Income: Factor for Change, YOY for 1Q/FY18.3 Note) <Personal> the Personal Services segment <Value> the Value Services segment <Business> the Business Services segment 275.1 281.4 +5.8 +6.2 +2.3 <Others> +6.3 (8.0) <Personal> <Value> <Business> Of which, strategic cost approx. (5.0) 1Q/FY17.3 1Q/FY18.3 (Billions of yen) Value-added ARPA revenues Mobile communications revenues
  • 4. 6/'15 6/'16 6/'17 25.73 25.58 24.96 0.16 1.07 3Mobile IDs / Mobile Communications Revenues Stable Growth of Communications Revenues Due to Expansion of IDs Across the Entire Consolidated Group Mobile Communications Revenues*2 (Billions of yen) Mobile IDs*1 (Millions) 25.74 26.0325.74 1Q/FY16.3 1Q/FY17.3 1Q/FY18.3 432.3 447.0 448.5 0.5 4.7 447.5 453.3 432.3 au accounts MVNO subscriptions au ARPA revenues MVNO revenues Domestic Telecom *1) au accounts + MVNO subscriptions *2) au ARPA revenues + MVNO revenues
  • 5. 4 1Q/FY16.3 1Q/FY17.3 1Q/FY18.3 5,600 5,810 (Yen) au ARPA Steady Growth YOY YOY +2.8% 5,970 Domestic Telecom
  • 6. 5 Data Usage Increasing Steadily. Promoting 20GB Plan among the Core Customer Segment Average Monthly Data Usage Subscriptions of 20/30GB Plan Domestic Telecom Demand for High-Volume Data Note) au 4G LTE smartphone 6/'14 6/'15 6/'16 6/'17 YOY +18% 4GB 9/'16 12/'16 3/'17 6/'17
  • 7. 6 Members Domestic Telecom Strengthen Retention of Customers by Enhancing Customer Experience Value 9/'16 12/'16 3/'17 6/'17 Over 10 Millions (as of July 6, 2017) July 2017 August 2017 Gift of a Double Cheeseburger from McDonald’s for au smartphone users Note) For details, please refer to the company website *For smartphone customers Gift from Mister Donut for au STAR*/au Smart Pass Premium members
  • 8. 7 Data communication up to 1GB per month by campaign, Including voice calls*2 and 20GB of data communication Program charge of ¥390/month paid over 24 months enables installment payments to be reduced by up to half*3 … … Join Upgrade Program EX 24 times au Pitatto Plan au Flat Plan Upgrade Program EX Domestic Telecom New Price Plan Launched New Price Plan Eliminating Data Waste in Accordance with Customers’ Usage ¥1,980/month *1 ¥4,500/month *1 for 1 year by campaign, for 1 year *1) “Each plan (Super Kakeho)” and “Everybody discount” are applied. This plan is not available when making a new contract or upgrading models involving purchase of iPhone 7/iPhone 7 Plus/iPhone 6s/iPhone 6s Plus/iPhone SE/iPhone 6/iPhone 6 Plus/iPhone 5s/iPhone 5c/iPhone 5. However, customers who already use one of the above iPhones may subscribe to this plan by changing their rate plan. The iPhone trademark is used under license from Aiphone Co., Ltd *2) Eligible for domestic calls of five minutes or less. Exclude certain calls *3)Reduction amount changes depending on the month of upgrade Note) Indicated figures exclude taxes. Conditions apply (au Smart Value applied) (au Smart Value applied) -1GB -2GB -3GB -5GB -20GB (Usage image)
  • 9. 8 More Than 450,000 Customers Chose New Price Plan, within a Half Month from Launch More than 80% of handset purchasers chose new price plan More than 80% of customers with installment option subscribed for Upgrade Program EX Note)Results of a term from July 14 to July 30, 2017, for Android 4G LTE smartphones. Android is a trademark of Google Inc. Domestic Telecom New Price Plan 83% 84%
  • 10. 9au Economic Zone GMV / Value-Added ARPA Substantial Growth for YOY Life Design Value-Added ARPA au Economic Zone Gross Merchandise Value* * Including Jupiter Shop Channel and energy business, etc. 1Q/FY16.3 1Q/FY17.3 1Q/FY18.3 430 470 560 YOY +19.1% FY16.3 FY17.3 FY18.3 150.0 266.0 406.0 4Q 3Q 2Q 1Q 1,700.0 1,280.0 730.0 (E) (Yen)(Billions of yen)
  • 11. 10 ¥499/month → ¥372/month Members*2 Life Design (au Smart Pass) Driving Premium Service and Increasing Subscribers Steadily Summer campaign now underway For maximum 3 months*1 (au Smart Pass Premium) Security functions Special offers for members Data Recovery Support Wi-Fi Security Good Thing Everyday Note) Indicated figures exclude tax *1) Only for first-time subscribers. For details, please refer to the company website *2) Total of au Smart Pass and au Smart Pass Premium 6/'15 6/'16 6/'17 13.19 14.64 Of which, au Smart Pass Premium Over 1.5M members (as of July 15, 2017) 15.29 (Millions)
  • 12. 11Life Design Number of Cards Increasing. Further Strengthening Usability Prepaid card became available for Apple Pay, in addition to credit card Valid Cards 6/'15 6/'16 6/'17 12.2 17.3 18.8 0.9 1.6 2.5 Credit Card Prepaid Card (Millions) 13.1 18.9 21.3 Note) “Apple Pay” is a trademark of Apple Inc. in the United States and other countries (Launched on July 4, 2017)
  • 13. 12Life Design Note) “au Shopping Mall” up to December 2016. “DeNA Shopping” and “au Shopping Mall” were integrated into a new brand “Wowma!” in January 2017 Steady Expansion Shops Merchandise Value 6/'16 6/'17 YOY x1.8 1Q/FY17.3 1Q/FY18.3 YOY x2.8
  • 14. 13 *Consumers on meter rate lighting basis. Include “Cable Plus Denki” Life Design (Electricity) Subscriptions* Links with Smartphone App Started distribution of blackout information through “au Denki app” (from June 29, 2017) Steady Increase in Subscriptions. Enhancing Links with Smartphones Blackout information 6/'16 9/'16 12/'16 3/'17 6/'17
  • 15. Mandalay Naypyidaw Yangon 14 7/'14 6/'17 Total Subscriptions First*1 in Myanmar by the 4x4 MIMO Technology, Realized max. 150Mbps*2 Global Telecommunication Business in Myanmar Subscriptions Increased Four Times in Three Years, Promoting LTE for Full Roll-Out from the date of JO contract 4 times Approx. 24M Approx. 6M Newly obtained 1.8GHz band license Launched in 3 major cities from end of May Develop to over 30 cities by end of September *1) KDDI own research (as of June 19, 2017) *2) This is a “best effort service.” The speed presented is the maximum value possible under the technical standard and does not denote actual speeds in practice. Even within the coverage area, subscribers may find the service available at significantly reduced speed depending on their usage environment and the status of their connection
  • 16. 15Summary Promoting Business Strategies in Japan and Overseas for the Medium-Term Targets Business Strategy  Steady growth of domestic telecom business  Promoting Life Design business for expansion of au Economic Zone  Full roll-out of LTE in telecom business in Myanmar 1Q Results [Consolidated]  Steady progress towards full-year forecasts  Promoting measures for growth next year and beyond
  • 17. Statements made in these documents with respect to the KDDI Group‘s performance targets, projected subscriber numbers, future forecasts and strategies that are not historical facts are forward-looking statements about the future performance of the KDDI Group, based on company’s assumptions and beliefs in light of the information available at the time they were made. They therefore include certain risks and uncertainties. Actual results can differ from these statements due to reasons including, but not limited to, domestic and overseas economic trends, competitive position, formulation, revision or abolition of laws and ordinances, regulations or systems, government actions or intervention and the success or lack thereof of new services. Consequently, please understand that there is a possibility that actual performance, subscriber numbers, strategies and other information may differ significantly from the forecast information contained in these materials or other envisaged situations. Disclaimer