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Financial Results for the 2nd Quarter of the Fiscal Year Ending March 2016

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KDDI
KDDI

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.

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President Takashi Tanaka KDDI Corporation Financial Results for the 1st Half of the Fiscal Year Ending March 2016 (from April to September, 2015) November 5, 2015
1 *Based on IFRS Achieved YOY Increases in Revenue and Income Performance in 1H/FY16.3Consolidated Operating IncomeOperating Revenue Profit for the period attributable to owners of the parent (Billions of yen) (Billions of yen) (Billions of yen) 1H 1H 1H1H 1H 1H FY15.3 FY16.3 451.4 382.5 YOY +18% FY15.3 FY16.3 2,151.8 2,030.2 YOY +6% FY15.3 FY16.3 277.5 YOY +22%226.8
2 YOY Margin Increase of EBITDA and Operating Income Margin in 1H/FY16.3 Operating MarginEBITDA Margin 16.9% 18.8% 1H/FY14.3 1H/FY15.3 1H/FY16.3 29.3% 32.7% 1H/FY14.3 1H/FY15.3 1H/FY16.3 21.0% 33.8% *Figures for FY14.3 is based on Japan GAAP. Figures for FY15.3 and FY16.3 are based on IFRS Consolidated
+68.9 3Consolidated Consolidated Operating Income: Factor for Change, YOY for 1H/FY16.3 (Billions of yen) <Others> Others <Personal Services> <Value Services> 1H/FY15.3 [IFRS] 1H/FY16.3 [IFRS] +33.7 Total ARPA Revenues au ARPA Revenues Value-Added ARPA Revenues Driven by Total ARPA Revenues 382.5 451.4 +29.2 +4.5 +12.7 +22.5 <Personal Services>
4 1H/FY15.3 1H/FY16.3 842.6 61.7 66.2 938.0 904.3 YOY Change YOY +3.7% YOY +¥33.7B 871.8 Personal / Value Services Total ARPA Revenues (Billions of yen) au ARPA Revenues Value-Added ARPA Revenues
5 Total ARPA YOY +2.5% (Yen) 1Q 2Q 3Q 4Q 1Q 2Q 5,470 5,570 5,560 5,510 5,600 5,700 400 410 430 460 430 430 FY15.3 FY16.3 YOY +2.5% 6,130 5,980 Personal / Value Services Quarterly Basis au ARPA Value-Added ARPA
1.35 1.36 1.37 1.38 9/'14 12/'14 3/'15 6/'15 9/'15 1.39 1H/FY15.3 1H/FY16.3 0.82 0.95 YOY +16% 6au Net Adds au Net Adds (Millions) Personal Services Mobile Devices per PersonNote (Unit) Note) Excluding prepaid and MVNO Increases in au Net Adds and Steady Growth in the Number of Devices
9/'12 9/'13 9/'14 9/'15 Note3) Percentage of au Smart Value for au smartphone subscribers 7 9/'12 9/'13 9/'14 9/'15 In the 42nd Month since Launch, Surpassed 10 Million (Mobile) Note1 au Smart Value Personal Services Penetration for au Smartphone SubsNote3 Mobile Fixed-line (As of September 30, 2015) 10.37M 5.14M (au subs) (Households) (As of September 30, 2015) Note1) Service provision began on March 1, 2012. Topped 10 million on August 9, 2015 Note2) Households: total for KDDI group companies and fixed-line allied companies 54% of au smartphone au smartphone subs au Smart Value for au smartphone subs au Smart Value (Bundled Services) Note2
8 Kakeho (Unlimited Voice) NEW 0.5GB 0.7GB 2GB - 3GB - 7GB Note2 Note3 Note3 Junior feature phone 4G LTE mobile phone rate plan 3G feature phone rate plan For SeniorsFor Juniors LTE Plan From ¥4,280From ¥3,920 From ¥1,043 From ¥1,043 From ¥6,200Note1 Offering Diverse Rate Plans to Match Customers’ Needs Mobile Rate Plans Age Data volume Personal Services Super Kakeho (5-Min-Voices) Note4 Note1) Minimum indicated price is if in combination with Super Kakeho (5-Min-Voices) Note2) Requires LTE plan and package subscription with “LTE Flat” (from November 17, 2015 onward) Note3) Kakeho (Unlimited Voice) and Super Kakeho (5-Min-Voices) require package subscription to a flat-rate data service Note4) Minimum indicated price is for a 3G feature phone rate plan *Indicated rates are when subscribing to “Everybody Discount package” + Internet access service. Indicated figures exclude taxes
9 Cumulative Subscriptions 3/'15 6/'15 9/'15 Smartphones for Light Users Smartphone Penetration by Age Group For SeniorsFor Juniors Personal Services ¥3,920Note1 (Monthly data volume: Includes 0.5GB) Monthly fee ¥4,280Note2 (Monthly data volume: Includes 0.7GB) Limited to children elementary school age and younger Limited to people aged 55 and above Note1) Junior Smartphone Plan. When “Everybody Discount Package” + “LTE NET” apply Note2) Senior Plan. When “Everybody Discount Package” + “LTE NET” apply *Separately, call, data communication, option and universal service charges apply. For calls to au mobile phones between 1am and 9pm, charges are waived as LTE Plan *Please see the au website for details *Indicated figures exclude taxes Number of Customers Increasing Steadily, Centered on Smartphone Novices
10Personal Services 6/'14 9/'14 12/'14 3/'15 6/'15 9/'15 LTE smartphone 3G smartphone au Smartphone Penetration 56% LTE 53% 50% 52% 53% 54% 55%Smartphone Aiming to Boost Penetration by Offering a Variety of Services
11Targeting Long-Term Use Long Term Hospitality Data Gift Long Term Hospitality Depending on the "au contract period" and "data flat-rate service / rate plan,“ customers get additional data capacity on the first month after five years, and thereafter, every three months Monthly data volume Monthly data volume Upgrade Program Note) Target: Subscribers between September 18, 2015 and March 31, 2016 Developing Measures to Encourage Long-Term Use *Please see the au website for details Personal Services ¥0 Super Upgrade CampaignNote By paying an up-front charge (¥2,000), customers can enjoy handset upgrades in the 13th month (Normally in the 19th month) Makes outstanding installment balance (for seven months) for their previous models essentially free
12UQ Mobile (MVNO Business) Merger of UQ and KVE (October 1, 2015) Personal Services Leveraging the “UQ” Brand and Reinforcing Sales Channels Beginning face-to-face sales of smartphones by sales staff handling mobile Wi-Fi routers
13 9/'14 12/'14 3/'15 6/'15 9/'15 6.10 15.80 (Prepaid/Credit CardNote2) Targeting a New Stage of Growth Expanding Customer Base in the Value-Added Domain Online Base Offline Base Personal / Value Services (Millions)(Millions) au Smart Pass 9/'14 12/'14 3/'15 6/'15 9/'15 11.40 13.61 YOY +19% Note2) Cumulative number of au WALLET prepaid card applications + credit cards issued Note1）Members of au Smart Pass Note1
14 au Customer Contact Point Website au Shop Settlement Platform au Online Customer Base 13.61M membersNote Personal Services 37.43 M subs au Customer Base Personal / Value Services Monthly Visitors to au Shops Approx. 10 Million au Simple Payment ”Online Carrier Billing” Note）Members of au Smart Pass Leveraging Our Business Infrastructure to Begin Service Provision (As of September 30, 2015) (As of September 30, 2015)
15Personal / Value Services au NAGOYA (by December 2015) Started August 25, 2015. Launced at 2,500 au Shops Nationwide Changing shop images from “places for handling paperwork” to “fun places to shop” Concept: “Making everyday items a little nicer”
Reception, fielding request Information on services, rates, etc. Waiting time Shop staff provides purchasing support Enter shop Exit shop Product introduction Shopping, contract Taking Advantage of Shop Waiting Times to Efficiently Provide New Products 16Personal / Value Services Digital SignageSales Staff Catalog Tablet
17Telecommunications Business in Myanmar Data communications campaign introduced through alliance with LINE (Campaign period: July 29 to September 30, 2015) Global Services 7/'14 9/'15 Approx. 16.0M MPT Mobile Subscribers Approx. 6.0M Since joint business agreement signed (July 2014), Number of subscribers up 2.5 times Running Campaigns to Boost Customer Numbers and Communications Traffic
18Consolidated Achieved Third Consecutive Double-Digit GrowthNote1 in Operating Income in the 1st Half  Operating Income for 1H: ¥451.4B +18% YOYNote2  Expanded Total ARPA Revenues by Promoting the “3M Strategy”  Promoted Initiatives Targeting a New Stage of Growth Summary Note1) Year-on-year comparisons through the fiscal year ended March 31, 2015, are based on Japan GAAP. Year-on-year comparisons are based on IFRS for the fiscal year ending March 31, 2016 Note2) Based on IFRS
 Appendix
Consolidated Financial Results 20 1H/FY15.3 1H/FY16.3 YOY FY16.3 Operating revenue 2,030.2 2,151.8 6.0% 4,400.0 Operating income 382.5 451.4 18.0% 820.0 Operating margin 18.8% 21.0% -- 18.6% Profit for the period attributable to owners of the parent 226.8 277.5 22.3% 490.0 EBITDA 663.3 727.8 9.7% 1,400.0 EBITDA margin 32.7% 33.8% -- 31.8% Free cash flows 175.8 141.7 -- 280.0 （E） Consolidated (Billions of yen) *Based on IFRS
21 Operating Income Consolidated Personal Value Business Global Other, Elimination and Corporate IFRS 382.5 299.8 32.0 41.2 7.8 1.7 J-GAAP 384.8 305.0 30.3 40.3 5.2 4.0 Difference -2.2 -5.2 +1.7 +0.9 +2.5 -2.3 Major differences • Non-amortization of goodwill: +13.3 • Differences in depreciation method: -16.0 • Differences in the scope of consolidation: +0.2 • Non-amortization of goodwill: +10.1 • Differences in depreciation method: -15.3 • Differences in the scope of consolidation: +1.9 Non-amortization of goodwill: +2.1 Differences in the scope of consolidation: -1.7 Operating Revenue Consolidated Personal Value Business Global Other, Elimination and Corporate IFRS 2,030.2 1,569.6 112.9 322.2 138.9 -113.4 J-GAAP 2,131.9 1,642.5 114.3 327.2 137.9 -90.0 Difference -101.8 -72.9 -1.5 -5.0 +1.0 -23.4 Major differences • Impact of excluding selling commissions: -74.3 • Impact of excluding reward point expenses: -13.4 • Differences in the scope of consolidation: -3.9 • Impact of excluding selling commissions: -71.8 • Impact of excluding reward point expenses: -12.2 • Differences in the scope of consolidation: +20.3 Unification of reporting period for overseas subsidiaries: +1.0 Differences in the scope of consolidation: -24.2 (Ref.) IFRS/J-GAAP Differences in 1H/FY15.3 (Billions of yen) • Non-amortization of goodwill: +1.1 • Share of profit(loss) of investments accounted for using the equity method: +0.3 • Impact of excluding selling commissions: -2.5 • Impact of excluding reward point expenses: -1.1
Financial Results by Segment 22 Personal Services 1H/FY15.3 1H/FY16.3 YOY Operating revenue 1,569.6 1,682.6 +7.2% Operating income 299.8 351.4 +17.2% Operating margin 19.1% 20.9% -- EBITDA 546.2 594.0 +8.8% EBITDA margin 34.8% 35.3% -- Value Services 1H/FY15.3 1H/FY16.3 YOY Operating revenue 112.9 126.0 +11.7% Operating income 32.0 36.6 +14.4% Operating margin 28.3% 29.0% -- EBITDA 37.3 41.9 +12.4% EBITDA margin 33.0% 33.3% -- Business Services 1H/FY15.3 1H/FY16.3 YOY Operating revenue 322.2 309.9 -3.8% Operating income 41.2 39.6 -3.9% Operating margin 12.8% 12.8% -- EBITDA 63.7 62.8 -1.4% EBITDA margin 19.8% 20.3% -- Global Services 1H/FY15.3 1H/FY16.3 YOY Operating revenue 138.9 152.9 +10.1% Operating income 7.8 19.9 +156.6% Operating margin 5.6% 13.0% -- EBITDA 14.2 25.4 +78.6% EBITDA margin 10.2% 16.6% -- (Billions of yen) *Based on IFRS
KPI 23 Segment 3/’15 9/’15 Change 3/’16（E） Consolidated au subscriptions (Millions) 43.48 44.64 +1.16 45.78 Personal Services au subscriptions (Millions) 36.48 37.43 +0.95 38.18 Mobile devices per person （Units） 1.37 1.39 +0.02 1.40 au smartphone penetration （%） 54.3% 56.0% +1.7pt -- au Smart Value (Mobile) (Millions) 9.33 10.37 +1.04 -- au Smart Value (Fixed-line) (Millions) 4.59 5.14 +0.55 -- Value Services au Smart Pass members (Millions) 12.89 13.61 +0.72 -- Segment 2Q/FY15.3 2Q/FY16.3 YOY FY16.3（E） Total ARPA (Yen) 5,980 6,130 +2.5% 6,110 Personal Services au ARPA (Yen) 5,570 5,700 +2.3% 5,610 Value Services Value-added ARPA (Yen) 410 430 +4.9% 500
CAPEX (cash flow basis) 24 1H 1H 194.2 131.2 128.2 123.8 Mobile Fixed-line and other (including UQ) 1H/FY16.3 ¥255.1B FY15.3 FY16.3 Capital ExpendituresConsolidated YOY -¥67.3B Progress Rate 42.5% Full-year (E) (Billions of yen) 600.0 667.7 *Based on IFRS Full-year 322.4 255.1
Financial Results for the 2nd Quarter of the Fiscal Year Ending March 2016
The figures included in the this 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. Disclaimer

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Financial Results for the 2nd Quarter of the Fiscal Year Ending March 2016

  • 1. President Takashi Tanaka KDDI Corporation Financial Results for the 1st Half of the Fiscal Year Ending March 2016 (from April to September, 2015) November 5, 2015
  • 2. 1 *Based on IFRS Achieved YOY Increases in Revenue and Income Performance in 1H/FY16.3Consolidated Operating IncomeOperating Revenue Profit for the period attributable to owners of the parent (Billions of yen) (Billions of yen) (Billions of yen) 1H 1H 1H1H 1H 1H FY15.3 FY16.3 451.4 382.5 YOY +18% FY15.3 FY16.3 2,151.8 2,030.2 YOY +6% FY15.3 FY16.3 277.5 YOY +22%226.8
  • 3. 2 YOY Margin Increase of EBITDA and Operating Income Margin in 1H/FY16.3 Operating MarginEBITDA Margin 16.9% 18.8% 1H/FY14.3 1H/FY15.3 1H/FY16.3 29.3% 32.7% 1H/FY14.3 1H/FY15.3 1H/FY16.3 21.0% 33.8% *Figures for FY14.3 is based on Japan GAAP. Figures for FY15.3 and FY16.3 are based on IFRS Consolidated
  • 4. +68.9 3Consolidated Consolidated Operating Income: Factor for Change, YOY for 1H/FY16.3 (Billions of yen) <Others> Others <Personal Services> <Value Services> 1H/FY15.3 [IFRS] 1H/FY16.3 [IFRS] +33.7 Total ARPA Revenues au ARPA Revenues Value-Added ARPA Revenues Driven by Total ARPA Revenues 382.5 451.4 +29.2 +4.5 +12.7 +22.5 <Personal Services>
  • 5. 4 1H/FY15.3 1H/FY16.3 842.6 61.7 66.2 938.0 904.3 YOY Change YOY +3.7% YOY +¥33.7B 871.8 Personal / Value Services Total ARPA Revenues (Billions of yen) au ARPA Revenues Value-Added ARPA Revenues
  • 6. 5 Total ARPA YOY +2.5% (Yen) 1Q 2Q 3Q 4Q 1Q 2Q 5,470 5,570 5,560 5,510 5,600 5,700 400 410 430 460 430 430 FY15.3 FY16.3 YOY +2.5% 6,130 5,980 Personal / Value Services Quarterly Basis au ARPA Value-Added ARPA
  • 7. 1.35 1.36 1.37 1.38 9/'14 12/'14 3/'15 6/'15 9/'15 1.39 1H/FY15.3 1H/FY16.3 0.82 0.95 YOY +16% 6au Net Adds au Net Adds (Millions) Personal Services Mobile Devices per PersonNote (Unit) Note) Excluding prepaid and MVNO Increases in au Net Adds and Steady Growth in the Number of Devices
  • 8. 9/'12 9/'13 9/'14 9/'15 Note3) Percentage of au Smart Value for au smartphone subscribers 7 9/'12 9/'13 9/'14 9/'15 In the 42nd Month since Launch, Surpassed 10 Million (Mobile) Note1 au Smart Value Personal Services Penetration for au Smartphone SubsNote3 Mobile Fixed-line (As of September 30, 2015) 10.37M 5.14M (au subs) (Households) (As of September 30, 2015) Note1) Service provision began on March 1, 2012. Topped 10 million on August 9, 2015 Note2) Households: total for KDDI group companies and fixed-line allied companies 54% of au smartphone au smartphone subs au Smart Value for au smartphone subs au Smart Value (Bundled Services) Note2
  • 9. 8 Kakeho (Unlimited Voice) NEW 0.5GB 0.7GB 2GB - 3GB - 7GB Note2 Note3 Note3 Junior feature phone 4G LTE mobile phone rate plan 3G feature phone rate plan For SeniorsFor Juniors LTE Plan From ¥4,280From ¥3,920 From ¥1,043 From ¥1,043 From ¥6,200Note1 Offering Diverse Rate Plans to Match Customers’ Needs Mobile Rate Plans Age Data volume Personal Services Super Kakeho (5-Min-Voices) Note4 Note1) Minimum indicated price is if in combination with Super Kakeho (5-Min-Voices) Note2) Requires LTE plan and package subscription with “LTE Flat” (from November 17, 2015 onward) Note3) Kakeho (Unlimited Voice) and Super Kakeho (5-Min-Voices) require package subscription to a flat-rate data service Note4) Minimum indicated price is for a 3G feature phone rate plan *Indicated rates are when subscribing to “Everybody Discount package” + Internet access service. Indicated figures exclude taxes
  • 10. 9 Cumulative Subscriptions 3/'15 6/'15 9/'15 Smartphones for Light Users Smartphone Penetration by Age Group For SeniorsFor Juniors Personal Services ¥3,920Note1 (Monthly data volume: Includes 0.5GB) Monthly fee ¥4,280Note2 (Monthly data volume: Includes 0.7GB) Limited to children elementary school age and younger Limited to people aged 55 and above Note1) Junior Smartphone Plan. When “Everybody Discount Package” + “LTE NET” apply Note2) Senior Plan. When “Everybody Discount Package” + “LTE NET” apply *Separately, call, data communication, option and universal service charges apply. For calls to au mobile phones between 1am and 9pm, charges are waived as LTE Plan *Please see the au website for details *Indicated figures exclude taxes Number of Customers Increasing Steadily, Centered on Smartphone Novices
  • 11. 10Personal Services 6/'14 9/'14 12/'14 3/'15 6/'15 9/'15 LTE smartphone 3G smartphone au Smartphone Penetration 56% LTE 53% 50% 52% 53% 54% 55%Smartphone Aiming to Boost Penetration by Offering a Variety of Services
  • 12. 11Targeting Long-Term Use Long Term Hospitality Data Gift Long Term Hospitality Depending on the "au contract period" and "data flat-rate service / rate plan,“ customers get additional data capacity on the first month after five years, and thereafter, every three months Monthly data volume Monthly data volume Upgrade Program Note) Target: Subscribers between September 18, 2015 and March 31, 2016 Developing Measures to Encourage Long-Term Use *Please see the au website for details Personal Services ¥0 Super Upgrade CampaignNote By paying an up-front charge (¥2,000), customers can enjoy handset upgrades in the 13th month (Normally in the 19th month) Makes outstanding installment balance (for seven months) for their previous models essentially free
  • 13. 12UQ Mobile (MVNO Business) Merger of UQ and KVE (October 1, 2015) Personal Services Leveraging the “UQ” Brand and Reinforcing Sales Channels Beginning face-to-face sales of smartphones by sales staff handling mobile Wi-Fi routers
  • 14. 13 9/'14 12/'14 3/'15 6/'15 9/'15 6.10 15.80 (Prepaid/Credit CardNote2) Targeting a New Stage of Growth Expanding Customer Base in the Value-Added Domain Online Base Offline Base Personal / Value Services (Millions)(Millions) au Smart Pass 9/'14 12/'14 3/'15 6/'15 9/'15 11.40 13.61 YOY +19% Note2) Cumulative number of au WALLET prepaid card applications + credit cards issued Note1）Members of au Smart Pass Note1
  • 15. 14 au Customer Contact Point Website au Shop Settlement Platform au Online Customer Base 13.61M membersNote Personal Services 37.43 M subs au Customer Base Personal / Value Services Monthly Visitors to au Shops Approx. 10 Million au Simple Payment ”Online Carrier Billing” Note）Members of au Smart Pass Leveraging Our Business Infrastructure to Begin Service Provision (As of September 30, 2015) (As of September 30, 2015)
  • 16. 15Personal / Value Services au NAGOYA (by December 2015) Started August 25, 2015. Launced at 2,500 au Shops Nationwide Changing shop images from “places for handling paperwork” to “fun places to shop” Concept: “Making everyday items a little nicer”
  • 17. Reception, fielding request Information on services, rates, etc. Waiting time Shop staff provides purchasing support Enter shop Exit shop Product introduction Shopping, contract Taking Advantage of Shop Waiting Times to Efficiently Provide New Products 16Personal / Value Services Digital SignageSales Staff Catalog Tablet
  • 18. 17Telecommunications Business in Myanmar Data communications campaign introduced through alliance with LINE (Campaign period: July 29 to September 30, 2015) Global Services 7/'14 9/'15 Approx. 16.0M MPT Mobile Subscribers Approx. 6.0M Since joint business agreement signed (July 2014), Number of subscribers up 2.5 times Running Campaigns to Boost Customer Numbers and Communications Traffic
  • 19. 18Consolidated Achieved Third Consecutive Double-Digit GrowthNote1 in Operating Income in the 1st Half  Operating Income for 1H: ¥451.4B +18% YOYNote2  Expanded Total ARPA Revenues by Promoting the “3M Strategy”  Promoted Initiatives Targeting a New Stage of Growth Summary Note1) Year-on-year comparisons through the fiscal year ended March 31, 2015, are based on Japan GAAP. Year-on-year comparisons are based on IFRS for the fiscal year ending March 31, 2016 Note2) Based on IFRS
  • 21. Consolidated Financial Results 20 1H/FY15.3 1H/FY16.3 YOY FY16.3 Operating revenue 2,030.2 2,151.8 6.0% 4,400.0 Operating income 382.5 451.4 18.0% 820.0 Operating margin 18.8% 21.0% -- 18.6% Profit for the period attributable to owners of the parent 226.8 277.5 22.3% 490.0 EBITDA 663.3 727.8 9.7% 1,400.0 EBITDA margin 32.7% 33.8% -- 31.8% Free cash flows 175.8 141.7 -- 280.0 （E） Consolidated (Billions of yen) *Based on IFRS
  • 22. 21 Operating Income Consolidated Personal Value Business Global Other, Elimination and Corporate IFRS 382.5 299.8 32.0 41.2 7.8 1.7 J-GAAP 384.8 305.0 30.3 40.3 5.2 4.0 Difference -2.2 -5.2 +1.7 +0.9 +2.5 -2.3 Major differences • Non-amortization of goodwill: +13.3 • Differences in depreciation method: -16.0 • Differences in the scope of consolidation: +0.2 • Non-amortization of goodwill: +10.1 • Differences in depreciation method: -15.3 • Differences in the scope of consolidation: +1.9 Non-amortization of goodwill: +2.1 Differences in the scope of consolidation: -1.7 Operating Revenue Consolidated Personal Value Business Global Other, Elimination and Corporate IFRS 2,030.2 1,569.6 112.9 322.2 138.9 -113.4 J-GAAP 2,131.9 1,642.5 114.3 327.2 137.9 -90.0 Difference -101.8 -72.9 -1.5 -5.0 +1.0 -23.4 Major differences • Impact of excluding selling commissions: -74.3 • Impact of excluding reward point expenses: -13.4 • Differences in the scope of consolidation: -3.9 • Impact of excluding selling commissions: -71.8 • Impact of excluding reward point expenses: -12.2 • Differences in the scope of consolidation: +20.3 Unification of reporting period for overseas subsidiaries: +1.0 Differences in the scope of consolidation: -24.2 (Ref.) IFRS/J-GAAP Differences in 1H/FY15.3 (Billions of yen) • Non-amortization of goodwill: +1.1 • Share of profit(loss) of investments accounted for using the equity method: +0.3 • Impact of excluding selling commissions: -2.5 • Impact of excluding reward point expenses: -1.1
  • 23. Financial Results by Segment 22 Personal Services 1H/FY15.3 1H/FY16.3 YOY Operating revenue 1,569.6 1,682.6 +7.2% Operating income 299.8 351.4 +17.2% Operating margin 19.1% 20.9% -- EBITDA 546.2 594.0 +8.8% EBITDA margin 34.8% 35.3% -- Value Services 1H/FY15.3 1H/FY16.3 YOY Operating revenue 112.9 126.0 +11.7% Operating income 32.0 36.6 +14.4% Operating margin 28.3% 29.0% -- EBITDA 37.3 41.9 +12.4% EBITDA margin 33.0% 33.3% -- Business Services 1H/FY15.3 1H/FY16.3 YOY Operating revenue 322.2 309.9 -3.8% Operating income 41.2 39.6 -3.9% Operating margin 12.8% 12.8% -- EBITDA 63.7 62.8 -1.4% EBITDA margin 19.8% 20.3% -- Global Services 1H/FY15.3 1H/FY16.3 YOY Operating revenue 138.9 152.9 +10.1% Operating income 7.8 19.9 +156.6% Operating margin 5.6% 13.0% -- EBITDA 14.2 25.4 +78.6% EBITDA margin 10.2% 16.6% -- (Billions of yen) *Based on IFRS
  • 24. KPI 23 Segment 3/’15 9/’15 Change 3/’16（E） Consolidated au subscriptions (Millions) 43.48 44.64 +1.16 45.78 Personal Services au subscriptions (Millions) 36.48 37.43 +0.95 38.18 Mobile devices per person （Units） 1.37 1.39 +0.02 1.40 au smartphone penetration （%） 54.3% 56.0% +1.7pt -- au Smart Value (Mobile) (Millions) 9.33 10.37 +1.04 -- au Smart Value (Fixed-line) (Millions) 4.59 5.14 +0.55 -- Value Services au Smart Pass members (Millions) 12.89 13.61 +0.72 -- Segment 2Q/FY15.3 2Q/FY16.3 YOY FY16.3（E） Total ARPA (Yen) 5,980 6,130 +2.5% 6,110 Personal Services au ARPA (Yen) 5,570 5,700 +2.3% 5,610 Value Services Value-added ARPA (Yen) 410 430 +4.9% 500
  • 25. CAPEX (cash flow basis) 24 1H 1H 194.2 131.2 128.2 123.8 Mobile Fixed-line and other (including UQ) 1H/FY16.3 ¥255.1B FY15.3 FY16.3 Capital ExpendituresConsolidated YOY -¥67.3B Progress Rate 42.5% Full-year (E) (Billions of yen) 600.0 667.7 *Based on IFRS Full-year 322.4 255.1
  • 27. The figures included in the this 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. Disclaimer