Financial Results for the First Quarter of the Fiscal Year Ending March 2023
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In the first quarter of fiscal year 2023, KDDI Corporation experienced increased operating revenue but a decrease in operating income, primarily due to impacts from communication charge reductions and the termination of 3G services. Key focus areas such as financial and energy businesses showed growth, with significant increases in subscribers and transaction volume. The company also noted that actual performance may differ from forecasts due to various uncertainties.
Financial Results for the First Quarter of the Fiscal Year Ending March 2023
- 1. Financial Results 1st Quarter Fiscal Year Ending March 2023 July 29, 2022 KDDI Corporation President Makoto Takahashi The creation of a society in which anyone can make their dreams a reality, by enhancing the power to connect.
- 2. *1 From FY2023.3, the segment of some departments has been transferred to “Others” from “Personal Services segment” and “Business Services segment.” In accordance with this transfer, stated figures for FY2022.3 retroactively reflect reclassification of segment. 1,351.7 296.9 191.8 64.6*3 21.7*3 258.6 45.8 Operating Revenue Operating Income Profit for the Period attributable to owners of the parent 1,300.3 299.2 189.9 FY23.3 Q1 FY22.3 Q1 Financial Business Revenue*2 Financial Business Operating Income*2 40.3 4.0 - - Business Services segment Revenue*1 Business Services Operating Income*1 245.2 44.6 +5.5% +2.6% Financial Results Highlights +4.0% (0.8％) +1.0% Consolidated 5,560 1,100 688 210 38 1,130 206 FY23.3(E) (Unit : yen billion) In Q1, operating revenue increased, but operating income decreased, despite focus areas’ solid performance YOY *2 au Financial Holdings, IFRS basis *3 Includes temporary accounting effects 1 Focus Areas
- 3. 2 299.2 (Unit : yen billion) (29.2) その他 FY22.3 Q1 FY23.3 Q1 (2.3) Consolidated Operating Income: Factors for Change Multi-Brand communications ARPU revenues 296.9 Focus Areas*1*2 *1 Business Services segment, Financial Business (au Financial Holdings, IFRS basis) and Energy Business, etc. *2 Includes temporary accounting effects Group MVNO revenues + Roaming revenues +15.2 (1.4) ▲×× Impact of communication charge reduction mitigated mainly by promoting focus areas Others +13.2
- 4. 6/'21 9/'21 12/'21 3/'22 6/'22 30.56 30.54 30.72 30.97 30.93 (Unit : Million) Note) Personal Services segment, au, UQ mobile and povo Multi-Brand IDs/Communications ARPU 3 Multi-Brand IDs Excluding 3G closure impact, IDs steadily increasing due to strong performance of UQ mobile and povo Communications ARPU (Unit : Yen) Q1 Q2 Q3 Q4 Q1 4,280 4,270 4,200 4,050 3,970 UQ mobile & povo : Approx. 7.0 3G Closure effects : Approx. (0.25) FY22.3 FY23.3
- 5. Focus Areas and Business Services Segment 4 75 87 FY22.3 Q1 FY23.3 Q1 (Unit : yen billion) Operating Income Factors for Change (YOY) (+) Profit increased in NEXT Core Business Those including exchange effects of overseas subsidiaries (-) Effect of contract terminations due to 3G termination Profit increased in NEXT Core Business (DX) and Core Business; steady progress in both Double-digit growth Business Services segment Operating Income NEXT Core Business Operating Revenue
- 6. Focus Areas: Financial/ Energy Business 5 Increase in profit due to temporary accounting effects FY22.3 Q1 FY23.3 Q1 4.0 21.7 Controlled costs by increasing energy procurement via private power contracts Despite impact from rising fuel prices, its impact on business performance was limited Recorded total of deferred profit of previous fiscal years, so profit for the period increased significantly Made accounting changes for home mortgage (Unit : yen billion) Operating Income* * au Financial Holdings, IFRS basis Financial Business Energy Business In Q1, profit decreased YOY
- 7. 6 Focus Areas Main Indicators au Jibun Bank Loan product’s balance ¥1.8 Trillion (YOY +¥0.2 Trillion) au Denki, etc. Subscribers 3.53 Million (YOY +0.57M) Energy Of au PAY Card members 7.9 Million (YOY +1.2M) Finance au PAY members + au PAY Card members 38.0 Million (YOY +4.3M) Transaction Volume of Settlement/ Loan FY23.3 Q1 ¥3.3 Trillion (YOY +33.0%) Finance Main indicators grew, especially those related to DX, finance, and energy Revenue of NEXT Core Business DX FY23.3 Q1 ¥87 Billion (YOY+16.0%) Finance Note) Main indicators related to Financial and Energy businesses are the results as of the end of June 2022.
- 8. 7 Summary In Q1, operating revenue increased with a decrease in profit for the period despite higher showings in focus areas Impact of communication charge reduction was mitigated mainly by promoting focus areas Excluding 3G closure impact, IDs steadily increasing due to the strong performance of UQ mobile and povo Main indicators grew, especially those related to DX, finance, and energy
- 9. Appendix
- 10. 9 (4.3) (37.2) +69.1 EBITDA (13.7) FY22.3 Q1 Payment of corporate tax, etc. 43.6 CAPEX (Unit : yen billion) Note) Financial business is au Financial Holdings Corporation. FY23.3 Q1 +80.8 Others +29.6 Consolidated FCF (Excluding Financial Business) Factors for Change Including transient factors related to 3G closure Including transient factors such as accounts payable
- 11. Note) “KDDI (consolidated)” is prepared in accordance with IFRS and “au Financial Holdings (consolidated)” is prepared in accordance with J-GAAP. Property, Plant and equipment, Intangible assets and Right-of-use assets Goodwill Trade and other receivables Securities for financial business Loans for financial business Cash and cash equivalents Others KDDI(Consolidated) Total Assets 11.15 trillion yen Interest-bearing debt Trade and other payables Deposits for financial business Other liabilities Equity au Financial Holdings (Consolidated) Total Assets 3.34 trillion yen Others Cash and cash equivalents Securities Loans Deposits Others Consolidated/ Financial Business Balance sheet （as of the end of June 2022） 10
- 12. 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 situation, 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