Performance Analysis

Analysis of Consolidated Statement of Income (Years ended March 31)

Operating Revenue

Total ARPA revenues rose due to increases in au ARPA and value-added ARPA. In addition, fixed-line communications revenues increased, along with higher revenues from terminal sales, overseas subsidiaries and other sources. As a result, consolidated operating revenue rose 4.6% year on year, to ¥4,466.1 billion.

Operating Income

Consolidated operating income increased 25.2% year on year to ¥833.4 billion. This was mainly owing to positive contributions to earnings from increased operating revenue including higher total ARPA revenues and a decline in the loss on impairment and disposal of equipment recorded in the previous fiscal year. These factors absorbed increases in au sales commissions and depreciation.

Profit for the Year Attributable to Owners of the Parent

The higher consolidated operating income absorbed the impacts of increases in income tax and profit for the year attributable to non-controlling interests. As a result, profit for the year attributable to owners of the parent rose 24.9% year on year to ¥494.5 billion.

Dividends per Share

Full-year dividends per share were ¥70, up ¥13.33 [1] year on year, representing a consolidated dividend payout ratio of 35.4%. Our dividend policy is to maintain the consolidated dividend payout ratio at a level above 35%, while taking into consideration the investments necessary to achieve growth and ensure stable business operations, and we plan to continue raising dividends through synergy between a higher consolidated dividend payout ratio and increasing earnings per share in line with higher operating income.

  • [1]
    After adjusting for a stock split.

Analysis of Consolidated Statement of Financial Position (Years ended March 31)

Total Assets

Total assets were ¥5,807.2 billion, an increase of ¥180.5 billion from the previous fiscal year-end. This increase was mainly due to expansion of the "au WALLET" credit card business and higher installment sales receivables of au mobile phone handsets, as well as an increase in assets in connection with the conversion of Jupiter Shop Channel Co., Ltd. into a new consolidated subsidiary.

Total Equity

Total equity was ¥3,509.5 billion, an increase of ¥286.4 billion, mainly due to increased retained earnings associated with an increase in profit for the year, and an increase in non-controlling interests.

Interest-Bearing Debt

Interest-bearing debt was ¥1,235.3 billion an increase of ¥81.2 billion from the previous fiscal year-end, mainly due to an increase in long-term borrowings in connection with the acquisition of shares of Jupiter Shop Channel Co., Ltd.

D/E Ratio

Equity attributable to owners of the parent increased mainly due to higher retained earnings, despite the increase in interest-bearing debt. As a result, the D/E ratio declined 0.01 percentage point from the previous fiscal year, to 0.37 times.

Analysis of Capital Expenditures and Cash Flows

Capital Expenditures

Consolidated capital expenditures decreased ¥136.3 billion compared with the fiscal year ended March 31, 2015, to ¥531.4 billion.

Capital expenditures in the mobile business were down ¥141.1 billion, to ¥338.0 billion, mostly due to a decline in investment in expanding service areas after the population coverage ratio of the 4G LTE (800 MHz) area surpassed 99%. This was despite the continued execution of investment primarily in wireless base stations and new and expanded switching equipment, to address data traffic.

In the fixed-line business, capital expenditures rose ¥4.8 billion year on year, to ¥193.4 billion. This was the result of continued spending on the expansion of fixed-line communications networks to handle the ongoing increase in mobile data traffic, as well as on new and expanded FTTH and CATV facilities.

Cash Flows

Net cash provided by operating activities was ¥884.5 billion, ¥84.2 billion less than in the previous fiscal year. This decrease partly reflects changes in receivables and payables and an increase in income tax paid, despite increases in profit for the period before income tax and depreciation and amortization.

Net cash used in investing activities was ¥667.9 billion, ¥32.2 billion more than in the previous fiscal year. Cash was used mainly for the acquisition of shares of Jupiter Shop Channel Co., Ltd.

Free cash flows―the total of operating and investing cash flows―amounted to ¥216.6 billion, down ¥116.4 billion from the previous fiscal year.

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