Performance Analysis

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

Operating Revenue

The Personal Services segment recorded an increase in both mobile communications revenues and energy business revenues, and an increase from the consolidation of BIGLOBE as a subsidiary, as well as increases in revenue due to expansion of the Life Design Business, including the commerce and settlement businesses to maximize the "au Economic Zone." Revenue also increased in the Business Services segment. As a result, consolidated operating revenue rose 6.2% year on year to ¥5,042.0 billion.

Operating Income

Consolidated operating income increased 5.5% year on year to ¥962.8 billion. Despite expenditure on strategy costs for medium to long term growth, the increase reflects an increase in mobile communications revenues and gross profit on device sales in the Personal Services segment, as well as an impact from conducting impairment of certain idle assets related to 3G services in the fiscal year ended March 31, 2017, and steady overall performance in the Other segments.

Profit for the Year Attributable to Owners of the Parent

Consolidated operating income increased, and finance income and cost (net) increased while profit for the year attributable to non-controlling interests decreased. As a result, profit for the year attributable to owners of the parent increased 4.7% year on year to ¥572.5 billion.

Dividends per Share

We awarded full-year dividends per share of ¥90, up ¥5 year on year, amounting to a consolidated dividend payout ratio of 38.2%. 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. We aim to continue raising dividends through synergy between a higher consolidated dividend payout ratio and increasing earnings per share in line with higher operating income.

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

Total Assets

Total assets were ¥6,574.6 billion, an increase of ¥310.7billion from the previous fiscal year-end. The increase reflects expansion of the "au WALLET Credit card" business and growth in receivables due to diversification of installment sales methods for au mobile phone handsets,as well as an increase in assets associated with the conversion of AEON Holdings Corporation and others into consolidated subsidiaries.

Total Equity

Total equity was ¥4,131.3 billion, up ¥282.1 billion, mainly due to an increase in retained earnings associated with the increase in profit and an increase in non-controlling interests, which outweighed a decline in equity due to the acquisition of treasury stock.

Interest-Bearing Debt

Interest-bearing debt decreased ¥33.0 billion year on year to ¥1,118.6 billion, mainly because of the redemption of bonds.

D/E Ratio

Interest-bearing debt decreased and equity attributable to owners of the parent increased, which led to an increase in retained earnings. As a result, the D/E ratio declined 0.03 of a point from the previous fiscal year end to 0.30 times as equity attributable to owners of the parent increased.

Analysis of Capital Expenditures and Cash Flows

Capital Expenditures (Payment Basis)

Consolidated capital expenditures increased ¥41.5 billion compared with the fiscal year ended March 31, 2017 to ¥560.8 billion.

In the mobile business, capital expenditures were up ¥35.1 billion to ¥360.1 billion, mainly due to making progress in LTE service quality mprovement and area coverage expansion in the 800MHz band, and implementing increased telecommunication speeds by carrier aggregation, as well as making steady progress in construction work on the 700MHz and 3.5GHz bands.

In the fixed-line businesses and others, capital expenditures increased ¥6.4 billion year on year to ¥200.7 billion.
The increase was mainly due to a continued increase in FTTH-related investment and increases in investments in consolidated subsidiaries in Japan and overseas.

Cash Flows

Net cash provided by operating activities was ¥1,061.4 billion, ¥99.7 billion less than the previous fiscal year. The decrease mainly reflects increases in trade and other receivables and income tax paid, despite an increase in EBITDA.
Meanwhile, net cash used in investing activities was ¥633.8 billion, ¥3.4 billion less than the previous fiscal year.
The decrease mainly reflects a decline in proceeds from sales of stocks of subsidiaries, despite an increase in capital expenditure.
As a result, free cash flows―the total of operating and investing cash flows―amounted to ¥427.6 billion, down ¥96.3 billion from the previous fiscal year.

  • As of September 2018
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