Medium-Term Targets (FY 2014.3 to FY 2016.3)
We aim to enhance corporate value still further by taking on new fields of business, continuing to increase profits, and augmenting shareholder returns.
KDDI is positioning the three-year period from the fiscal year ended March 31, 2014, to the fiscal year ending March 31, 2016, as a time of "full-scale income growth." As such, we have set the medium-term management target of achieving "double-digit growth in consolidated operating income."
We plan to continue increasing our returns to shareholders, which focus on augmenting earnings per share (EPS) through sustainable growth and our commitment to raising dividends to meet our commitment of a dividend payout ratio in excess of 30%.
- FY14.3 and FY15.3 figures are based on Japanese GAAP. FY16.3 (E) figures are based on IFRS.
- EPS (Earning per Share)
- Taking into account the three-for-one stock split conducted with an effective date of April 1, 2015
The fiscal year ended March 31, 2015, was the second year for this medium-term management target, and during this time we concentrated on sustaining "au momentum" in the domestic mobile business. Furthermore, based on a policy of "targeting the next growth stage," we made steady inroads on new initiatives, such as launching "au WALLET" and commencing "telecommunications business in Myanmar."
On the performance front, an increase in mobile communications revenues and lower sales commissions absorbed higher up-front costs to invest in new businesses. As a result, consolidated operating income grew 11.8% year on year, to ¥741.3 billion, for our second consecutive year of double-digit growth.
The dividend for the fiscal year ended March 31, 2015, amounted to ¥170  per share, up ¥40 from the previous year. This figure amounted to a consolidated dividend payout ratio of 33.2% and represented the 13th consecutive fiscal year of dividend increases.
- Not taking into account the three-for-one stock split conducted with an effective date of April 1, 2015
Domestic Business Strategy
As we worked to maintain momentum in the mobile business and achieve steady earnings growth, we positioned the fiscal year ended March 31, 2015, as a year for "targeting the next growth stage." In Japan, we pursued the pillars of our "3M Strategy" (multi-network, multi-device, multi-use) for domestic business. As part of our "Global Strategy," we undertook such initiatives as commencing "telecommunications business in Myanmar."
Since we announced our "Medium-Term Targets," au ARPU has risen in tandem with the migration from feature phones to smartphones, and we have boosted mobile communications revenues by increasing the number of subscriptions (IDs) to bundled sets of fixed-line and mobile services.
Meanwhile, in the fiscal year ended March 31, 2015, we made a major move to promote multi-device services.
As part of this full-fledged promotion of multi-device services, we changed one of our KPIs that had been based on mobile services―au ARPU. We adopted the measure of "au ARPA (average revenue per account)," which reflects tablet and other multi-device revenues.
Going forward, by further promotion of our multi-device services we aim to expand revenues per customer rather than revenues per device.
In addition, KDDI is moving aggressively to expand value-added revenues in non-communications domains by promoting the "multi-use" component of the 3M strategy. Our focus going forward will be on further augmenting "value-added ARPA," or value-added sales per au customer.
Simultaneous to pursuing the "3M Strategy" in our domestic business, we are concentrating on another pillar of our growth strategy for the future: global business. In this category, we have signed a joint business agreement with Myanma Posts & Telecommunications (MPT) and are commencing the telecommunications business in Myanmar.
In Myanmar, we are increasing communications quality and extending the service area in key cities. We are also expanding call centers and making other moves to fortify our base for the communications business. Efforts to attract customers through various promotions and enhancing sales channels are steadily bearing fruit. As of December 31, 2015, subscriptions numbered around 18 million, approximately triple the figure at the time we entered the business alliance in July 2014.
In addition to contributing to the development of Myanmar's economy and industry, as well as to the lives of the country's citizens, we are building these operations into a pillar of our growth strategy.
Sales network enhancement
- Establishment of brand booth in Yangon Airport.
- Expansion of sales network through directly operated shops, specialized shops, etc.
Network quality improvements
Steadily rolling out high-speed 3G data communications in key cities.
Enhancement of customer counters through store refurbishment
To enhance customer satisfaction, we have increased the number of counters and set up new waiting areas.
Pre-opening of the Sule office counter (The renovation is completed on February 2016)
Promotion of call center systemization
We are working to improve response time by promoting systemization.