Performance Analysis

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

Operating Revenues/Net Sales

YOY+2.5％ ¥5,446.7 billion

Higher Handset revenues and increased revenue from the Business Services segment and the financial and energy businesses resulted in net sales increased 2.5% year-on-year to ¥5,446.7 billion.

Operating Income

YOY+2.2％ ¥1,060.6 billion

The decrease in Multi-Brand communications ARPU revenues was offset by an increase in MVNO and roaming revenues, as well as higher income from the Business Services segment and financial and energy businesses, which are the Company’s focus areas.
Operating income increased 2.2% year-on-year to ¥1,060.6 billion.

Net Income/Profit for the Year Attributable to Owners of the Parent

YOY+3.2％ ¥672.5 billion

In addition to the increase in operating income, the increase in net financial income contributed to the 3.2% year-on-year increase in profit for the year attributable to owners of the parent, to ¥672.5 billion.

Dividends per Share

YOY+¥5.00 ¥125.00

The annual dividend was ¥125, an increase of ¥5 year-on-year, and the consolidated dividend payout ratio was 41.7%. Regarding the dividend policy from FY23.3 to FY25.3, we will maintain a consolidated dividend payout ratio of over 40%, in parallel with our efforts toward sustainable growth, including capital investment in 5G and focus areas and strategic business investment.

Interest-Bearing Debt

YOY-¥45.4 billion ¥1,600.1 billion

Interest-bearing debt dropped by ¥45.4 billion year-on-year to ¥1,600.1 billion, mainly due to a decrease in lease obligations and borrowings.

D/E Ratio

YOY-0.03 0.32 times

In addition to a decrease in interest-bearing debt, an increase in retained earnings led to an increase in the parent company’s equity attributable to the owners of the parent. As a result, the D/E ratio was 0.32, a decrease of 0.03 year-on-year.

Total Assets

YOY+¥549.1 billion ¥11,084.4 billion

Total assets increased by ¥549.1 billion year-on-year to ¥11,084.4 billion, mainly due to an increase in loans for the financial business because of the securitization of mortgage loan receivables.

Total Equity

YOY+¥251.2 billion ¥5,510.7 billion

Despite the acquisition of treasury stock, the increase in retained earnings due to higher profit for the period and an increase in non-controlling interests contributed to the increase in capital. Total equity amounted to ¥5,510.7 billion, up ¥251.2 billion year-on-year.

Capital Expenditures (Payment Basis)

Capital Expenditures (Payment Basis) Mobile YOY+¥26.2 billion ¥404.2 billion

In the mobile business, while 4G investment decreased, 5G investment expanded, resulting in an increase of ¥26.2 billion year-on-year to ¥404.2 billion.

Capital Expenditures (Payment Basis) Fixed-Line and Others YOY+¥22.4 billion ¥272.2 billion

Regarding the fixed lines, and others, net sales increased ¥22.4 billion year-on-year to ¥272.2 billion because some payments for FY21.3, were delayed to FY22.3, and in addition to the increase in voice, network, and other shared infrastructure facilities, etc.

Free Cash Flows

YOY-¥316.2 billion ¥707.1 billion

Net cash provided by operating activities amounted to ¥1,258.4 billion*, a decrease of ¥154 billion year-on-year due to an increase in income taxes paid as well as other factors.
On the other hand, cash flow from investing activities increased by ¥65.1 billion year-on-year to ¥699.5 billion* due to an increase in capital expenditure for the promotion of 5G investment etc.
As a result, free cash flow, the sum of net cash provided by operating activities and net cash used in investing activities, amounted to ¥558.9 billion*, down ¥219.1 billion year-on-year.