KDDI HOMECorporate InformationInvestor RelationsIR DocumentsPresentationsFY 2017.3Performance highlights and Q&A for the First Quarter of the Fiscal Year Ending March 2017

Performance highlights and Q&A for the First Quarter of the Fiscal Year Ending March 2017

Date Tuesday, August 2, 2016 5:30 pm-6:30 pm
Location 20F Conference Room, Garden Air Tower
Respondents Takashi Tanaka, President; Hirofumi Morozumi, Executive Vice President; Makoto Takahashi, Executive Vice President; Yuzo Ishikawa, Executive Vice President; Hidehiko Tajima, Senior Vice President; Yoshiaki Uchida, Senior Vice President; Takashi Shoji, Associate Senior Vice President; Shinichi Muramoto, Associate Senior Vice President; Hiroki Honda, General Manager, Corporate Management Division; Keita Horii, General Manager, Investor Relations Department (MC)

Performance Highlights

In the domestic telecommunications business, in August 2016 we launch a new membership program "au STAR" under our new business management direction, "Transform into a Business Providing Customer Experience Value." The program is designed to encourage long-term use by au customers.

In the UQ mobile sector, we aim to expand the number of electrical appliance mass retailers handling UQ mobile to around 1,000 stores and reinforce customer touchpoints in the MVNO market centered on online sales. In addition, from July we are expanding our communications fee plans and smartphone lineup to promote smartphone sales.

In the IoT field, we will promote connected cars and smart meters, aimed at developing new markets for the mid-to-long term strategy.

In the area of life design strategy, we will coordinate au WALLET Market commerce services and au STAR Gift to boost sales. Additionally, in the au Denki service launched in April 2016, we will promote payment of electricity services by au WALLET credit card. In au Insurances and Mortgages, we have developed services with partner companies, launching sales as au brand services from April. In addition to selling these services through customer touchpoints both offline and online, an au strength, we will develop effective promotions on three au ID-based platforms for maximizing the au Economic Zone: point rewardp, Big Data/Data Management Platform (DMP,) and settlement platform.

In the global business sector, since the conclusion of a joint venture agreement with state-owned MPT, Myanmar's primary telecommunications operator, in July 2014, we have seen steady growth in the number of subscribers. In March 2016, we consolidated MobiCom, the largest mobile phone operator in Mongolia, and launched 4G LTE in May 2016. We will continue to develop the telecommunications business in Myanmar and Mongolia.

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  • QAre there any plans to offer value-added services, such as the"au Smart Pass" provided by au, UQ mobile users?

    In addition to "Multi-network" services through au Smart Value, and "Multi-device" services, which contribute to an in increase in ARPA, there are scenarios to expand the au Economic Zone through "Multi-use" services. From an identity standpoint, we are also thinking about UQ. However, we believe that now is not the right stage to provide value-added services to UQ mobile users. There is a possibility that they may be provided in the future, but currently they are services for au users.

  • QWhat is the impact of the United Kingdom's departure from the European Union? Will it affect the future data center business strategy?

    At the present time, there is no substantial impact. If the United Kingdom's departure did have an effect, we think it would be in regards to the personal information protection act. The customers of the data center business provided under our TELEHOUSE brand are engaged in multinational corporate activities. With some customers pulling up business stakes from the UK, there is a possibility that they may diversify their businesses that are currently concentrated only in the UK to other countries, so we do not see this as a risk. Currently, the impact of currency exchange will have a far greater effect due to the weakening of the pound.

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