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  • 1. Ubiquitous Solution CompanyKDDI CORPORATION Financial Results for the 1st Half of the Fiscal Year Ending March 2011 October 22, 2010

2. The figures included in the following brief, including the businessperformance target and the target for the number of subscribers are allprojected data based on the information currently available to the KDDIGroup, and are subject to variable factors such as economic conditions,a competitive environment and the future prospects for newlyintroduced services.Accordingly, please be advised that the actual results of businessperformance or of the number of subscribers may differ substantiallyfrom the projections described here.1 3. 1.1. 1H/FY2011.3 Financial Results Highlights1 Consolidated basis Operating revenues declined 0.3% yoy. Operating income declined 1.2% yoy. This performance represented 55.7% of the full-years operating income forecast.2 Mobile Business Operating revenues declined 2.4% yoy. Operating income declined 9.0% yoy. Number of au subscription as of September 30, 2010 was 32.29M, with a cumulative share of 28.0%.Note Number of non-triband handset units was 6.58M as of September 30, 2010.3 Fixed-line Business Operating revenues increased 5.7% yoy. Operating loss recovered 18.6B yoy to 3.7B. Achieved a turnaround operating profit in 2Q on quarterly basis. Fixed access line subscription counted 6.22M as of September 30, 2010. Of which, FTTH subscription rose to 1.74M. The number of CATV stations under alliance with Cable-plus phone topped 100.4 Decided on purchase of its own shares up to 100.0B, or up to 230,000 shares.(October 22, 2010)Note: Mobile telephone base (au + NTT DOCOMO + SOFTBANK MOBILE + EMOBILE) 2 4. 1.2. 2H/FY2011.3 Challenges1 Amid dramatic change in markets and earnings structures, advance businessrestructuring for sustainable growth.2 Mobile BusinessStrengthen smartphone lineup and proactive introduction of new devices such asebook reader, Wi-Fi router, tablet-type terminal.Promote data usage, push measures further to increase data ARPU.Steady progress on transfer to tri-band compatible handsets in preparation forreorganization of the 800MHz band.Strengthen infrastructure for mobile broadband era.3 Fixed-line BusinessAchieve profitability on operating income basis.Expand FTTH customer base even further.Promote measures to realize synergies with J:COM.4 For sustainable growthExpand content/media business and overseas business.Create a foundation to realize full-fledged FMBC services. 3 5. 2. Consolidated Financial ResultsOperating revenuesOperating income(Billions of yen) (Billions of yen) 4,000.0yoy500.0 yoy-1.2%-0.3% 400.0 3,000.0 300.0 55.7% 56.5% 2,000.0 50.1%50.0% 200.0progressprogress 1,000.01H1H 100.0 1H 1H 0.0 0.0FY2010.3FY2011.3(E)FY2010.3FY2011.3(E) (Billions of yen)FY2010.3 FY2011.3(E) 1H 1H yoyprogress Operating revenues 1,723.1 3,442.1 1,718.4 -0.3% 50.0% 3,440.0 Operating income251.0443.9247.9 -1.2% 55.7%445.0Operating margin14.6%12.9%14.4%- - 12.9% Ordinary income 241.5422.9234.0 -3.1% 55.7%420.0 Net income145.3 212.8137.0 -5.7% 57.1% 240.0 Free Cash Flow 49.5 -184.4 136.9 --230.0 EBITDA479.1927.3467.4 -2.4% 51.4%910.0EBITDA margin 27.8%26.9%27.2%- - 26.5%4 6. 3. Mobile Business Operating revenuesOperating income(Billions of yen) (Billions of yen)3,000.0yoy-2.4%500.0yoy -9.0% 400.02,000.0 300.0 56.2% 57.6% 50.5% 51.3% 200.01,000.0 progress progress1H1H 100.01H1H0.00.0 FY2010.3 FY2011.3(E) FY2010.3FY2011.3(E)(Billions of yen) FY2010.3 FY2011.3(E)SubsFY2010.3FY2011.3(E)1H 1H yoy progress 000 1H 1H Operating revenues1,337.9 2,650.1 1,305.2 -2.4% 51.3% 2,545.0 "au" Total31,233 31,872 32,291 32,800 Operating income 272.0483.7 247.7 -9.0% 57.6%430.0of module-type 999 1,085 1,230 1,300Operating margin 20.3%18.3% 19.0% - -16.9%WIN(EV-DO) 24,391 26,174 27,989 29,900 Ordinary incomeNote275.4490.6 243.6 -11.6% 58.7% 415.0 1X6,558 5,451 4,116- Net income 166.8 293.2140.9 -15.6% 59.9%235.0cdmaOne 284247186- Free Cash Flow 115.2 276.5137.6-- 235.0 UQ WiMAX22 150 337 800 EBITDA 432.5826.8 404.6 -6.5% 52.9%765.0(Ref.) au + UQ WiMAX31,254 32,023 32,628 33,600EBITDA margin32.3%31.2% 31.0%- - 30.1%Note: For FY2011.3 and its expected figures, equity-method investment income/loss, which used to be excluded from segment, is allocated to each segment. 5 7. 4. Fixed-line BusinessOperating revenuesOperating income(Billions of yen)(Billions of yen) 1,000.0 yoy+5.7%20.0800.00.0600.0 -20.049.4%46.6%400.0 -40.0 progress200.01H1H -60.0*Progress and yoy comparisons are not availableas figures are negative. 0.0-80.0FY2010.3 FY2011.3(E) FY2010.3 FY2011.3(E)(Billions of yen)FY2010.3 FY2011.3(E) SubsFY2010.3 FY2011.3(E) 1H 1Hyoy progress 000 1H1HOperating revenues 414.9 839.2438.5 +5.7% 46.6%940.0 ADSL 1,135 1,031932 840Operating income -22.3-44.2-3.7 -- 10.0FTTH 1,319 1,513 1,7412,040 Operating margin -5.4%-5.3%-0.8% --1.1% Metal-plusNote13,000 2,852 2,7022,570Note4Ordinary income-29.2-56.8-10.7--0.0Cable-plus phone778960 1,1521,280Net income -16.7-68.4-4.3 --0.0CATV Note2 896972 1,0421,040Free Cash Flow -51.4-75.71.2--0.0EBITDA44.7 94.758.6 +31.2% 41.9%140.0Fixed access linesNote35,700 5,944 6,2206,480 Note1 : Including ADSL one (ADSL used over Metal-plus). EBITDA margin10.8%11.3% 13.4%- -14.9%Note2: CATV subs include number of households with at least one contract via broadcasting, internet, or telephone.Note3: Fixed access lines are FTTH, direct-revenue telephony (Metal-plus, Cable-plus phone), and CATV subs. The number excludes crossover subs. 6Note4: For FY2011.3 and its expected figures, equity-method investment income/loss, which used to be excluded from segment, is allocated to each segment. 8. (Ref.) Fixed-line Business Operating Income (1)Accomplished a turnaround in operating profit, posting 1.7B in 2Q/FY2011.3.Operating Income on Quarterly Basis (Fixed-line Business)(Billions of yen) 2.01.7 1.0 0.0 0 -1.0In 2Q of FY2011.3 -2.0 -3.0 -4.0 -5.0-5.0Achieved -6.0-5.4 -7.0 Turnaround of -8.0 -9.0 operating profit-10.0-10.0-9.4-11.0-10.7-12.0 -11.6-13.0 -12.5-14.0-15.0 1Q2Q3Q4Q1Q2Q FY2010.3 FY2011.3 7 9. (Ref.) Fixed-line Business Operating Income (2)Operating loss of Fixed-line Business recovered 18.6B yoy to 3.7B in 1H/FY2011.3.Stead progress to achieve a turnaround in operating profit in FY2011.3. Factors for Change (Year-on-Year)(Billions of yen)0 -1.0 +6.5 -3.0 -5.0c d-1.1 -3.7 -7.0 +20.8 -9.0-10.0-11.0-13.0-15.0-17.0-19.0-20.0 b Operating income-21.0-23.0 aParent company operating revenues-25.0 -22.3 bParent company operating expenses-27.0acGroup company earningsNote-29.0 dOthers-31.0 -7.5 1H/FY2010.3+18.61H/FY2011.3Note: CTC, JCN and overseas subsidiaries 8 10. 5. Capital Expenditures Common Equip.Mobile capexFixed-line capex New 800MHz 2GHz(Billions of yen) (Billions of yen) 800MHz EV-DO500.0800MHz 1X200.0 OthersFTTH400.0150.0 96.8300.0100.083.6200.0204.3 44.050.0100.030.9 1H90.855.01H 74.2 25.522.40.00.00.0 FY2010.3 0.1 FY2011.3(E) 1.2 FY2010.3FY2011.3(E) 1.4 (Billions of yen)FY2010.3 FY2011.3(E) 1H 1H yoyprogressCapex (Cash basis) Consolidated 252.5518.0215.7 -14.6% 44.0% 490.0 Mobile 186.3376.8161.5 -13.3% 44.9% 360.0 Fixed-line65.1138.7 53.3 -18.1% 42.0% 127.0 9 11. 6. Share Buyback Decided on purchase of its own shares to implement flexible capital policies in response to the change in the business environment and to provide shareholders return.Type of shares Shares of common stockto be acquired Total number of shares Up to 230,000 shares to be acquired Representing 5.16% of 4,454,113 shares outstanding.Total amount of purchase Up to 100.0 billion Period of purchase From October 25, 2010 to March 31, 2011 10 12. 7. Shareholder Returns Steadily increasing consolidated payout ratio to 25%30% range while considering investment for sustainable growth remains. Total return ratioNote1 for FY 2011.3 is planned to be 65.2%.(yen)Dividend per ShareNote227.2% 23.7%Year-end Dividend 13,000 13,000Commemorative Dividend22.0%21.5%Interim Dividend22.4% 10,500 11,000 9,500 20.8%6,500 6,500 21.2% 8,0006,9005,5005,500 5,00016.8% 4,500 1,0003,50017.5%3,600 6,5001,7902,0951,0005,5005,500 2,400 4,5005,000 895 1,2003,5002,400 8958951,200FY2002.3 FY2003.3 FY2004.3 FY2005.3 FY2006.3 FY2007.3 FY2008.3 FY2009.3 FY2010.3 FY2011.3 (E)Note1: Calculated by (total dividend + total purchase of its own shares) net incomeNote2: refers to payout ratio, which shows on non-consolidated basis until FY2006.3 and on a consolidated basis from FY2007.3. FY2002.3 posted net loss. 11 13. Segment Discussions & StrategiesMobile BusinessFixed-line BusinessFor sustainable growth 12 14. 1.1. Net Additions MobileBusinessNet additions of subs incl. UQ in 1H/FY2011.3 were 606k with a share of 17.8%.Net additions of mobile Internet subs were 191k with a share of 13.4%. On Total Sub Basis Note (including BWA)On Mobile Internet Sub Basis(Share) (Share)100% KDDI (au) +UQ100%KDDI (au) NTT DOCOMO NTT DOCOMO SOFTBANK MOBILESOFTBANK MOBILE80%EMOBILE80% EMOBILE60% 60%40% 40%20% 20% 0% 0%-20% -20% 1Q2Q3Q4Q1Q2Q1Q2Q 3Q 4Q1Q2QFY2010.3 FY2011.3 FY2010.3 FY2011.3Full-year / FY2010.31H / FY2011.3Full-year / FY2010.31H / FY2011.31,180k subs / 24.3% 606k subs / 17.8% 784k subs / 38.2% 191k subs / 13.4%Note: The number includes mobile handsets, smartphones, data and module-type terminals. BWA: Broadband Wireless AccessSource: Telecommunications Carriers Associations website. 13 15. 1.2. Churn Rate MobileBusinessChurn rate in 2Q was 0.73%, down 0.02 points from 1Q and up 0.01 points yoy. 1.5% 1.0% 0.85%0.72%0.75%0.73%0.64%0.67% 0.5% Up 0.01 points yoy (Down 0.02 points from 1Q/FY2011.3) 0.0%1Q 2Q 3Q4Q 1Q 2QFY2010.3FY2011.3(E) Full-yearNote: Churn rate is calculated for ordinary handsets which exclude module-type terminals.14 16. 1.3. Sales Commissions MobileBusinessAverage sales commissions in 2Q was 28,000, substantial fall of 16,000 yoy. Average Commissions / Unit * * New purchases(yen) & upgrade models50,00040,00030,00020,00010,0000 1Q2Q 3Q 4Q 1Q 2QFY2010.3 FY2011.3 FY2010.3 FY2011.3(E) 1Q 2Q 3Q 4Q 1Q 2QTotal sales commissions 365.0 303.0Billions of yen 90.0 112.071.093.076.080.0 Average commissions / unit36,00029,000yen 41,000 44,000 30,000 30,000 27,000 28,000 Number of units sold10,20010,600000 units 2,210 2,560 2,330 3,100 2,810 2,830 15 17. 1.4. ARPUMobile Business Total ARPU in 2Q dropped 8.9% yoy to 5,100 due to the fall in voice ARPU resulted from the rise in the Simple Course users.min.yen)Total ARPU 160 150152154 142148 138 140MOU 5,6005,600 5,4706,000 1205,0005,160 5,1005,010 100Total 3,3503,330 3,2102,860 2,790 4,000802,730 2,690Voice6040 2,000 2,2502,270 2,260 2,2702,300 2,3102,32020 Data001Q 2Q3Q4Q 1Q2QFY2011.3(E) FY2010.3FY2011.3 yoy Full-year FY2010.3 FY2011.3(E) Total ARPU 500 ( 8.9%) Total ARPU5,410 5,010of Voice 540 (16.2%) of Voice3,150 2,690of Data 40 ( 1.8%)of Data 2,260 2,320Note: Theportion of FY2010.3 4Q was negative due to the settlement of access charges among carriers.16 18. 1.5. Simple Course MobileBusiness17.22M subs as of September 30, 2010, making cumulative take-up ratio of 56%Note. Number of Subs and Take-up Ratio (Million subs) 25.00 20.0017.22 14.97 15.00 12.529.86 10.008.015.96 5.00 4.27 0.003/09 6/09 9/0912/09 3/10 6/10 9/10 3/11 (E) Take-up 14% 20% 27% 33%41% 49% 56% 68%RatioNote: Module-type and pre-paid contract are excluded from take-up ratio calculation. 17 19. 1.6. Reorganization of 800MHz Band MobileBusinessTransfer from non-triband handset units to triband handset units was 1.89M in 1H.The number of non-triband handset units was 6.58M as of September 30, 2010.Number of Non-triband Handset Units(Million units)10.008.928.007.696.586.004.002.000.003/10 6/109/10 12/10 3/11 6/11 9/11 12/11 3/12 7/126/12Note: The number excludes module-type terminals. 18 20. 2. Expansion of Product Lineup MobileBusiness Introduce total of 24 products, including 22 au brand terminals and 2 others Note1, to expand product lineup in 2H. Especially strengthening smartphones and new devices.SmartphonesWaterproof Others 2Note14 IS03 IS05IS06 SMT-i9100 7.0 inch tablet ebookWi-FiFor wirereader router -less LAN1 12IDEACROSS INC. X-RAYG11 Mobile wireless LAN terminalau mobile Cyber-shotTM phoneNote2 phones(All waterproof) PT00214 S006 S005T005 SH009 EXILIM-KeitaiSimplePhoneK006 CA006 SH010T006SH011K007 K008without cameraNote1: Sales of these products will not be counted as au subscriptions. In addition to Wi-Fi environment, "SMT-i9100" can be used in au 3G/3.5G areas when used with a mobile Wi-Fi router, etc. "NEX-fi" can be connected toan au mobile phone to make wireless-LAN compatible machines connected to internet.Note2: Compatible to Wi-Fi WIN card. *REGZA is a registered trademark of Toshiba Corporation. GzOne is a registered trademark of Casio Computer Co., Ltd. EXILIM and EXILIM-Keitai are registered trademarksof Casio Computer Co., Ltd. Cyber-shot is a registered trademark of Sony Corporation. BRAVIA is a a registered trademark of Sony Corporation. AQUOS and AQUOS SHOT are a registered trademarks of Sharp 19Corporation. Wi-Fi is a registered trademark of Wi-Fi Alliance. 21. 3. Smartphone Strategies MobileBusinessIntroduce 4 AndroidTM smartphone models in 2H. Change to the offensive withmodels adopting functions unique in Japan to be used as the main mobile terminal. Evolution of communication App marketau only Hold strategic alliance 1,800 titles planned with Skypeby March 31, 2011Standard functions in Japan 1seg Infrared lightIS03by SHARP Osaifu-Keitaicommunication Global model Merits ofEarthquake E-mail Decoration Mail JapaneseEarly Warning @ezweb.ne.jpFeaturephonesDevelopment of au servicesLISMO!au Smart Sports au one Navi Walkau one News EX IS05IS06au one GREEJibun Bankby TOSHIBAby SHARPby PANTECHNote: Preinstalled functions, services and launch dates of services vary depending upon models.TM*Google, Google logo, and Android are a registered trademark or a trademark of Google Inc. *REGZA is a registered trademark of Toshiba Corporation.*Skype and its logo, S logo are trademarks of Skype Limited. * Osaifu-Keitai is a registered trademark of NTT DOCOMO, Inc. 20 22. 4. Proactive Introduction of New Devices MobileBusiness Proactive introduction of new devices such as data communication terminals like mobile Wi-Fi routers and ebook reader to improve profitability. Sales promotion with UQ in data communication area. Wide areaFast speed auauUQ 3G/3.5G network UQ3G/3.5G networkWiMAX network WiMAX networkau/WiMAX hybrid data Wi-Fi routers etc.communication terminalDATA01 Sales promotion by UQ DATA04Various devicesDigitalCollaboration of KDDI & UQphoto frame (only 3G) Sales promotion Carthrough KDDI channels navigationTablet-type terminal (only 3G)ebook reader (au shops, direct sales to business)21*Wi-Fi is a registered trademark of Wi-Fi Alliance. 23. 5. Promotion of Data Usage (1) MobileBusiness Promoting different services depending upon clients data usage status. Without With flat-rate planData usage flat-ratestatus plan Low-level Mid-level High-level Making opportunitiesApproachesLaunching attractive smartphones to use contens that match lifestyleProvision of multi-devicesNewsMusic, video, ebooks SportsEZ News EX au Smart Sports LISMO! Introducing apps before Servicescompetitors to accelerateRouting, mapsspread of smartphones EZ Navi WalkSNS, social gameSNS, Introducing different data communication terminals and Promotion at au shops ebook reader, etc. Expanding portals for each segment, etc. Maintaining high ARPU usersObjective Expansion and promotion of data usageExpanding profits 22 24. 5. Promotion of Data Usage (2) MobileBusinessDeveloping various services to match different lifestyles to expand and promote datausage. Establish touch points with users through LISMO! and au Smart Sports, etc. EZ News EX (Music, video, ebooks)(News)Topped 1 million members. (Sep. 2010) Approx. 8.5M users.Note1 (Sep. 2010)Effective service for users in 30s and up.Mainly young users in teens and 20s.Ultra quick delivery to mobileMore than 90% reach the data flat-rate limitNote2More than 200 news a day Tailored to user preferenceProduce an original drama every month(Sports)(SNS, social game)Topped 2 million members. (July 2010)Topped 5M in membership in May, 2009.Wide usage, main users in 20s and 30s. Currently expanding users in teens to 40sApprox. 80% reach the data flat-rate limit.and aiming for 10M membershipNote3.Note1: Total members and access users of music, video, and ebooks related services. Note2: Rate of reaching the upper limit among users who downloaded Chaku-Uta-FullNote3: Membership of au one GREE and not total membership of GREE services.C)KDDI/ROBOT 23 25. 6. Strengthening Wireless Infrastructure MobileBusiness Improve data volume efficiency and speed to strengthen competency with multi- carrier Rev.A. Adopt LTE in Dec. 2012 to improve frequency usage efficiency & to lower bit-rate cost. 3G3.5GCDMA3.9G OFDMALTE (OFDMA : FDD)Mobile PhoneMarketEV-DO Rev.A EV-DO Multi-CarrierCDMA2000 1x Data Commu-WiMAX (OFDMA: TDD) nication Market 200920102011 2012Development of LTELTE new 800MHz band10MHz width (base band)Population Traffic coverage of 96.5%LTE 1.5GHz band by March, 2015Facility10MHz widthvolume(complementary frequency band for radio capacity)EV-DO Rev.A / EV-DO Multi-CarrierRural new 800MHz band + 2GHz band Rural Urban area24 26. 7. Competitiveness in the Mobile BB Era MobileBusiness In addition to strengthening wireless infrastructure, fixed-line broadband becomes as important in the mobile broadband era as backhaul of mobile communication and off-loading its data traffic.The Internet Cloud IP Backbone BroadcastingFixed Access KDDI Powered Ethernet& InternetFTTHCATVADSLEV-DO Rev.AWiMAX EV-DO Multi-Carrier BB AccessLTEBroadcast FixedMobile Wi-Fi / Femtocell etc. Data card USB Dongle25*Wi-Fi is a registered trademark of Wi-Fi Alliance. 27. 1. Fixed Access LinesFixed-lineBusinessNumber of fixed access lines was 6.22M as of September 30, 2010.Net additions of FTTH subscription was 104k in 2Q.Fixed Access Lines Note FTTH Net Additions(000 subs) (000 subs)FTTH OCTNote 8,000Metal-plus 150 CTCCable-plus phone KDDI124(6,480)CATV(6,220) 1 (5,813) (5,944) (6,109)112(5,587)(5,700)108107 25104 6,000 2,040 (5,342) 1,741 11,513 1,63710030 1,2111,319 1,426282686 181,099 2 23 4,0002,7022,5702,852 2,7753,065 3,000 2,927 50 99 3,13082 8082 85 61 2,0001,062 1,1521,280778871960414228 697 6040 722 882896913972 1,019 1,0421,040 01Q 2Q3Q 4Q 1Q 2Q3/09 6/09 9/09 12/09 3/10 6/109/103/11 (E)FY2010.3FY2011.3Note: ( ) shows total subscriptions of access lines excluding crossover subscriptions. Note: Okinawa Cellular Telephone Company. Subs of Okinawa Telecommunication Network Co., Inc. included. 26 28. 2. CATV(1) Fixed-line BusinessConstruct a new business model leading to competitiveness and business growthfor CATV industry as a whole through cooperation of CATV operators, centering inJ:COM/JCN, and KDDI Group.KDDI GroupCATV Mobile Technologydevelopmentability Varioussales channelAccess linesCustomer basefor videosAdhering tocommunity Realizing synergiesEstablishing new business model of KDDI Group and CATVImproving competitiveness< KDDI Groups synergies >< CATVs synergies > Expanding access linesCollaboration with mobile servicePromoting FMBC servicesWin-Win relationship Strengthening technology Strengthening community biz. Expanding sales channel Growth of business 27 29. 2. CATV(2) Fixed-line BusinessSales of Cable-plus phone quadrupled in 2 years as allied CATV stations increased.Consolidated subsidiary JCN provides FMBC services to improve clients convenience.Sales of Cable-plus phone FMBC services by JCN100 allied CATV stations / 1.15M subs(As of Sep. 30, 2010)(Billions of yen)JCN-Keitai 30.0 (since Feb., 2009) Top:2nd Half Bottom: 1st Half Original wallpaper, main menu, mobile phone site 19.8 Concept 20.0Approx. au mobile phone connected to JCN services4 times 11.2 Special features 10.0-Distributing recommended programs by JCN andprogram promotion videos4.9-Recording terrestrial digital, BS programs with mobile -Distribution of local, lifestyle, and administrative info. -Promotion collaboration with LISMO! original dramas 0.0 -Easy access to JCN-Keitai sites, etc.FY2008.3 FY2009.3 FY2010.3 FY2011.3E) 28 30. 3. Alliance with J:COMFixed-lineBusinessPromoting services to realize synergies with J:COM.Established a sales cooperation working group to mutually use sales channels. Starting date/WG MeasuresStatusFixed-line J:COMs new phone service using Cable-plus phoneApril 2011 OngoingTelecomCross-selling promotion in Kansai area Aug. 2010BusinessMobile au Collective Talk for J:COMs new phone serviceApril 2011/ Product Collaboration Integrating the billing of services April 2011 WiMAX J:COM provides WiMAX service (MVNO of UQ) Dec. 2010 Completed VOD Centralize contents procurement to J:COMMediaAug. 2010 BusinessOngoing ContentsDistribute au content (LISMO!) to VOD, community channelAug. 2010 Ongoing Mutual introduction of clients who moved, etc.July 2010CATVJ:COM Business/ JCN Ongoing Joint promotion of advertisement Oct. 2010 Technology/ NW integrationJ:COM phone traffic switchover to KDDI relay net Note Feb. 2011 Infrastructure Next gen. STBDevelopment and introduction of AndroidTM STB In 2012Note: Switchover will take place sequentially. * shows items aimed this FY. *AndroidTM is a trademark of Google Inc.29 31. For1. Content/Media Business sustainablegrowthProvide various business with partner companies before competitors. Aim forfurther sales expansion through promotion of new business areas. (Billions of yen)Trend of Sales 800 72.1Promoting New Biz. through Alliance58.644.727.2 35.9 17.5Partner company11.3 Identification Brand Contents ExperiencesSafety 0 FY2005. 3 FY2007. 3FY2009. 3FY2011. 3billingFY2005.3FY2007.3 FY2009.3FY2011.3 (E)KnowledgeHigh-quality Content-fee collection RightsTechnologyCustomer base Collaborative contentof industrynetworkAdvertising & others E-commerce200320062009 2010Soratena Navi-Weatherebooksebook distribution gationSearch Newspreparation company Info. EZ Navi Walk EZ News EX (Weathernews)(Sony, Toppan Printing, SNSAsahi shimbun)Note(NAVITIME JAPAN)(TV Asahi, Asahi Shimbun) AR (Tonchidot) (GREE)VisualSunshine Kingdom involves capital alliance. Note: Augmented Reality portalRekoo MediaRekoo Japan*Google and Google logo are a registered trademark or a trademark of Google Inc. *Sekai Camera is a registered trademark of Tonchidot Corporation. 30 32. For 2. Overseas Business sustainablegrowthPost approx. 200.0B by FY2013.3 in overseas business sales through expansion ofICT business including development of and entry into growth markets. ExpandingGlobal Regional SIExistingData network network center ICT Businesses (9 areas, 12 cities, 18 sites)Note Opened before April 2008Opened after April 2008* As of Sep. 30, 2010 Number of sites3/08109/10 188 more sites in 2.5 years Gross floor area3/08 70,1009/10 112,900 Centering in Asia and developing nations1.6 times in 2.5 yearsNote: Overseas rigures. (Ref) TELEHOUSE in Japan: 9cities/21sites)Entry into Mobile phone business for ICT business inWiMAX business growth marketsimmigrants in U.S. (MVNO)Developing nations in Bangladesh etc. 31 33. 32