Presentation Materials
Analyst Meeting Q&A (Earnings Release For the Three Months Ended June 30, 2012)
Announced on July 27, 2012
Please be advised that the following text has been edited/modified from the original Q&A conversations for the sake of clarity.
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Questioner No. 1
Q1 Let me ask about the actions you are taking to improve your churn rate and the number of net additions. Your LTE service is technologically superior to other networks, your "Xi Pake-hodai Light" billing plan is cheaper than 3G or the WiMAX plans of other companies, and your products are offered at less expensive prices compared to the competition. But I do not think that these facts are widely known among users. Please elaborate on the measures you have taken to broaden awareness.
Open
Q2 I heard that your acquisition of net additions for the month of July improved compared to the first quarter. As the market becomes more invigorated during the summer sales season, how much recovery do you aim to achieve in the acquisition of net additions before autumn?
Open
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Questioner No. 2
Q1 Can you explain the rationale behind the introduction of your new flat-rate billing plan, "Xi Pake-hodai Light" and its effects?
Open
Q2 Can you explain how your rate structure will look like in 1-3 years time from the viewpoint of your ambition to achieve revenues growth? Also, do you have any plans to introduce other, less expensive billing plans going forward?
Open
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Questioner No. 3
Q1 Can you give us a breakdown concerning the percentage of users with a monthly data usage not exceeding 500MB and 3GB, respectively?
Open
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Questioner No. 4
Q1 Under the new management team led by Mr. Kato, the Company adopted a new slogan, "Speed and Challenge," but what kind of change can we expect to see? Don't you think it is about time that you start making top-down decisions? Do you intend to make bold changes to your strategies?
Open
Q2 When you announce the first half results, do you plan to publish a new medium-term vision that includes your future management policies? Despite the large difference in subscriber market share, SoftBank's profit level is approaching yours. Do you plan to publish any numerical targets as your commitment to the investor community?
Open
Q3 The sales of GALAXY S III seem to be slower compared to its previous model, and I also heard that the sales of Xperia series handsets have lost momentum compared to the spring of this year. Do you really think you can counter the competition, particularly with the release of the new version of the iPhone in the second half?
Open
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Questioner No. 5
Q1 The downtrend of ARPU is expected to continue in the next fiscal year due to the expanded impact of "Monthly Support" discounts. Do you think you can sustain growth of cellular services revenues only by the increase in subscriber count?
Open
Q2 Do you have any plans to change your financial disclosure in response to your competitors, such as singling out the data of enterprise contracts?
Open
Q3 Do you have any intention of entering the low-price market using a totally different approach like the LCC (low-cost carrier) model?
Open
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Questioner No. 6
Q1 Both your ARPU and MOU have been decreasing. At which level do you foresee your voice ARPU stabilizing in the future?
Open
Q2 What the Company wants to achieve under the new management team is indiscernible. What message did you want to convey to investors with the results presentation for FY2012/1Q?
Open
Q3 You have not been able to halt the outflow of subscribers. Has the management team set any target date to stop the outflows?
Open
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Questioner No. 7
Q1 It seems to me that your appeal to users concerning your product lineup, billing plans and handset prices has been weak. KDDI has been emphasizing affordability with their "Smart Value" campaign and other marketing programs. Don't you think you need to drastically change your approach to marketing?
Open
Q2 How do you plan to make your efforts appealing going forward to counter the new iPhone?
Open
Q3 What is your target concerning MNP subscribers?
Also, KDDI indicated their intention to bring down incentives. Have you set any MNP subscriber targets that will allow you to reduce the amount of handset incentives once it is achieved?Open