KDDI Corporation : Technology and Communications - Company Profile, SWOT & Financial Report by ICDResearch

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									KDDI Corporation

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KDDI Corporation                                                          Financial Snapshot

                                                                          Operating Performance
Fast Facts
                                     Garden Air Tower, Chiyoda-ku, 102-   The company reported revenue of US$44,814 million
Headquarters Address
                                     8460,Japan                           during the fiscal year 2012 (2012). The company's
                                                                          revenue grew at a CAGR of 6.88% during 2008–
Telephone                            + 81333470077
                                                                          2012, with an annual growth of 4.00% over 2011. In
                                                                          2012, the company recorded an operating margin of
Fax                                  N/A                                  13.47%, as against 10.77% in 2011.

Website                              www.kddi.com
                                                                          Revenue and Margins
Ticker Symbol, Stock Exchange        9433, The Tokyo Stock Exchange

Number of Employees                  18,418

Fiscal Year End                      March

Revenue (in US$ million)             44,814




SWOT Analysis

Strengths                            Weaknesses                           Return on Equity

Growing Subscriber Base              Substantial debts                    The company recorded a return on equity (ROE) of
                                                                          11.57% for 2012, as compared to its peers, Softbank
Strong Focus on Research and                                              Corp. (Ticker: 9984), FORVAL TELECOM INC.
Development                                                               (Ticker: 9445) and NTT DoCoMo, Inc. (Ticker: 9437),
                                                                          which recorded ROEs of 33.46%, 9.69% and 9.16%
Strong Global Network                                                     respectively. The company reported an operating
                                                                          margin of 13.47% in 2012.
Opportunities                        Threats
                                                                          Return on Equity
Positive market outlook for tablet   Industry consolidation

Rising demand for SmartPhones        Stiff Competition

Strategic Expansions




                                                                          Liquidity Position

                                                                          The company reported a current ratio of 1.35 in 2012,
                                                                          as compared to its peers, Softbank Corp., FORVAL
                                                                          TELECOM INC. and NTT DoCoMo, Inc., which
                                                                          recorded current ratios of 0.99, 1.30 and 2.04
                                                                          respectively. As of March 2012, the company
                                                                          recorded cash and short-term investments of worth
                                                                          US$2,261 million, against US$2,310 million current
                                                                          debt. The company reported a debt to equity ratio of
                                                                          0.50 in 2012 as compared to its peers, Softbank
                                                                          Corp., FORVAL TELECOM INC. and NTT DoCoMo,
                                                                          Inc., which recorded debt to equity ratios of 2.21, 0.67
                                                                          and 0.05 respectively.




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KDDI Corporation - SWOT Profile                                                                                    Page 1
KDDI Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ......................................................................................................................................... 5
    1.2       Business Description ....................................................................................................................................... 5
    1.3       Major Products and Services ........................................................................................................................... 6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ....................................... 7
    2.2       Key Financial Performance Indicators ............................................................................................................ 10
      2.2.1       Revenue and Operating Profit.................................................................................................................... 10
      2.2.2       Asset and Liabilities ................................................................................................................................... 11
      2.2.3       Net Debt vs. Gearing Ratio ........................................................................................................................ 12
      2.2.4       Operational Efficiency ................................................................................................................................ 13
      2.2.5       Solvency ................................................................................................................................................... 14
      2.2.6       Valuation ................................................................................................................................................... 15
    2.3       Competitive Benchmarking ............................................................................................................................ 16
      2.3.1       Market Capitalization ................................................................................................................................. 17
      2.3.2       Efficiency................................................................................................................................................... 18
      2.3.3       Valuation ................................................................................................................................................... 19
      2.3.4       Turnover – Inventory and Asset ................................................................................................................. 20
      2.3.5       Liquidity..................................................................................................................................................... 21
3     SWOT Analysis ...................................................................................................................................... 22
    3.1       SWOT Analysis - Overview ............................................................................................................................ 22
    3.2       Strengths ....................................................................................................................................................... 22
    3.3       Weaknesses .................................................................................................................................................. 23
    3.4       Opportunities ................................................................................................................................................. 23
    3.5       Threats .......................................................................................................................................................... 23
4     History .................................................................................................................................................... 25
5     Key Employees ...................................................................................................................................... 27
6     Locations and Subsidiaries .................................................................................................................. 29
    6.1       Head Office ................................................................................................................................................... 29
    6.2       Other Locations and Subsidiaries .................................................................................................................. 29
7     Appendix ................................................................................................................................................ 31
    7.1       Methodology .................................................................................................................................................. 31
    7.2       Ratio Definitions ............................................................................................................................................ 31
    7.3       Disclaimer ..................................................................................................................................................... 35




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KDDI Corporation - SWOT Profile                                                                                                                                        Page 2
KDDI Corporation

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List of Tables

Table 1: Major Products and Services ............................................................................................................................. 6
Table 2: Key Ratios - Annual ........................................................................................................................................... 7
Table 3: Key Ratios - Interim ........................................................................................................................................... 9
Table 4: Key Capital Market Indicators ............................................................................................................................ 9
Table 5: History ............................................................................................................................................................. 25
Table 6: Key Employees ................................................................................................................................................ 27
Table 7: Subsidiaries ..................................................................................................................................................... 29




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KDDI Corporation - SWOT Profile                                                                                                                                
								
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