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