KDDI Corporation: SWOT Analysis & Company Profile by BusinessReview

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									KDDI Corporation

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KDDI Corporation: SWOT Analysis &
Company Profile


Reference code: BRTC016CP10-Q4

Published: Aug 2010




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KDDI Corporation - SWOT Profile                                                     Page 1
KDDI Corporation

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KDDI Corporation - Company Overview

KDDI Corporation (KDDI) is one of the leading integrated telecommunications services providers in Japan. The company
offers wireless and mobile internet and fixed telecommunications services. KDDI also provides a range of mobile solutions
and international telecommunication service, data centre services, and cable television services, amongst others. In
addition, it offers mobile handsets and services under the brand name „au‟. The company operates its business through
three reportable segments, namely, Fixed Line business, Mobile business, and Other business. It has presence across
Asia, Oceania, Europe, and Americas regions through its subsidiaries, and affiliates. As of March 31, 2010, the company
had 97 consolidated subsidiaries and 21 affiliates worldwide. KDDI is headquartered in Chiyoda-ku (Tokyo), Japan.


Financial Performance

The company reported revenues of JPY 34,42,146 million during the fiscal year ended December 2010. Its revenues
recorded a declining compound annual rate of 2.17%, during the period, 2008-2010, and year-on-year (Y-o-Y) decline of
1.6% over the fiscal year 2009. During the fiscal year 2010, its operating margin was 11.27% as against an operating
margin of 10.31% during the fiscal year 2009. Moreover, during the fiscal year 2010, the company‟s net profit margin was
6.18% as against a negative net profit margin of 6.36% during the fiscal year 2009.




KDDI Corporation - Key Facts

KDDI Corporation, Key Facts

                                  Garden Air Tower, Chiyoda-ku, ,
                                                                    Ticker Symbol, Stock       9433 (The Tokyo Stock
Corporate Address:
                                  102-8460, Japan                   Exchange                   Exchange)



Telephone                         + 81 3 66780712                   No. of Employees           18,301



Fax                               + 81 3 66780305                   Financial Year End         March



URL                               www.kddi.com                      Revenue (in JPY Million)   3,442,146.00


                                  Technology and
Industry                                                            Revenue (in USD Million)   36,767.21
                                  Communications

                                  China, Hong Kong Special Administrative Region of China, India, Indonesia, Japan, Malaysia,
Locations                         Singapore, Thailand, Germany, Netherlands, Poland, Russian Federation, Switzerland, United
                                  Kingdom, United States
Source: Annual Report, Company Website, Primary and Secondary Research




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KDDI Corporation - SWOT Profile                                                                                        Page 2
KDDI Corporation

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KDDI Corporation - Business Description

KDDI Corporation (KDDI) is a leading Japanese telecommunications company. The company is engaged in providing
wireless voice and mobile internet services.

The company has classified its operations under three reportable segments, namely, Fixed Line business, Mobile
business, and Other business.

KDDI‟s Fixed Line business segment is engaged in the provision of domestic and international telecommunication
services, internet services, and solution services. It facilitates the customers to build their own private global network and
international telephone services in various countries such as the US, France, Hong Kong, South Korea, Australia, and the
UK. It also offers Inmarsat Service in order to connect Inmarsat mobile terminals and telephone, telex and data terminals
over Inmarsat satellites positioned in stationary orbits. The company provides Internet services, including access to DSL,
ISDN and dial-up access. During the fiscal year ended March 31, 2010, Fixed Line Business segment generated 23.3% of
the company‟s total revenues.

Mobile business segment of the company is engaged in selling of mobile phone handsets as well as providing mobile
phone services and mobile solutions under the brand name „au‟. Before 2008, the mobile business segment provided
services under au and Tu-Ka brands. In 2008, Tu-Ka brand was terminated. Under this segment, the company offers
mobile phone and remote access services, as well as CDMA 1X WIN high-speed data communication cards. Additionally,
it provides a range of mobile solutions such as Business Convenient Pack, OFFICE WISE, Document Viewer, Bluetooth
Solution, Mobile Image Delivery Solution, Megapixel Solution, Mobile Barcodes (2D codes) Solution, and GPS maps.
During the fiscal year 2010, Mobile Business segment generated 73.6% of the company‟s total revenues.

The company‟s Other business segment is involved in the operation of call centers and the provision of contents, cable
television, fixed telecommunications, data centers, mobile phones, and other services. The company is a major provider
of operation and maintenance support services, as well as secure and power protected housing for customer‟s
telecommunication facilities in the US, Europe, and Asia. Through this line of service, it targets telecom carriers, ISPs,
banks, brokerage houses, trading companies, and other system-dependent corporations as key sources of revenue.
During the fiscal year 2010, Other Business segment generated 3.1% of the company‟s total revenues.


The company provides its services across Asia, Oceania, Europe, and Americas regions through its subsidiaries, and
affiliates. As of March 31, 2010, the company had 97 consolidated subsidiaries and 21 affiliates worldwide. During the
fiscal year 2010, the company generated over 90% of the total revenues from Japan and less than 10% of total revenues
from overseas operations.

KDDI‟s research and development activities focus on investigations, research, and development and provide consulting
and other services on new information and communication technologies. During the fiscal year 2010, the company
invested JPY 30,987 million towards its research and development activities.

Recently, the company established a company, MediaFLO Broadcast Planning Incorporated to expand into contracted
multimedia broadcasting services for mobile terminals (MediaFLO) by using MediaFLO technology. Also, the company
transferred its Indian headquarters to Gurgaon, Haryana from New Delhi and established an office in Neemrana Industrial
Area, Rajasthan. In addition, the company opened a new data center named TELEHOUSE SHANGHAI in Shanghai,
China as well as TELEHOUSE data centers in the UK and South Africa.




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KDDI Corporation - SWOT Profile                                                                                      Page 3
KDDI Corporation

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KDDI Corporation - Major Products and Services

KDDI Corporation is a telecommunications company based in Japan. The company‟s key products and services include
the following:

KDDI Corporation, Major Products and Services
Products:

Phone models

Peripheral Equipments

Services:

Telephone Services

Intranet Services

Internet Services

Data Center Services

Inmarsat Services

Brand:

au
Source: Annual Report, Company Website, Primary and Secondary Research




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KDDI Corporation - SWOT Profile                                                                           Page 4
KDDI Corporation

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KDDI Corporation - History

KDDI Corporation, History

   Year              Event type                                                 Description


                                            KDDI and Okinawa Cellular launched 'Wi-Fi WIN' that enables Internet connections
   2009    New Products/Services
                                            including EZwe
								
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