Q2 2024 KDDI Corp Earnings Call - Q&A
Speaker 1: made in these documents, performance targets, and projected subscriber numbers, etc. explained in the Q&A session today.
Performance targets and projected subscriber numbers et cetera explained in the Q&A session today.
President Takahashi will first explain the financial results summary.
Speaker 1: President Takahashi will first explain the financial results summary followed by Q&A. Mr. Takahashi, please.
Followed by Q&A.
Mr. Takahashi please.
Thank you.
Thank you very much for joining us in this meeting on Katie does financial results out of your busy schedules before Q&A session. Let me share with you a summary of the first half results of the year ending in March 2024 under our flows on G. N G G law.
Speaker 2: in this meeting on Katie Desvinas results out of your busy schedules before Q&A session that we share with you our summary of the first half results of the ending in March 2024 under force on GNDG Law.
Next please.
Speaker 2: The first half consolidated results of the fiscal year ending in March 2024, enjoyed increased operating revenues and operating income, a good-progress versus the full year forecast. The left shows the operating revenue, which was 2,779 billion yen.
The first half consolidated results of the fiscal year ending in March 2020 for enjoyed increased operating revenues and operating income are good progress versus the full year forecast. The left shows the operating revenue, which was two trillion 779 billion yen.
Speaker 2: Up 1.4% ear on ear, the progress ratio was 47.9%. The right shows the operating income, which was 560.3 billion yen, up 0.2% ear on ear. The progress ratio was 51.9%.
Up 1.4% to ear on.
The progress ratio was 47.9% to the right shows the operating income, which was 563 billion yen up <unk>, 2% year on year. The progress ratio was 51, 9%.
Next please.
Next let me explain factors for change in the first half consolidated operating income. The first half operating income was up 1 billion yen year on year from the left group N V N O on rux and roaming revenues were minus 23 billion yen multi branded communications ARPA revenues were up 800 million.
Speaker 2: Next, let me explain factors for change in the first half consolidated operating income. The first half operating income was up 1 billion yen, year on year from the left.
Speaker 2: Group MVNO and Rakhten roaming revenues were minus 20.3 billion yen, multi-brand communications of revenues were up 800 million yen, dx.
We get Dx was up $5 4 billion financial business was down 9.9 billion yen energy business was plus nine 5 billion yen.
Speaker 2: was up 5.4 billion yen financial business was down 9.9 billion yen energy business was plus 9.5 billion yen
Speaker 2: The profit increased by growth in communications of our revenues and focus areas despite a decreasing record and roaming revenue. I want to unify.
<unk> increased to by grouping communications Alpha revenues and focus areas. Despite the decreasing rakuten in roaming revenue.
Ms <unk>.
Next please.
Speaker 1: Next is the key points of consolidated financial results. Looking ahead to the fiscal year and the March 31st, 2025 and beyond, key businesses that will fund the core of sustainable growth are steadily growing. From the left, 5G communications. Multi-brand communications are poor revenues rebounded in the first half. DX steadily expanded profit growth.
Next is the key points of consolidated financial results looking ahead to the fiscal year ending March 31, 2025, and beyond key businesses that will form the core of sustainable growth our steadily growing from the left <unk> Communications multi brand communications ARPA revenues rebounded in the first half.
<unk> steadily expanded profit growth.
Finance business enjoyed double digit growth in the first half and energy business profit increased in the second quarter.
Speaker 1: Finance business enjoyed double digit growth in the first half and energy business profit increased in the second quarter.
Next please.
Speaker 1: This is a summary of initiatives related to the second quarter results. I just explained the-
This is a summary of initiatives related to the second quarter results.
I just explained the consolidated financial results.
[noise] towards sustainable growth, we will promote efforts to grow old communications, <unk> revenues and forecast areas.
Speaker 1: Towards sustainable growth, we will promote efforts to grow communications our poor revenues and for cost areas.
Speaker 1: Communications, R. Blue, revenues, rebounded, and initiatives for growth, including AU money activity plan are progressing.
Communications, our Blu revenues rebounded and initiatives for growth, including au money activity plans are progressing well.
Speaker 1: We are promoting 5G area development along customers' lifeline and further refining our communication quality. In financial services, we are expanding our financial customer base through synergy with telecom business and full line-up services. We are strengthening DX and LX efforts to solve issues faced by customers and society. In addition, we will accelerate business development and human resource strategy by promoting the use of generative AI within the company.
We are promoting five G area development, along customers lifeline and further refining our communication quality in financial services, we are expanding our financial customer base through synergy with telecom business and full lineup services, we are strengthening Dx and Alex efforts to solve issues faced by customer.
<unk> and Society. In addition, we will accelerate business development and human resource strategy by promoting the use of generative AI within the company.
Next please.
Finally, let me explain our opinion and thinking on the NTT law and how it should be implemented as we have said at each hearing we think it is necessary to review entity T law in line with the times for example, the provisions such as the obligation to disclose research results also relation of company name change and the director appointed.
Speaker 1: Finally, let me explain our opinion and thinking on the entity law and how it should be implemented. As we have said at each hearing, we think it is necessary to review entity law in line with the time. For example, the provisions such as the obligation to disclose research results, authorization of company name change and the director appointment.
<unk>.
On the other hand.
Speaker 1: We oppose the abolition of NTT law, which depredizes the public interests, and believe that careful policy discussions should take place on the following three reasons.
We oppose the abolition of NTT law, which jeopardizes the public interests and believe that careful policy discussions should take place on the following three reasons. The first is to ensure fair competition between NTT group and other operators to prevent further integration and unification of NTT group the <unk>.
Speaker 1: The first is to ensure fair competition between NTT Group and other operators to prevent further integration and unification of NTT Group. The second is to protect the existing 60 million users to ensure the obligation to provide services nationwide. The third is to ensure the government control over communications that are high public interest to protect NTT special assets by foreign investment regulations.
Second is to protect the existing 60 million users to ensure the obligation to provide services nationwide. The third is to ensure the government control over communications that are high public interest to protect NTT special assets by foreign investment regulations. If these are not maintained we are very concerned about the impact on.
Speaker 1: If these are not maintained, we are very concerned about the impact on the national interest and people's lives. This concludes my
The national interests and People's lives.
This concludes my explanation.
We will now move on to the Q&A session. Thank you very much again for today.
Speaker 1: We will now move on to the Q&A session. Thank you very much again for today.
President Takahashi thank you.
Now we would like to entertain your questions.
Okay.
You do have a question please state your name and affiliation.
Speaker 2: If you have a question, please state your name and affiliation.
To allow us many of you as possible to ask questions. Please limit your.
Speaker 2: to allow as many of you as possible to ask questions, please limit.
Speaker 3: Questions to two per person. If you have two questions, wait for the answer to your first question and then raise the second question. If you have a question, please raise your hand. A line line.
Your questions to two per person. If you have two questions wait for the answer to your first question and then raised the second question. If you have a question. Please raise your hand.
Hey, Lyne line.
Yeah.
Divested cookies undo.
I have two questions first.
Page five of the factors for change.
Especially.
The second quarter, just focusing on three months.
Speaker 2: The second quarter, just focusing on three months, the energy under others, that part.
The energy and the others without part.
What are the factors what are the elements.
Would you like to.
Explain that please.
Speaker 2: Thank you for your question. Regarding this, the I would like to ask the society to address your question. Thank you for your question. Just for...
Thank you for your question.
Regarding this do I'd like to ask because I showed you to address your question.
Thank you for your question.
Just focusing on the second quarter on energy.
Regarding the energy business.
In the first quarter versus previous previous year. It was negative in terms of the operating income, but in the second quarter income increased significantly.
Speaker 2: In the first quarter, versus previous year, it was negative in terms of the operating income, but in the second quarter, the income increased significantly.
The fuel.
Castor increased.
Speaker 2: to counter that, starting from June , the prices were reviewed and as a result the performance Alabama's a stabilized hit.
To counter that starting from June the price shoes were reviewed and as a result of the performance of stabilized too.
In the second quarter. The stabilization continues in addition, we had the extreme heat.
Speaker 2: In the second quarter, the stabilization continued. In addition, we had the extreme heat.
Speaker 2: power usage increased electricity usage increased and it's reflected in the increase of income.
[noise] Kabbalah usage increase to electricity usage increased and is reflected in increased of income.
As for others.
Speaker 2: The first quarter and the second quarter, this is common between the two, in the meat and business plan, cost-destructural reform is one of the things we are doing. And CAPEX is thoroughly controlled and depreciation and monetization reduction is now reflected in this fiscal year.
The first quarter and the second quarter.
This is common between the two in the midterm business plan Kosta structural reform is one of the things we are doing onto Capex is thoroughly control too on depreciation amortization reduction is now reflected in this fiscal year.
Speaker 2: And in this fiscal year, on a full year basis, it will be reflected as a reduction effect.
And in this fiscal year on a full year basis, it will be reflected as a reduction effect.
Speaker 2: In addition, and product support for hand-fed.
In addition, and product support for handsets.
Speaker 2: how to use the hand-fed that it actually support service. As a service, it's going very well and revenues and income from that has...
How do you use the handsets that it's actually support service are the same.
It's going very well on revenues and income from that has hub.
Have increased which was significantly in the second quarter. This concludes my answer.
Speaker 2: have increased it, which was significant in the second quarter. This concludes my answer. Another question, please.
Uh huh.
Another question please.
Thank you very much.
My second question.
It's also about the factors for change concerning the income compared with the first quarter into second quarter Youre income levels sort of increased.
Speaker 2: It's also about the factors for change concerning the income. Compared with the first quarter in the second quarter, your income levels sort of increased.
Further.
So the comparison against the first quarter, because you focus on that and not against the previous year about stay versus the previous quarter. So income level increased to what are the factors contributing to the increase of income.
Speaker 2: who comparison against the first quarter, could you focus on that, not against the previous year, but the versus the previous quarter. So income level increased, what are the factors contributing to the increase of income?
Regarding the consensus numbers.
Speaker 2: Regarding the consensus numbers, they are actually becoming higher, so would you like to focus on that please? Thank you. Okay. Saishouji will address your second question as well. Compared with the first quarter, income level has increased as I said, energy business increased, which was the most significant factor. ???????????????????? terminated by Y? window 0V. ??????????????????????
They are actually becoming higher.
So would you like to focus on that please thank you.
Okay.
<unk> will address your second question as well compared with the first quarter income level has increased as I said energy business increased two which was the most significant followed two also product support service.
Speaker 2: Again, the spinners shift to the second quota.
Again, there has been a shift to the second quarter.
About sales promotion cost reduction.
Speaker 2: about sales promotion cost reduction.
Speaker 2: is reflected in the second quarter, profit increase significantly. Regarding the sales promotion, there are some seasonality and because of the campaign, because of the measures we have, they can either increase or decrease. The second quarter, it has been reduced, but regarding the second half of the year, depending on the situation, it will be implemented. This concludes my answer. Did we answer your questions? Thank you. Thank you.
As reflected in the second quarter appropriate increase significantly regarding the sales promotion there are some seasonality and suite because of the campaign because of the measures we have.
They can either increase or decrease to the second quarter.
Has been reduced about regarding the second half of the year, depending on the situation. It will be implemented. This concludes my answer.
Did we answer your questions. Thank you.
Please raise your hand, if you have a question.
B line one person in the back please.
Speaker 1: Nomura securities mustn't always my game in your medium-term management plan. I have two questions. So first question is
Nomura Securities muscle knows my name in your medium term management plan I have two questions. So first question is.
In business this year RPM rebounded.
Speaker 1: This year, RPU rebounded in the Recton roaming. Revenue is stable and energy. It, you have passed successfully and so your, the X is growing, FAT, finances growing. So you are building one by one, achieving your target. And I think you have a clear view on your direction in four to five years.
Indirect in our roaming revenue is stable and energy.
Did you have passed successfully and so your Dx is growing asset finance is growing. So you are building one by one are achieving your target and I think you will have a clearer view on your direction in five four to five years.
Big pillar.
Speaker 1: big pillar, will you build a big pillar that will support your business? I think that will be great. In the three year meeting terms
You build a big pillar that will support your business I think that will be great.
In the three year medium term plan period.
Speaker 1: It may be difficult to build a big strong pillar. So in a longer time frame, will you develop a big pillar in which part, which area will that be? If you could share with us your view as things go, I think you will achieve the target.
It may be difficult to build a big strong pillars, so in a longer.
Timeframe will you develop a big pillar in which part which area will that be if you could share with us your view.
As things go I think you will achieve the target.
Yeah.
Speaker 1: Next year, but one is whether the three year plan is sufficient in four to five years. If you're thinking of a big pillar, a big domain, could you share with us your view?
Next year, but one is whether the three year plan is sufficient in four to five years. If you were thinking of a big pillar of big domain.
Could you share with us your view.
Thank you.
And like you said it must Nissan.
For the past two years the price reduction was a difficult, but I think we are poorly.
Speaker 1: for the past two years, the price reduction was difficult. But I think we are purely, the negatives are gone and the RPU is rebounding and rocked in, roaming, revenue, saved us for the past few years, but this decline will be smaller.
The negatives are gone and the ARPA was rebounding and rocked in roaming revenue saved us for a past few years, but this decline.
The decline will be smaller.
Yeah.
And the growth that will offset that D X finance and energy of the volatility was big but now it's stabilizing and so weak and just grow focus on the growth area. So you are right now.
Speaker 1: and the growth that will offset that, DX, finance and energy, the volatility was big, but now it's stabilizing and so we can just grow, focus on the growth area so you're right. Now, if I could talk about my personal view, population in Japan.
Now if I could talk about my personal view.
Population in Japan.
Will decline.
As you know well.
In fiscal 2024, and 25 of the handset.
Speaker 1: In fiscal 2024 and 25, the handset will decline. Total sales will decline. But we still have to work hard in this difficulty, but in the handset, the new generative AI, will be incorporated into new handsets. And this is also worked on by all players. And we feel encouraged. So we want to grow this area.
Will decline total sales will decline.
But we still have to work hard in this difficulty but in the handset the new generative AI.
Will be incorporated into new handsets and this is also worked on by all players.
And we feel encouraged so we want to grow this area.
Speaker 1: But the big growth is in the business domain, IOT.
But the big growth is in the business domain I O T.
Iot is big.
Speaker 1: The profit contribution is still small, but as you see in the presentation, 42 million connections are not global basis already. So we think this is opportunity for us. We should not just stay still, we should not just stay with the revenue from the connections.
The profit contribution is still small, but as you see in the presentation 42 million connections.
Global basis already so we think this is opportunity for us we should not just stay still.
<unk>.
We should not just stay with the revenue from the connections.
Speaker 1: The telecommunication is involved in everything. So we need to leverage that and the added value port part need to become a business.
The telecommunication is involved and everything so we need to leverage that and the added value port part needs to become a business.
Speaker 1: full-fledged business. So data-driven and generative AI will play a huge role.
Full fledged business, so data driven and generative AI will play a huge role.
So this will be the key focus.
Speaker 1: So this will be the key, the focus in the medium term. And that's the focus of our growth area. We are working on the role.
Uh huh.
In the medium term and that's the focus of our growth area.
We are working on the rolling medium term plan.
So after this.
Sure.
Yeah, when we announce our full year results, we hope to present the latest version.
Speaker 1: When we announce our full year results, we hope to present the latest version. And Master Link and Space is also another promising area.
And Nestor link and our space is also another promising area.
Speaker 1: So we want to draw a good medium term plan. Thank you. Second question is on the medium term financial aspect. So.
So we want to do draw a good medium term plan.
Second question is on the medium term a financial aspect.
So.
Speaker 1: In the three-year cycle you are doing shareholder returns, so your three-year cycle is fixed. I wonder if that is the optimal portion.
In the three year cycle Youre doing shareholder return. So your three year cycle is fixed I wonder if that is the optimal portion.
Speaker 1: The cross-shoulding strategic-yield shares is now being reduced from the trend of the times. And I think there's a term for that. So if you could extend the shareholder return period to a longer period so that it can be more flexible, I think you need such a stance. What do you think? We have to think that.
The cross shareholding strategically held shares is now being reduced from the trend of the times and I think there's a term for that so if you could extend the shareholder return period to a longer period. So they can be more flexible do you think you need such a stance what do you think.
We have to think that revisit that.
In the current medium term.
Speaker 1: EPS 1.5 times we must achieve this. This is something we committed to so
E E. P. S. One five times, we must achieve this this is something we committed to so.
But the there was price reduction and so we wanted at one year moratorium, if you will and we talked about that to you.
Speaker 1: but there was price reduction and so we wanted a one-year moratorium if you will and we talked about that to you
Speaker 1: And on that basis, we want to achieve the goal. Regarding cash allocation.
And on that basis, we want to achieve the goal regarding cash allocation.
The operating cash flow of five trillion yen. So how we use force to shareholder return and growth investment.
Speaker 1: the operating cash flow is 5 trillion yen. So how we use forced shareholder return and growth investment.
We already showed that to you. So we need to think of that as a basis, but as you rightly said.
Speaker 1: We already showed that to you, so we need to think of that as a basis. But as you rightly said, these strategically held shares, cross-held shares, there are many changes. So we hope to be flexible.
The strategically he'll chairs cross sell shares of there are many changes.
So we hope to be flexible.
Speaker 1: That said, the cash allocation for the medium term needs to be maintained, but I think we need to address flexibly. We will be aware of that. Thank you very much, that's all.
That said the cash cash allocation for the medium term and needs to be maintained but I think we need to address flexibly.
We will be aware of that thank you very much that's all.
Speaker 2: Thank you. If you have a question, please raise your hand.
Thank you.
If you have a question please raise your hand.
She one please.
This ambition equal securities Kikuchi, Thank you very much.
Speaker 2: The SMB's Cineco Securities, Kikuchi. Thank you very much.
NTT law revision U S.
Speaker 2: NTT Law revision you explained about this today, we are interested in the impact on their performance. That's the main interest. But just NTT, if the West and the East becomes integrated and integrated with the holding, NTT holding,
We explained about this today.
We are interested in the impact on their performance.
Stemming.
Interest too, but just.
NTT East West and the east becomes integrated onto integrated with the holding entity holdings.
Speaker 2: to your company, will that have an impact? I don't really think it's going to have a huge impact. The prices may remain high, but in that case, you might be able to win greater share.
To your company will that have an impact I don't really think it's going to have a huge impact to the prices may remain high but in that case, you might be able to win a greater share.
Speaker 2: about the entity law revision, about the especially reviewing the organization or reviewing the Universal Service to your company.
About the N G G law revision about the especially the reviewing the organization or reviewing the Universal service too.
Two you company.
Speaker 2: in terms of performance, will it have any negative impact? Is there anything that we are missing? Regarding this...
In terms of performance, who will it have any negative impact to some is there anything that we are missing.
Regarding this discussion.
Speaker 2: It's not, I didn't really think that it has kind of a short-term impact from the telecommunications liberalization to, regarding this big entity has become separated split and there has been defundation for competition.
It's not I don't really think that it has a kind of a short term.
<unk> from the telecommunications liberalization too.
Regarding this big.
NTT.
Does it become separated split and there has been the foundation for.
Competition.
Policies under austere Dominion's G has been saying because of the competition policies as a result customer services improve a rocketing.
Speaker 2: policies and as the MIT the Ministry has been saying because of the competition policies as a result customer services improve
Speaker 2: and joining and poor companies and then prices have come down. That's part of the competition policies and it has been conducted. And once I and TNTT, they have been sort of splitting, but...
Joining on for companies and then prices have come down that's part of the competition policies OMNOVA has been.
Dr <unk> and the one giant N D G.
We have been sort of splitting but.
Speaker 2: And this entity law, in a way, curves that part why they have some specific facilities, specific assets I presume.
And this NTT law in a way coops about part to why did they have some specific facilities of specific assets I presume.
Speaker 2: If it's abolished, that curbing force will not function. So to a giant company, they will just go back to a joint giant company. And the competition environment is somehow the harm. But then the competition is not promoted. The service level to the customers may go down.
If it's a bullish do that curbing force will not function so to a Chilean company. They will just go back to a joy.
<unk> company under the competition environment is somehow the home then the competition is not promoted the service level to the customers May go down that's a concern. So that's the history of the competition policy also original debut of G. D. G. I would this is something we have to.
Speaker 2: are concerned. So that's the history of the competition policy as a reasonable of KDI. This is something we have to take to our heart. Regarding the detail, if entity becomes just a single entity, the group management, so what access charge can be increased.
Take two a hot regarding the detail if indeed it becomes just a single entity. The group of management. So what access charge can be increased connection charge can be increased significantly for instance, a docker mode. It's a negative for the NTT east and west They will have the positive result of the all the other companies.
Speaker 2: connection charge can be increased significantly. For instance, the doge mode, it's a negative, but the NTT is done to West. They will have the positive results that all the other companies can suffer from the negative.
Suffer from the negative part I mean, you could manipulate it but in terms of the short term.
Speaker 2: party. I mean, you could manipulate it, but in terms of the short term.
Speaker 2: Income, I don't really think that that's the eroded, but it's part of the competition policy. We are imprimicable opposing the abolition of the NTT law. Thank you. I hope you all keep us informed. My second question.
Income I don't really think that that should be eroded, but it's part of the competition policy. We in principle are opposing the abolition of the NTT law. Thank you I Hope you will keep US informed my second question.
Speaker 2: I think you were just saying it rather softly. You are a chef, right? Compared with peers, it's slightly lower. Because yesterday there was an explanation from Kielserra, just slight impact, I believe, Toyota and Kielserra.
I think you were just saying it rather swiftly U S share prices compared.
Compared with peers, it's slightly lower because yesterday you build overshadowed the explanation from kill setup, just slight impacts I believe with Toyota Ontko fitter.
How can you sort of.
Reorganize this.
Speaker 2: 300 billion yen buyback about two companies mentioned this then 300 billion will not be enough So regarding your policy about your share buyback
300 billion OEM buyback about two companies mentioned. This then 300 billion will not be enough. So regarding your bullish about your share buyback.
Speaker 2: And it's 300 billion units such a limit. Last year, 200 billion this year, 300 billion we got, if they are such a limit of the share by-back. That's my second question, please.
And then 300 billion yen its such a limit to the last year to 100 billion. This year 300 billion. We got is there such a limits of the share buyback.
That's my second question. Please.
Well to be honest with you.
Speaker 2: doing about the new and hard about this formally from Kielserra.
Doing about noon I heard about this formerly from Kyocera.
We haven't.
Speaker 2: Had anything formerly, so it's rather difficult for me to comment on this So I had about that comment being made by Kelsurer
Holiday anything formally so it's rather difficult for me to comment on this so.
So, but I heard about the comment being made by Toyota.
Once D. We hear that formerly we can start conversation. It's the same thing with the Toyota.
Speaker 2: Once we hear that formally, we can start conversation. It's the same thing with the Toyota. They...
Hey.
Said, something and then we had the discussion for both Coachella onto Toyota.
Speaker 2: said something and then we had the discussion and for both Kursila and Toyota.
Speaker 2: to shareholders, it's not a good idea to give trouble to shareholders and to us to the extent that doesn't give us any trouble, that's all they say, that's what they are always saying. So we will have a good conversation in the manner that's not going to disappoint shareholders, we could study this.
Two shareholders each month, the good idea to give trouble to shareholders onto to us to the extent that doesn't give us any trouble. That's all days that's what they are always saying so we'd like to have a good conversation in a manner, that's not going to disappoint shareholders. We could study this.
Speaker 2: about cashier location 5 to really only in operating cash flow that
How about cash allocation five 2 billion operating cash flow that's bad for the time being under investment due to really unknown the growth to really on a growth investment 1.32 billion year on too.
Speaker 2: there for the time being, and investment to the growth investment, 1.3 trillion here. And to...
Yeah.
Strategic investment to 300 billion yeah. So this is what we have shared there's so much.
Speaker 2: strategic good, investment is 300 billion yen. So this is what we have shared so much.
Speaker 2: So 300 billion yen dividend for three years. And 200 billion yen by share by by again for three years. That's how we designed it with this calculation in terms of cash.
So 300 billion dividend for three years and $200 billion share buyback again for three years, that's how we designed it with this calculation.
In terms of cash we still have buffer.
Speaker 2: and do she hold a skill set up or?
Two two.
Who should hold as kyocera or.
Speaker 2: This time it's Kosella and you talked about Kosella, but once we hear formally from them, we like to consult with them and we don't want to disappoint. Let's share how this and we've laid out vests. I think that we have the direction. Thank you. Thank you. Thank you. Please raise your hand.
<unk> it's <unk>.
Ocilla onto you talked about to consider but once we.
He formerly from them, we would like to consult with them.
We don't want to disappoint the shareholders that we would like to address this I think that would be the direction.
Thank you. Thank you.
Yes.
Thank you.
Please raise your hand, if you have the next question.
The C line to the front row. Please.
Okay.
Speaker 1: Mitsubishi FJ, Morgan Stanley , securities, Tanaka, I have two questions. So let me go one by one. First is on the financial results.
Mitsubishi <unk> Morgan Stanley Securities Tanaka I have two questions. So let me go one by one.
First.
He is on the financial results in the detailed material page two.
Speaker 1: personal business, others revenue.
Personal business others revenue.
Speaker 1: In the three months, two second quarter, it grew significantly, 32, 33 billion years.
In the three months to second quarter it grew significantly.
32 33 billion.
How does your subsidiaries are active I think.
Speaker 1: So which companies are they, and how much profit contribution do you have? Thank you. So Amamiya-san, please.
So which companies are they and how much profit contribution that you have.
<unk>.
So army assemblies.
Okay. Thank you Jason.
So that's about revenue.
Speaker 1: and profit, the income as well. So contribution on both. Because I'm not interested in just sales growing, shop, channel, vital, or something, if there's any particularly active, strong area and the sustainability thereof.
And profit income as well so contribution on both because I'm not interested in just our sales growing shop channel vital or something if there is any particularly active strong area in the sustainability thereof.
So our subsidiaries.
From first to second quarter.
Speaker 1: from first to second quarter were strong. Most of our subsidiaries were strong.
We're strong most of our subsidiaries were strong.
Yeah.
In numbers.
I cannot mention numbers, but strong au financial holdings.
Speaker 1: I cannot mention numbers, but some strong AU financial holdings, which is doing the financial business. And J-Com from first to second quarter.
Which is doing the financial business and J com.
From first to second quarter.
The increase was bank.
And big Globe.
And overseas subsidiaries, Mobi Com and DMR.
Speaker 1: and overseas subsidiaries Moby Kum and Myanmar. Second-quarter profit was higher than the first quarter.
Second quarter profit was higher than the first quarter.
So au financial holdings.
Yes.
Yeah.
Speaker 1: This is included in added value, RPU, but it is indeed.
This is included in our added value.
Our booth, but.
Excluding net.
Speaker 1: Yes, some fall under the added value ARPU and other areas are also growing.
Yes. It is some fall under the added value our blue and other areas are also growing.
Which areas are strong.
Speaker 1: I'm sorry, I'd like to refrain from going into detail. What about non-AU? Lone, the non-AU areas, maybe?
I'm, sorry, I would like to refrain from going into detail what about non U.
Loan the non <unk> areas.
Navy.
Loan.
In other.
Related financial services.
Everything that is not in our pool are here as a loan and card credit card.
Speaker 1: everything that is not in our poo are here. So loan and card credit card, those are in added value, those peripheral miscellaneous items.
Those are in added value those peripheral miscellaneous items.
Thank you very much.
Speaker 1: Second question is from the main material page six.
My second question.
Is the main material page six.
Speaker 1: 5P communications. So communications are poor revenue rebounded.
Five G communications telecommunications ARPA revenue rebounded.
Speaker 1: Second quarter last year, communications charge.
Second quarter last year communications charge.
Speaker 1: was $5.9 billion. In third quarter, the hurdle will be higher. Comparatively, maybe this is a small question, but your medium to large capacity is growing, so it's stable. Can you keep the momentum in third and fourth quarter? Amamiya will explain. Thank you for the question.
<unk> was up $5 9 billion in third quarter, the hurdle will be higher.
And comparatively maybe this is a small question but.
You are your medium to large capacity is growing so it's stable can you keep the momentum in third and fourth quarter.
And let me I will explain.
Thank you for the question.
So $5 9 billion from the service outage.
So excluding that it is positive.
Speaker 1: So including that, it is a slight negative, but on a quarter and quarter basis.
So including that it has a slight negative but on a quarter on quarter basis.
Speaker 1: $2.9 is down to $2.2 billion, so we are making steady progress.
Two nine is down to $2 2 billion. So we are making steady progress.
Now towards the rebound of our pool.
We were taking various measures.
Speaker 1: One is in AU, it's money activity plan. We started that from September , which is...
One is in EU, it's money activity plan and we started that from September.
Which is trending strongly.
Money activity plan ARPA is high.
Speaker 1: Money activity plan, RPU is high, and money activity plan.
And money activity plan.
Yeah.