[Company analysis] KDDI Corporation

「KDDI Corporation」conducts business related to domestic and international communications in Japan, and is said to be the largest rival of「Nippon Telegraph and Telephone Corporation」. In opposition to「NTT Docomo」, they operate their own mobile brand "au" and have the second largest market share. The number of consolidated employees is approximately 41,996.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	KDDI Corporation
Company name (Japanese)	KDDI
Date of establishment	Friday, June 1, 1984
Headquarters location	〒102-8461 東京都千代田区飯田橋三丁目10番10号
Capital	141,852
Consolidated sales	5,080,353
Consolidated operating profit	1,013,729
Consolidated total assets	7,330,416
Consolidated capital	4,612,932
Capital adequacy ratio	62.9%
Consolidated number of employees	41,996

 

 

 

2. Summary and Features

 
「KDDI」was established by business integration of three companies;「Nihon Dentsu(日本移動通信)」,「Daiden Denden(第二電電)」and「KDD」in 2000. In case of「Nihon Dentsu」, it carried out the mobile phone business, as  a subsidiary of「Toyota Motor Corporation」and「Daiden Denden」mainly focused on domestic long-distance communications as a subsidiary of「Kyocera Corporation」. And「KDD」was a special company which specialized in international communication. 

 

At present,「KDDI」has an image of "Rival of NTT", and it is true that it is a company that was launched against market monopoly of「NTT」. However, when「KDDI」was established, it inherited the infrastructure and assets of 「International Telegraph and Telephone(国際電信電話)」, a special company that was separated from former 「Nippon Telegraph and Telephone Public Corporation(日本電信電話公社)」for the purpose of improving the international communication network. Considering this fact,「KDDI」is rather a brother company than a rival to 「NTT」.

 

Currently, the main business of「KDDI」is mobile communications, fixed communications, Internet services, and FTTH services. this company acheived the second largest market share in the mobile communications business after「NTT Docomo」. The position in the fixed-line communication market is also stubborn. In particular, they acheived an overwhelming market share of 49% in the cable television business by「Jupiter Telecommunications(ジュピターテレコム)」.

 

In terms of global expansion, this company has been focusing on the mobile communication business in Myanmar since they announced our expansion into Myanmar on July 16, 2014 in cooperation with「Sumitomo Corporation(住友商事)」. Especifically,「KDDI」is focusing on expanding the store network in collaboration with「MPT」, which is the largest telecommunications operator in Myanmar, and currently have the largest market share in the Myanmar market.

 

 

 

3. Major Business

 

■ Communication service for individual customers
They provide mobile services centered on the "au" brand. Regarding MVNO, they carry out through「UQ communication」. As services other than communications, this company is developing the「au WALLET Market」and「au Denki energy」service. 

■ Life Design Department
「KDDI」provides online and offline services for individual customers. They are strengthening membership-based digital content services such as "au Smart Pass" and "au Smart Pass Premium". In addition, they conduct financial businesses such as commercial transactions and insurance such as "au Wowma!".

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		4,748,259	5,041,978	5,080,353
Consolidated operating profit		912,976	962,793	1,013,729
Consolidated total assets		6,263,826	6,574,555	7,330,416
Consolidated net assets		3,849,133	4,131,257	4,612,932
Breakdown of sales	Communication service for individual customers	3,530,144	3,793,280	3,805,937
	Life Design business	367,359	402,873	447,209
	B2B business	584,410	591,053	618,557
	Global business	248,967	220,499	181,175
	Others	17,379	34,273	27,475