Member of Financial Accounting Standards Foundation
Report Summary for 1st Quarter, Fiscal Year Ending March 2013
[Japanese GAAP] (Consolidated)
July 24, 2012
Company Name: Okinawa Cellular Telephone Company
Stock Listing: Osaka SE
Code No. : 9436
URL: http://www.au.kddi.com/okinawa_cellular/index.html
President : Hiroshi Kitagawa
For Inquiries : Hiroki Kuniyoshi, Manager, Corporate Management Department
Tel: (098) 951-0639
Date on which the quarterly report is to be submitted : July31, 2012
Date of Commencement of Dividend Payment: －
Preparation of additional explanatory materials related to the quarterly financial statements: Yes
Quarterly results briefing session: Yes
(Figures rounded off to nearest million yen.)
1. Consolidated Financial Results for 1st Quarter, FY Ending March 2013 (Apr. 1, 2012 – Jun. 30, 2012)
(1) Consolidated Results of Operation
(percentage shows increase/decrease from the same quarter of the previous fiscal year）
Operating Revenues
Operating Income
Recurring Profits
Net Income
million yen
%
million yen
%
million yen
%
million yen
%
12,490
11,822
5.6
0.3
2,010
2,234
(10.0)
0.7
2,025
2,236
(9.4)
0.2
1,310
1,428
(8.2)
1.0
1st Quarter, FY ending Mar. 2013
1st Quarter, FY ended Mar. 2012
st
(Reference) Comprehensive income : 1 Quarter, FY ending Mar. 2013: 1,354 million yen （－7.1％）
1st Quarter, FY ended Mar. 2012: 1,457 million yen （2.0％）
Net Income Per Share
Diluted Net Income Per Share
yen
1st Quarter, FY ending Mar. 2013
1st Quarter, FY ended Mar. 2012
yen
－
－
4,794.50
5,224.50
(2) Consolidated Financial Position
Total Assets
Capital adequacy ratio
Net Assets
million yen
million yen
％
59,418
60,576
49,129
48,827
80.7
78.8
1st Quarter, FY ending Mar. 2013
FY ended Mar. 2012
(Reference) Capital adequacy : 1st Quarter, FY ending Mar. 2013 : 47,975 million yen
FY ended Mar. 2012 : 47,725 million yen
2. Dividends
End of Q1
yen
FY ended Mar. 2012
FY ending Mar. 2013
FY ending Mar. 2013
(Project)
－
－
End of Q2
Dividends Per Share
End of Q3
yen
yen
Year End
yen
Entire FY
yen
3,850.00
－
3,850.00
7,700.00
3,850.00
－
38.50
3,888.50
(Note 1) Revision made to recently announced dividend forecast: None
(Note 2) At a meeting of its Board of Directors held on April 24, 2012, the company decided on a stock split at a rate of
100 shares for each share of common stock, with the effective date of October 1, 2012. Year-end dividends for
the fiscal year ending March 2013 (projected) have been listed with consideration of the impact of this stock
split.
For further details, please see the following page, “(※Explanation of Appropriate Use of Business Forecasts
and Other Notes of Special Interest)”.
－1－
3. Consolidated Financial Results Forecast for FY Ending March 2013 (Apr. 1, 2012 – Mar. 31, 2013)
(percentage shows increase/decrease from previous term）
Operating
Revenues
million yen
Entire FY
Operating
Income
%
50,100 1.2
million yen
Recurring
Profits
%
8,600 1.5
million yen
Net Income
%
8,600 1.4
million yen
%
4,100 (20.9)
Earnings Per
Share
yen
149.95
(Note 1) Revision made to recently announced business performance forecast: None
(Note 2) At a meeting of its Board of Directors held on April 24, 2012, the company decided on a stock split at a rate of 100 shares
for each share of common stock, with the effective date of October 1, 2012. Net earnings per share for the fiscal year
ending March 2013 have been listed with adjustments to reflect this stock split.
For further details, please see the following page, “(※Explanation of Appropriate Use of Business Forecasts and Other
Notes of Special Interest)”
4. The notes
(1) Significant changes to subsidiary companies during this cumulative quarterly consolidated accounting term (specific
changes to subsidiary companies with a change in the scope of consolidation): None
New (- company) (Name:
)
Removed (- companies) (Name:
)
(2) Application of special accounting practices to consolidated quarterly financial statements: None
(3) Changes to accounting policy, or changes to estimates or restatements due to accounting issues
1) Changes to accounting policy due to a revision in accounting standards etc.: Yes
2) Changes to accounting policy due to reasons other than point 1): None
3) Changes to estimates due to accounting issues: Yes
4) Restatements: None
(Note) These fall under Article 10. 5 in “Rules for Terminology, Style and Production Methods for Quarterly
Consolidated Financial Statements .” For details, please see “2. Items Concerning Summary Data (The
notes) ” on page 11 of the attached document.
(4) Number of shares issued (common stock)
1) Outstanding shares at end of term (including treasury shares)
First quarter of FY ending March 2013: 273,420 shares, FY ended March 2012: 273,420 shares
2) Number of treasury shares at end of term
First quarter of FY ending March 2013 – shares, FY ended March 2012 – shares
3) Average shares during the term (cumulative for all quarters)
First quarter of FY ending March 2013: 273,420 shares, First quarter of FY ended March 2012: 273,420 shares
－2－
※ Notice Related to the Status of Implementation of Quarterly Review Procedures
The current quarterly financial statements are exempted from quarterly review procedures based on the Financial
Instruments and Exchange Act, but at the time of disclosure of these quarterly financial statements, we have not
completed the review process for the quarterly consolidated financial statements.
※ Explanation of Appropriate Use of Business Forecasts and Other Notes of Special Interest
・ At a meeting of its Board of Directors held on April 24, 2012, the company decided on a stock split at a rate of
100 shares for each share of common stock, with the effective date of October 1, 2012. Dividends retroactively
adjusted to reflect the impact of this stock split are as follows:
Record Date: FY ended March 2012 End of Q2 38.50 yen Year End 38.50 yen Entire FY 77.00 yen
Record Date: FY ending March 2013 End of Q2 38.50 yen Year End 38.50 yen Entire FY 77.00 yen
Net income per share (projected) for the year is calculated on the assumption that the stock split was implemented
at the beginning of the fiscal year.
・ Change in units for expressing monetary amounts
The monetary amounts for items expressed in our quarterly consolidated financial statements and other matters, which
had been listed in units of thousands of yen, are now listed in units of millions of yen as of this cumulative 1Q
consolidated accounting term.
・ Details regarding future prospects, such as the business performance forecasts, offered in this document are based on
information available to the company at the present time and certain assumptions deemed to be reasonable, and are not
intended to represent promises for such attainment made by the company. The actual results may differ materially from
the projections depending on various factors. For more information on the criteria on which the forecasts are based and
for points to note in putting such forecasts to use, please see section “1. Qualitative Information of the Company’s
Financial Status (3) Qualitative Information on Consolidated Operating Results Forecast” on page ９ of the attached
material.
－3－
Report Summary for 1st Quarter, Fiscal Year Ending March 2013 (Consolidated)
for the Okinawa Cellular Telephone Company (Code No. 9436)
1. Qualitative Information on 1st Quarter
(1) Qualitative Information on Consolidated Operating Results
1) Business Results and Other Overviews
Japan’s economy remains in dire circumstances; however, in light of reconstruction demand and other factors, it
continues to show some signs of recovery.
In Okinawa prefecture, our area of operation, while the employment
and income situation remains severe, there has been some recovery, with steady growth in individual consumption
in light of the prefecture’s growing population and demand from tourism, and a positive trend in tourism-related
businesses given the increases in regular international flights.
In the mobile communications market, competition for new customers is further intensifying through provision
of low-cost price plans, a wider variety of handset offerings such as smartphones and tablets, and expanded content
offerings. In addition, the spread of smartphones has made handling the drastic increases in data traffic a major
issue throughout the industry.
In our fixed-line telecommunications business, with the expansion of FTTH and other broadband services, we
have seen rapid changes in the business environment, not only in conventional fixed telephone lines but also in
tie-ups with video streaming and mobile phone services as well as trends in price competition.
Against this backdrop, our operating results for the whole group for the 1st quarter of the fiscal year ending
March 2013 (April 1, 2012 to June 30, 2012) are as follows.
As of this 1Q of the current fiscal year, our group has been consolidated into one segment.
1st Quarter,
Previous Fiscal Year
(Apr. 1, 2011 – Jun. 30, 2011)
1st Quarter,
Current Fiscal Year
(Apr. 1, 2012 – Jun. 30, 2012)
11,822
12,490
667
5.6％
9,588
10,480
891
9.3％
2,234
2,010
(224)
(10.0)％
2,236
2,025
(211)
(9.4)％
1,428
1,310
(117)
(8.2)％
Operating Revenues
(million yen)
Operating expenses
(million yen)
Operating Income
(million yen)
Recurring Profits
(million yen)
Net Income
(million yen)
Increase/
Decrease
the rate of change
Operating revenues in the cumulative 1Q consolidated accounting term increased by 667 million yen (5.6%
increase) year-on-year to 12,490 million yen owing to an increase in revenues from the sale of handsets, which
resulted from an improvement in the ratio of number of smartphone handsets shipped and an expanded customer base
for au mobile phones and au HIKARI Chura, thanks to the steady progress of the Okinawa 3M Strategy.
Operating expenditure also increased by 891 million yen (9.3% increase) year-on-year to 10,480 million yen due to
an increase in new customer acquisition related expenditures and an increase in the ratio of smartphones shipped.
As a result of the above, operating income decreased by 224 million yen (10.0% decrease) year-on-year to
2,010million yen, while recurring profits decreased by 211 million yen (9.4% decrease) year-on-year to 2,025 million
yen, and net profits for the term decreased by 117 million yen (8.2% decrease) year-on-year to 1,310 million yen.
The total investment in the consolidated accounting period is 1,252 million yen.
Note) 3M stands for “multi-use”, “multi-network”, and “multi-device”.
2) Business-Wise Performance
Starting with the cumulative 1Q consolidated accounting term, segment-based listings have been eliminated as our
segments have been converted to a single group.
－4－
Report Summary for 1st Quarter, Fiscal Year Ending March 2013 (Consolidated)
for the Okinawa Cellular Telephone Company (Code No. 9436)
<<Service Data>>
(au mobile phone service)
< Number of subscribers / handsets shipped >
1st Quarter,
Previous Fiscal Year
(Apr. 1, 2011 –
Jun. 30, 2011)
Net additions
Total subscribers
Number of handsets shipped
1st Quarter,
Current Fiscal Year
(Apr. 1, 2012 –
Jun. 30, 2012)
Increase/
Decrease
the rate of change
5,100
6,900
1,900
36.7％
526,200
555,500
29,300
5.6％
55,400
51,100
(4,300)
(7.8)％
Note 1) Net increase in subscriptions and the total number of subscriptions include subscriptions to communication module
services as well.
Note 2) Net increase in subscriptions and the total number of subscriptions have been rounded off to the nearest hundred.
Note 3) The number of handsets shipped has been rounded off to the nearest hundred.
< Churn rate, Model change rate, ARPU >
1st Quarter,
Previous Fiscal
Year
(Apr. 1, 2011 –
Jun. 30, 2011)
1st Quarter,
Current Fiscal
Year
(Apr. 1, 2012 –
Jun. 30, 2012)
Increase/
Decrease
the rate of
change
Churn rate [1] (%)
0.48
0.52
0.04 point
Model change rate [2] (%)
2.70
2.31
(0.39)point
Total ARPU[3] (yen)
5,260
4,906
(354)
(6.7)％
au ARPU
5,194
4,830
(364)
(7.0)％
Voice ARPU (yen)
3,046
2,733
(313)
(10.3)％
Data ARPU (yen)
2,165
2,492
327
15.1％
(17)
(395)
(378)
－
66
76
10
15.2％
Amount of discount applieds (yen)
Value ARPU (yen)
For the au mobile phone services for the cumulative 1Q consolidated accounting term, a fuller lineup of au
mobile handsets and services, improvements in network quality, and other customer-focused services resulted in an
increase in the total number of subscriptions year-on-year by 29,300 (5.6% increase) to 555,500 subscriptions.
The churn rate increased by 0.04 point year-on-year to 0.52%, due to greater fluidity in the market amid more
intense competition among providers
The h model change rate decreased by 0.39 points year-on-year to 2.31% as customers have completed the cycle
of upgrades for migration to handsets compatible with the frequency realignment.
Notations for ARPU have changed as part of our new indexes for performance evaluation in the Okinawa 3M
Strategy.
Total APRU decreased by 354 yen (6.7% decrease) year-on-year to 4,906 yen. As part of this, au ARPU
decreased by 364 yen (7.0% decrease) year-on-year to 4,830 yen due to the proliferation of low-priced plans to
meet the diverse needs of customers and an increase in customers eligible for monthly discounts and au Smart
Value[4], despite an increase in data communications owing to the greater number of smartphone subscribers and
an increase in subscription ratios of the Packet Communication Flat Rate service. Value ARPU increased by 10 yen
(15.2% increase) year-on-year to 76 yen, with an increase in au Smart Pass subscribers as a major factor.
[1] Churn rate: the total number of cancellations during the relevant period divided by the total number of subscribers at the
end of the previous month of the same period.
－5－
Report Summary for 1st Quarter, Fiscal Year Ending March 2013 (Consolidated)
for the Okinawa Cellular Telephone Company (Code No. 9436)
[2] Model change rate: the total number of upgrades during the relevant period divided by the total number of subscribers
at the end of the previous month of the same period.
[3] ARPU (Average Revenue Per Unit): the average monthly income derived from each contract. Definitions are as
follows.
Total ARPU: The previously used total ARPU + Value ARPU
au ARPU: The previously used total ARPU － our services and affiliated company services
Amount of discount applieds: Applied Discount of “Monthly discounts”, “au Smart Value “
Value ARPU: Sales of “our services and affiliated company services + settlement fees + advertising”
[4] “Smart Value” is a registered trademark of EMC Co., Ltd.
<Main Topics of au mobile phone service > (April 1, 2012 – June 30, 2012)
(au product lineup)
・Smartphones
We launched the “HTC J ISW13HT” specially developed for the Japan market by HTC, a respected brand
in many countries; the “URBANO PROGRESSO” equipped with the Smart Sonic Receiver that makes calls
easier to hear even in noisy areas; and “AQUOS PHONE SERIE ISW16SH” [5], equipped with both the
familiar FeliCa and the NFC service, which is likely to become more common in the future.
・Conventional Mobile Phones
We launched the “K011”, a full-featured phone with “mamorino navi” that offers safety and reassurance to
both parents and children, and the “Simple Phone K012”, which is designed to be especially easy to hear in
addition to its usual friendly features.
・Other products
We launched “REGZA Tablet AT500/26F” [6] a tablet with the Android™ 4.0 operating system and a
user-friendly interface that supports multi-tasking and widgets, as well as a quad-core CPU that provides
outstanding speed and comfort for watching movies and browsing the Internet.
(New Services)
・We launched the “Video Pass” video service, which allows users to enjoy a wide range of video content
across genres including movies, drama, and anime, anytime and anywhere on their smartphones, PCs or
tablets[7] for a monthly fee of 590 yen (tax included).
・We started to provide the “Uta Pass” music service for au smartphones, which lets subscribers listen to an
unlimited amount of music on channels spanning a variety of genres, for a monthly fee of 315 yen (tax
included).
(Other services)
・Along with the reconfiguration of the 800 MHz frequency range used by au mobile phones, services for
“CDMA 1X” and for “CDMA 1X WIN” models without au IC card compatibility will be terminated on
July 22, 2012.
・We were awarded certification by the Ministry of Internal Affairs and Communications on June 27, 2012 for
the plan to install a specified base station for the introduction of the 3.9 generation mobile communications
system. With this certification, we were assigned the frequency range greater than 773 MHz and less than
783 MHz.
・To further enhance customer satisfaction, we have launched “Denpa Support 24”, which will reduce the
time from the current 48 hours to within 24 hours (in principle) from when we receive an inquiry to
improve signal quality to when a representative contacts the user to schedule a visit for an examination of
－6－
Report Summary for 1st Quarter, Fiscal Year Ending March 2013 (Consolidated)
for the Okinawa Cellular Telephone Company (Code No. 9436)
their reception conditions. With this service we will also conduct examinations of reception conditions more
quickly and offer ways to improve signal quality based on the results of these examinations.
・We have led the world in adopting “EV-DO Advanced”, the technology to alleviate congestion in wireless
base stations for au mobile phone data communications. With the introduction of this feature, about 1.5
times the usual amount of data traffic can be accommodated, and average effective communication speed in
congested areas will be improved to nearly twice the previous levels [8].
[5] “AQUOS”, “AQUOS PHONE”, and “SERIE” are trademarks or registered trademarks of Sharp Corporation.
[6] “REGZA” and “REGZA Tablet” are trademarks or registered trademarks of Toshiba Corporation.
[7] An au ID is required to use this service on PCs and tablet computers.
[8] Based on results of simulations from customers’ circumstances of usage and the degree of congestion in our wireless
base stations.
( au HIKARI Chura Service )
< au HIKARI Chura >
1st Quarter,
Previous Fiscal Year
(Apr. 1, 2011 –
Jun. 30, 2011)
Net additions
1st Quarter,
Current Fiscal Year
(Apr. 1, 2012 –
Jun. 30, 2012)
Increase/
Decrease
the rate of change
2,200
3,400
1,200
55.2％
1,600
2,500
900
59.0％
600
900
300
46.1％
Total subscribers
7,000
16,400
9,300
132.4％
Home
5,100
11,400
6,400
125.8％
Apartment
2,000
5,000
3,000
148.9％
Churn rate (%)
0.75
0.80
0.05 point
Home
0.64
0.72
0.08 point
Apartment
1.03
0.96
(0.07)point
5,148
5,009
(139)
(2.7)％
Home
5,763
5,669
(94)
(1.6)％
Apartment
3,585
3,541
(44)
(1.2)％
Home
Apartment
ARPU (yen)
Note 1) Of the FTTH services, the situation with regards to “au HIKARI Chura” is presented here.
Note 2) Net increase in subscriptions and the total number of subscriptions have been rounded off to the nearest hundred.
As for the au HIKARI Chura service in the cumulative 1Q consolidated accounting term, subscriptions have increased by
9,300 (132.4% increase) year-on-year to 16,400 owing to the steady progress of the Okinawa 3M Strategy.
<Main Topics of au HIKARI Chura service >
・Advance applications are now being accepted for service in the regions of Itoman City, Nishihara Town,
Haebaru Town, Yonabaru Town, and Nanjo City (formerly Oozatoson), for which service is scheduled to
begin in August 2012.
－7－
Report Summary for 1st Quarter, Fiscal Year Ending March 2013 (Consolidated)
for the Okinawa Cellular Telephone Company (Code No. 9436)
(2) Qualitative Information of the Company's Financial Status
1) Consolidated Financial Position
< Assets, Liabilities, and Net Assets >
Previous Fiscal Year
(As of March 31, 2012)
1st Quarter Closing,
Current Fiscal Year
(As of June 30, 2012)
Total Assets (million yen)
60,576
59,418
(1,157)
(1.9) %
Total Liabilities (million yen)
Interest-bearing Liabilities
(million yen)
Total Net Assets (million yen)
11,749
10,289
(1,459)
(12.4) %
2,085
2,068
(17)
(0.8) %
48,827
49,129
301
0.6 %
Capital adequacy ratio (%)
78.8%
80.7%
1.9 point
Increase/
Decrease
the rate of
change
Despite increases in accounts receivable and in tangible fixed assets, total assets at the end of the current 1Q
consolidated accounting period decreased by 1,157 million yen (1.9% decrease) year-on-year to 59,418 million yen
as a result of a decrease in short-term loans to related companies and other factors.
Liabilities decreased by 1,459million yen (12.4% decrease) compared with the end of the previous consolidated
fiscal year to 10,289 million yen due to a decrease in account payable, income taxes payable, etc.
Despite the payment of dividends, net assets increased by 301 million yen (0.6% increase) compared with the
end of the previous consolidated fiscal year to 49,129 million yen as a result of an increase in retained earnings
from the posting of net income for the current term and other factors.
As a result of the above, the capital adequacy ratio improved from 78.8% to 80.7% compared with the end of the
previous consolidated fiscal year.
2) Cash flows
1st Quarter,
Previous Fiscal Year
(Apr. 1, 2011 –
Jun. 30, 2011)
Cash Flows from Operating Activities
(million yen)
Cash Flows from Investing Activities
(million yen)
Cash Flows from Financing Activities
(million yen)
Net decrease in Cash and Cash Equivalents
(million yen)
1st Quarter,
Current Fiscal Year
(Apr. 1, 2012 –
Jun. 30, 2012)
Increase/
Decrease
1,749
523
(1,225)
(765)
829
1,594
(1,042)
(1,057)
(14)
(59)
295
354
1,760
2,175
414
Cash and Cash Equivalents at Beginning of Period
(million yen)
Cash and Cash Equivalents at End of Period
1,701
2,470
769
(million yen)
Free Cash Flow
983
1,352
369
(million yen)
Note) Free cash flow is the total of "Cash flows from operating activities" and "Cash flows from investment
activities."
Cash and cash-equivalents at the end of the current 1Q consolidated accounting period were 2,470 million yen,
while free cash flow in the cumulative 1Q consolidated accounting term amounted to 1,352 million yen.
The various cash flows during the cumulative 1Q consolidated accounting term were as follows:
－8－
Report Summary for 1st Quarter, Fiscal Year Ending March 2013 (Consolidated)
for the Okinawa Cellular Telephone Company (Code No. 9436)
(Cash flows from operating activities)
Cash flows from operating activities resulted in a decrease in income by 1,225 million yen to 523 million yen
year-on-year, due to an increase in notes and accounts receivable and an increase in payments for accounts
payable, etc.
(Cash flows from investing activities)
Cash flows from investing activities resulted in a decrease in expenditure by 1,594 million yen year-on-year to
829 million yen due to an decrease in expenditures through the acquisition of tangible fixed assets and a decrease
in payments through short-term loans receivable to KDDI Corporation.
(Cash flows from financing activities)
Cash flows from financing activities resulted in an increase in expenditure by 14million yen year-on-year to
1,057 million yen as a result of increases in the repayment of long-term loans and the amount of dividends paid.
(3) Qualitative Information on Consolidated Operating Results Forecast
There have been no revisions made to the business performance forecasts published on 24 April 2012.
The following is a summary of the consolidated operating results forecast.
<<Consolidation>>
<Summary of Consolidated Business Performance Forecasts>
Current Fiscal Year
Previous Fiscal Year
(Apr.
1, 2012 – Mar. 31, 2013)
(Apr. 1, 2011 – Mar. 31, 2012)
(Project)
Operating Revenues
49,507
50,100
(million yen)
Operating Expenses
41,034
41,500
(million yen)
Operating Income
8,473
8,600
(million yen)
Recurring Profits
8,480
8,600
(million yen)
Net Income
5,181
4,100
(million yen)
Increase/
Decrease
the rate of change
592
1.2％
465
1.1％
126
1.5％
119
1.4％
(1,081)
(20.9)％
As for operating revenues, while there are anticipated causes of decline in revenues from the decrease in ARPU in
the au mobile phone service and the drop in the number of handsets shipped, causes of increase in revenues are
expected to overtake these, thanks to increases in total subscriptions for au mobile phones and the expansion of our
“au HIKARI Chura” client base, thus we project improvement in consolidated business performance.
In terms of operating expenditure, while declines are anticipated due to lower costs of goods sold and lower sales
commissions resulting from the drop in the number of handsets shipped and fewer handset upgrades in the au
mobile phone service, the increases in data facility usage charges and transmission line usage charges resulting from
an increase in data traffic due to the increased use of smartphones as well as increased funds from the expansion of
our “au HIKARI Chura” client base are expected to outweigh these causes of decline, thus we project improvement
in consolidated business performance.
As a result of all the above, our consolidated business performance forecasts for the coming term include 50,100
million yen in operating revenues, 41,500 million yen in operating expenses, 8,600 million yen in operating income,
and 8,600 million yen in recurring profits for the current term.
In addition, there is about 2 billion yen worth of communications equipment that we are considering retiring.
Taking into account the extraordinary losses projected for this equipment, net income for the current term is
estimated to be 4,100 million yen.
Individual performance forecasts for the coming term are as follows:
－9－
Report Summary for 1st Quarter, Fiscal Year Ending March 2013 (Consolidated)
for the Okinawa Cellular Telephone Company (Code No. 9436)
<< au mobile phone service >>
< Number of subscribers / handsets shipped >
27,400
Current Fiscal Year
(Apr. 1, 2012 – Mar. 31, 2013)
(Project)
21,500
Total subscribers
548,500
Number of handsets shipped
221,800
Previous Fiscal Year
(Apr. 1, 2011 – Mar. 31, 2012)
Net additions
the rate of
change
Increase/
Decrease
(5,900)
(21.6)％
570,000
21,500
3.9％
183,500
(38,300)
(17.2)％
Note 1) Net increase in subscriptions and the total number of subscriptions include subscriptions to communication module
services as well.
Note 2) Net increase in subscriptions and the number of subscriptions have been rounded off to the nearest hundred.
Note 3) The number of handsets shipped has been rounded off to the nearest hundred.
<Churn rate, Model change rate, ARPU>
Previous Fiscal
Year
(Apr. 1, 2011 –
Mar. 31, 2012)
Current Fiscal
Year
(Apr. 1, 2012 –
Mar. 31, 2013)
(Project)
Churn rate (%)
0.46
0.49
0.03 point
Model change rate (%)
2.66
2.02
(0.64)point
5,190
4,990
(200)
(3.9)％
5,123
4,880
(243)
(4.7)％
Voice ARPU (yen)
2,969
2,880
(89)
(3.0)％
Data ARPU (yen)
2,291
2,550
259
11.3％
Amount of discount applieds (yen)
(137)
(550)
(413)
－
67
110
43
64.2％
Total ARPU (yen)
au ARPU
Value ARPU (yen)
the rate of
change
Increase/
Decrease
<< au HIKARI Chura Service >>
< au HIKARI Chura >
Previous Fiscal
Year
(Apr. 1, 2011 –
Mar. 31, 2012)
Net additions
Current Fiscal Year
(Apr. 1, 2012 –
Mar. 31, 2013)
(Project)
Increase/
Decrease
the rate of change
8,100
11,400
3,300
40.4％
Home
5,400
7,200
1,800
32.3％
Apartment
2,700
4,200
1,500
56.8％
Total subscribers
13,000
24,300
11,300
87.2％
Home
8,900
16,200
7,300
81.2％
Apartment
4,000
8,100
4,100
100.4％
Churn rate (%)
0.76
0.69
(0.07)point
－
Home
0.64
0.56
(0.08)point
－
Apartment
1.02
0.95
(0.07)point
－
4,994
4,940
(54)
(1.1)％
Home
5,645
5,640
(5)
(0.1)％
Apartment
3,486
3,490
4
0.1％
ARPU (yen)
Note 1) The number of subscribers has been rounded off to the nearest hundred.
－10－
Report Summary for 1st Quarter, Fiscal Year Ending March 2013 (Consolidated)
for the Okinawa Cellular Telephone Company (Code No. 9436)
In the coming months, if a change in economic conditions, business competition, the success or failure of new
services, and other uncertain factors liable to affect business performance arise, we will consider timely revision of
our business forecasts.
(4) Risks of businesses
We would like to state, however, there are various risks involved in our business pursuits. Although we do make
thorough efforts, first to prevent these risks from arising, and second to mitigate their effects by dispersal, many
uncertainties still exist that may adversely affect our financial status or business performance.
These include: the fact that we may not be able to maintain/expand demand and subscription numbers for our
services as much as we expect to in the face of competition from other carriers or other technologies; the fact that
trade secrets, personal information, or customer information may leak out accidentally, or our services may be
halted due to natural disasters , accidents or power supply restriction; whether the suspension of services due to
accidents, natural disasters such as earthquakes, tsunamis, typhoons, and floods, and so on can be prevented; the
fact that changes in telecommunications-related legislations, rules and regulations, government policy-making,
public regulations, or lawsuits may bite into our profits; the fact that we may not be able to procure appropriate and
adequate human resources to meet future needs; the fact the telecommunications industry may undergo a
reshuffling, that we may be faced with impairment accounting, that our parent company, KDDI Corporation, may
use influence that could adversely affect profits of other shareholders; and so on.
2. Items Concerning Summary Data (The notes)
Changes to accounting policy, or changes to estimates or restatements due to accounting issues
Changes to estimates and changes to accounting policy that are difficult to distinguish
(Changes to estimates and changes to accounting policy that are difficult to distinguish)
Starting from this cumulative 1Q consolidated accounting term, the company and its domestic consolidated
subsidiaries has changed accounting methods for depreciation expenses for tangible fixed assets acquired on or
after April 1, 2012, based on the revised Corporation Tax Act of Japan.
This change will lead to an increase of ５ million yen in operating profits, recurring profits, and net income for
the term before taxes and other adjustments for this cumulative 1Q consolidated accounting term compared to the
previous policies.
－11－