Consolidated Financial Results for FY2020
Network Services (2) Cost of Sales
Circuit-related costs (Internet backbone, WAN lines etc.)
Unit: (JPY) million
[ ], YoY = Year over year comparison
Financials
Outsourcing-related costs (mobile infrastructure related costs such as interconnectivity charge and voice communication services, outsourcing personnel costs etc.)
Others
Personnel-related costs (NW services related engineers' personnel cost)
Network operation-related costs (depreciation cost for network equipment, data center leasing costs etc.)
FY19: 102,092 [+0.8%]
FY20: 99,656 [-2.4%]
25,661 25,493 25,057 25,881 24,943 24,953 24,305 25,455
7,264 6,866 6,573 6,290
6,152 6,189 6,396 6,636
9,991 10,060 10,132 10,700 9,974
9,737
9,927
9,181
➤ FY20 circuit-related costs decreased by 6.0% YoY, along with WAN
revenue decrease
Internet backbone purchasing cost remains stable as we can leverage
scale merit by having one of the largest Internet backbone networks
➤ FY20 outsourcing-related costs decreased by 5.0%, ¥2.06 billion YoY
along with mobile data interconnectivity YoY decrease (for details,
please refer below)
➤ Others: Quarterly fluctuate along with the scale of supplies costs
Regarding mobile data interconnectivity cost recognition:
(MNO's mobile infrastructure cost. Please refer P.18 of this presentation material)
1,569
1,553
1,913 1,691 1,697
1,484
1,987
1,765
1,616 1,683 1,641 1,724
1,803 1,861 1,752 1,853
5,238 5,315 5,227 5,255 5,324
5,278
5,211
5,242
•
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
•
•
Future cost method adopted from FY20(*). In this method, mobile
interconnectivity telecommunications charge is calculated by MNOS'
prediction for their future costs and etc. (*) The difference between prediction and
result is adjusted to the next fiscal year (FY20 usage charge is expected to be fixed
around Jan. 2022)
Regarding our FY20 usage charge, from 1Q20, we use the unit charge
disclosed by Docomo based on the future cost method, which was a
decrease of 16.0% from their FY18 unit charge
FY19 usage charge, an internal number of FY20 usage charge
described above, which is based on Docomo's FY19 results, decreased
by 13.4% YoY (fixed in Jan. 2021). The difference between the result
and our estimate were recorded as onetime cost reduction: 3Q20 (¥0.70
bn) & 4Q20 (¥0.39 bn). Remainingly, FY20 mobile data interconnectivity
cost YoY decrease rate is 3.0% YoY based on future cost method. we
expect to have cost reduction impact when FY20 usage charge is fixed
(around Jan. 2022)
Regarding our FY19 & FY18 usage charge, Docomo's mobile
interconnectivity charge based on FY18 results was fixed in Mar. 2020
and it decreased by 6.0% YoY. We recorded ¥0.35 bn (*) of additional
cost in 4Q19 as a difference between our estimate (8% decrease) and
actual (6.0% decrease) (*) Includes difference between our estimate and actual
mobile interconnectivity and other charge of Docomo and KDDI
Internet Initiative Japan Inc.
42View entire presentation