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Thank you very much for waiting. Thank you for taking time out of your busy schedule to attend this briefing. We would now like to start KDDI Corporation's Financial Results Briefing for the First Half of the Fiscal Year ending March 2020. I am Horii from IR department and I will serve as the moderator. This briefing will be interpreted simultaneously into English, which will be live-streamed on the internet and distributed on demand later. We would like to ask you for your understanding. Let me introduce the participants. To your right, from the center, Takahashi, President. Senior Managing Executive Officer, Director, and Executive Director of Corporate Sector, Muramoto.
Senior Managing Executive Officer, Director and Executive Director of Solution Business Sector, Mori; Administrative Officer and General Manager of Corporate Management Division, Saishoji.
Next, to your left from the center, Executive Vice President, Executive Director of Technology Sector, Uchida; Senior Managing Executive Officer, Director and Executive Director of Personal Business Sector, Shoji; Managing Executive Officer, Director and Deputy General Manager of Personal Business Sector, Morita; Managing Executive Officer, Director and Deputy General Manager of Personal Business Sector, Amamiya. We distributed 3 financial results related materials, which are also posted on our IR website. Please refer to the disclaimer in the material regarding the contents of the handout, financial performance and subscriber target explained in the Q&A sessions today. President Takahashi will first explain the financial results which will be followed by Q&A. President Takahashi, please?
Thank you very much, and thank you very much for attending the earnings briefing by KDDI today despite your busy schedule today.
I would like to take this opportunity to express my sincere condolences to all the people affected by Typhoon 15 and 19 and their loved ones. KDDI Group is committed to doing its utmost to help rebuild areas affected by the disasters. Now let me first discuss highlights of financial results for the first half. So this is the highlights of the first half. On a consolidated basis, the highlights of financial results from the left, consolidated operating revenue for the second quarter was JPY 1,318.4 billion, and for the first half, JPY 2,564.5 billion, with progress ratio against the full year target of 49.3%.
On the right, operating income for the second quarter was JPY 297.6 billion; for the first half, JPY 553.4 billion, with progress ratio of 54.3%. In the first quarter, we saw a year-on-year decline in profit on a single quarter basis; but in the second quarter, we achieved the positive growth in profit. So we are on a steady track toward the full year target. Now the factors for year-on-year change for the first half. For operating income, from the left, increase in profits in our growth fields, Life Design domain and Business segment made a great contribution. Comparing the first and second quarters, the amount of increases have expanded as well. On the other hand, in the first half, in addition to further intensify the competition, we have focused on the retention of users in the migration from 3G to 4G resulting in a significant increase in the handset sales cost. In addition, there are one-off factors such as change in the accounting period from Myanmar business in the previous fiscal term and accelerated depreciation for 3G ahead of the shutdown as well as other factors including increased au ARPA revenue. These impacts resulted in the first half decline in the operating income of JPY 7.8 billion. Let me now expand about Life Design domain. On the left, sales went up by 38.4% from the year before to JPY 584 billion. On the right, operating income increased by 27.9% year-on-year to JPY 87 billion. Increased number of au Denki subscribers or users and growth in au Smart Pass Premium ratio made contributions. And even if you exclude the impacts from newly consolidated affiliates such as ENERES Company Limited and Jibun Bank Corporation, we have achieved double-digit growth in both sales and operating income. Next, Business Service segment operating revenue and operating income. On the left, you see sales grew by 4.3% year-on-year to JPY 451 billion. On the right, operating income went up by 29.5% to JPY 82.6 billion. In addition to mobile and fixed line telecommunications existing businesses, growth fields, including IoT, have achieved growth and cut in the operation cost. And increased profits in domestic group affiliates also pushed up the operating income significantly. Next, the strategy of ID×ARPA×Engagement. This shows the maximizing lifetime value which we presented when we announced the medium-term management plan. Our basis is ID×ARPA but on top of telecommunications service by providing Life Design products together with it, we have been able to enhance the retention of the customers in the service or engagement. By maximizing ID×ARPA×Engagement, we're working to expand the total ARPA revenue in a stable manner and maximize the lifetime value. First, on expanding our IDs by implementing group strategies, partly due to more intense competition, au churn rate increased to 0.77% in the second quarter, up 0.13 percentage point year-on-year. But UQ and other group MVNOs have been increasing their subscription steadily. As a result, number of mobile IDs -- a sum of an accounts, au accounts and MVNO subscriptions, reached 27.09 million as of the end of September showing a steady growth. We're using group MVNOs that have physical stores, door-to-door sales, websites and other diverse sales channels, customer base to respond to the needs of the customers who prefer lower prices. We can also offer a variety of price plans like unlimited use plan to customers who want fast and smooth high-capacity communications without stress. So we will seek to expand our IDs for the entire group with these initiatives.
Now the total ARPA and total ARPA revenue. On the left, the total ARPA for second quarter was JPY 7,770, up 4.3% year-on-year. All the elements that constitute total ARPA, au ARPA, value-added ARPA, handset repair and compensation ARPA and Denki ARPA, all achieved a year-on-year growth. On the right, total ARPA revenues in the second quarter reached JPY 569.4 billion, up 3.6% year-on-year. Next is growth fields, starting with the expansion of finance business. The number of au PAY subscribers exceeded 6 million in just 6 months from launch. Adding credit card and prepaid card numbers, our settlement platform exceeded 33 million. And customers' point or prepaid card balance exceeds JPY 100 billion. Therefore, in addition to settlement platform and point balance established based on our telecom business services, the points that are saved by using smartphone as touch points in our services can be utilized for financial products. For example, investment, loan or saving according to the customer's life stages which will accelerate our point circulation and develop our financial business as the pillar for the new profit generation. Next is au Smart Pass Premium. Left side -- au Smart Pass on the left focuses on improving the penetration rate of au Smart Pass Premium, which is our priority service. The number of members has reached 8.51 million with penetration rate of 55%, up 18% -- 18 percentage points year-on-year as of the end of September.
Turning to the right side, we are working to improve the service attractiveness and expanding services including free take of apps that we've had since the beginning and au Wowma! free shipping and concerts and entertainment events. So we want to increase the ratio going forward.
Furthermore, with the start of 5G next March, we plan to offer digital contents that gives realistic sensation using xR, 4K image and smart devices. We will offer such attractive services to increase membership further and grow our total ARPA. Next is the total strength towards IoT market. So the Business segment. Left diagram shows the estimated size of domestic IoT market by business category. With the growth of telecommunication and device, which is our mainstay, as well as cloud and data utilization, IoT market is expected to become 1.8x bigger in 6 years from 2019 to 2025. Our group has many capabilities that enable us to provide one-stop IoT from data collection to utilization. We are aiming for growth that surpasses the market with total growth strength -- group strength. Next is KDDI DIGITAL GATE, the business development hub in 5G and IoT era. More than 250 companies have used it since it opened in September last year. And furthermore, with the growing needs, we expanded into Osaka and Okinawa as new activity hub in September this year. Using this KDDI DIGITAL GATE, we will accelerate our collaboration with partners from diverse sectors to help customers realize their digital transformation. Next is 5G. Left side is the overall 5G road map. Next spring, we will introduce the special 5G on top of the brilliant 4G that we've cultivated over long period of time and launch the service as non-standalone.
The right side shows the au 5G plan for base station. We plan to establish more than 50,000 base stations, the largest number in Japan, by the end of March 2024. We will also proceed with the demonstration trials with SOFTBANK towards the infrastructure sharing and aim to secure a resilient network by establishing the base stations efficiently and swiftly. Next, customer experience value in the 5G era. For consumers, we first defined an unlimited world to realize, explore the extraordinary with 5G by offering data unlimited plan before anyone else in Japan and by augmenting customer experience with 5G technology, we will deliver brand-new experience in broad areas including sports, town and entertainment.
For business use, we will combine 5G, high-definition video and AI and launch 5G-compatible solution for corporate clients on a trial basis starting November. We will deliver new experience value towards the 5G era where telecommunication will be prevalent anywhere, everywhere. Next, our response in times of disaster. In order to restore telecom service during typhoons and torrential rains, we responded using various equipment, including ship-mounted base stations, KDDI OCEAN LINK and vehicle-mounted base stations. When natural disasters are expected to occur, we establish restoration tasks proactively such as gathering the equipment around the country to the areas expecting potential disaster beforehand. We also offer a charging service and rent out restoration support goods in order to support people facing the damage and restore telecommunication environment quickly. Next is J.D. Power Customer Satisfaction Survey. We became #1 in individual and business mobile service satisfaction for 4 consecutive years. In addition, we became #1 in business IP phone and direct line phone service satisfaction for 7 consecutive years and #1 in business network service satisfaction as well. We would like to express our sincere appreciation to our customers for their continued patronage and keep offering experienced value that exceeds customers' expectation in all customer touchpoints. And this is our summary. For the first half financial results, we converted to profit increase in second quarter and steadily progressed towards the full year target. And we achieved double-digit profit growth both in the Life Design domain and the Business Services segment. And in growth fields, we will expand lifetime value through ID×ARPA×Engagement. And we aim to achieve business expansion in Life Design domain as our core remains to be telecommunication services. By taking advantage of finance and settlement solutions and au Smart Pass Premium. We will also promote initiatives in the growth fields, especially IoT and the Business Services segment, and deliver new customer experience value towards coming 5G. That concludes my presentation. Thank you very much for your attention.
Now we'd like to start taking questions from the floor. [Operator Instructions]
So if you have any questions, please raise your hands. Now the second from the right and third from the front. I see your hand.
I am Takahashi of UBS. Two questions, so one at a time. So if you look at the financial results this time, Life Design and Business have been producing [ risk ] profits, and the growth fields that you said are the growth fields are starting to grow, and this is an encouraging sign for medium-term management plan target. And why is it that they have started producing profits in the services? If you can go into more details, that would be appreciated. And from the third quarter onward, do you expect this increasing profit trend to continue? Can you comment on that?
So the first one, the Life Design, Morita will answer that question.
First of all, in the first half, the Life Design service segment, what drove growth was, as President said, au Denki users have increased in number. And aside from that, Smart Pass Premium has reached 8.51 million subscriptions. So this is highly profitable service. So this has been increasing and growing. And those are the 2 major factors. Especially for au Denki, as the number of users is increasing, service is increasing. And what is going to happen in the future? Basically speaking, this is a stock business, so you're building the business on a stock business basis. So there is not going to be major change that we expect. And going forward and in the far future, far into the future, what is going to happen, in the medium term management plan announcement? In 2021, in Life Design, we hope to reach JPY 1.5 trillion. What is going to drive that is au Denki and Smart Pass Premium and financial service, including payment service. And as I said, Denki and the Smart Pass Premium are expected to grow on a steady basis, and we can expect growth. And as for financial services, we are determined to grow this. But for the moment, we are more focused on increasing the number of active users. So we would like to take more time. That is all. Thank you.
Then the Business segment, Mori will answer that question.
In the Business segment, basically, the mobile telecommunications and fixed line telecommunications, what we call existing telecommunication businesses, this is 1 area, and then IoT and other growth fields. Those are the 2 different groups. And for the existing telecommunications businesses, the mobile subscriptions or accounts and fixed line accounts, we have seen steady growth in both. And telecommunication ARPU, we have been trying to prevent this from dropping. And with the multiplication of those 2 initiatives, we have seen growth. And also, the growth fields having synergistic effect, because we are targeting same customers through the services in growth fields and through the telecommunication -- existing telecommunication services. And we're providing services in the package in more cases. And so the approach that we take to the customers has been changing.
To the corporate customers, digitalization is being encouraged. Or Digital transformation is something that they are going through, and we are encouraging them to do that.
And in the growth fields, in this context, IoT, telecommunication subscribers is increasing steadily. 10 million subscriptions, it was the target for this -- the end of this year. But 10 million can be reached probably within third quarter. So that is how we are seeing as net increase in the subscriptions. And this is not going to lose any momentum, so we're going to keep on doing this. But this is not just telecommunication services, but we're also increasing peripheral services. So we are going to see growth in that area as well.
In addition, as for total ARPA, as Mr. Morita said, au Denki has some seasonal factors in numbers, so you have to disclose that so -- what I was said, [ what I was told. ] So value-added ARPA has been now disclosed. So there is some seasonality from quarter-to-quarter. From first quarter to second quarter, there has been steady growth. And as was said, from the second half onward, [ are we ] going to continue to see this increased profit. In the first quarter, we have seen significant drop in quarter and we have recovered significantly in second quarter. But we still have a JPY 7.8 billion drop, so we need to offset that in the third quarter. And JPY 1,020 billion, which has been the disclosed target, that is what we are trying to achieve in third and fourth quarter. So the environment keeps changing, so we have to be conscious in management so that we can consistently achieve that. Thank you.
The second question is the former Personal -- looking at from a Personal point of view, the profit may -- seems to be declining, but the sales is growing. And before the new guideline, the cost -- competition is intensifying and cost is probably increasing. So the former Personal -- I think the profit will be generated. You're in good shape to generate profit. Now the new guideline will be introduced. So how do you think of the profit going forward?
The total ARPA and au ARPA, as we mentioned earlier, is growing steadily. Shoji will explain the situation.
So as you correctly mentioned, starting this year, as I said in the first quarter, this year, the market liquidity -- mobility is larger than last year. In the second quarter, especially in September, the business law revision and the consumption hike before the consumption tax hike, the last minute demand was seen and the churn went up a little. But we also captured new subscribers, so the total sales went up. But as you correctly mentioned, the sales cost increased.
In terms of sales cost, we need to migrate from 3G to 4G. The cost-sensitive customers, the migration to smartphone has progressed significantly, even among the cost-sensitive customers. So from October onward, consumption tax hike took place, and therefore, the mobility has slowed down a bit. But overall, things are moving in line with our projection. So going forward, as an entire group, we need to secure the number of IDs in the group and raise the total ARPA. So total ARPA is the Denki and au ARPA and repair and compensation and Denki. So that is the key that we need to focus on going forward.
Are there any other questions? Yes. All the way to the right and front row, I see a hand.
Ando from Daiwa Securities. There are 2 questions. Firstly, in the first quarter, I think that you have explained this, but there were some ups and downs in the first and second quarter. So the trend line, what is the profitability that is performing? Can you explain more about that?
So Muramoto will answer that question.
If you take a look at Page 3 of the presentation, JPY 17.6 billion for the first half. This is a onetime cost, and this was incurred mostly in first quarter. The accounting period changed in Myanmar. That was only in first quarter. And 3G shutdown and acceleration and depreciation, this was happening in second quarter as well. In November last year, this was disclosed externally. And since then, accelerated depreciation has been implemented, so that was not there in the last fiscal year. So in the second quarter as well, the year-on-year decline in profit, that -- it was one of the factors. In the first quarter, this is not written here, but valuation loss of handsets, that was done in first quarter. In the second quarter, there was some reversal, and it has been effective in terms of positive factors. So the second quarter, we have seen some improvements vis-à-vis first quarter. But we cannot disclose any specific numbers.
The second question, from October onward, if -- I would like to ask more about the market. So as is expected, that's what you said but we are not able to understand what your expectation is. In terms of KPIs like number of sales or net increase or increments or churn rate, what are the directions that you are -- have been seeing in October? And what are the win over the customers from competitors?
Well -- so as I said, as we had imagined or anticipated, that's what I said, because the total number -- absolute number of churn between MVNOs is declining. But the number of users that is migrating to MVNOs is relatively increasing because there are some customers that are more oriented toward lower prices. They are still there as a market. So as a group, KDDI, au, UQ, BIGLOBE, for the entire group, how we can retain the customers within the group is a key question. But with regard to model change for the handset, the things have not changed, so there's not much change in the turnover. But we are not in the position to disclose the absolute number.
Next question, please? Someone in the first row in the center, please.
Masuno from Nomura Securities. I have 2 questions. So this is not about the financial results numbers. But going forward, in selling -- from selling handsets in stores, you will move to more selling products related to people's lives. So finance and Denki are proposed. In Denki, generally speaking, resell -- gross profit seems to be slim, but now the profit contribution is large. So Denki profitability is improving, you said. So what is the background to the improvement of the profitability?
So Morita-san will explain.
Denki's profitability -- low profitability has not changed. The structure remains unchanged, but the absolute sales amount is increasing. As we announced in March, au Denki subscribers exceeded 2 million. The number of customers, users is increasing, so the absolute amount of sales is increasing. So although the profitability is low, profit is being secured.
What is the target for the end of this fiscal year?
I'm sorry, I must refrain from answering that question.
My second question is -- this is regarding the medium-term management plan. So 3 years, JPY 100 billion cost reduction in 3 years. From last time, 5G SA will be coming in from the year ending March 2022. So you are rearranging to achieve JPY 100 billion cost reduction. I think you are in the process of doing that. It is a large number. So next year and the following year, what initiatives will you take? This is cost reduction. So how do you expect to reduce costs?
This JPY 100 billion, we are very serious about this. So cost reduction and technology and consumers-related cost reduction. So it's not that JPY 100 billion will be entirely cost reduction. We will also allocating to generate new businesses, so 70% to 80% are within prospect. We will continue taking action this year and realize JPY 100 billion. And I'm looking forward to be able to announce this to you. We are studying this very solidly. We're making progress.
If that is the case, JPY 100 billion is for the related issues and traditional sales promotion cost. The new business profit increase, is that what you're talking about?
Yes. In Life Design and IoT, in those fields, [ JPY 1.5 trillion or JPY 1 trillion ] has been targeted. And by creating new businesses other than that, 30% to 40% can be improved. That is what we are hoping to achieve internally. So network-related and sales costs, they are 50/50 on an even basis. Well, as for the breakdown, we cannot disclose that. But for the upgraded issues, we have kept reducing costs. So that is focusing on -- but the cost reduction in the existing businesses is something that we are more focused on.
In the middle or 2 rows behind the mid line.
Tanabe from JPMorgan. I also have 2 questions. At the outset, there was a question related to this, but in the Business, JPY 10 billion increase in sales and JPY 13 billion increase in profits, very high ratio. But the top line growth was mentioned, but Mr. Takahashi said the base load cost should be reduced. What's the breakdown? And in the second half, obviously, this will be continued. So you may have not changed the plan, but 15% decline in profit is the plan for the second half. So have you assumed some risk or can you -- can we expect some upside from that target?
Well, for the existing business within the entire business, it represents 60%. Quite large. The growth rate is moderate, but in terms of the absolute amount, we can expect a large increase in revenue. And on the cost side, the cost has to be curbed and not increasing in proportionate to the revenue. But fixed line network, especially, the procurement cost or cost of sales needs to be reduced. That is what we are making efforts for. So that would be contributing to improved profitability. And for the second half, we're expecting profit increase to continue as we see now. But on the other hand, in the growth fields, spending more money in growth fields is something that we would like to also do at the same time. So that's why we're a bit conservative in our plan. Thank you.
The second question, on Page 15 of the presentation, 5G, that is what I would like to ask about. In the road map on the left, how accurate is this diagram? I'm not sure, but the stand-alone for 5G in -- from second half of 2021, that is the starting point in this time line. Is that correct interpretation of this diagram? And then investments prior to that should happen in the first half of 2021. So what would be the capital investment plan for next year in line with that?
And another question, with this standalone introduction, no -- what cannot be done with non-standalone service? What are they -- that you have in mind? It may be difficult for you to say this now, but if you can just give me the outline or clues, that will be appreciated.
So just to give you the overview, and then details will be given by Mr. Uchida. But basically speaking, as for the initiation of services for 5G, March next year is our plan. And for the moment, we are on the right track to achieve that. And that's why I say, as you said, 5G standardization of the core would decide that as starting point of stand-alone for 5G or for our services. And if the standardization goes as it has been reported, then this is something that we can achieve.
And as for investment, more than JPY 600 billion is going to be invested, as I said, JPY 610 billion, rather, in the medium-term management plan. And the investment amount will be kept flat. We will do all kinds of cost reductions and also infrastructure sharing with SOFTBANK is partially considered. With Rakuten, I don't know about NTT, but cost reduction will be done in taking every opportunity to achieve this. And what would be the unique services for stand-alone? We have yet to consider it. But network slicing or MEC technologies can be realized in standalone services. So with using that, what can we do? That is what we are still discussing internally.
If -- that's all that I can say. Any additional comments, Mr. Uchida?
You have covered all I wanted to say.
Any other questions? So at the front row to the far left, please.
I'm Matsuhashi from Goldman Sachs. I have 2 questions. First, in the first quarter, you had the write-down of the handset, and the handset can now be sellable, I understand. And how did this impact profit loss for the second quarter? Did you recover fully or more than 100%? And if you recovered fully the business, which did it contribute to, Business or the former Personal?
The conclusion is we basically recovered in full, segment is Personal.
My second question is Life Design domain profit movement. First quarter increased by a little less than JPY 80 billion and second quarter is a little bigger than that, about JPY 80 billion increase in profit. The profit loss improvement is more solid in the second quarter and more conspicuous in the second quarter. So I want to understand this more. If you could elaborate the background, please.
So Morita-san will explain.
Basically, revenue increase, Denki, Smart Pass, were the large ones in revenue increase; the finance and settlement, the profitability is low but they had a big movement. So that was the big factor behind the revenue increase. And in profit, it's Denki and Smart Pass Premium. Those 2 were the drivers, so those 2 drove the profit up. And one more point I must add is in sales revenue, I said Denki is the driver, and it is actually growing. But ENERES revenue and the KDDI side sales, the procurement on KDDI side is posted 2 times. And so it seems larger than it actually is.
That is the factor only for the second quarter?
No. It's always been the case. So the point related cost -- so there are no extraordinary factors. So the revenue growth rate is around 38% and the profit growth rate is 28%. And so you may question the gap between the 2. So first and second quarter should be showing same level of profit. Thank you.
Any other questions? The front row? The gentleman in the front row and second from the right.
Mitsubishi UFJ Morgan Stanley Securities, Tanaka. Just a clarification for the first one. The President said Denki, ARPA or the value-added ARPA have been disclosed. I think I heard you say that, but where can we see them?
Well, verbal disclosure, so I have to answer that actually. Sorry. So au Denki, ARPA in the first quarter, ARPA, JPY 490; second quarter, JPY 690. Sorry, I should have said this when the question was asked. I should have answered that verbally.
What about value-added ARPA?
That is not disclosed.
Okay. And second question, global telecommunication platform or -- what is the time frame, timetable and current status? And how we should expect this to play out in the future? And Hitachi and Toshiba are working with you in alliance. What are the case studies or actual use cases?
Mori will answer that question.
For automotive sector and the IoT global platform, which is for the sectors other than automotive sector. For automotive sector in the first half, the service has been already launched. And the number increase will be seen in the second half, probably. So we expect this to increase. And it's not just in domestic market, but the number is expected to increase in overseas as well. Another in automotive sector, and as we expand services to include the other sectors, we're working with Hitachi and Toshiba individually. And in the second half, the services will be started.
So for automotive sector, for the second half, in Japan, U.S., basically, ECM will be incorporated in Toyota vehicles, is that correct? Yes. How much is the price per ECM unit? Can you just give me just a ballpark numbers?
Well, very inexpensive cost that we provide it. But volume-wise, compared to the number of units sold in Japan, because this is going to be incorporated in the [ ones ] for U.S. and others, so the number is expected to become huge. Thank you.
Any other questions? So the person in the center, third from the front, please.
Moriyuki from SBI Securities. My first question is simple. Second quarter, there was a reversal of the write-offs, so that was an extraordinary factor. But other than that, the trend will continue into the second half. In the second half, there will no longer be the impact of the accelerated depreciation. So the second half seems to be having better trend, but you kept your forecast unchanged. Is this because you were thinking of additional initiatives? Please elaborate.
This is still too early to say, but we are ending October -- September and October, there were some last-minute demand. And October, we had the revision in the business law. So we say it is in line with our projection, but there are still some variable factors, so we will be cautious. But in the end, JPY 1,020 billion will be kept, so we will see how we do in November and December. And I think in the third quarter, I will share with you whether we can really achieve the target in the third quarter. So at this point in time, we do not think we need to revise our full year forecast.
So cautious means once this mobility settles down, you cannot add too much incentive, but other marketing cost will be spent. Is that what you mean?
As Shoji-san said, migration from 3G to 4G and other than that, we are preparing for 5G. Whether we do the same as other players is a different story. But the QR code will be expanded, and commerce will be expanded. So towards 5G next year -- there are many things we need to do before Rakuten comes in. So that's what we want to consider as we look at the full year target.
One more question. The new area, including Denki, is growing steadily. You said that the mobility is settling down now. So once it settles down, the Life Design will have some indirect impact or there may be new ones coming in. So are there any indirect impact?
So this recurring type service, once we combine [ recurring ] service, it will have an impact. So I hope it will impact our churn rate.
What about the increase? The impact may slow down or...
We don't see that yet. Let me add 1 word. As we announced in the financial results, we said 2 million for Denki. But there's still big market out there. It's not that all au subscribers use this service. So we say mobility, this is in the mobile market. We think we can stick more.
So we are getting closer to the ending time. So if there is any more question, then we can take one last question. So the gentleman in the middle, second from the front row.
Toward the end, I'm sorry, but additional question on the previous one. As a way to look at this, for the full year, profit forecast will be definitely achieved. And from the outside, looking at this, I believe that you can. But if you can, then from next fiscal year onward, ahead of 5G and [ transpire ] Rakuten, you will spend more money so that you'll be ready for the next fiscal year. Is that what you're trying to do or are you going to leave some money to spend? Can you enlighten me on that front?
Well, it's a bit too early to say. Can you wait another quarter to give the answer? And if there is some more room, money to spend, then we may be able to spend that as a cost in next fiscal year. But environment keeps changing, so management is very difficult. So we'd like to wait and see to spend another quarter to report to you.
So with that, we would like to close KDDI Corporation financial results briefing for the first half of the fiscal year ending March 2020. Thank you very much for your attendance. [Statements in English on this transcript were spoken by an interpreter present on the live call.]