Management Policy

To our Shareholders and Investors

To all of our shareholders and other investors, I extend my warmest greetings and gratitude for your support of Okinawa Cellular Telephone Company.

Allow me to offer my greetings and report on our business results for the fiscal year ending March 2021 (April 1, 2020-March 31, 2021).

In this fiscal year, our revenues and income have once again increased over the previous year, with operating revenues of 74,191 million yen (9.0% year-on-year increase), operating income of 14,450 million yen (3.5% year-on-year increase), and net income for the current term of 10,522 million yen (6.6% year-on-year increase), setting a new record for income.

We have also steadily expanded our business base in our three core businesses.

The first is our mobile business, with the au, UQmobile, and povo brands. Despite the competitive market environment, robust support from our customers has enabled us to reach 740,100 total subscriptions by the end of March (up 1.8% year-on-year).

The second is our FTTH business, focusing on au HIKARI Chura and HIKARI Yuimaaru. With expansion of the HIKARI Yuimaaru area and remote work demand, new customer acquisitions are steadily growing. We reached 109,500 subscriptions by the end of March (up 6.5% year-on-year).

And the third is our Life Design business. With au Denki, for which service was launched in November 2019, we have achieved remarkable results, with 54,100 subscriptions by the end of March, surpassing our initial plan of 45,000 subscriptions two years ahead of schedule.

We will continue to sustain a robust financial base and strive to be an attractive company for all shareholders and investors. I hope very much for your continued support and encouragement.

June 2021

1. Management Goals

Our management goals are “3 increases” (increases in revenues, income, and consecutive dividends), and a dividend payout ratio of over 40%.

For the fiscal year ending March 2022, the Accounting Standard for Revenue Recognition and other standards have been applied from the start of the term, and some sales commissions that had been processed in accounting as operating expenditures have been changed to sales allowances. Despite the impact of these and other moves, we forecast operating revenues of 70 billion yen and operating income of 14.25 billion yen. We will aim to achieve substantial increases in revenues and income excluding the impact of the relevant changes in accounting standards. We also forecast a year-end dividend of 164 yen per share, marking 21 consecutive dividend increases if this forecast is achieved.

Although the circumstances in the fiscal year ending March 2022 will surely be challenging, we will continue to make efforts to achieve our management goals as we have in the past.

2. Challenges to Address

In our business environment, the launch of 5G service by telecoms has resulted in changes toward a new era in which many kinds of devices are connected to telecom networks. In light of this, competition is intensifying, with carriers continuously announcing new mobile price plans that focus on lower prices.

As we face these market conditions, we will continue to respond to customer needs with our total capabilities based on our mobile business, which has an approximately 50% share of the market in Okinawa Prefecture, and our FTTH business, which has a 30% share of the market, combined with non-telecom businesses such as au Denki, which we provide in cooperation with the Okinawa Electric Power Company.

We will also work proactively to increase our earnings in new growth areas, including submarine cables, which began operation in the fiscal year ending March 2021, and our office building and data center, which are scheduled for completion in the fiscal year ending March 2022.

From here onward, in addition to our competition with other firms, we will also respond swiftly to changes in our management environment, such as the novel coronavirus pandemic, and continue to work toward achieving our management goals of “3 increases” (increases in revenues, income, and consecutive dividends) and a dividend payout ratio over 40%. In addition, we will expand our business activities rooted in the community and continue to contribute to further community development based on our corporate philosophy of contributing to the development of Okinawa’s economy through our businesses.