Thank you for waiting. We'd like to start a meeting on KDDI's financial results for the fiscal year ended March 2021. We appreciate your participation in our severe busy schedules via Internet. I'm Hongo with IR department and serve as MC today. To prevent COVID transmission spread, we are holding this Meeting is live on the Internet with simultaneous interpretation in Japanese and English.
Please be advised that this session will be later made available for on demand viewing from our IR website. Let me introduce today's participants: President, Takahashi Executive Vice President, Executive Director, Corporate Sector, Muramoto, Executive Vice President, Executive Director, Personal Business and Global Consumer Business Sector, Shouji Senior Managing Executive Officer, Executive Director, Solution Business Sector, Mori Managing Executive Officer, Executive Officer, General Manager, Corporate Management Division, Saishoji. Today, Three materials for the business results: presentation, Tanshin detailed information and 3 items for TSE disclosure. Total, 6 documents have been posted on our IR website. Regarding the content of the materials, performance And target numbers such as subscribers might be mentioned in the Q and A session.
Please check the disclaimer in each material. Regarding today's proceedings, 1st, President Takahashi will brief you on the business results, followed by the questions and answers session. Mr. Takahashi, the floor
Thank you very much for taking time out of your busy schedules to view KDDI's earnings briefing. I would like to present the financial results of the year ended March 2021. Today, I will explain the following five points on the slide. First, on the consolidated financial results for the year ended March 2021. Amidst rapidly changing environment, growth fields drove both our operating revenue and operating income.
Next, to take a look at the consolidated operating income, I will explain the factors behind a year on year increase of plus 12,200,000,000 yen of operating income. Starting from the left, au Communications ARPA revenue fell by 40,900,000,000 yen In contrast, the growth fields such as the Life Design Excluding Energy Business and the Business Services segment contributed greatly with an year on year increase of 58,200,000,000 yen Energy business saw a decline of 20,500,000,000 yen year on year, but this is going to be transient because we will be taking steps to add power sources moving forward. Next, on our growth strategy. Starting from the bottom of the diagram, Building on the basis of our existing telecommunications business, we will leverage our multi brand strategy to actively promote the use of 5 gs, while reducing costs to aim at achieving stable growth. Above that are the growth fields to be further expanded.
In the Life Design domain on the left, au Economic Zone will be advanced through customer contact and broad point circulation. In the Business Services segment on the right, we will look to expand our business domains focusing on Telecommunications and IoT. This is about the growth strategy for the Life Design domain. Based on the telecommunications business, we will strengthen customer contacts Described at the center of the diagram, au PAY, which is a payment service using a smartphone at real physical stores, we have a membership of 32,000,000. For au Smart Pass, our online service, the number members exceeded 15,000,000, doing very well.
Regarding point circulation, we will continue to increase the number of places where points can be used and make them more attractive as well. Through Strengthened customer contacts and point circulation, au Economic Zone, centering around finance, energy and commerce, will be expanded and maximized. KPIs in the core service offerings of the Life Design domain are all Successfully growing, as you can see. Next, this slide shows the financial results of the Life Design domain. We will strive to achieve a double digit growth for both the operating revenue and operating income.
This regards to the profit growth driver in the Life Design domain. KDDI's financial business contributed a profit of 19,000,000,000 yen to the group overall for the year ended March 2021. Its contribution to the bottom line is Coming prominent with an increase of 20,000,000,000 yen year on year. We are projecting a further growth of 52,000,000,000 yen in income from this business by the end of March 2022. On the financial business, which is our growth driver, As is on the right, growth in the transaction volume of settlements and loans pushed up the operating income significantly to 49 point JPY 8,000,000,000 on KDDI's group wide basis at the end of March 2021, up 1.6x the level of a year before.
In view of the next medium term management plan, we will aim to grow financial business even further. At this moment, we are proactively promoting au PAY to be used not just by au's customers, but also by those who are not au customers. That is because we would like to [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Strengthen collaboration and interoperability between the bank and the credit card business through the promotion of the use of au PAY so that We can expand the business further. By leveraging the synergies with our telecommunications services, we are increasing the number of core service users au Jibun Bank Housing Loan and au PAY Gold Card users. Going forward, we will seek to further advance the interoperability And collaboration of our financial services provided by the bank and the credit cards and promote online financial services in securities and finance as well.
Next is on financial results of the Business Services segment. We will aim at having a double digit growth in our operating income. Next is on the growth strategy for the Business Services segment. We have positioned our fixed LINE, mobile and 5 gs services as our core business and centering around our strength in telecommunications, So over 21,000,000 IoT connections, we will expand our business domain both in and outside of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Into the next core, which is comprised of Corporate DX, Business DX and Business Infrastructure Service. Our next core business is a set of value added solutions, all 3 of which utilizes Existing Telecom Services.
They support the overall business of the customer. Next core business in the year ending March 2022 will aim to account for more than 30% of the total operating revenue. Promotion of Nexcor business can bring about expansion in synergies with our core business such as increased IDs and engagements. And through this, we will strive to grow the entire Business Services segment. Corporate DX will focus mainly on Telework and 0 Trust.
We will be supporting the development of the environment and evolution into smart work. The key areas for Business DX are IoT and Cloud. As the growth of IoT accelerates, KDDI Group as a whole will be bringing its capabilities to bear to support creating customers' business opportunities. The main offerings of the business infrastructure services are data centers San call centers. We will pursue growth together with our customers globally and here in Japan.
Next concerns personal services segment. This shows area, 5 gs area construction. Left hand side, we focus on customers' lives and activity places in the area development. In addition to the new frequencies, 3.74.0, 28 gigahertz, 5 gs conversion of existing frequencies is also underway. In preparation for the stand alone Iara, we are promoting 5 gs network in preparation for that.
Next is about the number of smartphone contracts, left hand side. The right shows the cumulative 5 gs unit sales, which exceeded 2,400,000 at the end of March, far surpassing the target set at the beginning of the term. Next shows the multi brand strategy. LEFT au offers unlimited use without anxiety. Centering on UQ mobile with simple and secure price and Provo where customers can freely We aim to achieve a higher increase in new subscriptions.
Multiple Brands Communications offer tends to decline, But as the x axis shows, in the medium term, we aim to achieve data utilization increase by 5 gs services expansion. In the y axis, by adding more services in Life Design domain, that is AU Economic Zone, we aim to enhance engagement and grow total ARPU further. Next concerns enhancing corporate value and SDGs. At the top shows financials. In addition to promoting the medium term management plan, we intend to improve profitability and efficiency.
The bottom shows non financials. Based on KDDI's sustainable actions announced in May last year, We'll address various societal issues seeking solutions through our business. Our company did an empirical analysis with data on relation between non financial initiatives and the corporate value. Various undertakings such as disaster countermeasures, Global Environmental Conservation and promotion of the advancement of women are positively correlated with the corporate value, and we will accelerate these efforts further. From both financial and non financial aspects, we are promoting efforts to enhance the corporate value.
Next is on Global Environmental Conservation. We're promoting initiatives aimed at decarbonization across the KDDI Group. To reduce our CO2 emissions, we'll explore all possibilities, including technological development and pursue the reduction. And we are promoting the creation of new energy businesses. On April 26, we expressed our agreement with recommendations by the TCFD The task force on climate related financial disclosures.
The right shows the results of data analysis of a relation between ESG and the corporate value by KDDI. By cutting greenhouse gas emissions intensity 10% PVR will improve 2.4% after 6 years, thus showing the positive correlation. We are promoting further efforts on active information disclosure. Next Cezanne transforming into a company that puts human resources first. The ride shows installing 0 trust, secure PCs for all the employees along the internal DEX while visualizing work style data for further productivity increase.
By practicing bees ourselves and promoting them as a business, we intend to contribute to the society. Next, on financial forecast for FY 'twenty two March period. This is a brief financial forecast for FY 'twenty two and March term. Environmental changes such as reduction of communication charges, intensifying Competitive environment and major changes in lifestyle by COVID are regarded as business opportunities, and we aim for sustainable growth. Specifically, further expansion of growth fields, promoting cost reduction and strengthening shareholder returns by creating cash flow.
This shows consolidated financial forecast for FY 'twenty two March period. For FY 'twenty two March, our consolidated operating revenue forecast is 5,350,000,000,000 and operating income forecast is 1,050,000,000,000 yen We believe that double digit growth can be achieved both in Life Design domain and Business Services segment for operating income. Next, on promoting cost reduction. The left shows improving marketing efficiency. Here, we aim to improve efficiency with UQ mobile integration and reduce Marketing cost.
The center concerns making networks more efficient and optimal. We are promoting a structural reform, including internalization following a construction process review. The right shows enhancing cost efficiency by promoting work style reforms in the corporate aspect. Leveraging all our strength, we aim to achieve sustainable growth. Next, on dividend per share, DBS.
We are such importance to DBS growth with sustainable growth. We're aiming for 20th consecutive DBS with €125,000,000 dividend for FY 'twenty two March period. Lastly, today's summary. Regarding performance, growth fields drove high operating revenue and operating income in FY 20 March period amid a rapidly changing environment, promoting growth strategy and cost reduction to achieve sustainable growth in FY 'twenty two March term, aiming to achieve double digit growth in the growth fields in the final year of the medium term management plan. On growth strategy and SDGs, expanding au Economic Scale through customer contact and broader point circulation in Life Design domain.
Expanding our business domains to create our next Core centering on Telecommunications and IoT in Business Services segment, promoting initiatives aimed at decarbonization across the KDDI Group. Lastly, regarding shareholder returns, aiming for 20th consecutive DPS growth. In addition, we resolved to repurchase our own shares up to 150,000,000,000 Thank you so much for your kind attention.
At this moment, we would like to take questions from the audience. We would like to take as many questions as possible. We would like to limit the number of questions to 2 questions per person. If you have two questions after your first question is answered, Please move on to the second question. As we have notified you beforehand, you must be signed up already And connected to the system, and we will take questions from those of you who have done so.
Let me explain how to ask our questions. Those A few with questions, please tap the raise hand button on the Zoom app Once you're recognized, the moderator will announce your affiliation and name. And on your screen, you will So please tap the unmute button and ask your questions. So we will take questions until we run out of time, until the scheduled ending time. Any questions, please?
Ando san from Daiwa Securities. Ando from Daiwa speaking. Can you hear me? Yes, we can. I would like to ask 2 questions.
The first question is as follows. After the new price plan was announced, how has that affected competitiveness? In March, there was March campaign. Rakuten has had a last minute Search in demand because their free plan has expired and there were other moves seen in the market. And throughout the next year, what will be the average So as I asked, up until Early April, Rakuten ran their campaign.
So until that time, KDDI did struggle a little bit. But after that, I think we have recovered quite nicely. So given that, what's going to happen going forward? Well, with respect to UQ, in October last year, we integrated UQ Mobile and it's performing very well, Thanks to everyone's effort. And POVO, our online brand, it's been received very well by our customers.
So it is performing well as well. Customers, subscribers, they are interested in this middle range services. So for the time being, With our multi brand strategy, we would like to offer what meets customers' needs. They can choose YUKI! Mobile or they can choose Povo.
Those who want to use large volumes, au Max, can still be used. And so we will notify our customers as to what's best for them. And for the group overall, through our multi brand strategy, we would like to promote the use of our services. And the question is, how well can we do that? That's going to be crucial.
Thank you. So here's my second question. In growth fields, You're going to expect a great growth. I think that was the message that you have given this time. In the past 12 months, Profit increase in growth fields, what were the factors behind that?
What were the reasons behind [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] And going forward, for the next 12 months, what will be the driver behind profit growth in These are growth fields. If you could share the names of the products that are expected to grow so that I can develop better understanding, please. Thank you for the question. On this, with respect to growth fields, As we said in our presentation, finance, energy and commerce, these are the areas of focus. Finance and Energy, in particular, we would like to see a growth.
And so over to Shaoizui san for further answer. Shaoji speaking. As our President spoke, Finance, Energy and Commerce, especially with respect to Financial Services. Since 2008, we started AU Jibun Bank. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] We've been doing this for quite some time, and it's successful.
Credit cards, securities and insurance business, So all of them are growing. And on top of that, we have Energy and Commerce related business. And of late, these are also increasing and growing. So for the next year, we would like to offer these So our products and services, the question is how to offer them in an accelerated manner to our customers. That's going to be most important as was presented.
In terms of customer touch points, we are focusing on au PAY right now. By using au PAY, Customers will be able to charge on their account at au Jibun Bank. And if they use Credit cards, point to points will be given, and they can be used for payments and settlements in different stores. So That's the kind of a favorable cycle that we would like to reinforce. So housing loan at EU Jibun Bank, that also can be offered more.
And with respect to energy, as was presented, this is an area that can grow even further. I'll just add with respect to Financial Services or Finance, the greatest expectation we have is in credit card business. The gold card is very popular, so there's a potential to grow. And as Shoti san said, Loan offered by au Jibun Bank is very, very successful. It's not just au users alone.
Our users from other carriers are also enjoying this housing loan. And so if you become an au customer, you're given preferential So interest rate, which is good for the customer. And since before, a carrier billing that we have offered Since before, under COVID-nineteen, this is performing extremely well. So these are going to be the growth drivers. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] With respect to Energy Business, this term, there was a reduction in profit by 20,000,000,000 yen That was because of increased prices, surge in prices at J PEX.
We should have [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Known better, we should have done more homework, and there were lots of lessons learned. We Have learned that JPEG is a highly volatile market. So drawing upon these lessons, next year, We would like to stabilize our Energy business while securing profitability. So what happened, our last term was transient. I'm sure we can get profit back this term, just to supplement what was said.
Thank you.
Then we are ready for the next question. If you have a question, use the raise hand icon in your Zoom application. Goldman Sachs, Mr. Tanaka, Goldman Sachs, Tanaka speaking. I have two questions, so 1 by 1.
First, business results detailed information, Page 6, please. Personal segment. Now there has been change in this Personal segment. ARPU, Personal Services segment. Communications ARPU forecast, About 200 yen reduction is forecast.
Could you give us some follow-up detailed information? In terms of revenues, Close to €70,000,000,000 reduction, I think, is forecast for operating revenue. Could you give us some more detailed information on that? Thank you for your question. Regarding the disclosure until the last minute, we really thought about it, Kept wondering about it.
Number of group IDs and communications ARPU that has been asked for quite a long time, we wanted to disclose them, And that's why we are disclosing it in this way. 4,400 yen and 4,200 yen that was The result from the term that ended, as you said, if you just do the multiplication that presents to customers or the impact of the reduction of €60,000,000,000 to €70,000,000,000 approximately. Excuse me About breakdown by brand, we are not disclosing that. Roughly speaking, 200 yen differential au brand to, for instance, UQ to Povo regarding the transfer from them, I think you can imagine them. So about the breakdown, please forgive us for not disclosing them.
Understood. Thank you. 2nd question. In your presentation, Page 16, Growth Fields Business Services segment, 1 of the Growth segment. The Business Services segment breakdown next to call, some items have been disclosed.
In this term, you forecast growth, but what are the actual areas that you enjoy growth? In terms of profitability, compared with where you have mobile, I think it's likely to be lower. But what about the profitability? That's the second question. Thank you.
This time, we are really focused on these areas in terms of the information. So about the including profitability, I would like to ask Ms. Mori to address your question. Thank you for your question. Core and next core, these are the categories that we are using.
We emphasize both of them so that we can grow both of them, in particular, Expanding business domain into next core, as you can see in Page 16, Roughly speaking, there are 3 areas. What's called Corporate DX? Digitalization of work style, we would like to extend support in that area. It's been here for a while. But starting from last year, with COVID-nineteen, This has been highlighted, grasping the knees for working from home, teleworking And within office, outside of office, in house, outside, Flexible work style is likely to be likely to increase.
We are practicing that ourselves And including how to go ahead with this to corporate customers, we would like to offer such services. 2nd concerns Business DX for customer For their businesses to their clients and customers, they are working on digitalization. Here, IoT has been one of the 4 areas. From the periphery of the IoT, cloud service, data analysis, to promote digital transformation. There are many things in the periphery, and we would like to focus on those as well.
3rd, concerns business infrastructure services. For corporate customers to advance digitalization more than debtors, call centers will become even more important. And we have such Corporate customers do advanced digitalization more than data centers, Call centers will become even more important. And we have such For corporate customers to advance digitalization more than data centers, call centers will become even more important. And we have such For corporate customers to advance digitalization more than data centers, Call centers will become even more important.
And we have such Consens Business Infrastructure Services.
Internally, by increasing top line, 30,000,000,000 And cost reduction of 70,000,000,000 yen. And so in total, 100,000,000,000 yen in our medium term management plan. And of that amount, 1000000000, we would like to cut through cost reduction initiatives. So what is the breakdown of 70,000,000,000? One is marketing efficiency enhancement.
Through that, we will reduce costs. As was presented, Integration of UQ Mobile, that's included as part of the steps. Storefront DX It is also promoted quite proactively, so we will leverage that. And regarding CapEx on Networks, it has increased slightly, but we are controlling it at around 11% of the revenue. I think it's within that band.
And So network optimization efficiency enhancement using AI and cost efficiency enhancement through work style Altogether, JPY 70,000,000,000, I believe, we can achieve. So just to sort this out. Impact of a reduction in prices, I said 70,000,000,000 yen or so 60,000,000,000 yen to 70,000,000,000 yen And that can be offset by growth fields, €70,000,000,000 and cost reduction, €70,000,000,000. So that's the vision. A 3 gs migration to 4 gs, we would like to work on the cost of doing that.
So we will include accelerated depreciation and there's increased labor costs as well Or roaming rather, sorry, roaming costs. And so through these, we would like to achieve the number that I mentioned. Well, thank you. A follow-up question. So accelerated depreciation for 3 gs that you mentioned, that's already included in the plan.
And that is why you're saying that depreciation cost is going to rise. Is that the correct understanding? And CapEx, So are you going to keep the CapEx level flat? Or are you looking to decrease CapEx? You said 11%.
Telecom revenue is going to go down. If that's the case, perhaps you may need to control CapEx tighter. So what's going to be the future direction of CapEx going forward? Well, regarding Suuji, Maramoto san, I ask him to follow-up But just as you said actually, when top line declines, we will have to reduce CapEx because we would like to control it at 11% of revenue. Network related revenue is going to go down slightly according to this year's plan through multi brand strategy From au to UQ Mobile and from au to Povo, there will be some migrations.
But with the deployment of 5 gs In terms of ARPU and value added ARPU, they are to grow. And if they grow, we will be able to Seeing CapEx, that needs to be understood internally. So having this 11% threshold Vis a vis revenue is going to be important, and it's important to keep this. So on 3 gs, I would like to turn to Marimoto, Marimoto speaking. Allow me to add a few comments.
So this year, as Takahashi said, On a company like basis, we are engaging in cost reduction efforts. So where cost is reduced Next year onwards, for the growth to happen, we're going to reinvest the cost savings into growth in next year and onward. And the largest portion of that will be the cost reduction in 3 gs area. So In terms of facilities or CapEx, this is about accelerated depreciation. We have posted Quite considerable amount of that.
And since last year into this year, additionally, Asset retirement liability is also posted. And by the end of this Fiscal year, we will be posting these amounts dealing with them. So next year onward, I think there will be a reduction in these costs by 60,000,000,000. And on the sales side, we are spending costs to migrate 3 gs users to 4 gs. And so we will be spending somewhere around 30,000,000,000 yen for this year.
And this is an upfront investment that we need for future growth. So by spending these costs In other areas, we are saving costs. So where cost needs to be spent, we are spending costs. 2nd question. You talked about Non Telecom Business.
It seems that you're having successful initiatives In Finance and Energy, and you also mentioned the 3rd pillar of Commerce. It seems that Commerce is somewhat behind the other two pillars. Given the current structure, perhaps the Commerce business may be having difficulty growing. So with respect to the commerce strategy, are you going to keep doing what you're doing right now? Or are you thinking of having new initiatives or conducting a mandate so that you may be able to have discontinuous Growth in Commerce.
So if you could share with us your Commerce strategy. So in relation to Commerce, In the Chromos business, we are providing the business in the form of malls. So I don't think they will be making a great contribution to our profit. Well, Shoji san may reprimand me for saying that, but In the centers, we have AU Pay. We offer AU Pay.
And via the network, People get connected and aid points will be given. And through collaboration, we are giving the points back to the Customers so that they can spend them. And on the extension of the commerce business, So if customers can use their points in our Commerce business, we can offer them 1.5 times The benefit. And it seems to be working. So Commerce leads to greater engagement on the part of our customer, And we're not running up losses in this, of course.
It's not greatly profitable, but It is slightly practical, at least. And with respect to M and A, not that There is a major potential M and A transaction at hand. So There are, however, some investment deals that we are contemplating. And once we make a decision, we would like to announce that in due time. Thank you.
We are ready for the next question. If you have a question, please tap Nomura Securities. Mr. Masuno, the floor is yours. Unmute yourself by tapping the button at the icon.
Nomura Sukiki is Masuno speaking first. March 2022 profits, Let me clarify this. Life Design, €52,000,000,000 increase in operating income and business services, €17,000,000,000 increase. So in total, a total €69,000,000,000 increase. So decrease is minus 57,000,000,000.
Regarding the mobile, 60,000,000,000 or 70,000,000,000 yen decrease in revenues, but with cost reduction, you are trying to make So other than that, the €60,000,000,000 cost, so that's a negative contribution with accelerated depreciation and reserve for the retirement liability and then €60,000,000,000 and migration costs €30,000,000,000 I think in the last fiscal year, you used about that much. So in terms of the change, delta, this is plus and minus 0, so €13,000,000,000 increase in terms of the profit, that's where you're landing. Financial areas, there is an increase in profitability. I understand it has already been disclosed. In au Jibun Bank, Profit is about €3,000,000,000 almost no changes.
With the actual results in the last fiscal year and the NIM is likely to increase. In terms of this, the most of them is coming carrier billing. So the significant part of the increase of Profitability, I think, comes from this carrier billing. So I would like to seek some clarification about the profits. Masuno san, you gave us the analysis.
That's almost all true. Lomi sorted this out. Growth field to LD, Life Design and Business Services, a little less than €90,000,000,000 cost reduction, €70,000,000,000 cost reduction, as I said before, and communications price decrease €60,000,000,000 to €70,000,000,000 returned to the customers. 3 gs migration. As was mentioned, €60,000,000,000 accelerated depreciation, as Muramoto mentioned before.
And regarding the 30,000,000,000 yen compared with last year fiscal year, in this fiscal year. It's the last year, a little higher. So that's the differential. On the roaming revenues in this term, it's likely to increase slightly. Now I hope you could understand the numbers in this way.
About finance, the breakdown in the finance. As you said, carrier billing Contribution to profits, that was significant. Yes, I agree with you. On the other hand, with a Ujibun Bank, Centering on loans, we can see the good growth. So I hope that you will acknowledge I hope I answered your question.
Understood. Next question, my second question. The March 2021 period, euros 840,000,000,000 net debt to EBIT Ratio, that's 0.9. If you look at this industry, leverage double the leverage. And then if you look at the balance sheet utilization, they are making some kind of shareholder returns.
But with this kind of net assets and in terms of investment and returns to investors, I think there's still room for making such returns. You could, of course, make investment. On the leverage, what is your thought on leverage, please? In our company, yes, that's the comments we often receive. As you know, In this fiscal year, that's the last year of the midterm management plan, partly because of COVID-nineteen.
In M and A, In the last fiscal year, we were not able to do a significant investment. Now this fiscal year, in the new It's also a year to devise a new meter management plan. To realize EBITDA growth EPS growth, existing sub Business needs to be growth and also creating new business is something we have to do. And investment for growth Along that, on M and A as well, we need to keep that in our mind. About returns to shareholders, share buyback, repurchasing our shares And increasing the dividend was already announced, and we would like to address them from both aspects.
I hope I answered your question. Understood. Thank you.
Let us move on to the next Questions? Those of you with questions, please tap the raise hand button on your Zoom app. Mitsubishi, Morgan Stanley Securities. Tanaka san, please start your questions. Please unmute and start your questions.
Tanaga Famitsuishi, U. S. JPMorgan Stanley. Yes, we can. I have Two questions.
Allow me to ask 1 by 1. My first question is about the detailed Financial results paper, Page 5. On Page 5 The material, the transaction volume for settlements and loans in the new plan for the new year, 9 point 3,000,000,000,000 yen Compared to the past, it's not growing all that much. Although the Absolute amount is pretty large. It's not growing all that much compared to the past.
What is the background to that? And IoT Connections, The number in total. Well, I hope I'm not sounding too rude. It seems to be growing. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Well, automotive sales are coming back.
They are recovering globally. So given that, the plan does not seem very ambitious. And so if you could please touch upon that. Well, thank you for the question. So I would like to turn Shouji san for the first half, and Morison will answer about IoT.
So transaction volume for settlements and loans. As you Rightly pointed out. We are sorry. Not that there is a clear factor, but As the person responsible, I apologize because we came up with too conservative a plan this time. And we would like to make sure to exceed 10,000,000,000,000 yen in this at the earliest possible stage.
I hope you'll understand. Yes. So Automotive Global Communications Platform, this Fiscal year, we will be growing that business solidly as we've been doing. One thing that we can say is Large markets such as China, North America and Europe. This platform has penetrated these markets, And there will be developing markets who will start to adopt this.
And overall, we were working on this. Isn't there more growth? Well, there's just one market that is declining, and that's power smart meter Market, there's still going to be some growth, but the volume the growth in volume is becoming smaller and smaller. And this power meter market is huge. So if we combine all of them, the growth is going to be more or less the same as last year.
Right. Thank you and our apologies. Well, allow me to Ask a follow-up question. Well, smart meter growth, it's going to become dollar, I understand. But global automotive platform, Well, if cars are sold on a cumulative basis, I'm sure your business will grow.
So I still think your plan is too conservative. And Financial Service, you said that you would like to reach 10,000,000,000,000 yen at the earliest possible stage. [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] What's your real plan for the transaction volume? Well, our part is I do think that both numbers both plans are rather conservative, [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Perhaps too much so. Well, these are disclosed numbers.
And both numbers compared to the numbers [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] So we announced in the medium term management plan. These numbers in the medium term management plan were achieved ahead of time, And that's why we're being conservative. But in the next plan to be announced, I'll try to make sure to have more aggressive numbers. Right. Thank you.
And the second question is about Myanmar. In the timing report, you said that you're not too concerned about Myanmar. Once again, let me ask the assets that you have allocated to Myanmar On the balance sheet, what is the amount of the assets tied to Myanmar? What is the status of profit and loss Of the business in Myanmar, if you could share with us some more details, please. With respect to Myanmar, we are causing concerns on your Paul, our apologies for that.
Just to give you the outline of what's happening in Myanmar. And with respect to accounting issues, I would like to turn to Miyamoto san for an answer. As you well know, The form of business that we have in Myanmar is such that, for example, Telenor Has a business operation in Myanmar, but we are somewhat different. In the case of Telenor, they have acquired their own license, have made their CapEx to run their business. But in our case, it's different.
We have KSGM that we set up with Sumitomo Corporation and they're engaged in NPT Business, Telecom Business. It's like NTT before it was privatized here in Japan. So we have this joint operation. So NPT is who's running The business, we are a joint partner engaging joint operations in Myanmar. So we have this revenue share scheme.
Well, yes, we are greatly concerned about Myanmar, our employees and The employees of our associated partners, they are our greatest that comes in. And KDDI's Human Rights declaration, based on that, we have issued a statement. But this is an IR meeting. So the impact on our management, what's our view on that? I would like to turn to Mamata san for that part of the answer.
Well, allow me to answer. As Takahashi just said, We have this subsidiary that we set up called KSGM in Myanmar. And Between KSM GM and NPT, we have this joint operation contract, and that's how we conduct our business in Myanmar. KSM. On our financial statements, What we invest as CapEx becomes leasing assets on our balance sheet.
And these leased assets At least 2, NPT. So in terms of cash flow from operating activities, In terms of JL, it is treated in a negative number. I think it's described on the Tanshin report. So lease assets So for NPT, that's around 110,000,000,000 yen or so. And so that's the large part of the assets On the balance sheet, and we are collecting credits.
We are collecting debts on that over time. So because of the JOA contract, NPT has the full responsibility of repaying This, according to the contract that we have and of late, collection of leased assets [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] So in the case of Tirnon, they had to have an impairment. But in our case, The risk of the lease assets turning bad, there's that risk. But as I said, NPT or the Memories Government has full responsibility for repayment. That's how the contract is [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Design.
So there's no need for an allowance. That's the structure of the business. In terms of the profit and loss, We have commitment with the other party not to disclose. So we cannot disclose this part. But In line with the outlook of the business this year, we have factored in all the potential risks.
Given the viewpoint of the overall Personal Services segment, the business in Myanmar is very limited, very small. Did we answer your questions? Yes. Thank you.
Since it's the scheduled time, with this, we would like to conclude the meeting Of KDDI's financial results for the fiscal year ended March 2021, Thank you very much for your kind participation.