Slide 1: Fiscal Year Ending March 2026 Q3 Preliminary Results
Fiscal Year Ending March 2026 Q3 Preliminary Results (April – December 2025) February 6, 2026 KDDI Corporation Hiromichi Matsuda President, Representative Director, CEO The FY26-03 Q3 consolidated financial results and prior-period financial results presented in these materials are reference figures
Slide 2: We sincerely apologize to all stakeholders
2 We sincerely apologize to all stakeholders – including our customers, business partners, shareholders, and employees – for the significant inconvenience and concern caused by the recent suspicion of inappropriate transactions involving our subsidiaries. I recognize the gravity of this matter and u
Slide 3: Position of the FY26-03 Q3 Preliminary Results Explanation
3 Position of the FY26-03 Q3 Preliminary Results Explanation Due to the ongoing investigation by the Special Investigation Committee regarding suspicions of inappropriate transactions, the impact on our financial statements remains uncertain. As a result, the disclosure of the FY26-03 Q3 earnings
Slide 4: Key Highlights of FY26-03 Q3 Preliminary Results
4 Key Highlights of FY26-03 Q3 Preliminary Results Regarding the inappropriate transactions at our consolidated subsidiaries Growth of core business foundations (Mobile and focus areas) Initiatives for growth in the AI era
Slide 5: The Inappropriate Transactions at Our Consolidated Subsidiaries
1. The Inappropriate Transactions at Our Consolidated Subsidiaries
Slide 6: The Inappropriate Transactions (1)
6 The Inappropriate Transactions (1) It has been identified that, concerning the advertising agency business of consolidated subsidiaries of KDDI, BIGLOBE Inc., and its subsidiary, G-PLAN INC. (hereinafter collectively referred to as "the Subsidiaries"), there are suspicions that inappropriate tra
Slide 7: The Inappropriate Transactions (2)
7 The Inappropriate Transactions (2) The advertising agency business of the Subsidiaries is an intermediary business matching upstream / advertising agencies with downstream publishing agencies for advertising slots. Facts G-PLAN launched this advertising agency business around 2017, and BIGLOBE
Slide 8: The Inappropriate Transactions (3)
8 The Inappropriate Transactions (3) Impacts from fictitious transactions in the advertising agency business (current understanding) 【Impacts on Operating revenue】 （Unit: billions of yen） Before FY24-03 FY25-03 FY26-03 Total (1) Reversal of approx.(96.0) approx.(82.0) approx.(68.0) approx.(246.0) Im
Slide 9: Our Commitment to Future Actions
9 Our Commitment to Future Actions We are fully committed to cooperating with the Special Investigation Committee, diligently uncovering the facts, and thoroughly analyzing the causes. I myself will take the lead in actively addressing these issues to restore and strengthen the trust for our Group.
Slide 10: Consolidated Results: FY26-03 Q3
2. Consolidated Results: FY26-03 Q3 (Reference figures)
Slide 11: Consolidated Financial Results
Consolidated Financial Results 11 (Reference figures) Performance, led by our core businesses, has continued to progress steadily Consolidated financial results ＋） After provisioning for externally flowed （After reflecting the adjustments related to the fictitious transactions） amounts related to th
Slide 12: Q1-3 Cumulative Consolidated Operating Income - Factors for Change
Q1-3 Cumulative Consolidated Operating Income 12 - Factors for Change - （Reference figures） Mobile revenue growth further expands, while Finance and DX continue to perform steadily (Unit : billions of yen) Technological Impact of prior DX structural year’s promotional reform expenses Finance*2 Busin
Slide 13: Q3 Alone Consolidated Operating Income - Factors for Change
Q3 Alone Consolidated Operating Income 13 - Factors for Change - （Reference figures） In addition to each business domain growth, negative impact from prior year’s promotional expenses has also subsided (Unit : billions of yen) Impact of prior year’s promotional DX Technological Finance*2 expenses Ot
Slide 14: FY26-03 Topics
3. FY26-03 Topics
Slide 15: Growth of Mobile Revenue
15 Growth of Mobile Revenue Structural transformation progresses steadily. Build a stable business foundation for sustainable growth Mobile revenues*1 Progress of structural transformation （Personal Services segment basis） Bottomed out in FY24-03, Shift away from excessive promotional growth acceler
Slide 16: Key Points of Structural Transformation
16 Key Points of Structural Transformation Committed to ARPU growth driven by value creation and churn rate reduction through longer contract duration Creating value that Sales / ARPU Creating value that motivates customers motivates customers to sign up to upgrade to au Service Price plan Service v
Slide 17: Creating Value that Motivates Customers to Sign Up
17 Creating Value that Motivates Customers to Sign Up Offering attractive devices, charge, and value-added services to maximize LTV Promoting handset bundled sales Differentiation in plans and services Offering optimal device bundles for each au Value Link Money Activity2 Finance customer (Total au
Slide 18: Enhance the Value of Connected Experience
18 Enhance the Value of Connected Experience Strengthen the No.1 connected experience*1 value through quality improvement and coverage expansion Building an industry-leading 5G SA area*2 Expansion of au Starlink Direct*5 Bring a sense of secure, reliable Significant expansion in connections, compati
Slide 19: Towards Leaner and Meaner Operational Base: ARPU Growth
Towards Leaner and Meaner Operational Base： 19 ARPU Growth Improvement in brand migration and progress in ARPU growth driven by value creation Brand migration improvement Mobile ARPU* UQ mobile-to-au migrations surpassed (Unit : yen) au-to-UQ mobile migrations in Quarter base 4,550 4,460 4,340 YOY Y
Slide 20: Towards Leaner and Meaner Operational Base: Churn Rate Reduction
Towards Leaner and Meaner Operational Base： 20 Churn Rate Reduction Longer contract trend is becoming evident Momentum maintains strong Longer contract trend Momentum（ID / churn rate）*3 Initiatives worked out, Smartphone subscriptions （million） Smartphone churn rate contract retention rate improved
Slide 21: Tackling Issues: Finance
21 Tackling Issues: Finance Double digit growth The foundation for the next stage of growth has expanded Operating income （au Financial Holdings） - Q3 Topics - (Unit : billions of yen) Banking YOY＋30.5% The deposit procurement capability, which had been a challenge, has improved steadily 38.0 Person
Slide 22: Tackling Issues: Business Services Segment
22 Tackling Issues: Business Services Segment Each business area is growing, with steady increase in growth rate for Quarter’s standalone basis Operating income - Q3 Topics - (Unit: billions of yen) Core services Mobile revenues*1 IoT related services YOY+4.9% Q3 63.6 bil. yen Q3 sales 55.0 bil. yen
Slide 23: Real x Technology
23 Real x Technology Collaborate with partners to solve local customers’ challenges through technology Create safe and secure communities Establish safe disaster reporting structure (Ikeda City, Osaka Pref.) (Ishikawa Pref.) Lawson x KDDI TV Asahi x KDDI Smart Drone Promote enhancement of citizen se
Slide 24: Strengthening the Management Base
24 Strengthening the Management Base Promote initiatives to realize human resource strategy that supports the growth of the entire group Promote frameworks to enhance human skills and expertise Human skills Expertise Update KDDI Group Complete professional Philosophy training system The KDDI Gro
Slide 25: Towards Growth in the AI Era
4. Towards Growth in the AI Era
Slide 26: Responsibility as a Social Infrastructure Provider
26 Responsibility as a Social Infrastructure Provider Support Japan’s digital society through communication + AI infrastructure, contribute to the enhancement of industrial competitiveness Secure data hub for AI Digital Belt Initiative storing and processing enterprise data Integrate a new AI infras
Slide 27: Enhancing the Value of AI Digital Belt
27 Enhancing the Value of AI Digital Belt Advance hub formation using nationwide landing stations and optical submarine cables to capture global demand Connect nationwide distributed landing stations with domestic high-speed optical network Capture overseas AI demand through international optical su
Slide 28: Launch of AI Business Company
28 Launch of AI Business Company Bringing together engineering talents internally and externally, a company focused on AI social implementation will commence operations - Towards AI social implementation- - AI integration business company - AI life support AI workforce capabilities Contribute to cus
Slide 29: Summary
29 Summary The Special Investigation Committee is conducting its investigation into the suspected inappropriate transactions while the Company reviews and strengthens its group governance and examines recurrence-prevention measures. The impact is expected to include the reversal of fictitious sa
Slide 30: Appendix
Appendix
Slide 31: Background of the Investigation into Suspected Inappropriate Transactions
Background of the Investigation into 31 Suspected Inappropriate Transactions • As part of efforts to strengthen the management framework of the advertising agency businesses of BIGLOBE and G-PLAN, an investigation into the By October 2025 appropriateness of the transactions was conducted by the Full
Slide 32: Results (Reference figures)
32 Results (Reference figures) （Unit: billions of yen） FY25-03 FY26-03 Q1-3 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 【Consolidated】 Total Operating 1,373.9 1,447.5 1,487.2 1,527.0 5,835.5 1,415.7 1,500.3 1,555.8 4,471.8 revenue Operating 274.3 292.6 287.1 247.8 1,101.7 264.7 294.9 311.7 871.3 income ※ After refle
Slide 33: Results by Segment
33 Results by Segment （Reference figures） （Unit: billions of yen） FY25-03 FY26-03 Q1-3 (Personal Services) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Total Operating revenue 1,109.0 1,178.5 1,216.3 1,205.5 4,709.3 1,134.8 1,201.8 1,239.0 3,575.5 Operating income 217.6 231.7 224.6 186.8 860.6 205.8 231.9 244.5 682.2
Slide 34: Major Operational Data (1)
34 Major Operational Data (1) Note) Please refer to P12 of Data Book for the 1st Half of FY2026.3 for definition. *1 The stated figure for FY2026.3 1Q was retroactively corrected. *2 Proportion of subscriptions in which 5G is available *3 au HIKARI + Commuf@‐hikari + au HIKARI Chura(OCT) + HIKARI J
Slide 35: Major Operational Data (2)
35 Major Operational Data (2) *1 Settlement amounts of au PAY(including au carrier billing), au PAY Card, and au Jibun Bank in addition to the loan disbursement amount *2 Excluding au carrier billing *3 The balance of mortgages and loans by purposes, etc. provided by au Jibun Bank *4 Combined value
Slide 36: Financial Results Summary (au Financial Holdings)
36 Financial Results Summary (au Financial Holdings) Note) Overview of consolidated financial statements(J‐GAAP) https://www.au-financial.com/finance/2025/
Slide 37: Disclaimer
Disclaimer Statements made in these documents with respect to the KDDI Group‘s performance targets, projected subscriber numbers, future forecasts and strategies that are not historical facts are forward-looking statements about the future performance of the KDDI Group, based on company’s assumption