KDDI (9433) Investor presentation summary

Vision and strategic direction

• Aims to create a society where anyone can realize their dreams by enhancing connectivity, guided by the "Power-to-Connect 2028" strategy and KDDI Vision 2030.

• Focuses on sustainable growth and quality improvement through cross-domain "Fusion" of real-tech, infrastructure, and HR.

• Seeks to lead the transition to an AI-native society, embedding AI in daily life and business for efficiency and value creation.

Growth and business model transformation

• Targets 5% CAGR in consolidated operating income (FY27-03 to FY29-03), with double-digit growth in Personal and Business Growth segments.

• Telecom Core segment aims for stable growth via LTV-focused transformation, ARPU growth, and churn reduction.

• Personal Growth segment leverages telecom customer base for finance, energy, device, and global expansion, including new business models and overseas rollouts.

• Business Growth segment accelerates AI integration, cybersecurity, data centers, and connected solutions, with significant investments planned.

Investment, capital allocation, and shareholder returns

• Plans ¥1.2 trillion investment in digital infrastructure over three years, including nationwide low-latency networks and AI computing.

• Maintains stable dividend growth policy, targeting a payout ratio over 40%, and plans share buybacks up to ¥300 billion.

• Capital allocation emphasizes disciplined growth investments, portfolio review, and enhanced capital efficiency (ROE/ROIC spread added to executive compensation KPIs).

• Considering IPO for au Financial Holdings to optimize the balance sheet and maximize growth investments.