KDDI (9433) Investor presentation summary

Progress of mid-term management strategy

• FY27-03 Q1 results surpassed plan, with 5% CAGR targeted for consolidated operating income and 1 trillion yen in growth investments planned.

• Telecom core aims for 3% CAGR, personal growth 10%, and business growth 20%, with stable mobile revenue and upside from Rakuten Roaming.

• CAPEX managed below 12% of sales, with disciplined investments, divestments generating 150 billion yen, and a dividend payout ratio over 40%.

• Strengthening investment review and expanding the pipeline, with stable dividend growth and flexible share buybacks.

Telecom core and digital belt initiatives

• Mobile communication revenues reached 491.5 billion yen (YOY +4.6%), ARPU at 4,400 yen (YOY +3.8%), and smartphone subscriptions at 33.3 million.

• Virtuous cycle for sustainable growth through technology leadership, high-value services, and brand mix improvement.

• Digital Belt integrates land, sea, and sky networks, leveraging AI infrastructure, submarine cables, and satellite communications.

• Investments in Digital Belt total 1.2 trillion yen over three years, with 300 billion yen for domestic and overseas data centers.

AI-native society and business growth strategy

• Transitioning to an AI-embedded society, focusing on AI-resilient value and customer touchpoints.

• Five business growth focus areas: AI integration, cybersecurity, connected solutions, data centers, and AI-BPO.

• Double-digit CAGR targeted for business services, leveraging a customer base of 400k companies and group expertise.

• Launch of an AI business company consolidates engineering talent and enhances AI social implementation.