Progress Report on the Notice Regarding Suspicion of Inappropriate Transactions at Our Consolidated Subsidiaries and Establishment of a Special Investigation Committee Dated January 14, 2026, and Announcement of the 3rd Quarter Earnings Presentation for the Fiscal Year Ending March 2026

Overview of Performance

KDDI Corporation has postponed the disclosure of the financial summary for the 3rd quarter of the fiscal year ending March 2026 due to ongoing investigations by a special investigation committee concerning suspected inappropriate transactions at its consolidated subsidiaries Biglobe Inc. and G-Plan Co., Ltd. Currently, reference figures of net sales at 4,471.8 billion yen, operating income at 854.3 billion yen, and net income attributable to owners of parent at 536.9 billion yen have been disclosed, though these may be subject to revision based on the investigation results.

Impact of Inappropriate Transactions and Future Actions

Internal investigations confirmed fictitious transactions spanning multiple years within the advertising agency business. Consequently, reversals of approximately 246.0 billion yen in past net sales and about 50.0 billion yen in operating income are anticipated, alongside a provision of roughly 33.0 billion yen for potential external leakage. The special investigation committee is scheduled to submit its investigation report by the end of March 2026, with restatements of prior fiscal year financials and the disclosure of the 3rd quarter results expected by the same timeframe. While no revisions to earnings guidance are planned at this stage, disclosures will be promptly made if necessary.