Notice Regarding Revision of Full-Year Consolidated Earnings Guidance

Overview of Revision to Earnings Guidance

KDDI Corporation has revised its full-year consolidated earnings forecast for the fiscal year ending March 2026. Net sales have been lowered to 6,060,000 million yen (4.3% decrease from previous forecast), operating income to 1,090,000 million yen (7.5% decrease), and net income attributable to owners of the parent to 698,000 million yen (6.7% decrease). The main factors include the cancellation of fictitious sales and cost of sales and recording of losses due to inappropriate transactions in the advertising agency business of consolidated subsidiary Biglobe Inc. and its subsidiaries, a decrease in mobile handset sales due to a decline in total smartphone sales, and a decrease in energy sales.

Future Outlook and One-Time Factors

Due to the findings of inappropriate transactions confirmed by a special investigation committee, decreases of 67.6 billion yen in net sales, 42.0 billion yen in operating income, and 35.2 billion yen in net income are expected. In addition, an impairment loss of 50 billion yen is planned following a review of capitalized sales commissions in the personal business segment. These one-time factors causing downward revisions in results are limited to this fiscal year only, and no impact on earnings or cash flows is expected from the next fiscal year onward. The core business performance is progressing generally steadily.