(Correction・Numerical Data Correction) Partial Correction Regarding ‘Financial Summary (IFRS) for the Third Quarter of Fiscal Year Ending March 2025 (Consolidated)’

Overview of Financial Results

Consolidated net sales for the third quarter of the fiscal year ending March 2025 amounted to JPY 4,308,539 million (2.1% YoY increase), and operating income was JPY 847,697 million (0.6% YoY increase). Growth in net sales was supported by increased revenues from device sales, financial services, and growth areas such as IoT-related services, data centers, and digital BPO. Operating income was influenced by increased telecommunications ARPU revenue, device sales gross profit, energy business profits, and increased equity method investment income following the acquisition of Lawson. Conversely, net income attributable to owners of the parent decreased to JPY 519,004 million (3.9% YoY decrease), affected by one-time impacts related to the reorganization of subsidiaries and affiliates.

Segment Performance and Business Strategies

The Personal Segment posted net sales of JPY 3,506,735 million (flat YoY) and operating income of JPY 666,977 million (1.5% YoY decrease). The multi-brand strategy through au, UQ mobile, and povo centers on 5G communication services, complemented by expansion in financial, energy, and LX services. The Business Segment recorded net sales of JPY 1,012,014 million (9.0% YoY increase) and operating income of JPY 173,022 million (7.6% YoY increase), driven by growth in IoT-related and data center services. Growth strategies are accelerating with the deployment of the new business platform “WAKONX,” strengthening cybersecurity through the full acquisition of LAC Co., Ltd., and promoting retail tech via capital and business alliance with Lawson.

Financial Position and Cash Flow

Total assets increased to JPY 16,156,689 million compared to the previous consolidated fiscal year-end, whereas total liabilities also rose to JPY 10,559,664 million, resulting in a decrease in equity attributable to owners of the parent to JPY 5,597,025 million. The equity ratio attributable to owners of the parent declined to 31.3%. Cash flow from operating activities was JPY 718,436 million, down from the same period last year, while cash flow used in investing activities amounted to JPY 1,016,857 million. Cash flow from financing activities resulted in an inflow of JPY 272,980 million, with a year-end cash and cash equivalents balance of JPY 866,243 million.

Outlook

The consolidated full-year earnings forecast for the fiscal year ending March 2025 anticipates net sales of JPY 5,770,000 million (1.2% YoY increase), operating income of JPY 1,110,000 million (21.7% YoY increase), and net income attributable to owners of the parent of JPY 690,000 million (14.9% YoY increase), with no revisions made in this financial summary. The company aims for sustainable growth and enhancement of corporate value through continued expansion of 5G-based digital social infrastructure, societal implementation of generative AI, promotion of DX, expansion of financial and energy businesses, and strengthened collaboration with Lawson.