Notice of Business Succession by Company Split

Overview of Organizational Restructuring

At the board of directors meeting held on December 12, 2025, KDDI Corporation resolved to transfer its condominium collective power receiving service business to Next Power Corporation, a subsidiary of Kansai Electric Power Company, through an absorption-type company split (simplified absorption-type company split), and signed the absorption-type company split agreement on the same day. The effective date is scheduled for March 1, 2026, with KDDI Corporation as the splitting company and Next Power Corporation as the successor company. No shareholders’ meeting will be held, and consideration of 1,540 million yen in cash is expected to be received. Assets related to the transferred business amount to 1,090 million yen, with no liabilities.

Purpose and Background of the Restructuring

The transferred business has contributed to improving customer quality of life through 'au Energy Supply,' a service that provides electricity collectively to entire condominiums. However, for significant future growth and expanded value provision, specialization and business scale enhancement were deemed necessary. Next Power Corporation of the Kansai Electric Power Group possesses expertise related to the transferred business. Through business succession, service continuity will be ensured, while the KDDI Group will focus on its retail electricity business for individuals, 'au Denki.'

Impact on Shareholders and Investors

This company split will be conducted through a simplified absorption-type split method, with no increase or decrease in KDDI Corporation’s capital stock, and no shareholders’ meeting will be convened. The impact on consolidated earnings is expected to be minor. There is no impact on service users related to the transferred business, nor on other service users of the KDDI Group. No mention has been made regarding future dividend policies or other impacts.