(Correction: Numerical Data Correction) Partial Correction Regarding the “IFRS Consolidated Financial Summary for the Second Quarter (Interim) of the Fiscal Year Ending March 2026”

Summary of Performance

Consolidated results for the second quarter of the fiscal year ending March 2026 showed net sales of JPY 2,916,005 million (3.4% YoY increase), driven by growth in mobile revenue centered on telecommunications and expansion in financial business income. Operating income was JPY 555,004 million (1.3% YoY decrease), affected by increased cost of sales and promotional expenses; however, net income attributable to owners of parent increased to JPY 359,882 million (5.9% YoY increase). Basic earnings per share (interim) rose to JPY 92.37 from JPY 82.85 in the same period last year.

Segment Performance and Business Strategy

In the Personal segment, net sales expanded by 2.1% YoY to JPY 2,336,541 million, with operating income decreasing by 2.6% YoY to JPY 433,079 million, supported primarily by 5G communications services and expanded offerings in finance, energy, and life transformation services. The Business segment saw net sales increase 6.3% YoY to JPY 717,707 million and operating income rise 3.4% YoY to JPY 118,691 million, driven by growth in IoT-related services and data centers. Under the new business strategy, the "Satellite Growth Strategy," the company continues to focus on generative AI, DX, finance, and energy sectors to pursue sustainable growth.

Financial Position and Cash Flows

At the end of the interim period for the fiscal year ending March 2026, total assets were JPY 17,806,803 million (an increase of JPY 1,092,096 million from the previous fiscal year-end), total liabilities were JPY 12,445,095 million (an increase of JPY 1,285,382 million), and total equity was JPY 5,361,708 million (a decrease of JPY 193,287 million). The equity ratio attributable to owners of parent declined to 27.3%. Cash flows from operating activities amounted to inflows of JPY 822,657 million, decreasing year over year; however, cash outflows from investing activities decreased to JPY 481,267 million, resulting in an increase in free cash flow to JPY 341,391 million.

Dividends and Stock-related Information

The interim dividend for the fiscal year ending March 2026 was JPY 40.00 per share, with a full-year forecast of JPY 80.00 (a decrease compared to the previous year), and there is no revision to the dividend forecast. The number of shares issued at the period-end was 4,187,847,474 shares, and treasury shares at period-end were 380,768,956 shares, both decreased compared to the same period last year. On April 1, 2025, a 2-for-1 stock split was executed for common shares, and per-share figures are calculated based on the post-split number.