Notice Regarding Capital Increase of Consolidated Subsidiary (Change to Specified Subsidiary)

Overview and Purpose of the Capital Increase

At the board meeting held on April 15, 2026, KDDI Corporation resolved to subscribe to a capital increase of its consolidated subsidiary TELEHOUSE (Thailand) Ltd. The capital increase amount is 2,432 million baht (approximately 12,282 million yen), bringing the capital after the increase to 3,132 million baht (approximately 15,817 million yen). As a result, KDDI's ownership ratio will be raised from 45% to 87.7%, making TELEHOUSE (Thailand) a specified subsidiary. The background of this capital increase includes rising demand for data centers driven by the spread of generative AI, the expansion of cloud usage, and support from the Thai government's digitalization policies. To meet these demands, TELEHOUSE (Thailand) plans to acquire additional land for data center construction and aims to expand its business.

Financial Status and Future Outlook

TELEHOUSE (Thailand) recorded revenue of 143 million baht for the fiscal year ending March 2025, with an operating loss of 120 million baht. Net assets have decreased to 209 million baht; however, the capital increase is expected to strengthen the financial base. KDDI expects minimal impact on its consolidated financial results for the fiscal year ending March 2027 from this capital increase. Moving forward, KDDI plans to promote the expansion of its data center business in Southeast Asia through TELEHOUSE (Thailand), which has become a specified subsidiary following the capital increase.