Briefing on the Findings of the Special Investigation Committee
ジー・プラン, ビッグローブ, KDDI
The advertising agency businesses of ジー・プラン and ビッグローブ
Deficiencies in business partner management and credit management, concentration of duties and authority in individuals, ineffective checks and audit functions, inadequate risk management for new businesses, and deficiencies in subsidiary management and the financial management of group finance recipients
Revenue: ¥246.1 billion; operating income: ¥150.8 billion (including ¥49.9 billion in cancelled recognized profit, ¥32.9 billion in funds paid externally, which were recorded as other expenses, and ¥64.6 billion in impairment losses, including goodwill); net income: ¥129.0 billion. Total for periods through the cumulative first three quarters of the fiscal year ending March 2026, including periods before the fiscal year ended March 2023
Periods before the fiscal year ended March 2023, the fiscal year ended March 2024, the fiscal year ended March 2025, and the cumulative first three quarters of the fiscal year ending March 2026. Prior-period results will be retrospectively restated from the fiscal year ended March 2023.
The consolidated earnings forecast for the fiscal year ending March 2026 has been revised: revenue of ¥6,060.0 billion, operating income of ¥1,090.0 billion, net income of ¥698.0 billion, and EPS of ¥181.23.
¥32.9 billion in funds paid externally
Company response
The Special Investigation Committee was established on 14 January 2026. An investigation team including external attorneys and certified public accountants was also formed.
Review of business partner and credit management standards / rebuilding the monitoring framework and conducting regular operational reviews / enforcing clear segregation of duties and authority in the procurement process / visualizing and addressing the risks of duties becoming dependent on individuals / improving the effectiveness of risk analysis and countermeasures when launching new businesses or expanding existing businesses / strengthening monthly profitability management and cash flow management / strengthening business management by dispatched directors and increasing opportunities for communication / raising awareness of and promoting use of the internal whistleblowing system, including at subsidiaries / strengthening the internal audit framework, reviewing risk assessment methods in internal audits, and providing training to enhance professional skepticism / strengthening the review process for group finance and the process for confirming financial conditions / establishing a meeting to strengthen group governance, embedding and monitoring measures to prevent recurrence / providing regular reports to the Board of Directors through the Risk Management Committee / continuing activities to instill the KDDI Philosophy / introducing an education program addressing fraud risks / initiatives to deepen shared understanding and strengthen mutual trust with group companies / reviewing the role and functions of directors dispatched to group companies
Key executives of ビッグローブ and ジー・プラン resigned effective 31 March 2026. KDDI executives will voluntarily repay 20%–30% of their monthly compensation for 1–3 months. 2 former employees involved in the matter were dismissed for disciplinary reasons.
Related procedures
A civil damages lawsuit is expected to be filed. A criminal complaint is also under consideration, and the matter has already been discussed with the police.
Police (already consulted)
KDDI will embed the measures to prevent recurrence throughout the KDDI Group and work to restore trust. It will file civil damages lawsuits against parties believed to have been involved and seek to recover the funds paid externally. A criminal complaint is also under consideration.
The full-year results for the fiscal year ending March 2026 and the next medium-term management strategy will be announced without delay in May 2026.
| Item | Details |
|---|---|
| Event name | Briefing on the Findings of the Special Investigation Committee |
| Date of occurrence | August 2018 at the latest (fictitious circular transactions began) |
| Date recognized / date notice received | December 2025 (specific suspicions that sales and other figures had been overstated were identified). The Special Investigation Committee was established on 14 January 2026, and the investigation report was received on 31 March 2026. |
| Subject Entity | ジー・プラン, ビッグローブ, KDDI |
| Target Locations / Products | The advertising agency businesses of ジー・プラン and ビッグローブ |
| Cause | Deficiencies in business partner management and credit management, concentration of duties and authority in individuals, ineffective checks and audit functions, inadequate risk management for new businesses, and deficiencies in subsidiary management and the financial management of group finance recipients |
| Amount of Impact on Business Performance | Revenue: ¥246.1 billion; operating income: ¥150.8 billion (including ¥49.9 billion in cancelled recognized profit, ¥32.9 billion in funds paid externally, which were recorded as other expenses, and ¥64.6 billion in impairment losses, including goodwill); net income: ¥129.0 billion. Total for periods through the cumulative first three quarters of the fiscal year ending March 2026, including periods before the fiscal year ended March 2023 |
| Accounting period in which recognized | Periods before the fiscal year ended March 2023, the fiscal year ended March 2024, the fiscal year ended March 2025, and the cumulative first three quarters of the fiscal year ending March 2026. Prior-period results will be retrospectively restated from the fiscal year ended March 2023. |
| Impact on Earnings Forecast | The consolidated earnings forecast for the fiscal year ending March 2026 has been revised: revenue of ¥6,060.0 billion, operating income of ¥1,090.0 billion, net income of ¥698.0 billion, and EPS of ¥181.23. |
| Type of litigation or proceeding | A civil damages lawsuit is expected to be filed. A criminal complaint is also under consideration, and the matter has already been discussed with the police. |
| Court or authority | Police (already consulted) |
| Amount of receivables at risk of non-collection or delayed collection | ¥32.9 billion in funds paid externally |
| Investigation structure | The Special Investigation Committee was established on 14 January 2026. An investigation team including external attorneys and certified public accountants was also formed. |
| Measures to prevent recurrence | Review of business partner and credit management standards / rebuilding the monitoring framework and conducting regular operational reviews / enforcing clear segregation of duties and authority in the procurement process / visualizing and addressing the risks of duties becoming dependent on individuals / improving the effectiveness of risk analysis and countermeasures when launching new businesses or expanding existing businesses / strengthening monthly profitability management and cash flow management / strengthening business management by dispatched directors and increasing opportunities for communication / raising awareness of and promoting use of the internal whistleblowing system, including at subsidiaries / strengthening the internal audit framework, reviewing risk assessment methods in internal audits, and providing training to enhance professional skepticism / strengthening the review process for group finance and the process for confirming financial conditions / establishing a meeting to strengthen group governance, embedding and monitoring measures to prevent recurrence / providing regular reports to the Board of Directors through the Risk Management Committee / continuing activities to instill the KDDI Philosophy / introducing an education program addressing fraud risks / initiatives to deepen shared understanding and strengthen mutual trust with group companies / reviewing the role and functions of directors dispatched to group companies |
| Directors' and officers' liability | Key executives of ビッグローブ and ジー・プラン resigned effective 31 March 2026. KDDI executives will voluntarily repay 20%–30% of their monthly compensation for 1–3 months. 2 former employees involved in the matter were dismissed for disciplinary reasons. |
| Outlook | KDDI will embed the measures to prevent recurrence throughout the KDDI Group and work to restore trust. It will file civil damages lawsuits against parties believed to have been involved and seek to recover the funds paid externally. A criminal complaint is also under consideration. |
| Planned follow-up disclosure | The full-year results for the fiscal year ending March 2026 and the next medium-term management strategy will be announced without delay in May 2026. |
Items this document does not state (8)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Fictitious circular transactions began in the advertising agency business of ジー・プラン to cover losses. Subsequently, issues were identified in business partner management and credit management, the concentration of duties and authority in individuals, checks and audit functions, risk management for new businesses, subsidiary management, and financial management of group finance recipients.