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Financial results presentation9433KDDI CORPORATIONInformation and Communications, Services and Others

Fiscal Year Ending March 2026 Earnings Briefing Materials (Medium-Term Management Strategy)

From the fiscal year ending March 2027 through the fiscal year ending March 2029, the company will launch a new medium-term management strategy combining its telecom core and growth areas with AI at its center. It aims for average annual growth of 5% in consolidated operating profit and has also outlined its capital allocation policy, including growth investment, dividends and share buybacks.

Worth reading
62In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
3000
¥100 million (treasury share buyback cap)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Medium-Term Management Plan PresentationFiscal year ending March 2027 (full-year forecast) and fiscal years ending March 2027 through March 2029 (medium-term management strategy)10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales64,100 Hundreds of millions of yen+5.6%
Operating profit¥12,100 100 million +5.0%adjusted
Net income¥7,310 100 million +2.7%adjusted, attributable to owners of the parent
Full-year earnings forecast
Net Sales
64,100 Hundreds of millions of yen
Adjusted operating profit
12,100 Hundreds of millions of yen
Adjusted net income
7,310 Hundreds of millions of yen
Annual dividend per share
¥84
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Mobile*375 Hundreds of millions of yen
  • Telecom Core285 Hundreds of millions of yen
  • Depreciation and amortization, etc.-90 Hundreds of millions of yen
  • Personal Growth226 Hundreds of millions of yen
  • Business Growth141 Hundreds of millions of yen
  • Other (including lower Rakuten roaming revenue)-70 Hundreds of millions of yen
  • Total change582 Hundreds of millions of yen
New initiatives
  • Launch of the medium-term management strategy “Power-to-Connect 2028”
  • Establishment of new segments: Telecom Core, Personal Growth and Business Growth
  • Digital Belt concept comprising a nationwide low-latency network and AI computing resource infrastructure
  • Start of consideration of a stock market listing for au Financial Holdings
  • Scheduled launch of a crypto-asset wallet in summer 2026
  • Launch of a new autonomous driving company
  • Joint rollout of povo-model services in Vietnam
  • Share buybacks and cancellation of treasury shares, with a total ceiling of ¥300 billion
Key KPIsA metric the company considers important as a management benchmark.
  • Consolidated operating profit CAGR5 %
  • Ponta Pass members2,000 10,000 people
  • Connected lines8,000 10,000 lines
  • AI engineers (company and group)3,000 people
  • Security engineers (company and group)2,000 people
  • Target increase in Lawson daily sales per store30 % versus FY25.2
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Mobile ARPUIncrease
  • Net smartphone subscriber additionsMaintain trend
  • Churn rateReduce
Medium-term management plan targets
  • 5 %
    TargetConsolidated operating profit CAGR
    Target fiscal yearFiscal year ending March 2029
  • 8,000 10,000 lines
    TargetConnected lines
    Target fiscal yearFiscal year ending March 2029
  • 2,000 10,000 people
    TargetPonta Pass members
  • ¥1.2 trillion / 3 years
    TargetDigital infrastructure investment
  • ¥3,000 100 million / 3 years
    TargetData center and other investments
Financial targets
  • Net Debt EBITDA
    Target value2
  • CAPEX to Sales
    Target value12
  • Dividend payout ratio
    Target value40
  • ROE-ROIC spread
    Target valueMaintain and improve
Number of employees
  • AI engineers (company and group)
    Number of Employees3,000
  • Security engineers (company and group)
    Number of Employees2,000
  • Sales support companies
    Number of Employees3,000
Annual Dividend
Annual dividend per share¥84
Payout ratio
above 40% (adjusted basis)
Acquisition of treasury shares
Repurchase authorization amount¥3,000 100 million maximum
Period13 May 2026 to 31 January 2027 (scheduled)
Tender offer¥2,500 100 million maximum
Contents of this document
ItemDetails
Document typeMedium-Term Management Plan Presentation
Fiscal Period CoveredFiscal year ending March 2027 (full-year forecast) and fiscal years ending March 2027 through March 2029 (medium-term management strategy)
Net Sales64,100 Hundreds of millions of yen (YoY +5.6%)
Operating profit¥12,100 100 million (adjusted) (YoY +5.0%)
Net income¥7,310 100 million (adjusted, attributable to owners of the parent) (YoY +2.7%)
Full-year earnings forecastNet Sales 64,100 Hundreds of millions of yen / Adjusted operating profit 12,100 Hundreds of millions of yen / Adjusted net income 7,310 Hundreds of millions of yen / Annual dividend per share ¥84
Breakdown of Factors Affecting the ChangeFactors Mobile* / Amount 375 Hundreds of millions of yen, Factors Telecom Core / Amount 285 Hundreds of millions of yen, Factors Depreciation and amortization, etc. / Amount -90 Hundreds of millions of yen, Factors Personal Growth / Amount 226 Hundreds of millions of yen, Factors Business Growth / Amount 141 Hundreds of millions of yen, Factors Other (including lower Rakuten roaming revenue) / Amount -70 Hundreds of millions of yen, Factors Total change / Amount 582 Hundreds of millions of yen
Key KPIsIndicator name Consolidated operating profit CAGR / Value 5 %, Indicator name Ponta Pass members / Value 2,000 10,000 people, Indicator name Connected lines / Value 8,000 10,000 lines, Indicator name AI engineers (company and group) / Value 3,000 people, Indicator name Security engineers (company and group) / Value 2,000 people, Indicator name Target increase in Lawson daily sales per store / Value 30 % (versus FY25.2)
Unit price and quantity metricsIndicator name Mobile ARPU / Value Increase, Indicator name Net smartphone subscriber additions / Value Maintain trend, Indicator name Churn rate / Value Reduce
Number of employeesCategory AI engineers (company and group) / Number of Employees 3,000 people (fiscal year ending March 2029), Category Security engineers (company and group) / Number of Employees 2,000 people (fiscal year ending March 2029), Category Sales support companies / Number of Employees 3,000 people (as of 31 March 2026, excluding temporary staff)
Medium-term management plan targetsTarget Consolidated operating profit CAGR / Value 5 % / Target fiscal year Fiscal year ending March 2029, Target Connected lines / Value 8,000 10,000 lines / Target fiscal year Fiscal year ending March 2029, Target Ponta Pass members / Value 2,000 10,000 people / Target fiscal year Not disclosed, Target Digital infrastructure investment / Value ¥1.2 trillion / 3 years / Target fiscal year Not disclosed, Target Data center and other investments / Value ¥3,000 100 million / 3 years / Target fiscal year Not disclosed
Financial targetsIndicator name Net Debt EBITDA / Target value 2 approximately x times, Indicator name CAPEX to Sales / Target value 12 targeting % or less, Indicator name Dividend payout ratio / Target value 40 above % (adjusted basis), Indicator name ROE-ROIC spread / Target value Maintain and improve
Annual DividendAnnual dividend per share ¥84 / Interim and Year-End Breakdown Not disclosed
Payout ratioabove 40% (adjusted basis)
Acquisition of treasury sharesRepurchase authorization amount ¥3,000 100 million (maximum) / Number of shares under the buyback program Not disclosed / Period 13 May 2026 to 31 January 2027 (scheduled) / Tender offer ¥2,500 100 million (maximum)
New initiativesLaunch of the medium-term management strategy “Power-to-Connect 2028”, Establishment of new segments: Telecom Core, Personal Growth and Business Growth, Digital Belt concept comprising a nationwide low-latency network and AI computing resource infrastructure, Start of consideration of a stock market listing for au Financial Holdings, Scheduled launch of a crypto-asset wallet in summer 2026, Launch of a new autonomous driving company, Joint rollout of povo-model services in Vietnam, Share buybacks and cancellation of treasury shares, with a total ceiling of ¥300 billion
Items this document does not state (15)
Ordinary incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planSegment resultsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

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.

To maintain a competitive advantage in a society where AI is ubiquitous, the company will create a new growth structure through “Fusion,” which combines telecommunications infrastructure, AI services and talent. Its policy is to achieve stable growth in the Telecom Core and high growth in Personal Growth and Business Growth, thereby increasing corporate value.

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Fiscal Year Ending March 2026 Earnings Briefing Materials (Medium-Term Management Strategy) | KDDI CORPORATION (9433) timely disclosure | Komori