KDDI (9433): FY2025 Results Summary — Mobile and Financial Growth Drive Record Underlying Profit, Meeting Mid-Term EPS Target

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KDDI Corporation presented its consolidated financial results for the fiscal year ended March 2026 (FY26-03, April 2025–March 2026) on May 12, 2026, under President and Representative Director, CEO Hiromichi Matsuda. On an underlying-performance basis, operating revenue rose 4.1% year on year to 6,071.9 bil. yen, operating income rose 6.0% to 1,164.3 bil. yen, and profit for the year attributable to owners of the parent rose 13.6% to 756.7 bil. yen. The results also mark the completion of KDDI’s previous Mid-term Strategy (FY23-03–FY26-03), with the company achieving its mid-term EPS target of 1.5x FY19-03 EPS on an underlying-performance basis (FY26-03 EPS: 196.46 yen versus a target of 194.38 yen).

Consolidated Results (Full-Year Actual)

On an underlying-performance basis, KDDI reported operating revenue of 6,071.9 bil. yen (+4.1% YoY), operating income of 1,164.3 bil. yen (+6.0% YoY), and profit for the year attributable to owners of the parent of 756.7 bil. yen (+13.6% YoY) for FY26-03. The company stated that growth was driven by an increase in mobile revenues together with solid performance maintained across each business domain.

Item	FY26-03 (Actual)	FY25-03 (Actual)	Rate of Change
Operating revenue	6,071.9 bil. yen	5,835.5 bil. yen	+4.1%
Operating income (Underlying performance)	1,164.3 bil. yen	1,098.0 bil. yen	+6.0%
Profit for the year attributable to owners of the parent (Underlying performance)	756.7 bil. yen	665.9 bil. yen	+13.6%

“Underlying performance driven by business growth” excludes: (1) external outflows related to the fictitious transactions, amounting to 10.5 bil. yen in FY25-03 and 17.1 bil. yen in FY26-03 (affecting both operating income and profit for the year); and (2) a contract cost impairment recognized in FY26-03, with an impact of 48.2 bil. yen on operating income and 32.5 bil. yen on profit for the year.

Profit for the Year – Factors for Change

The year-on-year increase in underlying profit for the year, from 665.9 bil. yen in FY25-03 to 756.7 bil. yen in FY26-03 (a net increase of 90.7 bil. yen), was driven primarily by higher operating income, partly offset by higher interest expenses, with additional positive contributions from a paid-in capital reduction related to KDDI’s Myanmar operations, a foreign exchange gain, and other factors.

Factor	Change (bil. yen)
Operating income	+66.4
Interest expenses	(12.8)
Myanmar paid-in capital reduction	+12.0
Foreign exchange gain	+11.7
Others	+13.5
Net change (FY25-03 665.9 → FY26-03 756.7, Underlying performance)	+90.7

Segment Results

Mobile revenues (Personal Services segment base) grew to 2,005.4 bil. yen in FY26-03, up 32.6 bil. yen year on year (approximately +50.0 bil. yen excluding the AC (access charge) impact), exceeding the initial forecast. Mobile ARPU reached 4,440 yen (+100 yen YoY), and smartphone subscriptions totaled 33.23 million as of the end of March 2026 (+0.36 million YoY). KDDI’s network was ranked No.1 in Opensignal’s Connected Experience Awards among the four major domestic MNOs. The cumulative number of users of the eligible au 5G SA-based au 5G Fast Lane service exceeded 4.0 million, and au Starlink Direct connections reached approximately 2.5 million as of the end of March 2026. In the company’s focus areas, Finance (au Financial Holdings) and DX (Business Services segment) both achieved double-digit operating income growth.

Metric	FY23-03	FY24-03	FY25-03	FY26-03
Mobile revenues, Personal Services segment base (bil. yen)	1,962.3	1,956.6	1,972.7	2,005.4
Finance (au Financial Holdings) Operating income (bil. yen)	191.5	217.0	235.3	263.9
DX (Business Services segment) Operating income (bil. yen)	19.5	33.7	40.6	43.2

Statement of Financial Position (As of the End of March 2026)

On an IFRS basis, au Financial Holdings (Consolidated) reported total assets of 9.28 trillion yen, while KDDI (Consolidated, excluding au Financial Holdings) reported total assets of 9.78 trillion yen.

Entity	Item	Amount (bil. yen)
au Financial Holdings (Consolidated)	Loans	6,391.6
au Financial Holdings (Consolidated)	Securities	708.8
au Financial Holdings (Consolidated)	Cash and cash equivalents	869.6
au Financial Holdings (Consolidated)	Other	1,314.8
au Financial Holdings (Consolidated)	Total assets	9.28 trillion yen
au Financial Holdings (Consolidated)	Deposits	5,692.4
au Financial Holdings (Consolidated)	Borrowings for financial business	2,105.5
au Financial Holdings (Consolidated)	Other liabilities	1,127.0
au Financial Holdings (Consolidated)	Equity	360.1
KDDI (Consolidated, excluding au Financial Holdings)	Property, plant and equipment / Intangible assets / Rights-of-use assets	4,528.2
KDDI (Consolidated, excluding au Financial Holdings)	Goodwill	548.8
KDDI (Consolidated, excluding au Financial Holdings)	Trade and other receivables	2,286.7
KDDI (Consolidated, excluding au Financial Holdings)	Cash and cash equivalents	209.2
KDDI (Consolidated, excluding au Financial Holdings)	Other	2,205.6
KDDI (Consolidated, excluding au Financial Holdings)	Total assets	9.78 trillion yen
KDDI (Consolidated, excluding au Financial Holdings)	Interest-bearing debt	3,269.4
KDDI (Consolidated, excluding au Financial Holdings)	Trade and other payables	499.1
KDDI (Consolidated, excluding au Financial Holdings)	Other liabilities	777.4
KDDI (Consolidated, excluding au Financial Holdings)	Equity	5,232.6

Governance and Compliance Enhancement

Following the external outflows related to fictitious transactions and the FY26-03 contract cost impairment noted above, KDDI has been implementing a comprehensive strengthening of its Group governance system. As of May 12, 2026, completed initiatives included: a full comprehensive review of governance across Group companies, with issue resolution and rule formalization targeted for completion by the end of June 2026; establishment of a three-financial-statements review regular meeting to strengthen P&L budget control and BS/CF oversight; revision of the counterparty management and Group finance approval rule, with monitoring commenced under the revised operational framework; and establishment of a recurrence-prevention promotion meeting at Group companies. KDDI also newly established an Investee Management Department, with the CFO concurrently serving as Division Head, consolidating previously dispersed governance-related functions (Governance Management Department, Internal Control Department, Group Business Base Support Department, and Group Business Partner Departments 1 and 2) into a new Governance Division. Planned initiatives include top management visits to 14 strategic subsidiaries in FY27-03 H1 (2 visits completed as of May 12, 2026), a Group executive-level dialogue session, and the sequential implementation of AI-based financial data alerts and credit screening functions starting in FY27-03 H1.

Review of the Previous Mid-term Strategy (FY23-03–FY26-03)

KDDI achieved its mid-term EPS target of 1.5x FY19-03 EPS (129.55 yen) on an underlying-performance basis, with FY26-03 EPS reaching 196.46 yen, equivalent to a CAGR of 6.1%. By business area: Mobile revenue returned to a growth trajectory despite the impact of mobile tariff reductions, driven by high network quality, new value creation, and LTV-focused initiatives. Finance (au Financial Holdings) achieved double-digit CAGR growth, generating synergies with telecom and expanding the customer base. Energy lagged the initial plan but transitioned to a structure more resilient to fuel price fluctuations. The partnership with Lawson expanded customer touchpoints, strengthening the foundation for value creation. DX achieved double-digit CAGR growth, with growth in both Base and Growth areas; looking ahead, the company is enhancing capabilities including security and the Sakai AI data center. In telecom infrastructure, accelerating the 3G shutdown and 5G rollout enabled focused investment in a best-in-class network. Despite significant changes in the business environment—including mobile tariff reductions, rising fuel costs, and political unrest in Myanmar—KDDI stated that sustainable growth was achieved and a solid foundation for the next growth phase was established, while company-wide measures were thoroughly implemented to prevent the recurrence of network incidents and inappropriate transactions.

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