Slides
Page 1
Spark Your Journey KDDI FY2027-03 Q1 Financial Results ( April - June 2026 ) August 7 , 2026 KDDI Corporation au Starlink Direct Receiving and relaying SOS signals from out of coverage area KDDI SUMMIT 2026 Coming this fall EKODI SUMMIT 2826 KDDI 一人ひとり を 聞か せる SUMMIT Al へ 。 2026 EKORI SUMMIT 2026 EKODI SUMMIT 2026 The creation of a society in which anyone can make their dreams a reality , by enhancing the power to connect . EKDDI VISION 2030 Special Exhibition " Antarctica " Communication technologies supporting 70 years of Antarctic observation The Asahi Shimbun
Page 2
2 We extend our deepest sympathies to all those affected by the 2026 Kumamoto Earthquake and their families. The KDDI Group will continue to do its utmost to support the recovery of the affected areas.
Page 3
3 Key Highlights FY27-03 Focus Points Progress of “Power-to-Connect 2028” FY27-03 Q1 Consolidated Results Initiatives for Strengthening Governance
Page 4
FY27-03 Q1 Consolidated Results
Page 5
5 Consolidated Financial Results Revenue and income increased. Strong start against the full-year forecast Operating revenue (Unit : billions of yen) 1,415.7 1,487.3 FY26-03 Q1 FY27-03 Q1 Adjusted operating income Adjusted profit for the period*2 (Unit : billions of yen) (Unit : billions of yen) 259.5 314.3 FY26-03 Q1 FY27-03 Q1 159.1 193.4 FY26-03 Q1 FY27-03 Q1 Progress*1 23.2% Progress*1 26.0% Progress*1 26.5% YOY+21.1% YOY+21.6%YOY+5.1% Note) Adjusted profit is profit excluding non-recurring gains and losses and one-off gains and losses associated with portfolio review *1 Progress against full-year forecast *2 Adjusted profit for the period attributable to owners of the parent
Page 6
6 Operating Revenue by Segment Revenue increased in all segments. Growth in key growth areas, including mobile communication revenues Personal Growth (Unit : billions of yen) 89.4 105.5 88.4 86.0 55.2 60.1 21.5 22.3 FY26-03 Q1 FY27-03 Q1 Device-related Finance Energy Ponta Pass 280.8 258.7 Business Growth (Unit : billions of yen) 39.6 47.2 21.2 24.3 23.6 28.5 58.1 61.7 FY26-03 Q1 FY27-03 Q1 AI-BPO Connected Solutions Data Center (Overseas Connectivity DC) AI Integration / Cybersecurity Others 165.2 147.8 Telecom Core (Unit : billions of yen) 469.8 491.5 FY26-03 Q1 FY27-03 Q1 Mobile communication revenues 1,083.71,047.9 YOY+11.7%YOY+8.6%YOY+3.4% Others Others +4.6% +18.0% -2.6% +8.9% +3.8% +6.2% +20.6% +14.6% +19.2%
Page 7
7 Adjusted Operating Income -Factors for Change- Mobile communication revenues drive profit growth. Growth areas are also progressing steadily toward double-digit full-year growth (Unit : billions of yen) 259.5 314.3 +18.0 +16.4 +4.7 +3.3 +12.4 FY26-03 Q1 FY27-03 Q1+54.8 (+21.1%) Telecom Core +34.4 (+19.5%) Personal Growth (+9.3%) Business Growth (+21.6%) Others Include impact of Myanmar business lease receivables provision rate revisionMobile communication revenues* Note) From this page onward, unless otherwise noted, profits are on adjusted basis * Management-based profit figure Outlook of full-year forecast Adjusted operating income continues to aim for the full-year forecast of 1,210 billion yen <H1> Telecom Core drives profit growth, led by the effects of service revisions. Growth areas also off to a steady start <H2> Accelerate growth in Growth areas Strategic cost investment with an eye on mid-term growth Other than mobile communication revenues
Page 8
Progress in Mobile Structural Transformation
Page 9
9 Realization of Transformation Effect Initiatives focused on LTV, implemented ahead of competitors, are driving steady improvements in key KPIs 32.91 32.93 33.00 33.23 33.30 6/'25 9/'25 12/'25 3/'26 6/'26 FY27-03 Q1FY26-03 Q1 YOY -0.06pt Smartphone churn rate Points ⚫ Churn rate reduction driven by structural transformation ⚫ Capture demand from the younger generation and expand subscriptions from other carriers Smartphone subscriptions (million) FY26-03 Q1 FY27-03 Q1 4,240 4,400 (Unit: yen) YOY +160 yen (+3.8%) Points ⚫ Steady subscriber growth in “au Value Link Plan” and “Komi-Komi Plan Value” drive ARPU growth Momentum (ID / Churn rate) Mobile ARPU FY26-03 Q2 FY26-03 Q3 FY26-03 Q4 YOY +0.39mil. Note) LTV (Life Time Value) 1.23% 1.21% 1.23% 1.48% 1.17%
Page 10
10 Commitment to "Value Competition" Strengthening multi-brand functions to ensure ID competitiveness and build a long-term foundation Service Differentiated communication quality/value Simple and affordable plan Value Promote migration to au Sales / ARPU Time axis / Contract duration Price plan Simple unlimited plan Service value Handset price Charge Online only, customizable toppings Value creation after subscription Value creation that motivates customers to sign up
Page 11
11 Improving brand migration FY25-03 Q1 FY26-03 Q1 FY27-03 Q1 Explore the Extraordinary Delivering reliable connectivity wherever needed and becoming an attractive main brand that continues to be chosen Strengthening reliable connectivity Cumulative number of users Exceeded 3.1 million*3 au 5G Fast Lane*2 “UQ mobile→au” migrations "au→UQ mobile" migrations Promoting migration to au + Longer contract duration Early launch advantage of au Starlink Direct*4 Population coverage*1 over 90% (As of the end of March 2026) International roaming Expansion of 5G SA area Available in the U.S. and Canada Expand to 4 countries planned (within the year) 24/7 relaying SOS information from out of coverage areas (Available from May 28, 2026) au Starlink Direct SOS*5 *1 "Population coverage" is calculated based on areas where communication is possible in more than 50% of locations within approximately 500m blocks used for the national census. *2 Eligible plan with 5G SA contract/au 5G SA- compatible smartphone required *3 As of July 14, 2026 *4 Data communication for some apps is possible on compatible models. Voice calls are not supported (as of August 2026). *5 Compatible apps and messaging apps are required. Service may be unavailable during app maintenance, etc.
Page 12
12 Simple for All Strengthening product competitiveness by bundling financial services with mid-capacity plans that meet customer needs UQ Komi-Komi Otoku Discount (35GB/month) Simple and affordable Enhanced credit card benefits (au PAY Gold card) Approx. 2.1X*1 Number of Komi-Komi Plan Value selections Before After Available from June 25, 2026 Approx. 1.6X*2 au PAY Gold card selection rate Before After Note) Before the initiative: June 19–21, 2026; After the initiative: June 26–28, 2026 *1 Comparison of the number of new UQ mobile subscribers who selected Komi-Komi Plan Value before and after the initiative *2 Comparison of the Gold card selection rate among au PAY Card applicants at the time of Komi-Komi Plan Value contract
Page 13
13 Before After FY26-03 Q1 FY27-03 Q1 Together to the Freedom that is Right for You Approaching various customers with communication quality and flexible service design that meets their needs After the launch of new toppings Approx. 4.4X*2 Backup connectivity Enjoy unlimited usage High-quality au network*1 Purchase at Lawson Number of Giga Charge cards sold Approx. 4.3X *1 povo is not compatible with au 5G Fast Lane and 5G SA. Except for communication restrictions based on the contract plan (such as when data capacity is exceeded), it has the same communication specifications as au. *2 Comparison of the number of new povo MNP subscriptions before (June 7–18, 2026) and after (June 19–30) the launch of toppings (10 free 24-hour unlimited passes and 0.5GB/month subscription topping) Switching from other carriers New toppings Flexible service design that responds to customer voice
Page 14
Focus Points for FY27-03 in the Growth Areas
Page 15
15 Toward Achieving Growth Steady progress in both Personal and Business Growth, clarifying initiatives toward full-year forecast Personal Growth operating income Business Growth operating income 50.8 55.5 FY26-03 Q1 FY27-03 Q1 YOY+4.7 billion yen (+9.3%) 15.2 18.5 FY26-03 Q1 FY27-03 Q1 YOY +3.3 billion yen (+21.6%) Full-year focus points ⚫ Financial business remained on track despite declined profits. Expand Gold card customer base and strengthen deposits ⚫ Together with Lawson, strengthening value creation in convenience store x telecom (Unit: billions of yen)(Unit: billions of yen) *1 Five areas: Finance, Energy, Device related, Ponta Pass / Lawson and Global *2 Five areas: AI Integration, Cybersecurity,Connected Solutions, Data Center (Overseas Connectivity DC) and AI-BPO Steady progress in all 5 areas*1 Revenue and income increased in all 5 areas*2 Full-year focus points ⚫ AI Integration off to a steady start. Focusing on cloud foundation expansion ⚫ Overseas Connectivity DC expansion capturing growing AI inference demand
Page 16
16 ⚫ Q1 profit decline is as planned ⚫ Impact of deposit enhancement and valuation losses Financial Business Core credit card and banking businesses are growing steadily. Focusing on expanding the Gold card customer base and increasing deposits Promoting initiatives for further strengthening Traffic from au PAY app to credit card After launch in July 2026 Expanding Gold card base Growth of credit card and banking business base au Jibun Bank deposit balance YOY 1.2x*2 Credit card au PAY Gold card members 2.07 million*2 (YOY +0.46 mil.) Expansion of key KPIs in core businesses Banking 11.7 8.0 FY26-03 Q1 FY27-03 Q1 Operating income*1 (au Financial Holdings) YOY -3.7 billion yen (Unit : billions of yen) *1 IFRS basis *2 As of June 30, 2026 *3 Comparison of results between June 1–17, 2026 (number of regular issuances from the au PAY app) and July 1–17, 2026 (number of issuances including instant issuances from the au PAY app) *4 Comparison of auto-charge usage rates after card enrollment between June 1–17, 2026 and July 1–17, 2026 Instant credit card issuance and auto-charge setting from app Promoting enrollment through new UQ mobile plan "UQ Komi-Komi Otoku Discount" Gold card benefit enhanced Number of cards issued via au PAY app: approx. 1.2x*3 Auto-charge usage rate: +approx. 20%*4
Page 17
17 55.2 60.1 FY26-03 Q1 FY27-03 Q1 Device / Lawson and Ponta Pass Expansion of business foundation contributing to LTV. Strengthening synergy with Lawson to build competitive advantage Expansion of business foundation essential for LTV maximization Building the advantages of Convenience store × Telecom ⚫Growth in sales of repair/product support services and smartphone accessories ⚫Expansion of AI-related new products ⚫Ponta Pass members 15.59 mil. (YOY +0.67 mil.) ⚫Active rate also improved Ponta Pass revenueDevice-related revenue YOY +4.9 billion yen (+8.9%) (Unit : billions of yen) YOY +0.8 billion yen (+3.8%) 21.5 22.3 FY26-03 Q1 FY27-03 Q1 Enhancing coupon appeal Data x Store operations Reflecting track records and feedback from stores Benefit updates In-store sales of mobile accessories Store support through PoC Planned for use in store opening strategies Strong sales trials at Lawson stores Updating our value proposition based on data utilization and feedback from stores Communication products ＠Ponta Accumulating track records at real stores. Takanawa sandbox store marks its 1st anniversary Smartphone checkout 1 to 1 offers
Page 18
18 (3) Sakai DC utilization sovereign environment construction Growth Opportunities for AI Integration Secure cloud environment is a prerequisite for AI implementation. Leveraging our strengths to accelerate implementation support Unit Price Customer Base Expansion of Multi- Cloud Offerings (1) Expansion of cloud infrastructure (2) Integration, maintenance and operation (AI, systems, cloud) [Further revenue opportunities] AI solutions Accelerate AI Implementation Note) As of June 30, 2026 FY27-03 Q1 Infrastructure sales YOY+30% or more KDDI Corporate customer base 400k companies Top-class cloud technology in Japan Over 8,000 AWS/Google Cloud certifications held Multi-cloud support available Extensive track record for the shortest path to AI Over 2,500 cloud implementations Corporate challenges for AI-Ready Cloud lift of proprietary data from on-premise systems Secure/sovereign environment construction Most proprietary data used for AI is on on-premise systems Digital Belt ~ AI - Enhanced Lifestyles / AI - Powered Productivity Providing end - to - end solutions
Page 19
19 Realizing low-latency environment Connectivity DC Connectivity value aligns with AI inference needs. Actively expanding with a view to mid- to long-term growth Operating revenue / EBITDA Further growth opportunities accompanying AI penetration Steady business growth + high-profit structure Meeting growing European demand for secure AI inference environment FY27-03 Q1 Topics Customer aggregation Proximity to urban areas Aligns with AI inference needs ⚫ Acquired orders from AI inference and cloud operators in multiple regions including France and Canada ⚫ Strategic partnership for building sovereign AI infrastructure × Note) Results are based on overseas Connectivity DC * Source: Peering DB, as the end of July 2026 France's No.1 connectivity* One of France's leading sovereign cloud operators ×23.6 28.5 FY26-03 Q1 FY27-03 Q1 (Unit : billions of yen) 10.4 12.6 EBITDA (Adjusted) YOY +20.7% Margin 44.1%
Page 20
Initiatives for Strengthening Governance
Page 21
21 • Conducted visits by top management to major strategic subsidiaries (14 companies) • Held "dialogue sessions" between KDDI and top management of Group companies (93 people) [Review and establishment of new operational rules] • Completed comprehensive inspections of 110 target companies. Development of partner management operations (credit management, segregation of duties, etc.) • Strengthening of cash flow management at Group companies • Strengthening of Group finance management [Establishment of new organizations/committees for strengthening governance] • Examination and permeation of recurrence-prevention measures across the entire Group [Implemented] Response to Inappropriate Transactions Executing recurrence-prevention measures across the entire company to strengthen Group governance KDDI Group companies Psychological safety and improvement of the “quality” and “quantity” of communication Equal relationship Strong collaboration Note) As of August 7, 2026 Operation and monitoring of new rules under the new structure Continued visits to Group companies by the supervising department • Introduced AI system for credit screening • Introduced anomaly detection tool using financial data Start of use under new rules and promotion of development for comprehensive AI/system utilization [Ongoing/Future] Comprehensive governance inspection and establishment of new rules/structure Building relationships of mutual trust AI/system utilization ~June 2026 Within 2026 Mid- to long-term Balancing the strengthening of governance and operational efficiency through AI/systemsExecution of measures to pass on lessons and prevent it from fading Cultivation of autonomous deterrence against fraud and misconduct
Page 22
22 Response to Unauthorized Access Incident We take the administrative guidance seriously and will do our utmost to prevent recurrence. In addition, we will work to improve security standards and foster awareness across the industry Overview Unauthorized access occurred in the email system provided to ISP providers, and we have confirmed that customer information was leaked. Timeline ⚫ May 16, 2026: Unauthorized access occurred at some customer operators ⚫ June 17, 2026: Confirmed this unauthorized access incident Cause Exploitation of a vulnerability in third-party software that was not recognized by the vendor Leaked Information ⚫ Email addresses: 12.23 million ⚫ Passwords: 7.62 million Email systems contain legacy communication standards Unknown vulnerabilities Emergence of multiple security issues Early transition to high-security communication standards Preventive security checks for potential issues using AI and other technologies Sequentially conduct diagnostics and implement countermeasures for systems holding important information that have internet connectivity
Page 23
Progress of “Power-to-Connect 2028”
Page 24
24 Becoming a Frontrunner in Social Implementation Progress in initiatives to create new businesses starting from customer needs Promotion of the "Digital Belt" Initiative Strengthening local touchpoints Creation of AI-Powered Productivity and AI-Enhanced Lifestyles AI - Enhanced Lifestyles AI - Powered Productivity Contributing to “our customers’ business growth” Transforming “our customers’ lifestyles and experiences” Digital Belt Our company’s data / partner dataCustomer data Inspection and monitoring RobotaxiCustomer inquiriesProduct sorting Lifestyle Consultation Local InformationHealth SupportGood value/ Entertainment Social implementation capabilities Physical Intelligence Lifestyle Intelligence 3 2 1
Page 25
25 - Challenges of carrier shops - AI-Powered Productivity: Assisting Sales Frontlines Solving industry challenges with AI to create an environment where staff can focus on customer service and sales au Sales Support AI AI answers inquiries from shop staff Contributing to a better working environment through smooth customer service support Frustration in acquiring knowledge after joining Inconsistency in service quality High staff turnover rate Lower proposal capability Huge manuals Information overload Discrepancy in knowledge between new and veteran Introduced to all au shops (approx. 2,000 stores) in July 2026 * Number of inquiries from shop staff to human support Significant reduction in response time Approx. 200 K internal inquiries per month* Halved 259 128 30 Phone Human chat AI (Unit: seconds)
Page 26
26 AI-Enhanced Lifestyles: Supporting Your Growth Providing new learning and hobby experiences through AI services that allow for dialogue based on reliable information Protecting users from false information I was able to easily delve into accurate knowledge because I could efficiently search for professional information. User (30s, Male) Publisher (Business Books) I felt that this service could help build a future where the value of book is recognized. Answers based on reliable primary information Revenue share with content providers Protecting the copyrights of providers+ (Buffmee) Redesign contents Contents Fee Monetize User Content providers
Page 27
27 Successfully achieved APN*1 from a single site to multiple sites in a commercial environment, leading international standardization Technology development of All-Photonic Network Lawson x KDDI (Happy LAWSON Town) Creating communities where everyone can live with peace of mind and enjoyment, using stores as hubs Solving local issues rooted in the community Initiatives for Social Implementation Strengthening local touchpoints and infrastructure to create value unique to Real x Technology Expanding to all 47 prefectures nationwide 2030 Target: 100 Locations Ikeda City, Osaka Pref. (Opening June 2026) *1 APN (All-Photonic Network) *2 World's first APN connection from a single site to multiple sites in a commercial environment including existing WDM transmission systems. As of May 27, 2026. Source: Nokia This projectConventional NW design Multiple connections require optical-to-electrical conversion All-optical multiple connections DC DC DC Power approx. 60% reductionLatency/Power increase World’s first *2 Optical → Electricity → Optical DC DC DC Connecting DCs across the country with low latency and power savingsOpening in Hino City, Tokyo, August 2026
Page 28
28 ⚫ Major divestment projects Business portfolio review Toward Improving "Quality" Company Name Timing of Sale Remarks LIFENET INSURANCE April 2026 Life insurance Loco Partners June 2026 Travel industry Gunosy August 2026 News, game, media Kakaku.com TBD Internet media *Decision to sell made in May 11 divestments decided in total, generating approx. 150 billion yen*2 in cash 7 cases in addition to the above (including sale of strategic shareholdings) Strengths of stable cash flow (CF) supporting growth Cash generation capability steadily expanding, strengthening fundamentals for growth investments Strengthen framework and expand pipeline for growth investments Note) Excluding Financial Business *1 Core FCF = Operating CF – CAPEX – Leasing + Net interest paid after tax *2 Includes pending sales. Based on the latest proposal amounts. As of August 7, 2026 Core FCF*1 YOY +10.9 billion yen (+2.4%) Core FCF Margin (FY26-03 full-year vs. FY26-03 Q2 to FY27-03 Q1) 8.0% (+0.1pt) 21.6% (±0.0pt) Stable growth in Core FCF generation capability Operating CF Margin (FY26-03 full-year vs. FY26-03 Q2 to FY27-03 Q1) 454.5 465.5 FY26-03 full year FY26-03 Q2 to… (Unit : billions of yen) FY26-03 full-year FY26-03 Q2 to FY27-03 Q1
Page 29
29
Page 30
30 Summary FY27-03 Q1 Consolidated Results ⚫ Mobile communication revenues drive profit growth. Growth areas are also progressing steadily toward double-digit full-year growth Progress in Mobile Structural Transformation + Focus Points for FY27-03 in the Growth Areas ⚫ Initiatives focused on LTV are driving steady improvements in key KPIs ⚫ Committed to value competition and further strengthening multi-brand strategy. Leveraging high-quality networks to support customers' lifestyles and demonstrate competitive advantage ⚫ Steady progress in Growth areas. Clarifying initiatives toward full-year forecast Initiatives for Strengthening Governance ⚫ Steadily implementing recurrence-prevention measures across the entire company to strengthen Group governance ⚫ Taking administrative guidance seriously and making every effort to prevent recurrence. In addition, working to improve and promote security standards across the industry. Progress of “Power-to-Connect 2028” ⚫ Progress in initiatives to create new businesses starting from customer needs ⚫ Executing disciplined capital allocation to improve "Quality"
Page 31
Appendix
Page 32
32 Data Center Locations London North London North 2 London East London West London South Istanbul Turkey Frankfurt (6 locations) Germany Paris Magny Paris Voltaire (7 locations) France Hanoi Vietnam Thailand Singapore Singapore Beijing, Shanghai, Hong Kong China Tokyo, Osaka 18 locations in 6 cities Japan Bangkok NY Teleport NY Chelsea Los Angeles USA Toronto (3 locations) Canada Expertise and strengths gained at Telehouse Site expansion Europe AsiaNorth America FY2023 Frankfurt, Germany (5th building), Paris Magny (4th building), Bangkok, Thailand (First entry. 1st building) FY2024 Toronto, Canada (M&A. 3 buildings), London, UK (Power capacity expansion) FY2025 Paris Magny (5th building) FY2026~ Frankfurt, Germany (6th building) Future plans include Paris Magny (6th building), London, UK (6th building), Bangkok, Thailand (2nd building), etc., to be expanded sequentially UK Providing services to over 3,000 companies across 45+ global locations Global expansion under the "Telehouse" brand Connections Share (Global) 3rd in the world Share of business connections* 3rd in the world, 1st in telecom carriers Locations close to urban areas Connect to major cloud securely with low-latency Note) As of the end of July 2026 * Source: Structure Research 2025 (August 2025), 2024 results Reference: Japan 1st DC specialized firm A 2nd DC specialized firm B
Page 33
33 Inappropriate Transactions - Toward Recovery of External Outflows - Civil Procedures Criminal Procedures File for provisional attachment against some agencies and promptly initiate civil litigation seeking damages Initiated civil litigation seeking damages against 4 agencies regarding externally outflowed amounts (32.9 billion yen*) Began consultation with the police for filing criminal complaints Continue cooperating with police investigations As of the end of March As of August 7 (Progress) Continue working toward early recovery of externally outflows and resolution * Total amount of fees that flowed out from BIGLOBE and G-PLAN due to this matter
Page 34
34 IFRS Base / Adjusted Profit (Unit : billions of yen) Operating income Profit for the period attributable to owners of the parent FY26-03 Q1 FY27-03 Q1 YOY FY26-03 Q1 FY27-03 Q1 YOY IFRS base 259.5 314.2 +54.8 160.1 195.5 +35.4 (1) Exclusion of non- recurring gains and losses — — — — — — (2) Exclusion of one-off gains and losses associated with portfolio review — +0 +0 -1.0 -2.0 -1.0 Adjusted profit 259.5 314.3 +54.8 159.1 193.4 +34.3
Page 35
35 Adjusted Profit for the Period -Factors for Change- Others 193.4 +54.8 FY26-03 Q1 (Unit: billions of yen) FY27-03 Q1+34.3 Adjusted operating income Note) Adjusted profit for the period attributable to owners of the parent Interest expenses -4.5 -16.0159.1
Page 36
36Statement of Financial Position (as of the end of June 2026) au Financial Holdings (Consolidated) Total assets 8.88 trillion yen KDDI (Consolidated, excluding auFH)* Total assets 9.98 trillion yen Note) Figures for both KDDI and au Financial Holdings are based on IFRS * Calculated excluding au Financial Holdings from the consolidated figures Other 1,339.6 Equity 373.5 Loans 6,235.5 Other 1,249.1 Securities 731.6 Deposits 5,786.5 Cash and cash equivalents 569.0 Property, plant and equipment Intangible assets Rights-of-use asset 4,532.1 Goodwill 549.0 Trade and other Receivables 2,135.1 Cash and cash equivalents 217.9 Other 2,544.5 Interest-bearing debt 3,724.2 Trade and other payables 324.6 Other liabilities 657.1 Equity 5,272.8 (Unit: billions of yen) (Unit: billions of yen) Borrowings for financial business 1,466.6
Page 37
Disclaimer Statements made in these documents with respect to the KDDI Group‘s performance targets, projected subscriber numbers, future forecasts and strategies that are not historical facts are forward-looking statements about the future performance of the KDDI Group, based on company’s assumptions and beliefs in light of the information available at the time they were made. They therefore include certain risks and uncertainties. Actual results can differ from these statements due to reasons including, but not limited to, domestic and overseas situation, economic trends, competitive position, formulation, revision or abolition of laws and ordinances, regulations or systems, government actions or intervention and the success or lack thereof of new services. Consequently, please understand that there is a possibility that actual performance, subscriber numbers, strategies and other information may differ significantly from the forecast information contained in these materials or other envisaged situations.