Interim report
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KDDI This translation is to be used solely as a reference and the consolidated financial statements in this release are unaudited . Financial Statements Summary for the three - month period ended June 30 , 2026 [ IFRS ] Company name : Stock listing : Code number : Representative : August 7 , 2026 KDDI CORPORATION URL https://www.kddi.com Tokyo Stock Exchange - Prime Market 9433 Hiromichi Matsuda , President and Chief Executive Officer Dividend payment date ( as planned ) : Supplemental materials of quarterly results : Presentation for quarterly results : Yes Yes ( for institutional investors and analysts ) ( monetary amounts rounded to the nearest million ) ( yen in millions , unless otherwise stated ) Operating revenue Operating income 1. Consolidated Financial Results for the three - month period ended June 30 , 2026 ( April 1 , 2026 - June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( Percentage represents comparison change to the corresponding previous quarterly period ) Profit for the period attributable to owners of the parent Total comprehensive income for the period Profit for the period before income tax Profit for the period % % % % % % Three - month period ended 1,487,316 5.1 314,248 21.1 308,466 20.2 221,457 24.4 195,465 22.1 229,827 25.4 June 30 , 2026 Three - month period ended June 30 , 2025 1,415,734 3.0 259,473 ( 4.7 ) 256,704 ( 9.1 ) 177,996 ( 7.0 ) 160,069 ( 7.0 ) 183,290 1.6 Basic earnings per share Diluted earnings per share Yen Yen Three - month period ended 51.34 51.33 June 30 , 2026 Three - month period ended 40.23 40.22 June 30 , 2025 ( Reference ) Other important management indicators Adjusted profit for the Adjusted operating income period attributable to owners of the parent Adjusted basic earnings per share % % Three - month period ended June 30 , 2026 314,262 21.1 193,442 21.6 Yen 50.81 Three - month period ended 259,473 159,094 June 30 , 2025 39.99 Note : Adjusted profit is calculated by excluding extraordinary gains and losses , as well as one - time gains and losses resulting from portfolio restructuring . ( 2 ) Consolidated Financial Position As of June 30 , 2026 As of March 31 , 2026 2. Dividends Year ended March 31 , 2026 Total assets Total equity Equity attributable to owners of the parent Ratio of equity attributable to owners of the parent to total assets 18,854,231 19,063,364 5,646,278 5,592,690 5,127,098 5,076,738 % 27.2 26.6 1st Quarter End 2nd Quarter End Dividends per share 3rd Quarter End Fiscal Year End Total Yen Yen 40.00 Yen Yen Yen 40.00 80.00 Year ending March 31 , 2027 Year ending March 31 , 2027 42.00 ( forecast ) Note : Changes in the latest forecasts released : No 42.00 84.00
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(Percentage represents comparison to previous fiscal year) Operating revenue Adjusted operating income Adjusted profit for the period attributable to owners of the parent Adjusted basic earnings per share % % % Yen Entire fiscal year 6,410,000 5.6 1,210,000 5.0 731,000 2.7 196.29 1) Changes in accounting policies required under IFRSs: None 2) Other changes in accounting policies: None 3) Changes in accounting estimates: None 1) Number of shares outstanding (inclusive of treasury stock) As of June 30, 2026 4,007,450,967 As of March 31, 2026 4,187,847,474 2) Number of treasury stock As of June 30, 2026 200,111,982 As of March 31, 2026 380,769,056 3) Number of weighted average common stock outstanding (cumulative for all quarters) For the three-month period ended June 30, 2026 3,807,195,280 For the three-month period ended June 30, 2025 3,978,573,272 3. Consolidated Financial Results Forecast for Year ending March 31, 2027 (April 1, 2026 to March 31, 2027) Note: Changes in the latest forecasts released: No Notes (1) Significant changes in the scope of consolidation during the three-month period ended June 30, 2026: Yes Addition: None Exclusion: 1 J:COM West Co., Ltd. (2) Changes in accounting policies and estimates (3) Numbers of outstanding shares (Common Stock) Note: The 1,235,265 shares as of June 30, 2026 and the 1,495,908 shares as of March 31, 2026 of the Company’s stock owned by the executive compensation BIP Trust account are included in the total number of treasury stock. Review of attached quarterly consolidated financial statements by a certified public accountant or auditing firm: Yes (mandatory) Explanation for appropriate use of forecasts and other notes 1. The forward-looking statements such as operational forecasts contained in this statements summary are based on the information currently available to the Company and certain assumptions which are regarded as legitimate. Actual results may differ significantly from these forecasts due to various factors. Please refer to P.5 “1. Overview of Operating Results and Financial Position (3) Explanation Regarding Future Forecast Information of Consolidated Financial Results” under [the Attachment] for the assumptions used and other notes. 2. On August 7, 2026, the Company will hold a financial result briefing for the institutional investors and analysts. Presentation materials will be webcasted on the same time as the release of this earnings report, and the live presentation and Q&A summary will be also posted on our website immediately after the commencement of the financial result briefing. In addition to the above, the Company holds the briefing and the presentations on our business for the individual investors timely. For the schedule and details, please check our website.
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1. Overview of Operating Results and Financial Position ……………………………………………………………………… 2 (1) Overview of Operating Results ………………………………………………………………………………………… 2 (2) Overview of Financial Position ………………………………………………………………………………………… 4 (3) Explanation Regarding Future Forecast Information of Consolidated Financial Results ……………………………… 5 (4) Business Risk and Other Risk Factors …………………………………………………………………………………… 5 2. Condensed Quarterly Consolidated Financial Statements …………………………………………………………………… 6 (1) Condensed Quarterly Consolidated Statement of Financial Position …………………………………………………… 6 (2) Condensed Quarterly Consolidated Statement of Income ……………………………………………………………… 8 (3) Condensed Quarterly Consolidated Statement of Comprehensive Income ……………………………………………… 9 (4) Condensed Quarterly Consolidated Statement of Changes in Equity …………………………………………………… 10 (5) Condensed Quarterly Consolidated Statement of Cash Flows …………………………………………………………… 11 (6) Going Concern Assumption ……………………………………………………………………………………………… 13 (7) Notes to Condensed Quarterly Consolidated Financial Statements ……………………………………………………… 13 1. Reporting Entity ………………………………………………………………………………………………………… 13 2. Basis of Preparation …………………………………………………………………………………………………… 13 3. Material Accounting Policies …………………………………………………………………………………………… 14 4. Segment Information …………………………………………………………………………………………………… 15 [the Attachment] Index of the Attachment - 1 -
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(yen in millions) Three Months Ended June 30, 2025 June 30, 2026 Change Percentage Change Operating revenue 1,415,734 1,487,316 71,582 5.1% Adjusted operating income 259,473 314,262 54,789 21.1% Operating income 259,473 314,248 54,775 21.1% Adjusted profit for the period attributable to owners of the parent 159,094 193,442 34,348 21.6% Profit for the period attributable to owners of the parent 160,069 195,465 35,396 22.1% 1. Overview of Operating Results and Financial Position (1) Overview of Operating Results We would like to offer our sincere condolences to all who were affected by the Kumamoto Earthquake of 2026 and their families. The KDDI group will continue making every effort to support the recovery of the affected area. For an overview of operating results for the three-month period ended June 30, 2026, please refer to the following resources made available on TDnet and KDDI’s official website on the same day as this financial statements summary. -Presentations -Financial Results *Latest IR Materials: https://www.kddi.com/english/corporate/ir/ir-library/presentation/ Financial Results For the three-month period ended June 30, 2026 Note: Adjusted profit is calculated by excluding extraordinary gains and losses, as well as one-time gains and losses resulting from portfolio restructuring. During the three-month period ended June 30, 2026, operating revenue increased by 5.1% year on year to ¥1,487,316 million mainly due to increases in mobile revenue, financial business revenue, device-related revenue and cybersecurity and AI integration, as well as data center services. Adjusted operating income increased by 21.1% year on year to ¥314,262 million mainly due to an increase in operating revenue. Adjusted profit for the period attributable to owners of the parent increased by 21.6% year on year to ¥193,442 million. Beginning in the three-month period ended June 30, 2026, the Group reporting segments were reorganized from two reporting segments of “Personal” and “Business” to three reporting segments of “Telecom Core,” “Personal Growth,” and “Business Growth,” based on the allocation of management resources and their performance evaluation units in accordance with the management approach. Accordingly, the segment information for the three-month period ended June 30, 2025 has been presented based on the segment classification after this change. - 2 -
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(yen in millions) Three Months Ended June 30, 2025 June 30, 2026 Change Percentage Change Operating revenue 1,047,874 1,083,671 35,797 3.4% Adjusted operating income 176,317 210,706 34,389 19.5% (yen in millions) Three Months Ended June 30, 2025 June 30, 2026 Change Percentage Change Operating revenue 258,683 280,820 22,137 8.6% Adjusted operating income 50,773 55,491 4,717 9.3% (yen in millions) Three Months Ended June 30, 2025 June 30, 2026 Change Percentage Change Operating revenue 147,810 165,152 17,341 11.7% Adjusted operating income 15,180 18,453 3,273 21.6% Operating performance in the Telecom Core segment for the three-month period ended June 30, 2026 is described below. Results For the three-month period ended June 30, 2026 During the three-month period ended June 30, 2026, operating revenue increased by 3.4% year on year to ¥1,083,671 million mainly due to an increase in mobile revenue. Adjusted operating income increased by 19.5% year on year to ¥210,706 million mainly due to an increase in operating revenue. Operating performance in the Personal Growth segment for the three-month period ended June 30, 2026, is described below. Results For the three-month period ended June 30, 2026 During the three-month period ended June 30, 2026, operating revenue increased by 8.6% year on year to ¥280,820 million mainly due to increases in financial business revenue and device-related revenue. Adjusted operating income increased by 9.3% year on year to ¥55,491 million mainly due to increases in device-related revenue and in share of profit of investments accounted for using the equity method from Lawson. Operating performance in the Business Growth segment for the three-month period ended June 30, 2026, is described below. Results For the three-month period ended June 30, 2026 During the three-month period ended June 30, 2026, operating revenue increased by 11.7% year on year to ¥165,152 million mainly due to increases in revenue from cybersecurity and AI integration, as well as data center services. Adjusted operating income increased by 21.6% year on year to ¥18,453 million mainly due to an increase in operating revenue. - 3 -
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(yen in millions) March 31, 2026 June 30, 2026 Change Total assets 19,063,364 18,854,231 (209,133) Total liabilities 13,470,674 13,207,954 (262,720) Total equity 5,592,690 5,646,278 53,587 Equity attributable to owners of the parent 5,076,738 5,127,098 50,360 Ratio of equity attributable to owners of the parent to total assets 26.6% 27.2% 0.6% (2) Overview of Financial Position 1. Financial Position (Assets) Total assets decreased by ¥209,133 million from the previous fiscal year-end to ¥18,854,231 million as of June 30, 2026 mainly due to decreases in loans for financial business and trade and other receivables. (Liabilities) Total liabilities decreased by ¥262,720 million from the previous fiscal year-end to ¥13,207,954 million as of June 30, 2026 mainly due to decreases in trade and other payables and borrowings and bonds payable despite an increase in call money. (Equity) Total equity amounted to ¥5,646,278 million mainly due to increase in equity attributable to owners of the parent from the previous fiscal year-end. As a result, ratio of equity attributable to owners of the parent to total assets increased from 26.6% as of March 31, 2026, to 27.2% as of June 30, 2026. - 4 -
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(yen in millions) Three Months Ended June 30, 2025 June 30, 2026 Change Net cash provided by (used in) operating activities 331,099 (113,535) (444,634) Net cash provided by (used in) investing activities (241,588) (144,380) 97,208 Free cash flows *¹ 89,512 (257,914) (347,426) Net cash provided by (used in) financing activities (45,144) (37,100) 8,044 Effect of exchange rate changes on cash and cash equivalents (2,036) 3,133 5,170 Net increase (decrease) in cash and cash equivalents 42,331 (291,881) (334,212) Cash and cash equivalents at the beginning of the period 921,175 1,078,807 157,632 Cash and cash equivalents at the end of the period 963,507 786,926 (176,581) 2. Consolidated Cash Flows *1. Free cash flows are calculated as the sum of “net cash provided by (used in) operating activities” and “net cash provided by (used in) investing activities.” Net cash used in operating activities increased by ¥444,634 million year on year to ¥113,535 million mainly due to a shift from an increase to a decrease in borrowing for financial business. Net cash used in investing activities decreased by ¥97,208 million year on year to ¥144,380 million mainly due to an increase in proceeds from sales and redemption of securities for financial business. Net cash used in financing activities decreased by ¥8,044 million year on year to ¥37,100 million mainly due to an increase in income as a result of the higher growth rate in short-term borrowings despite an increase in expenditures such as deposits for purchasing treasury stock. Reflecting these factors and an increase in ¥3,133 million in the effect of exchange rate changes on cash and cash equivalents, the total amount of cash and cash equivalents as of June 30, 2026, decreased by ¥291,881 million from March 31, 2026 to ¥786,926 million. (3) Explanation Regarding Future Forecast Information of Consolidated Financial Results For the fiscal year ending March 31, 2027, the Group forecasts operating revenue of ¥6,410,000 million, adjusted operating income of ¥1,210,000 million and adjusted profit for the period attributable to owners of the parent of ¥731,000 million. No changes have been made from the details stated in the Summary of Financial Results for the fiscal year ended March 31, 2026 (disclosed on May 12, 2026). If it becomes necessary to revise the forecast due to future changes in circumstances, we will disclose the revision as soon as possible. (4) Business Risk and Other Risk Factors In the three-month period ended June 30, 2026 and as of the submission date of Financial Statements Summary for the three- month period ended June 30, 2026, there have been no material changes to the “Business Risk and Other Risk Factors” described in Annual Securities Report for Fiscal Year Ended March 31, 2026. Furthermore, regarding “(2) Improper handling or leakage of private communications and customer information, and inappropriate use of products and services provided by the Company,” as part of the “Business Risk and Other Risk Factors” section, as stated in the press release “Regarding Unauthorized Access to Our Email System for ISPs” issued on June 23, 2026, and the press release “Report and Apology Regarding Unauthorized Access to Our Email System for ISPs” issued on July 6, 2026, it has been confirmed that email-related information (such as email addresses) from the email system the Company provides to Internet service providers (hereinafter ISPs) was leaked externally as a result of unauthorized access by a third party. The Company is working closely with the affected ISPs to implement the necessary measures and prevent similar incidents from recurring. - 5 -
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(yen in millions) March 31, 2026 June 30, 2026 ASSETS Non-current assets: Property, plant and equipment 2,999,321 2,981,189 Right-of-use assets 521,939 547,019 Goodwill 580,269 580,482 Intangible assets 1,058,151 1,061,190 Investments accounted for using the equity method 715,022 712,135 Long-term loans for financial business 5,534,048 5,657,589 Securities for financial business 708,845 731,580 Other long-term financial assets 543,633 549,229 Retirement benefit assets 8,112 6,780 Deferred tax assets 26,261 10,602 Contract costs 732,510 752,451 Other non-current assets 56,826 56,895 Total non-current assets 13,484,936 13,647,141 Current assets: Inventories 140,295 152,489 Trade and other receivables 3,227,074 3,085,942 Short-term loans for financial business 864,429 585,806 Call loans 33,372 63,931 Other short-term financial assets 40,055 43,472 Income tax receivables 4,225 3,785 Other current assets 190,171 484,739 Cash and cash equivalents 1,078,807 786,926 Total current assets 5,578,428 5,207,090 Total assets 19,063,364 18,854,231 2. Condensed Quarterly Consolidated Financial Statements (1) Condensed Quarterly Consolidated Statement of Financial Position - 6 -
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(yen in millions) March 31, 2026 June 30, 2026 LIABILITIES AND EQUITY Liabilities Non-current liabilities: Borrowings and bonds payable 2,588,058 2,511,474 Long-term deposits for financial business 120,583 114,752 Lease liabilities 382,914 388,910 Other long-term financial liabilities 24,974 28,395 Retirement benefit liabilities 12,509 11,314 Deferred tax liabilities 250,231 242,812 Provisions 39,684 38,128 Contract liabilities 98,567 90,479 Other non-current liabilities 15,180 15,174 Total non-current liabilities 3,532,699 3,441,437 Current liabilities: Borrowings and bonds payable 2,279,998 2,137,203 Trade and other payables 973,109 788,862 Short-term deposits for financial business 5,546,369 5,645,963 Call money 2,718 130,000 Cash collateral received for securities lent 430,286 427,558 Lease liabilities 124,381 128,559 Other short-term financial liabilities 2,942 2,573 Income taxes payables 174,022 79,342 Provisions 49,970 53,047 Contract liabilities 102,966 122,420 Other current liabilities 251,213 250,990 Total current liabilities 9,937,974 9,766,517 Total liabilities 13,470,674 13,207,954 Equity Equity attributable to owners of the parent Common stock 141,852 141,852 Capital surplus 257,627 257,013 Treasury stock (822,073) (431,645) Retained earnings 5,406,985 5,061,259 Accumulated other comprehensive income 92,347 98,619 Total equity attributable to owners of the parent 5,076,738 5,127,098 Non-controlling interests 515,952 519,180 Total equity 5,592,690 5,646,278 Total liabilities and equity 19,063,364 18,854,231 - 7 -
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(yen in millions) Three Months Ended June 30, 2025 June 30, 2026 Operating revenue 1,415,734 1,487,316 Cost of sales 800,256 835,234 Gross profit 615,478 652,082 Selling, general and administrative expenses 362,623 355,552 Other income 3,617 7,780 Other expense 6,500 1,427 Share of profit (loss) of investments accounted for using the equity method 9,500 11,365 Operating income 259,473 314,248 Finance income 4,313 5,930 Finance cost 7,948 11,619 Other non-operating profit (loss) 866 (93) Profit for the period before income tax 256,704 308,466 Income tax 78,708 87,009 Profit for the period 177,996 221,457 Profit for the period attributable to: Owners of the parent 160,069 195,465 Non-controlling interests 17,928 25,992 Profit for the period 177,996 221,457 Earnings per share attributable to owners of the parent Basic earnings per share (yen) 40.23 51.34 Diluted earnings per share (yen) 40.22 51.33 (2) Condensed Quarterly Consolidated Statement of Income - 8 -
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(yen in millions) Three Months Ended June 30, 2025 June 30, 2026 Profit for the period 177,996 221,457 Other comprehensive income Items that will not be transferred subsequently to profit or loss Remeasurements of defined benefit pension plans (530) － Changes measured in fair value of equity instruments through other comprehensive income 3,446 1,903 Share of other comprehensive income of investments accounted for using the equity method 239 (3) Total 3,155 1,900 Items that may be subsequently reclassified to profit or loss Changes in fair value of cash flow hedge (378) 13 Translation differences on foreign operations 4,338 6,013 Changes measured in fair value of debt instruments through other comprehensive income － (496) Share of other comprehensive income of investments accounted for using the equity method (1,822) 939 Total 2,138 6,470 Total other comprehensive income 5,293 8,370 Total comprehensive income for the period 183,290 229,827 Total comprehensive income for the period attributable to: Owners of the parent 165,855 203,061 Non-controlling interests 17,434 26,765 Total 183,290 229,827 (3) Condensed Quarterly Consolidated Statement of Comprehensive Income Note: Items in the statement above are presented net of tax. - 9 -
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(yen in millions) Equity attributable to owners of the parent Common stock Capital surplus Treasury stock Retained earnings Accumulated other comprehensive income Total Non- controlling interests Total equity Balance at April 1, 2025 141,852 259,047 (819,072) 5,400,113 50,556 5,032,495 522,500 5,554,995 Comprehensive income Profit for the period － － － 160,069 － 160,069 17,928 177,996 Other comprehensive income － － － － 5,787 5,787 (493) 5,293 Total comprehensive income － － － 160,069 5,787 165,855 17,434 183,290 Transactions with owners and other transactions Cash dividends － － － (149,238) － (149,238) (40,886) (190,124) Transfer from accumulated other comprehensive income to retained earnings － － － (1,890) 1,890 － － － Purchase and disposal of treasury stock － － (4) － － (4) － (4) Retirement of treasury stock － (396,515) 396,515 － － － － － Transfer from retained earnings to capital surplus － 396,515 － (396,515) － － － － Changes due to business combination － － － － － － 369 369 Changes in ownership interests in subsidiaries － (293) － － － (293) (556) (849) Other － (127) 339 (1,045) － (834) 39 (795) Total transactions with owners and other transactions － (420) 396,850 (548,687) 1,890 (150,368) (41,035) (191,403) Balance at June 30, 2025 141,852 258,627 (422,222) 5,011,495 58,232 5,047,983 498,899 5,546,881 (yen in millions) Equity attributable to owners of the parent Common stock Capital surplus Treasury stock Retained earnings Accumulated other comprehensive income Total Non- controlling interests Total equity Balance at April 1, 2026 141,852 257,627 (822,073) 5,406,985 92,347 5,076,738 515,952 5,592,690 Comprehensive income Profit for the period － － － 195,465 － 195,465 25,992 221,457 Other comprehensive income － － － － 7,597 7,597 773 8,370 Total comprehensive income － － － 195,465 7,597 203,061 26,765 229,827 Transactions with owners and other transactions Cash dividends － － － (152,366) － (152,366) (26,724) (179,090) Transfer from accumulated other comprehensive income to retained earnings － － － 1,325 (1,325) － － － Purchase and disposal of treasury stock － － (0) － － (0) － (0) Retirement of treasury stock － (390,094) 390,094 － － － － － Transfer from retained earnings to capital surplus － 390,094 － (390,094) － － － － Changes due to business combination － － － － － － 314 314 Changes in ownership interests in subsidiaries － (413) － － － (413) 2,878 2,465 Other － (201) 335 (56) － 78 (6) 72 Total transactions with owners and other transactions － (614) 390,429 (541,191) (1,325) (152,701) (23,538) (176,239) Balance at June 30, 2026 141,852 257,013 (431,645) 5,061,259 98,619 5,127,098 519,180 5,646,278 (4) Condensed Quarterly Consolidated Statement of Changes in Equity For the three-month period ended June 30, 2025 For the three-month period ended June 30, 2026 - 10 -
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(yen in millions) Three Months Ended June 30, 2025 June 30, 2026 Cash flows from operating activities Profit for the period before income tax 256,704 308,466 Depreciation and amortization 171,383 173,632 Impairment losses 53 － Loss allowance 126 (931) Share of (profit) loss of investments accounted for using the equity method (9,500) (11,365) Loss (gain) on sales of non-current assets (2) (15) Interest and dividend income (3,869) (3,382) Interest expenses 5,642 10,307 (Increase) decrease in trade and other receivables 68,604 102,251 Increase (decrease) in trade and other payables (114,988) (127,719) (Increase) decrease in loans for financial business (403,494) 155,192 Increase (decrease) in deposits for financial business 212,596 93,763 Increase (decrease) in borrowings for financial business 360,000 (664,000) (Increase) decrease in Call loans (94,610) (30,559) Increase (decrease) in Call money (879) 127,282 Increase (decrease) in cash collateral received for securities lent 47,487 (2,728) (Increase) decrease in inventories 18,983 (12,138) (Increase) decrease in retirement benefit assets (179) 1,332 Increase (decrease) in retirement benefit liabilities 249 (1,196) Other (56,653) (70,089) Cash generated from operations 457,654 48,104 Interest and dividends received 44,834 19,998 Interest paid (6,320) (10,551) Income tax paid (165,069) (171,085) Net cash provided by (used in) operating activities 331,099 (113,535) (5) Condensed Quarterly Consolidated Statement of Cash Flows - 11 -
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(yen in millions) Three Months Ended June 30, 2025 June 30, 2026 Cash flows from investing activities Purchases of property, plant and equipment (88,255) (82,997) Proceeds from sales of property, plant and equipment 82 107 Purchases of intangible assets (66,291) (72,913) Purchases of securities for financial business (78,757) (54,592) Proceeds from sales and redemption of securities for financial business 12,522 50,939 Purchases of other financial assets (22,974) (21,645) Proceeds from sales and redemption of other financial assets 4,168 38,537 Payments for acquisition of subsidiaries (2,592) (92) Purchases of stocks of affiliates － (500) Proceeds from sales of stocks of subsidiaries and affiliates 1,198 － Payments for loss of control of subsidiaries － (507) Other (688) (716) Net cash provided by (used in) investing activities (241,588) (144,380) Cash flows from financing activities Net increase (decrease) of short-term borrowings 183,000 386,480 Net increase (decrease) of commercial papers 49,973 139,855 Payments from redemption of bonds and repayments of long-term borrowings (40,002) (82,002) Repayments of lease obligations (48,170) (51,472) Payments from purchase of subsidiaries’ equity from non-controlling interests (807) (862) Proceeds from stock issuance to non-controlling interests 6 5 Payments from purchase of treasury stock (4) (0) Cash dividends paid (148,370) (151,579) Cash dividends paid to non-controlling interests (40,816) (27,526) (Increase) decrease in deposits for purchasing treasury stock － (250,000) Other 46 (0) Net cash provided by (used in) financing activities (45,144) (37,100) Effect of exchange rate changes on cash and cash equivalents (2,036) 3,133 Net increase (decrease) in cash and cash equivalents 42,331 (291,881) Cash and cash equivalents at the beginning of the period 921,175 1,078,807 Cash and cash equivalents at the end of the period 963,507 786,926 - 12 -
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(6) Going Concern Assumption None (7) Notes to Condensed Quarterly Consolidated Financial Statements 1. Reporting Entity KDDI Corporation (“the Company”) was established as a limited company in accordance with Japanese Company Act. The location of the Company is Japan and the registered address of its headquarter is 2-3-2, Nishishinjuku, Shinjuku-ku, Tokyo, Japan. The Company’s condensed quarterly consolidated financial statements as of and for the three-month period ended June 30, 2026 comprise the Company and its consolidated subsidiaries (“the Group”) and the Group’s interests in associates and joint ventures. The Company is the ultimate parent company of the Group. The Group’s major business and activities are described in “(1) Outline of reportable segments” of “4. Segment Information.” 2. Basis of Preparation (1) Compliance of condensed quarterly consolidated financial statements with IFRSs The Group’s condensed quarterly consolidated financial statements have been prepared in accordance with Article 5, Paragraph 2 of the Standards for the Preparation of Quarterly Financial Statements of the Tokyo Stock Exchange (However, the omissions of statements defined in Article 5, Paragraph 5 of the Standards for the Preparation of Quarterly Financial Statements are applied.). The condensed quarterly consolidated financial statements, which do not contain all the information required in annual consolidated financial statements, should be read in conjunction with the annual consolidated financial statements for the previous fiscal year ended March 31, 2026. (2) Basis of measurement The Group’s condensed quarterly consolidated financial statements have been prepared under the historical cost basis except for the following significant items on the condensed quarterly consolidated statement of financial position: ・Derivative assets and derivative liabilities (measured at fair value) ・Financial assets or financial liabilities at fair value through profit or loss ・Financial assets at fair value through other comprehensive income ・Assets and liabilities related to defined benefit plan (measured at the present value of the defined benefit obligations, net of the fair value of the plan asset) (3) Presentation currency and unit of currency The Group’s condensed quarterly consolidated financial statements are presented in Japanese yen, which is the currency of the primary economic environment of the Company’s business activities, and are rounded to the nearest million yen. (4) Use of estimates and judgement The preparation of condensed quarterly consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. The estimates and assumptions are based on the management’s best judgments, through their evaluation of various factors that were considered reasonable as of the period-end, based on historical experience and by collecting available information. By the nature of the estimates or assumptions, however, actual results may differ from those estimates and assumptions. The estimates and assumptions are reviewed on an ongoing basis. The effect of adjusting accounting estimates is recognized in the fiscal year in which the estimates are adjusted and in the subsequent fiscal years. The judgments, estimates and assumptions that have significant impact on the amount in the condensed quarterly consolidated financial statements are consistent with those described in the annual consolidated financial statements for the previous fiscal year in principle. (5) Application of new standards and interpretations The Group doesn’t have material standards and interpretations applied from the three-month period ended June 30, 2026. (6) Standards not yet adopted The following is a list of newly established or revised standards and interpretations that have been disclosed prior to the approval date of the consolidated financial statements, but have not been early adopted by the Group. The impact on the - 13 -
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Standard The title of Standard Mandatory adoption (from the fiscal year beginning) To be adopted by the Group from Outline of new standards and amendments IFRS 18 Presentation and Disclosure in Financial Statements January 1, 2027 fiscal year ending March 31, 2028 The new standard that replaces IAS 1 on Presentation of Financial Statements and Disclosure in the current accounting standards consolidated financial statements of the Group is currently under evaluation. 3. Material Accounting Policies The principal accounting policies applied by the Group in the preparation of these quarterly consolidated financial statements are the same as the accounting policies applied in the preparation of the consolidated financial statements of the previous fiscal year. Income tax is calculated by applying the estimated average effective tax rate to profit for the period before income tax. In addition, the Company and some domestic consolidated subsidiaries have adopted the Group tax sharing system. - 14 -
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4. Segment Information (1) Outline of reportable segments The reportable segments of the Group are units of the Group of which separate financial information is available, and which are periodically monitored for the board of directors to determine the allocation of the business resources and evaluate the performance results. Beginning in the three-month period ended June 30, 2026, the Group reporting segments were reorganized from two reporting segments of “Personal” and “Business” to three reporting segments of “Telecom Core,” “Personal Growth,” and “Business Growth,” based on the allocation of management resources and their performance evaluation units in accordance with the management approach. Within the “Telecom Core,” telecom (Personal) and related domains and telecom (Business) and related domains are included due to the similarity of their economic characteristics. In the Telecom Core Segment, we provide personal and business customers with telecommunications and related services, including multi-brand telecommunications services under au, UQ, and povо, smartphone and mobile phone sales, and FTTH/CATV services. The Group promotes structural reforms that focus on Life Time Value (LTV) and pursue the stable growth of mobile revenue and operating income. Moreover, the Group will create investment funds for Group growth by using AI to enhance telecommunication quality and operational efficiency and by transforming into a leaner profit structure. In the Personal Growth Segment, we provide personal customers with non-telecommunications services, including finance, energy, device-related services such as mobile device repairs, and Ponta Pass/Lawson. To provide an AI-powered lifestyle support that aligns with customers’ needs in daily life, the Group integrates a diverse range of services, with telecommunications at the core, and create new experience value. In the fields of devices, Ponta Pass, and Lawson, in addition to finance and energy, the Group will accelerate initiatives aimed at creating new business models and strive to deploy overseas the knowledge and success models gained in Japan with the aim of achieving further growth. In the Business Growth Segment, we provide business customers with five business areas that support an AI-driven society, including AI integration, cybersecurity, connected services, datacenters, and AI-BPO. In the AI integration and cyber security fields, the Group accelerates growth by identifying AI utilization needs, regulatory changes, and other factors. In the connected services and data center fields, the Group aim to achieve both stable growth and a shift to high-value-added products as the next digital infrastructure. In AI-BPO, the Group will continue working to utilize AI to enhance customer experiences and transform corporate operations. As a result of this segment reorganization, the segment information for the three-month period ended June 30, 2025 has been presented based on the segment classification after this change. (2) Calculation method of revenue, income or loss, assets and other items by reportable segment Accounting treatment of reported business segments is consistent with “3. Material Accounting Policies.” Beginning in the three-month period ended June 30, 2026, income of reportable segments is calculated by excluding extraordinary gains and losses, as well as one-time gains and losses resulting from portfolio restructuring, from operating income. Accordingly, the figures for the three-month period ended June 30, 2025 have also been restated to exclude these items. Inter segment transaction price is determined by taking into consideration the price by arm’s length transactions or gross costs after price negotiation. Assets and liabilities are not allocated to reportable segments. - 15 -
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(yen in millions) Reportable segments Other*¹ Total Adjustment*² Consolidated Telecom core Personal growth Business growth Sub-total Revenue Revenue from external customers 1,026,674 241,951 118,855 1,387,479 28,255 1,415,734 － 1,415,734 Inter-segment revenue or transfers 21,200 16,732 28,956 66,888 31,224 98,112 (98,112) － Total 1,047,874 258,683 147,810 1,454,368 59,479 1,513,847 (98,112) 1,415,734 Segment income (Adjusted operating income) 176,317 50,773 15,180 242,270 17,809 260,079 (606) 259,473 Adjusted items － Operating income 259,473 Finance income (cost), net (3,636) Other non-operating profit (loss), net 866 Profit for the period before income tax 256,704 (yen in millions) Reportable segments Other*¹ Total Adjustment*² Consolidated Telecom core Personal growth Business growth Sub-total Revenue Revenue from external customers 1,064,511 261,177 133,435 1,459,123 28,193 1,487,316 － 1,487,316 Inter-segment revenue or transfers 19,160 19,643 31,717 70,520 30,581 101,101 (101,101) － Total 1,083,671 280,820 165,152 1,529,643 58,775 1,588,418 (101,101) 1,487,316 Segment income (Adjusted operating income) 210,706 55,491 18,453 284,650 29,869 314,519 (257) 314,262 Adjusted items (14) Operating income 314,248 Finance income (cost), net (5,689) Other non-operating profit (loss), net (93) Profit for the period before income tax 308,466 (3) Information related to the amount of revenue, income or loss and other items by reportable segment The Group’s segment information is as follows: For the three-month period ended June 30, 2025 For the three-month period ended June 30, 2026 *1. "Other" represents business segments that are not included in the reportable segments and includes construction and maintenance of facilities, among others. *2. Adjustment of segment income shows the elimination of inter-segment transactions. - 16 -