Kddi Corp Unsp/Adr

Thank you. Let me share with you the financial results for the third quarter of the fiscal year ending in March 2025. I will explain these four items today, as you can see. First, let me focus on the consolidated results. The third quarter cumulatively consolidated results for the FIA ending in March 2025 enjoyed a good progress in line with the full-year forecast. The left shows the operating revenue, which was 4,364.2 billion yen, up 2.3% year-on-year. The progress ratio was 75.6% versus the full-year forecast. The centre shows the operating income, which was 864.6 billion yen, up 2.0% year-on-year. The progress ratio was 77.9%. The right shows the net income with a progress ratio of 77.8%. Excluding a temporary impact due to reorganisation of subsidiaries and affiliates, it was plus 0.6% year-on-year. Next, let me explain factors for change in the consolidated operating income. The consolidated operating income grew with the steady increases of communications output revenues and main businesses such as finance, energy, and DX, as well as brisk performance of Lawson. From the left group, MVNO and Rakuten Roaming Revenues, were minus 12.2 billion yen year only. Multi-brand communications upper revenues were up 3.5 billion yen. Financial business and energy business combined were plus 12.6 billion yen. Lawson's equity method accounted income was up 18.2 billion yen. DX and business services segment were plus 12.3 billion yen. The income increased 16.9 billion yen by absorbing technology costs and an increase in sales promotion and advertising costs. Next. Next on personal services segment. First to... On total ARPU revenues, both communications and value-added ARPU revenues increased. The communications ARPU revenues up to the third quarter were plus 3.5 billion yen year-on-year. Value-added ARPU revenues was plus 27.9 billion yen year-on-year. As for the outlook for the fourth quarter communications ARPU revenue, we are forecasting an increase in revenue with new plans in Yuku Mobile and AU. Next, on smartphone... Subscriptions and churn rates. Please look at the left. The number of smartphone subscriptions, which is a growth foundation for upper revenues, has been steadily increasing. The right shows an increased mobility due to intensifying competition. While the multi-brand churn rate has increased, the EU churn rate has been maintained low. Next is about momentum. Please look at the left. Last November and December, we introduced a competitive competition Komi Komi Plan Plus in UQ mobile and Money Activity Plan Plus in AU under new topping in purple, where virtually 30 gigabytes can be used per month at the least expensive price in the industry. Moving to the right with these new plans, monthly net addition of the multi-brand idea has recovered the momentum since November. Concerning the total ARPU, we are maintaining an increasing trend for both communications and value-added ARPU. Please look at the right. Value-added ARPU increased mainly in finance and settlements, helped also by money activity plan. As for communications ARPU, by brand, it was plus 2.1% year-on-year in AU, plus 3.3% in UQ mobile. Both are growing. The migration from UQ Mobile to AU will have a steady increase of 1.5 times year-on-year. To expand TOTO APU, we'll be exercising synergy of communications times finance. Please look at the left. We have updated well-accepted money activity plan to be more attractive, making it easier to accumulate PONTA points. We aim to increase the ratio of unlimited plan and to foster utilization of value-added services while increasing the number of subscriptions. Please look at the right. We know from the track record that compared with other unlimited plans, AU money activity plan is effective in increasing the frequency of each financial service usage. With a more attractive AU Money Activity Plan Plus, we intend to further expand our customer base, accelerating the growth of AU Financial Group. Our collaborative initiatives with Lawson are also progressing. The left shows Ponder Pass, which has been well received since the launch in October. New acquisitions increased about 20% quarter on quarter. Customers using other carriers increasingly enrolled as Ponta Pass members. Pover Data Oasis has also been well received. Total 100,000 people are using it at more than 90% of Lawson stores. We are planning to start eSIM sales at all Lawson stores soon. Please look at the right. These initiatives are working, and the number of visitors to Lawson has been rising, contributing to the expansion of Lawson daily sales, which is plus 3.4% year on year. Lawson has a target of 30% reduction of store operations by 2030. It has started thinking about a target for daily sales to increase as well. We continue to strengthen collaborative initiatives for communications times convenience stores, realising the growth of the two companies. We'll continue to strengthen the networks. Last year, we achieved the number one in experiential quality in user experience evaluation by open signal. Please look at the left to further increase the communication quality. We started offering 5G SA service in all the sub-6 base station areas, utilizing the highest number of sub-6 base stations in Japan. In addition, as you can see in the right, we obtained a commercial license approval for direct-to-sale service DTC with the satellite completing preparation for service launch. From this spring, there will be more compatible devices. We aim to offer the service to about 2 million customers.

Next is on financial business. Left side, the customer base for our financial business is expanding steadily. AU Paycard exceeded 10 million members, and AU Jibun Bank's mortgage loan is also doing well, with cumulative loan amount exceeding 5 trillion yen, the fastest of any online bank. We are also working with Mitsubishi UFJ Financial Group to promote initiatives to utilize AI, as you see on the right side. In addition to developing finance specialized LLM and using it to propose financial services to customers, we will build a next generation remote customer service platform that utilizes convenience stores and other facilities to expand customer touchpoints for financial services and promote service reform. Next is on business services segment. Business services segment is expanding steadily, driven by growth area. Left side, year-to-date consolidated operating revenue for FY March 25 reached 1 trillion 12 billion yen, driven by 19.9% year-on-year growth in the growth area. iot related services are showing particularly strong growth in the growth area right side operating revenue was 122 billion yen up 20.8 percent year-on-year and the cumulative iot connections were up 22.2 percent year-on-year showing steady growth Next, let me explain Wacom Cross, a business platform for the AI era. At Wacom Cross, we are refining our strength by adding operational and security values on our communication and AI infrastructure. We will leverage these strengths to promote scaling of industrial DX solutions and AI utilization. Next is enhancing strength of Wacom Cross. As shown on the left, we deployed Connectin on a full scale in January 2025 by integrating communications into all products and services with our partners. we will expand Wacom Cross communications infrastructure and contribute to creating added value for our customers with our operational strengths. Right side, security becomes even more important in the era where communication and AI are integrated into all products and services. In order to strengthen our security business, we may lack a wholly owned subsidiary to integrate communication and security. We will support our customers' digitalization through these initiatives. Industry solution use cases are also increasing. Left side, in facility solutions aimed at digitalizing offices, we provide comprehensive services from interior to ICT infrastructure with group cooperation and partnering. there is a strong demand for integrated solutions with communications. And with inquiries from major e-commerce companies, our operating revenue for FY March 25 is growing steadily, up over 50% year on year. In order to achieve further growth, We will use the opening of Takanawa Gateway City, where our new headquarters will be relocated, as an opportunity to expand digitalization beyond our office to include buildings and entire towns using our own initiatives as a model case. Next is on AI utilization. Tama Data Center on the left began operating GPUs, and preparations to provide AI services are progressing steadily. In addition, to meet the growing demand for GPUs, we decided to introduce NVIDIA's latest GPU, which offers significantly higher performance than conventional GPUs at former Sakai plant site, which is scheduled to begin full-scale operation next fiscal year. We will make full use of this AI platform to accelerate our customers' digitalization cross. Next is on enhancing the power to connect. We are committed to developing future talent towards a society in which anyone can make their dreams a reality, which is our goal in KDDI Vision 2030. Specifically, we have held online instructions by professional soccer players, face-to-face interactions, and cashless school festivals at 100 schools to provide financial education to students. Furthermore, at the Osaka Kansai Expo, which will be held from April this year, Future City Pavilion will be providing visitors with experience of creating the future. Next is on MWC Barcelona 2025. Following on from last year, KDDI will exhibit from March 3rd to 6th. In addition to introducing our initiatives in communications and AI, retail tech, and mobility, we will also give a keynote speech on the first day of MWC. So please look forward to it. Toward KDDI Vision 2030, we have many initiatives coming up this year, including our new HQ relocation, next-generation convenience stores, and direct-to-sell service. We will further enhance the power to connect with AI to deliver exciting future vision. To realize the future society I've described so far, we need a high value-added economic circulation. As you know, thanks to various policies, pricing in Japan is considered to be among the lowest among the developed countries globally. In addition, telecom carriers are striving to create an environment with high connectivity quality through friendly competition. As the use of AI becomes commonplace in the future, the ICT industry will support it by responding to further traffic increases, disasters, and security measures. On the other hand, outsourcing costs to partners who build facilities and operation-related costs are rising, and we are being asked to negotiate fair transaction prices and pricing pass-through. We believe it is necessary to promote a virtuous economic cycle where we provide valuable services, including value-added services, to customers, receive payment in accordance with that value, and use it to further invest. We want to contribute to a virtuous cycle of economy supported by co-creation with such partners and the realization of sustainable future society. Lastly, today's summary. Consolidated results for the three quarters of FY March 25 are progressing in line with the full year forecasts. In addition to steady growth in major businesses, Lawson performs strongly. In personal services segment, total ARPU revenues increased steadily. New pricing plans are introduced for multi-brand, and both communications and value-added ARPU revenues are expected to grow. We will promote initiatives of communications and value-added services, such as financial services and Lawson, to generate synergy. In business services segment, growth area is expanding steadily, driving growth. In addition... We will strengthen communications, AI infrastructure, operations, and security, which support Wacom Cross. We will strengthen our initiatives for the future to achieve sustainable growth and enhance the power to connect with our partners in order to realize a sustainable society.

Thank you very much for your attention.

Ladies and gentlemen, thank you so much for waiting. We would like to start the second part, KDDI's change in president and representative director, CEO and executive officer. On this issue, TSE timely disclosure press release has just been made. It's also posted on the KDDI's website. Those of you who are at the venue, please refer to the handout. Let me introduce today's attendees. President, Representative Director, CEO, Takahashi Makoto. Director, Senior Managing Executive Officer, D. Matsuda Hiromichi. The two attendees, CEO Mr. Takahashi and Matsuda, will also express comments. Then Q&A and photo session will take place. Regarding online distribution, it will cover up to Q&A session. Mr. Takahashi, the floor is yours. Thank you. As you can see in the handout, today the board meeting was held, KTDA's board meeting was held, and as of April 1st, the current managing executive officer, Matsuda Hiromichi, will become the CEO and representative director as of April 1st. Rikari Matsuda, who will be the new president, as you can see currently, he is director and managing executive officer. He is also general manager of advancing business technology strategy division and overseeing business exploration and development division, as well as open innovation division. Do you know the environment surrounding the communications industry has been changing significantly In the communications, 5G as a core, it showed development centering of smartphones by going forward. We are now in the era of AI and DX. Communication is penetrating on everything with that. It is now changing the environment with exorbitant speed. If you look at the environment surrounding our lives, it's been said that the president of our company has been changing as the communication generation changes. With the growth of 5G, I served as the president for seven years. Now, if you look at the world, Beyond 5G, it's not 6G. It'll be the era of AI. So along that line, Regarding the person who will be driving the companies, this person has to be extensive experience in technology and someone who is not feeling hesitant vis-a-vis global partners and has to be able to build business. Now, Mr. Matsuda is well-versed in technology. He has also been very positively active in cutting-edge technology. He also has deep connections with global partners, which is a requirement. He is 53 years old. He is 10 years younger than I am. And I believe that he will be taking up boldly new business areas. And in the era of AI, I believe he is really the optimum person to lead the company. He is very suited to be the next president. Since I became president, about seven years have passed. I implemented two midterm management strategies. Now, current midterm strategy, while there are having rapid changes in the environment, it's been extended by one year. So the next year will be the final year for the current midterm strategy. Mr. Matsuda will be implementing steadily the final year of the current midterm management strategy. And starting from FY2026, the next mid-term management strategy will be devised by him. regarding the development of the next midterm strategy, I believe it's important that it's done so under the new management. That's why at this timing, I will pass the baton. I would like to thank you for your continued support for a long time, and I hope that you will give us your kind support to the new management system. Thank you very much.

next thank you very much mr matsuda if you could i am appointed as the president as of april 1st thank you very much I will receive the baton to manage the company from President Takahashi. I am humbled and motivated to take on this big responsibility. As shown in the introduction, I joined KDD in 1996 and have been engaged in the telecommunication business as an engineer. The company changed to KDDI in the year 2000. I built my career in the technology development of high-speed mobile internet and product development and fortunately was involved in 3G, 4G, 5G system launch from network and product development standpoint from 2021. Under President Takashi, I was in charge of new business and management strategy. I focused on understanding our portfolio, implementing satellite growth strategy, and explored and co-created business with our partners. Realizing partnership with Apple, Google, and Qualcomm, and SpaceX gave me a big confidence boost. As a promoter of cross functional data driven AI project, I worked on improving customers CX along with our internal system modernization. This was also an impressive moment. With the integration of communication and life design and satellite growth strategy promoted by President Takahashi, communication penetrated into the fundamentals of all industries, an initiative to add value and deliver them accelerated. The infrastructure for a virtual cycle that connects business growth and the resolution of social challenges was built. I will receive this baton and ensure sustainable growth. 5G is maturing and era to fully leverage AI is starting. Our rare and proprietary digital data asset will be the driver to create new value with cutting edge AI. Through such integration, we will upgrade our power to connect to a new level and crystallize it to our business. That is my responsibility. Despite radical social changes, we will always be customer oriented and deliver excitement that exceed expectation. And because we are in a volatile era, I will embrace KDDI philosophy and corporate philosophy as an unwavering value and keep progressing with challenger spirit. I ask you for your warm guidance and support

Thank you very much.

Now we'd like to entertain your questions. We will be accepting questions both from the venue and Zoom webinar. When you ask a question, please identify yourself by your name and affiliation. Please limit the number of questions to two questions per person. If you have two questions, please wait for the answer to your first question and then ask the second question. Those of you who have questions at the venue, please raise your hand. On Zoom webinar, please push the raise hand button. At the venue, the front line, please. My name is Mizushima. Kind of a soft question. Mr. Matsuda, your personality. I have a question about your personality. your strength, your weaknesses, how they are analyzed. Now, Mr. Takahashi, about Mr. Matsuda's personality, what are the things that you appreciate about him? Second question, Mr. Matsuda, any Maxim slogan that you cherish, or sorry to say this, any hobbies that you enjoy? Thank you for your questions. First of all, my personality. Since I joined the company, technology has been my core. I started as an engineer and then product planning, marketing. Around technology, I built my experience. I think That's something that can be described as my experiential value. That said, my strengths and weaknesses, the ones that I like, that I'm good at, including external partners with various partners, having a good conversation and explore win-win points and being tenacious in those activities. I think that has been appreciated. Having said that, regarding what I'm not really good at, well, as a new member of the top management team, I'd like to really work on that. Personality. He's an engineer and he's pretty stoic in his efforts. I think that's one of his attitude, but he's an engineer, but when there's something new, he has pioneering spirit. Maybe it's not really about personality, but in terms of his attitude, that's something that I could really see. As I said, having a global perspective and with global partners, you have to communicate with those global partners. I mean, as a company, that's something so important. And I could really see that in him. And that's why I've decided this. And Maxim's slogan, Different people have different motives, but including this kind of a meeting, you have to be thoroughly prepared, thoroughly prepared, meticulous, and also you have to be preemptive. Then you can win. I love all those words. And you have to be exhaustive in preparation because opportunities prefer people who are thoroughly prepared. You don't know what comes next, but...

you always be fully prepared and then you can really enjoy opportunities so this is something that i like thank you very much next question please line c front row please at the center free writer sano is my name thank you i have two questions so mr matsuda So there are new technologies. You've been engaging in new technologies. So what is your most interested technology? What is the area that you're most curious about? On the other hand, after 5G, it is AI, not 6G, but AI, President Takashi said. So the communication is the core of the business, that's for sure. But the market competition is severe. So there are severe environments. So what is your view on communication? Thank you very much for the question. I've been working on communication as an engineer all along. And so I have strong passion on telecommunication. On that basis, which field are we going to venture out to? Our strength, our characteristic is we go from basic research to applied research. We have this good cycle, positive cycle. So what we have now, we had the green shoot three to five years ago. And so identifying them. We have to look three to five years down the road in the research we are conducting now. So the radar of the technology is honed. Some come out of our own research, but also from co-creation with startups. So those are what we look at in technology. And second point, related to the first one, technology, communication. So following 5G will be AI technology. it's important to combine with AI, how 5g can evolve with AI, that is our key theme. So on the extension of that, it will evolve as a network.

Thank you. If you have a question, please raise your hand. At the venue B, frontline. Closer to the MC, please.

Freelance Koyama. You mentioned communications, but as a recent business, collaboration with the settlements, with financial businesses, and you described yourself as an engineer about financial settlements payments. What is your take on this? Thank you. satellite growth strategy that we have, the center, communication, and then finance, energy, many things around that. And then you have to implant technology in everything. It can be our technology or technology from outside can be applied. So energy-related technology, finance-related technology. We have to closely monitor those. In that sense, more recently, In some cases, we were early, but blockchain web three, those technology, how will they will be connected to fintech?

We are closely monitoring that.

Next question, please. If you could raise your hand. Row B, at the very back, please. Diamond Murai is my name. Earlier, President Takahashi said the reason of choosing Mr. Matsuda about his skills and technology, but in the next era of AI, the power to build relationship with partners you've mentioned. So if you could elaborate on that. in Matsuda-san's track record. What kind of track record does he have with the global partners like Apple and Google and SpaceX? So what part did you think was, did you appreciate Apple and Google? I think it's after the smartphone era. So in partnership building, do you have any particular event or thing you can share with us? So KDDI's global partner, as you said, Google and Apple, Qualcomm, Starlink. These discussions were mostly done by Matsuda-san, so that is a good, strong track record. Recently, Starlink. The first, I did do some initial exploration, but he did most of the rest of the process. He is fluent in language. And talking with the AI people, they're all young. Sam Altman, he is 39 years old. I am 63. And I'm studying hard on AI. Son San is a different animal or a different person. He is in a whole different world, but hyperscalers... To work with hyperscalers, you need to be young and have global skills and sense. And I think Matsuda-san is strong in that. And so I thought he was the most appropriate. My recent impression of him is Starlink. That was a big contribution. Please. So before entering the smartphone era, The international standardization was important. It's still important, but the spectrum, frequency, where to compromise. The key point, focus of the negotiation was something I learned. And now we enter the smartphone era. The most impressive point is iPhone 4S introduction and the LTE initial model. First LTE model, iPhone 5. We struggled with frequency, the negotiation with the counterpart, and internal work. We had to work as one team to follow through. And this is what I felt strongly as I negotiated with external partners and also collaborated with the internal members, internal team. One more point. so president is changing so people person chooses person and so i'm asking a pretty deep question but matsuda-san so president takahashi when did you start thinking of and decided to choose matsuda-san and when did you convey the message to matsuda-san if you could give me some history When we thought of the succession plan as of last year, there were multiple candidates in my mind and discussed with the outside directors. discussed with outside directors and had a good thorough study for one year. And around the fall, we narrowed down and went to the nomination committee. And at the end of the year, we made the rough decision and official decision today.

So to Matsuda-san,

it had to be finally decided in the nomination advisory committee but i in november i think i told matsuda-san that it will be you if the nomination advisory committee approves matsuda-san how did you receive that message what did you feel i remember very well i was called into the president's office And the pending was AI data center progress. That was the pending issue. And so I thought that will be the question. And so that's what I thought entering the room and heard that I was going to be nominated to the nomination advisory committee. How did you feel? Honestly, I was petrified. I could not react, really.

Thank you. If you have a question, please raise your hand. A second from the front, please. Nikkei Business. Sugiyama is my name. First question, communication quality concerning the efforts beyond 5G. This is going to be era of AI, but on the one hand, you have been working on communication quality, open signal. Other companies are trying to get better score and regarding your confidence or thoroughly prepared and you have been so careful in all the preparation. What's your comment? Thank you. Concerning the communication quality, open signal, that's one indicator that we look at as a kind of a yardstick or KPI. But in principle, high quality communication must be delivered to customers. That has been our essential attitude regarding our confidence. We have the spectrum frequency. How are we going to combine them and to use them? Or a new technology for spectrum, including that, how are we going to use this? And just like this. This time what we're doing, how to use this satellite in an integrated manner, how to offer this service, that's very important for spending a long time. We have been strategically developing them, and they are working out pretty well, as you heard. D2C is something we're going to see going forward, and we want to be preemptive. We want to be ahead of peers. Not 6G, but the next will be the era of AI. Maybe you are adhering to that. But we had a meeting amongst executive officers in the past to download speed of communication, latency. Those are the things we're concerned about. But going forward... Assuming the AI utilization, then what's the latency? That's important. Not just communication. Beyond that, obviously, AI, LLM, and then the latency, including using all those services. So you can't just focus on communication, including usage of AI. Comprehensive quality matters. So in that sense, I meant to say that next will be the era of AI. I just would like to apologize if my explanation hasn't been really enough. May I ask you the second question? AI data center was mentioned before. Matsuda-san, you have been engaged in the cutting edge technology. Combination of AI and communication is something that you have talked about already. SoftBank, so sorry to talk about the different company, is AI and base stations integrating them. It's easy to see, but as KTTI, communication times AI, regarding that integration, specifically what are the things that you envisage or AI data centers, how are you going to utilize them? Thank you. Communication AI integration, how to go about them. There are several ways to look at this. On our part, communication operation that we have been doing, enhancing it with AI, that's one thing. And teleco AI, it's something that we have to do thoroughly. Now, for AI or When AI is inevitably using resources, communication, and in other things, how are we going to apply them? In parallel, we are looking at this. Now, AI data center is another thing. linking them to business is something that I said, because digital data, as since we have digital data, generative AI can be fully utilised. So to do that AI data centre, it's something that we want to have as a foundation.

Next question, please. So row D, second from the front, please. Nikkei newspaper, Sakuragi is my name. Thank you. I have two questions. First is question to Matsuda-san. From the beginning of KDDI, it's been 25 years. So what kind of company do you want to make KDDI into, Mr. Matsuda? Thank you for the question. As I said earlier, I joined the company in 1996 and became KDDI in the year 2000. And it's been 25 years. Our vision is 2030. Vision 2030. So power to connect. We are connecting with many things. We want to focus on connecting. So we want to enhance the power to connect so that anyone can realize their dreams. When I talk with the outside overseas counterpart, I feel that Japan is respected quite a bit. We talked about societal challenges. we are the advanced country in social issues and therefore we have our kddi specific value creation and resolution and solutions and in the future we want to use the use cases to contribute to the overseas side we are the advanced nation of social challenges so we want to create value and solutions and contribute to the world going forward thank you very much my second question is also to matsuda-san so you've been an engineer for a very long time So what was the trigger that led you to be interested in engineering? I often hear about the Expo. What did you see? What were you impressed? Thank you. I think you remember me talking about this once. When I was in junior high school, Tsukuba Science Expo was held, and I was in Yamaguchi. I took the blue train and came all the way to Tsukuba, and the view I saw there was... I went to the Japanese company's booth, and I still remember... I had this at home, NEC's CNC Pavilion, this Plamont model. And I talked with Kyocera. They have this mysterious science kit, a marvelous science kit. It was this shape memory alloy. They delivered the samples. And I got that. And that's what led me to be interested in science and technology. This year, Osaka Kansai Expo is held, and we are working with Hitachi, and we'll do an exhibition. I hope the children, the future talent, will come and become interested in science from my own experience. Thank you.

Next question. If you have a question, please raise your hand. B, front line around the center, please. Freelance Ishikawa. First, Takahashi-san, I have one question for you. Looking back seven years, anything that you really feel proud about yourself? Seven years? I mean, just time flew. So many things have happened. Oh, so many, many things have happened. When I became president in Hokkaido, there was that earthquake in Hokkaido last year, and in Noto earthquake, there are many disasters, and we were hit by COVID-19. We experienced so many things. What impressed me most, let's see, that communication, failure for that lasted for quite a long time we caused so much trouble we felt sorry and with our group of engineers we want to be number one in our network service in at open signal we were able to achieve number one and the engineers have worked so hard that was really gratifying 2030 vision, as Matsuda-san mentioned, this evolution of the power to connect, that's something that we would like to continue. And I was able to sort of create the base, which was good. In addition, integration of life design with communication, we launched that. Population is decreasing. Communication will be penetrating everything with that assumption on various industries, expanding the business. I believe that I was able to build that vision foundation, we need to enter into many industries. I contributed to creating that foundation. Matsuda-san, another question. Looking back, Apple, Google events, as I interviewed them, you were standing right next to Mr. Takahashi. As I look back, in doing the work together with partners, How are you planning to present to KDDI? So from Apple's, there are four carriers in Japan. KDDI is one of them. But to Apple, how to sort of ingratiate yourself with Apple in terms how to build such good relations with partners? Thank you. To a certain extent, it's case by case. But you just decided Apple as an example. In principle, we're standing on the same arena. It's like a beauty pageant. How can we present our contributions? But in areas where we're not really standing on the same field, here in Japan, we have assets. with new technology, what those partners have, how we can enhance them, how we can evolve them. And in that area, they can acknowledge, appreciate our values. We can find a win-win. So there are two ways. Depending on the time axis, it'll be different, but I would like to be mindful of that together with new partners. I would like to build relationships with them.

Thank you very much. Next questioner, please. Row C, second from the front, closer to the moderator. Yes, freelance, Ishino is my name. First question is to Matsuda-san. So now in the communication, the customer acquisition is now becoming more severe data volume is raised and prices reduced. How do you see this? And what is your plan going forward? Are you focusing on that additions? Or are you broadening the competition framework, the arena? Thank you very much. Of course, we need to first address the current competition and think of how I want to bring this going forward. So two perspectives. We should not just focus on ID, number of IDs, but it's important to have this being used by our customers. But at the same time, we need, we have the competition to raise the momentum. So I need to think of this in two axis. Second question is to Mr. Takahashi. You will become the chairman. What is your plan as a chairman? Next fiscal year is the final year of the current MTMP medium term plan. And so this will be in the hands of Mr. Matsuda and his team. I will support that. So I will thoroughly support that. And fortunately, NTT law is now settling. So The government and the business circle discussion is another area that I will keep being involved in. And we've been working on startups. So I want to also be involved in that. I want to energize Japan. And so I hope I can support externally and internally.

Next, from online participants, we would like to entertain your questions. Nishida-san, unmute yourself. Please express your question brighter. My name is Nishida. Can you hear me? Yes. First question to Matsuda-san. Being thoroughly prepared, you like that expression. To be thoroughly prepared, Any particular areas that you would like to look at? Of course, communication, then AI, but areas that you must really work on? What are the areas you feel that you must address? Thank you. This is a very difficult question. In terms of technology, We need to be discerning, for instance, amongst the technology we have, something like paradigm shift. IT devices, the generalized ones, are now available. That's the kind of era we find ourselves in. So regarding engineering resources or engineering skills, what kind of skills will actually work out, looking at the next future. We need to really look at the tide, change in the tide in technology. So being thoroughly prepared. So it's a package with being preemptive. You have to have foresight. So changes and disruption, how they will take place, we have to really be monitoring that. Thank you. Second question, Takahashi-san. Since you are mindful of succession, what are the things that you regarded as kind of issues? What are the things that you wanted to left behind? Well, as I said before, let's see. 54 years old, who became the chairman, and I was 56. But now I wanted to make the next president much younger than those. Regarding the company itself, I would like to rejuvenate the company. So again, from your perspective, especially consumers, persons in charge of consumers, they have become younger. So based on that assumption, I came up with the succession planning. A satellite growth strategy is something we have been working on. This strategy itself is a driver for sustainable growth of KDDI. As Matsuda-san mentioned, we have to be insightful. We need to have foresight so that we can take up new challenges, He and I have been talking about this all the while. So with that as kind of something that I leave behind, I hope that he will make a contribution for sustainable growth of KDDI. I hope I answered your question.

Thank you. Time is coming up, so we will take one more question from this venue. Please raise your hand if you have any questions. Row C, first person, please. is my name. Thank you. I have a question to you, President Takahashi. So you did some look back. So if you focus on 5G, you said that the communication failure the outage was impressive and this led to your current achievement in open signal as kddi in terms of 5g you handled this well and you came this far so kddi's perspective and the 5g status in japan if you look at these two In your term as president, what do you see? How do you summarize? The telecom operators are all working very hard. As I said earlier, the pricing have been reduced. We are now around 50%, half of the U.S., And the other countries are now raising prices. And under such circumstances, we are trying to improve the facility efficiency and invest it in 5G. So we are competing harshly under OpenSignal, SoftBank, and Docomo, and us. We are trying to look at the specification to improve 5G, so we have a great, magnificent achievement in 5G. Some say that we do not have enough use cases in 5G. That is not the case at all. Traffic is growing at a rapid speed, even at the interest level. So it's 10 to 20% growth every year. Starting this April, centering on YouTube, we're seeing an enormous speed. So now use case is becoming evident. Latency and SA will become more important. And in the AI era, We need to convey this to the AI. And I think the 5G foundation is now well built. So this will be succeeded by Mr. Matsuda. I think friendly rivalry in this industry will lead to good results in 5G and 6G. So I think this is something I can be proud of. We did well. thank you second question may be a difficult one but to mr batza in your future business especially in consumer business what is your plan we have the economic zone and 5g smartphone initiatives So I know it's a difficult question, but how will consumer and KDDI be involved with each other? And how do you plan to grow this area going forward? Thank you. Consumer personal services segment. I was there last year. So I understand the structure. Going forward, In our medium-term management plan, we have a plan under our strategy. So following through with that will lead to the expansion of the economic zone and the enhancement of the communications. Now, beyond that, consumers, general consumers, we need to research and understand them. It's a very important element in our next medium term plan. So I would like to have another opportunity to talk about that soon. At the beginning of April, he will do the inaugural speech, talk about his plan. So please look forward to that.

Since it's time, we would like to conclude the questions and answered session. Concerning the online and distribution, again, we would like to conclude the session. Mr. Takahashi, Mr. Matsuda, please stand up. Despite the last minute change, thank you so much for joining us both virtually and physically. We appreciate your kind participation. Thank you for waiting. We now would like to start a meeting on KDDI financial results of the third quarter for the fiscal year ending March 2025, followed by the Q&A session. Thank you for joining us out of your busy schedules. So at the 11th hour, the starting time has been changed. We would like to apologise for that. I'm EMC Miagawa from IR department. This meeting is broadcast live on the internet with Japanese and English simultaneous translation. Please be advised that the meeting will be later made available on our website for on-demand distribution. Let me introduce today's attendees. Senior Managing Executive Officer, Executive Director, Business Solutions Sector, Kuwahara. Managing Executive Officer, Director, CDO, Executive Director, Advanced Business Technology Sector, Matsuda. Managing Executive Officer, CFO, Executive Director, Corporate Sector, Saishoji. Managing Executive Officer, Executive Director, Personal Business Sector, Takezawa. Executive Officer, Executive Director, Corporate Management Division, Corporate Sector, Akita. Five items uploaded on our IR website, three related business results, presentation, and detailed materials. Please read the disclaimer in each document about what is listed in the material, our performance, including what will be shared during the questions and answers and subscription targets. Managing Executive Director Saishoji will brief you on the summary of the business results followed by the questions and answers session. The floor is yours. Thank you for viewing the business results meeting out of your busy schedules. Let me explain main points of the business results of the third quarter for the fiscal year ending in March 2025 before the Q&A session. The third quarter cumulative consolidated results for the fiscal year ending in March 2025 enjoyed a good progress in line with full year forecast. The left shows the operating revenue, which was 4,364,200,000 yen, up 2.3% year-on-year. The progress ratio... versus the full-year forecast was 75.6%. The centre shows the operating income, which was 864.6 billion yen, up 2.0% year-on-year. The progress ratio was 77.9%. The right shows the net income with a progress ratio of 77.8%, excluding a temporary impact due to reorganisation of subsidiaries and affiliates. It was plus 0.6% year on year. Next, let me explain factors for change in the consolidated operating income. The consolidated operating income grew with steady increases of communications upper revenues and main businesses such as finance, energy and DX, as well as brisk performance of Lawson. From the left, group MVNO and Rakuten roaming revenues were minus 12.2 billion yen year-on-year. Multi-brand communications upper revenues were up 3.5 billion yen. Finato business and energy business combined were plus 12.6 billion yen. Lawson's equity method accounted income was up 18.2 billion yen. DX and business services segment were plus 12.3 billion yen. The income increased 16.9 billion yen by absorbing technology cost and an increase in sales, promotion, advertising costs. On total upper revenues, both communications and value-added upper revenues increased. Communications upper revenues up to the third quarter were plus 3.5 billion yen year-on-year. Value-added upper revenue was plus 27.9 billion yen year-on-year. As for the outlook for the fourth quarter communications upper revenue, we are forecasting an increase in revenue with new plans in UQ Mobile and AU. Next is about momentum. Please look at the left. Last November and December, we introduced a competitive Komi Komi Plan Plus in UQ Mobile, a money activity plan plus in AU, and a new topping in Povo, where 30 gigabytes can be used per month at the least expensive price in the industry. Moving to the right, with these new plans, monthly net addition of the multi-brand ID has recovered the momentum since November.

In total ARPU, both communication and value added ARPU are maintaining an uptrend. Value-added ARPU on the right grew mainly in settlement and loans thanks in part to the effect of the money activity plan. Communications ARPU by brand was up 2.1% year-on-year for AU and up 3.3% for UQ Mobile. Both brands are growing. In addition, the number of migration from UQ Mobile to AU is increasing steadily by 1.5 times year-on-year. Our collaboration with Lawson is also progressing. As shown on the left, Ponta Pass has been well received with new acquisitions increasing by about 20% quarter-on-quarter since its launch in October, and enrollments from users of other carriers are also increasing. Povo Data Oasis is also popular, used by 100,000 people in total at over 90% of Lawson stores. eSIM sales are scheduled to start soon at all Lawson stores. Right side, these successful initiatives are leading to the increase in number of customers visiting Lawson stores and contributing to Lawson's daily sales increase by 3.4% year-on-year. Lawson is considering a goal of 30% reduction in store operations by 2030 and increase in daily sales. We will continue to promote collaborative initiatives between communications and convenience stores to achieve growth for both KTDI and Lawson. Next is on business services segment. Business services segment is expanding steadily, driven by growth area. Left side. Year-to-date consolidated operating revenue for FY March 25 reached 1 trillion 12 billion yen, driven by 19.9% year-on-year growth in the growth area. IoT-related services are showing particularly strong growth in the growth area. Right side, operating revenue was 122 billion yen, up 20.8% year-on-year, and the cumulative IoT connections were up 22.2% year-on-year, showing steady growth. Next is on AI utilization. TAMA Data Center on the left begun operating GPUs, and preparations to provide AI services are progressing steadily. In addition, to meet the growing demand for GPUs, we decided to introduce NVIDIA's latest GPU, which offers significantly higher performance than conventional GPUs at former Sakai plant site, which is scheduled to begin full-scale operations next year. We will make full use of this AI platform to accelerate our customers' digitalization through Wacom Cross. Lastly, today's summary. Consolidated results for the three quarters of FY March 25 are progressing in line with the full year forecasts. In personal services segment, total ARPU revenues increased steadily. New pricing plans are introduced for multi-brand and both communications and value-added ARPU revenues are expected to grow. We will promote initiatives of communications and value-added services such as financial services and Lawson to generate synergy. In business services segment, growth area is expanding steadily, driving growth. In addition, we will strengthen communications, AI, infrastructure, operations, and security which support Wacom Cross. We will strengthen our initiatives for the future to achieve sustainable growth and enhance the power to connect with our partners in order to realize a sustainable society. Thank you very much for your attention. Thank you. We will have a Q&A session.

Ms. Saishoji, thank you. Now we would like to entertain your questions. If you have a question, Please press the raise hand button in Zoom or raise hand button in the reaction when you are invited. After listening to the MC making an announcement of your name and affiliation, unmute yourself and raise a question. To allow as many of you as possible to pose questions, I would like to limit your questions to two per person. If you have two questions, wait for the answer to your first question and then raise the second question. When your name and affiliation are not listed, even when you raise your hand, we cannot invite you to ask a question. Now we will entertain your questions until the end of the session. Diver Securities, Tokunaga-san, please unmute yourself. Can you hear me? Tokunaga from Diver Securities. Mr. Tokunaga, connection is a little bad. To Mr. Matsuda, the new CEO, two questions. First, it was the era of AI about the efforts in the press conference, the preparation for the new era with AI. You mentioned that. on AI in terms of absolute amount of investment compared with other two carriers is relatively low. So towards the era of AI, Sakai will be operating. So are you planning to really step on the accelerator or on the convention Rather than investment, are you thinking of efficient investment regarding efforts towards the era of AI, please? Thank you for your question. Regarding our efforts towards the era of AI, Matsuda will answer your question. Thank you for your question. 100 billion yen, spending 100 billion yen. Large-scale computational resources will be built. We already made that announcement. Regarding the scale of this, You might be questioning that regarding the future of AI, using AI, utilizing AI and including operation. Without doubt, it will be utilized. But to what extent do we want to do so? We haven't changed our thinking. You might call us cautious or... I mean, various kinds of new AI technology are emerging, so we would like to first look at them carefully and then decide to make an investment. So, first, AI data centres are being built, and towards that end, we have been making efforts. Thank you. Second question, about the life design, about communication into the life design. Under the new top management system, focal areas in the life design, what will be banking, energy, you have strength, are you planning to improve upon them or will it be more or less focusing on what you are lacking? AI investment, life design investment, regarding the balance between the two, could you share that with us? Thank you for your question. Life design. Going forward, what will be our direction? Again, Matsuda will answer your question. Thank you for your question. In principle, regarding our line of thinking, first, mid-term management strategy, I mean the current plan. We want to really implement the current plan in the next term. without many changes as orbit one. Finance, energy, and DX will be focusing on these. And beyond that, concerning the next midterm management plan, with the new management system, we would like to study them. Where can we find the green shoots of the new businesses? We would like to look at them and then devise the plan. Thank you.

Thank you very much, Mr. Tokunaga. We will take the next question. Please use the raise hand button of Zoom. SMBC Nikko Securities, Kikuchi-san, please tap the unmute button. This is Kikuchi speaking. Thank you very much for today. I have two questions. First is on the Q3 financial results. Lawson profit is growing significantly. So from your perspective, where do we stand? And what do you think will happen from Q4 onward? And in others, the waterfall chart, SG&A and advertisement and promotion, I don't know if the same definition can be applied, but Q3, compared to Q1 and Q2, Q3 is higher. as a cost, expenses. Any extraordinary items? What will happen from Q4 onward? I'm sorry, I have two questions in my first question. So Q3, financial results. That's my first question. Thank you for the question. So including Lawson, personal services segment is the question. So Takezawa will answer the question. Thank you for the question. So first, status of Lawson. So as we announced this time, it is very strong. The other day, Lawson talked about their financial results year to date. three-quarter results, which they say is trending very strongly. And related to that, the SG&A and advertisement promotion is growing because when we joined hands with Lawson, Ponta Pass and the Money Activity Plant, Preferential Point, We pursued these simultaneously. And so with that backup, as mentioned at the presentation, the customer referral to Lawson and the increase in daily sales were realized. And that leads leading to strong results in Lawson and an increased cost on our part. In addition, in Q3, The competition intensified with our competitors, and so our UQ Komi Komi Plus and Money Activity Plan Plus. To launch these plans, we had to increase our sales promotion cost to ramp up the launch. From Q4 onward and towards Q4, In order to secure our momentum, we will continue making necessary investments, but this will be the end of the fiscal year, so we will try to avoid excessive investment and control well. Thank you very much. Thank you. And a related question. Under the new telecom business law, I don't think he will take the lead in introducing the trial discount, but of course no impact on Q3 and the impact on Q4 is also unlikely. Thank you very much. So the trial discount. The carriers have not made any move. And in Q4, even if that happens, we will watch the other competitors move and the impact thereof and study the implementation of this discount. But at the same time, towards the end of the fiscal year, the carriers are now launching various campaigns including ourselves. And so the return to our users are included in the campaign. So rather than trial discount, we are focusing on implementing the measures thoroughly. Thank you very much. Thank you. Sorry I asked you many questions. My second question is maybe this cannot be answered yet, but Matsuda-san? So technological aspects, information have been provided to us from the past. So business management or finance matters, we've not heard from you much. It's not the plan going forward, but we want to know what kind of financial view you have. the shareholder return is maintained by an entity. And SoftBank, OpenAI, maybe they have to fill the losses. So maybe they have to use money. In your case, you have a well-balanced stance. You will not push yourself too much in financing and not too much debt, not much leverage, and the shareholder return will be reasonable. So which direction are you trying to move into? We in the stock market is trying to watch you closely. So, Matsuda-san, in terms of investment, will you do some upfront investment for the future growth in the AIEA era? So you will expand the investment or have a well-balanced manner or shareholder return, shareholder return oriented. It's okay if you change your mind six months down the road. What do you think at this point in time? So Matsuda-san will answer. Thank you very much.

So in leading the company going forward, we want new business.

Include new seeds for business. Include them as an engine in the business and scale up. So the growth investment for new business fields will be pursued, but we need to have discerning eyes. We have to ascertain well. So we may seem cautious, but we will focus on new things, but of course in a well-balanced manner. So we will try to strike the right balance as we move forward. So, of course, we will focus on the new areas to build our business for the future. Thank you very much. So you are younger than President Maeda of Docomo, so I have high expectations for you. Thank you very much.

Ms. Tsukikuchi, thank you. Next question, please. If you have a question, please tap the raise hand button on the Zoom. Next question, Nomura Securities. Mr. Matsuno, please unmute yourself. First question to you, Mr. Matsuda. 2000 KTDI was born, borrowing 2 trillion yen. Matsuda-san, from KTDI to KTDI, you joined the company, you perhaps were concerned, but then there came 3G, and then fixed price system was introduced. KDDI enjoyed such a great leap, and now You are where you are. Look back five years, 500 billion yen sales increase. You can say that it was as much as 500 billion yen, or just only 500 billion yen. Now in the next five years, unless the revenues go up, the company cannot really grow. So 500 billion yen to increase the sales by that much. Just like the past, I think that would be the very minimum you will be doing. organic, non-organic, both included, going beyond the 500 billion yen would be rather difficult, business-wise, engineering-wise, financing-wise, including all these things. What would be the scale of expansion of company, expansion of sales? What kind of image do you have? Thank you for your question. Sales growth related question. Matsuzawa will answer your question. Thank you. At this moment, as a company, it's not really what the company wants to do. I think you asked me what I would like to do. Naturally, top line needs to be increased. Regarding where, that's the question. If you look back, could have been the new technology, new trend, and there are new changes with the smartphone, Apple increased, that's one. We have to look at where the tide goes and then have to incorporate that, and that's where we will be focusing on. As for the next step, for the next growth, where do we want to find that? Obviously, sometimes we believe we are strong in this area or that area. But as we have communication with people from the external area, then perhaps objectively, we can find out where we are strong. Just as an example, with Lawson, we are now working with an increase of touch points, for instance, and data generated from the increased touch points. Those are really huge. Full utilization of generative AI is something that I talked about. Towards that end... we still have a lot of room for further growth. So, objectively, looking at us, where our strengths are, combining that with new technology, AI, and commercialize those businesses, and then we would like to make sure that we can grow our top line. Thank you. Second question. Business results. Corporate. Kuwahara-san, I have a question. When you look at the quarter-on-quarter results, data centre sales, more or less flat. Now, if I look at BPO quarter-on-quarter, compared with one year, it's flat. And full-on year, under the fourth quarter, you would have to really work hard to achieve the full-year results. What's the background? Perhaps I'm sure that you came up with some measures from the last year, but what are the recovery measures you are implementing now? Could you elaborate on those? Thank you for your question. Business services, performance, current situation and background. Kuwahara will address your question. Thank you for your question. First of all, third quarter growth was not really powerful. You are right in pointing that out. DEX market, what's happening in the market? Let me share that with you. Including bonus, the DEX market is decreasing or the demand is becoming weak. No, that's not the case. DX and also the one-time payment type of projects, they have been increasing. If you look at the number of projects that's increased by 1.7 times in terms of amount, it has increased by 1.3 times. The growth was lacking strength. Where we misinterpreted was the following. This time, we were focusing on buildings, facilities solutions. Within the building, for instance, RAM, Wi-Fi, security, or interior furniture, we take the kind of a packaged Business, there is a high demand if you look at the number of such cases and also the amount growth. Quite a lot of weight comes from those services. Building, of course, is related to building. If you look at the delivery time, this lead time is much longer. And that's why the result is postponed. And they're having so much increase in the projects. A lot of operation is needed. And that was rather unexpected. So that was another major factor. As Masunosan said, the data center flat BBO is actually deteriorating regarding those Let me address those concerning BPO. When we devised a plan, at the time, such a huge growth, innovation of AI was not incorporated in our plan. For existing customers, call centers, for instance, something like chatbot, They increasing digitally and no operators are necessary. And that's really moving far ahead of expected VPO digitalization. Those are the things that we said and we've been working this. Existing users, promoting digitalisation in principle. It might go down a little, but new customers in this digital business, by acquiring them, we wanted to expand them. But the sales expansion progress has been rather lagging behind concerning BPO other than call centres, related corporate businesses. BPO, that's really outsourcing. To do such businesses, well, that's what we had in mind. But again, they are not progressing so smoothly, partly because of those BPO is not really growing. It's actually in the negative territory. AI impact is significant, of course, but using Altius One, we have come up with certain measures. We believe that we can grow this further. As for data centres, there's a kind of individual situation, circumstances in terms of sales. Third quarter in the previous year, because fuel became so expensive in the data centres, electricity price was also included, and we received that cost from customers. But regarding that portion, fuel, because of the soaring fuel, that affected... became sort of relaxed because power prices have come down. And then we were also affected by those changes, including power. We used to bill them, including the electricity price. But going forward, so that we would not be affected, we would like to bill them separately for electricity. And so we are now billing in a different way. And that's why the sales growth has been rather sluggish. Now, concerning data centre profits, again, it's not that dramatically strong, but to a certain extent, it's been steadily growing. While it was lacklustre, cost. We tried to work on improving the floor areas and we've spent cost. That's why the profit growth was lacklustre. Anyway, growth areas, The DEX market was mentioned. The number of cases, projects are increasing. So we don't believe that situation is bad. We believe we can recover them. Every year, fourth quarter is a very important quarter. So we would like to make sure that we will do a good job. And security. and connecting regarding the new business models. We see those emerging, and we would like to be fully prepared so that we can roll it out in the next term. Just for clarification, so the number of projects cases are increasing, so then towards the next term, looking at the overall environment, your initiatives, service lineup, We don't have to be concerned. Any modification change is necessary. That's not what you have in your mind. No change is necessary in your mind. Thank you for your question. As I said before, concerning BPO, say sluggish sales or with Altius One, we are trying to work on the further digitalization. There has been a little bit of delay. we could catch up in these avias. I think we can do better in the next term. Thank you. That's all.

Thank you, Masuno-san. We will take the next question. Please use the raise hand button of Zoom. So next question comes from Okasan Security's Okumura-san. Please unmute yourself. Okumura from Okasan Securities. Thank you very much. Can you hear me? Yes. Thank you. I have two questions. First is the large shareholders trend. the shareholder return policy based on the movement of large shareholders trend this time kyocera is reviewing revisiting from 100 billion to 250 billion sales of the shareholding so if next year toyota sell their shares in total return ratio, total payout ratio may exceed 100%. If that happens, or if that is expected, what is your thinking on your current shareholder return policy? Thank you for the question. So if large shareholders sell their shareholding, I would like to answer that question. First, Kyocera. When they announced their results in October last year, they said that over five years, they will sell about one-third of their shareholdings and also continue reducing their shareholding there onward. But two days ago, when they announced their result, they said that the period will be two years longer. And beyond March 28, they will reduce down to 20%. Kyocera is the founding company, and we want them to stay as a long-term shareholder, but we understand their standpoint as well. The amount per year and the financial position at that point in time will be taken into account and make the right decision. But our cash allocation until next year will be considered in the medium-term management plan. So no change from the cash allocation plan in the current MTMP. So total payout ratio 100% will be the ceiling. Within that scope, we think we can manage and absorb. Now our measures after the year ending March 27, we will continue considering including the next MTMP and share with you our thinking. at the right timing. Thank you very much. Thank you. My second question is to Matsuda-san. This overlaps with the question to Kikuchi-san, by Kikuchi-san. So this year and next year, which is the final year of the current MTMP, the total payout ratio and the shareholder return and growth investment, the balance between the two, do you think is reasonable? And in the current MTMP, EPS is pursued. So what is your thinking on that? And what is the view of Mr. Matsuda? Thank you very much. That's my second question. So in the next MTMP, what is our thinking? So Matsuda-san would like to respond.

Thank you for the question. So in FY22,

I was involved in the management strategy. So the current EPS goal and the cash allocation policy, I understand them well, and we want to move solidly towards next term. So we will maintain the current policy into next fiscal year. And same for EPS? Yes. First of all, next year, the final year of our current MTMP, we will focus to achieve our EPS goal. Thank you very much. I'm sorry, that was a rather early quick question. Thank you.

Okumura-san, thank you very much. We are running out of time. So the next question will be the final question. Please tap the raise hand button of Zoom if you have a question. Next question. Daiwa Securities, Tokunaga-san, please unmute yourself and ask a question. Sorry for the second time. Just one thing about the impact of the new plans. October, December, multi-brand ID, monthly net addition. The momentum is now recovering. Of the new plans, which plan contributed? Is this going to continue? And then money activity plan plus the point of return has been strengthened. But this point of return, in a way, outside of the communications ARP, will it have an impact on that? Or will that trend actually be accelerated momentum and impact on the P and L? That's all from me. Thank you for your questions. New plans, effect, and future outlook. On this, Takezawa will address your questions. Thank you for your questions. First about momentum and the new plans relation between the two. First of all, the mid capacity area competition is intensifying. It's a fact. To respond to that Komi Komi Plan Plus and EQ, we introduced that plan. Our response capability, acquisition capability, the momentum can be expected to strengthen in the third quarter. Certain effects versus peers were felt, and that's shown in the number of IDs. And money activity, AU came up with this money activity plan plus From our perspective, we give points so that overall ARPU impact can be well blended or mixed. But regarding the major points, immediately, these points are not something that consumers use, but in principle Lawson and many places point through payments, If they could use them for our entire economic zone, it's likely to have a positive effect. We are now enhancing the point regions and the pointer path is also deployed so that to Lawson about the impact on Lawson at the moment, it has a positive impact on Lawson. In the long term, enhancing fundamentals, we believe that it contributes to that. Thank you. Short-term communication of revenues, other south side of that, those revenues may actually go down as an appearance. In the short term, third quarter standalone, I think you could discuss that, but partially, UQ Komi Komi Plan Plus by strengthening this Komi Komi Plus. Transiently, from AU to UQ, there is a migration that's increasing as a result. Partly, there is an impact on revenues, but mainly concerning this part in the previous term, communications revenues, what should be reflected it's been retroactively modified for the third quarter next term. So there was a big increase because of that operation. from UQ to AU migration. Again, as was mentioned in the presentation, the number has been increasing. So short term, partly there is an impact, while it's a fact going forward towards the fourth quarter revenues, we would like to increase that as well. Thank you. Thank you.

Thank you, Mr. Tokunaga. So it is time. With that, we'd like to close fiscal year ending March 31st, 2025 Q3 financial results of KDDI Corporation. Thank you very much.