Kddi Corp Unsp/Adr

Let me share with you the results of the fiscal year ended March 2025. Today, I would like to focus on the four points on the slide. First, as KDDI, what we aspire to and to our commitment to growth. And I'd like to share with you KDDI's aspiration. Under the current meter management strategy, we have promoted a satellite growth strategy aiming for growth centered on the telecommunications business while integrating with adjacent businesses. On the other hand, KDDI Vision 2030 is the creation of a society in which anyone can make their dreams a reality by enhancing the power to connect. Regarding the steps, to realize this, we need to accelerate transformation through integration of 5G that's in the center, digital data, and AI to advance to the next stage of growth. We believe that is important. Towards the next growth, I would like to make the following two commitments. First, Enhancing the power to connect shown on the bottom, we will establish underlying communications network as KDDI's strong competitive foundation. The second is creating new value with digital data and AI as shown on the top. We will enhance the portfolio by applying them to each business domain. With these two, we will upgrade the power to connect to a new stage. First, enhancing the power to connect is the core of our satellite growth strategy, our business foundation. So far... KDDI have pursued how to realize better communications. In particular, we have been focusing on the quality of communications. One of our achievements is ranked the world number one connected experience by open signal shown on the left. In addition, as you can see on top, we have over 50,000 sub-6mm web-based stations, the highest number in Japan. 5G space stations, their number is more than 100,000. And top right, we are the first in Japan to indicate 5G plus to visualize sub-6mm wave communications with highest number of base stations. And we'll be gradually addressing this. The 5G communications is so important regarding those devices. We have high-power use equipment, HBUE function on 5G devices, and we are gradually rolling out this feature on 5G devices. Sony Xperia was announced yesterday, Mark 7. It will be launched in June, and the 5G HBUE is available on this device. And down right... shows AU5G fast lane, which we announced as a new value in communications. For AU5G fast lane customers, relatively more radio resources are allocated. With this technology, we provide more comfortable connection even during congestion. With these... We maintain KDDI's superiority and develop high-quality 5G network and coverage area, which is our competitive edge. We would like to keep taking up challenges for enhanced quality. And KDDI will accelerate communications capabilities. We provide direct satellite to smartphone communication service enabled by AU Starlink Direct, connecting the unconnected wherever you can see the sky, not only to AU, but to customers of all carriers. We are glad to announce that there are many applications from UQ Mobile and users of other carriers. During the Golden Week holiday season, it was used by about 40,000 people per day. Starting from yesterday, it's compatible with iPhone 13. In June, more than 8 million compatible smartphones will be there. To live up to customers' expectations and trust, we pledge to commit to communications, our core business, refining communications, which is a basis of our service. On top of the high-quality network, we are adding new communications values, advancing a multi-brand strategy. Connecting more and always with AU is the foundation common to multi-brands. High-quality network. On top of that, with AU, together with partners, we aim to fully realize new experience values as a main brand, values of being reliable, stress-free, and with UK Mobile, we deliver simple and affordable values. And Polvo is dedicated to online with toppings as you like. And in this way, we would like to build our brands. So we'll be building these three multi-brands. On top of that, particularly, the key is AI. With the enhancement of AI, we intend to create new values. In the communications foundations that have been built, digital data is accumulated, being generated from daily business. As you can see at the bottom, KDDI owns not only online touchpoints such as communications and services, but also offline channels like AU Shop or Lawson. The data generated from there in AI will be communicated by what we have. We call this hyper-personalization. So for individual customers, for each and every one, providing life support, and for corporate customers, transformation of the operating models for each company. We believe we can offer such solutions. This is what we call AI market. We made an announcement today In the early phase of smartphones, the customers probably wondered what they could possibly do. So selected applications were offered. We launched what we call the AU Smart Bus in the early phase of smartphones, allowing users to take applications. And for those customers who wanted to look for and test applications they wanted to use, we created such a place for them to choose apps. We have shared revenues with content providers, contributing to apps penetration. And it was a win-win. We want to do something similar in AI. What's great about AI? Customers may be wondering. So collecting such applications and partners who gather in this place, we want them to grow as well. And that's the kind of environment we want to build. Now, the other day we made an announcement about RCS. This is a messaging service. So AI chatbot utilizing RCS. We would like to release this in the near future and making AI something familiar and easier to use. This is for corporate customers. KDDI has touch points with about 400,000 corporate customers and have accumulated a wealth of knowledge for each industry and are utilising those, as you can see, in retail, logistics, BPO. Starting from those, retail operation, labour reduction, customers... shopping experience update, we would like to keep refining them. We are steadily building infrastructure to provide AI services in April. We signed an acquisition contract for the Sharp Sakai Plant Land and Building, and we aim to bring the Osaka Sakai Data Center into full operation within this fiscal year. So the orders have already been placed. We are planning to start the operation, test the operation from the middle of the month. And we'll be providing Google Gemini on GPU in Sakai Data Center. For those who are used to development environment for Google Cloud Gemini by using the secure infrastructure offered by KDDI, they can retain data within Japan and utilize AI. In other words, we would like to enable sovereign AI provision. As I shared with you, based on the initiatives I have shared with you, we will advance the satellite growth strategy aiming to grow business and maximizing the enterprise value. By enhancing the power to connect, as shown on the bottom, we will strive to offer better communications value, which is our core, as well as strengthen. And in particular, cutting-edge technology or new business creation, they will be supervised by the President, by me. I will be extensively involved in this. You can see the timeline on the x-axis, and we would like to keep working towards the next mid-term period. So these are the challenges to succeed in these challenges. We aspire to be a company that inspires passionate challenges. We would like the employees to take up challenges from within, not just employees, but together with passionate partners. We would like to take the challenge of creating future. Look forward to KDDI's growth going forward. Next, let me focus on the performance of the fiscal year ended March 2025. Consolidated results for the year ended in March 2025. Enjoyed increased revenue and income. Steady progress towards the final year of the mid-term management strategy. The left shows operating revenue, which was 5,918,000,000 yen, up 2.8% year-on-year. The center shows operating income, which was 1,118,000,000,000 yen, up 16.3% year-on-year. The right is profit for the period, attributable owners of the parent, which was 685.7 billion yen, up 7.5% year-on-year. Next shows factors for change for consolidated operating income. Communications about revenues and focus areas grew steadily. Also, Lawson's performance was was strong resulting in increased income from the left group MVNO revenue and Rakuten roaming revenue, were minus 13.2 billion yen year-on-year. Multi-brand communications upper revenues were up 6 billion yen. Financial business and energy business combined were plus 17.7 billion yen. Lawson's equity method income was up 19.4 billion yen. DEX business services segment were up 15.4 billion yen. Others included increase in technology costs to and excluding temporary impacts such as provision for the Myanmar telecom business in March 2024 period, income increased by 38.1 billion yen. So this is the review of the fiscal year. As you can see on the left, ARPU revenue continued the trend of revenue growth in the financial energy business. The loss, the point of synergy was manifested. DX centering on the growth areas. Year-on-year double-digit revenue increased. The growth, right-hand side, shows the shareholder returns. Well, we carried out flexible share buybacks with total acquisition amount of 400 billion yen in fiscal year ended March 2025. Next, let me focus on the forecast for fiscal year ending March 2026. In this term, we'll continue to promote satellite growth strategy, aiming to further increase revenue and profit. The left shows operating revenue at 6,330,000,000 yen, up 7.0% year-on-year. The middle shows operating income at 1,178,000,000 yen, up 5.3% year-on-year. The right is profit for the year at 748 billion yen, up 9.1% increase year on year. These are the targets.

Next is operating income, key points in FY March 26. We will aim for business growth centering on increased mobile revenues and DX growth. The main factors of increase were increase in mobile revenues through value-added enhancement, including communications. growth of finance, energy, and Lawson, and DX growth centered on growth areas as well as the result of technological restructuring. The main factors of decrease were decrease in rock and roaming revenue, which we already incorporated in our plan, and return to partners, including partner agencies and construction companies, as an initiative for the future in order to create a virtuous economic cycle. In personal services segment, we aim to enhance the value of connected experience toward business growth by improving lifetime value. On the left, connected experience, world's number one rated communication, NKDDI's unique services will be combined to create new value. On the right... we will maximize revenues by enhancing the value of connected experience and improve churn rate by connecting with customers present and future to further grow communications and value added. Next, I will explain the new definition of mobile revenues starting from FY March 26. With the recent service revision, Various values, including Pont de Passe, has been incorporated into the plans. Accordingly, we have changed to mobile revenues, which includes added value that has become inseparable from communications revenue. On the left, mobile revenues increased significantly. to 1,850,000,000,000 in FY March 25 and is expected to grow further in FY March 26 through value provision by integrating communication and value added. With the service revision, we will redesign our multi-brand strategy and develop attractive plans for each brand that meet customer needs. In addition to improving churn rates by making AU more attractive, we aim to enhance our competitiveness through unique value propositions offered by KDDI, such as balanced transition between AU and UQ Mobile. AU offers reliable and stress-free unlimited data with simple plans where you can choose from freely. The main plans are on the left, the new AU Value Link Plan and the renewed Unlimited Data Max+. Our plans include unlimited data usage and other worry-free benefits where you're out of reception range or overseas. As you can see, If you also want the great value of Punta Pass and visit Lawson frequently, we recommend the Value Link plan as the difference is only 220 yen. Based on these two, we offer AU money activity for those who use AU's finance and payment services, and for those who want to enjoy entertainment, we offer plans that combine both contents. UQ Mobile has consolidated its plans into two simple and affordable plans. On the left, Komi Komi Plan Value offers an additional 5GB of data and a Ponta Pass with a maximum data capacity of 35GB. On the right, the popular automatic discount plan, Toku Toku Plan 2, adds 15GB of data with a total data capacity of maximum 30GB. In addition, both plans come with access to AU Starlink Direct at a discount. We also plan to revise our existing plans and will provide you with more information at a later date. Ponta Pass is one of the values. On the left, the net increase in Ponta Pass since the release in October has been strong at 210,000 members. In particular, the collaboration with Lawson has been a success, with the number of users redeeming benefits reaching a total of 25 million, which is a great success. We will further accelerate this momentum and aim to achieve a net increase of 1 million in FY March 26. On the right, we will strengthen the collaboration between Telecom and Lawson. Now, Lawson is celebrating its 50th anniversary this year and has been performing well. So collaboration measures with KDDI is contributing to this. On the right. The new management policy, Lawson Group Challenge 2030, sets ambitious goals of increasing daily sales in domestic convenience stores by 30%, reducing store operations by 30%, and doubling franchise profit per owner. To help Lawson achieve its next stage of growth, KDDI is committed to further strengthening its partnership and providing support, including technology. In financial business, we aim to expand our customer base by strengthening collaboration with communications to achieve further growth. On the left, operating income for FY March 25 was 40.6 billion yen, an increase of over 20%. We grew mainly through AUG Boom Bank and credit card businesses, using the Money Active Plan Plus on the right as a lever, where number of subscribers exceeded 1.5 million. We want to further accelerate our growth with the new plans we have just announced. Next, business services segment. We will shift our resources to the growth areas based on profitable and robust communication infrastructure, including the high growth digital infrastructure area in the IT market and aim for high growth. On the left, we will provide ample added value in the growth area, creating a virtuous cycle that improves the lifetime value of communications, which is our base area. On the right, sales in the growth area increased by 17% year-on-year in FY March 25, a growth rate that exceeded the market growth of the digital infrastructure area, which was 8%. We will accelerate even further in FY March 26 by capturing market demand. We aim to achieve... Thank you very much. Revenue in the base area that supports these will increase through mobile value enhancement. By capturing these demands steadily, we aim to achieve our target of higher profits for FY March 26th. IoT and data centers will expand globally. On the left, in IoT-related services... We leveraged our strength in operation and monitoring unique to telecom companies to exceed 50 million IoT connections in FY March 25 and aim to expand to 57.5 million in FY March 26. In addition, connecting compatible PCs with built-in communication capabilities were released in January this year and are already on sale from five manufacturers. Customers can use the service without being aware of monthly communication charges. We have high expectation of the market growth going forward. We will continue increasing the EPC going forward. On the right, connectivity data centers are expanding steadily in each region. In addition to being number one in connectivity in Europe, we also became number one in Thailand just two years after opening. we will continue to strengthen our foundation with the aim of achieving revenue of 200 billion yen. We will then establish a new business foundation to support the AI era and accelerate our business growth. On the left, regarding security, following the acquisition of LAC as a wholly-owned subsidiary last year, we began considering collaboration with NEC, to develop the largest-scale cybersecurity business in Japan. Together with NEC, we will combine our strength to jointly build a purely domestic cybersecurity foundation. On the right, we are implementing advanced technologies to solve social issues using drones and Starlink. We will continue to expand into various use cases, including construction, vessel and disaster prevention, and contribute to revenue expansion in FY March 26. Next is shareholder returns. In addition to EPS growth, KDDI is also committed to dividend payout ratios and continuous dividend increases. In line with sustained profit growth, DPS has also steadily increased. We aim for DPS for FY March 26 to be 80 yen. up 10.3% year-on-year and 24 consecutive DPS growth. In addition, we resolved to cancel Treasury shares over 5% of the total number of issued shares. In addition, the company also resolved to acquire Treasury stock totaling 400 billion yen as upper limit and to make a tender offer for its own shares up to a total amount of 350 billion yen. Based on what I have explained so far, let me talk about EPS, which is an important target in our current midterm management strategy. FY March 26 is the final year of the current midterm plan, and we have an unwavering determination to continue our target of achieving 50% EPS growth vis-à-vis FY March 19 under the new management structure. By achieving both business growth and shareholder returns, we aim for EPS of 194.38 yen through 50% growth. These efforts will also result in improved capital efficiency. And we aim for ROE excluding the financial business to be in the 14% range for FY March 26. Finally, let me talk about our initiatives for the future. Toward the future we envision, it is essential that we take steps to grow together with our stakeholders. We aim to create a virtuous cycle where we continue to create and provide value that is unique to KDDI, which will lead to fair price, which can then return to our shareholders, stakeholders, and reinvest in the future. For example, we want to increase Japan's presence in the future by engaging in fair transactions and fair price transfers with business partners and providing operational support to agencies who support telecommunications services. Through investments for this purpose, such as investments in advanced telecom, the evolution of AI, and environmentally friendly energy technologies, we will contribute to the realization of a sustainable future. In Expo 2025 Osaka Kansai that opened in April this year, we will provide opportunities for children, the future generation, to think about the future and take actions themselves. in collaboration with Hitachi. We will continue to actively support startups. To date, we have supported many startups through our corporate venture capital, Coif. From now on, we will pursue scale in addition to quantity and do everything we can to promote the creation of unicorn companies originating from Japan. To do so, in addition to the COIF we have been providing, we will invest in promising overseas venture funds and ATT&CK, which has strength in industry-academia collaboration in our efforts to grow startups. Next, let me explain... about the co-creation in our new HQ, Takanawa, which we are relocating to this year. The concept of KDDI's new headquarters, which will open this fiscal year, is a connectable city that enhances the power to connect and continues to inspire an exciting future. We aim to become a place where not only KDI Group, but also our customers and partners can come together, exchange new ideas, engage in trial and error, and continue to communicate. Takanawa Gateway City is truly a sandbox for the future where we will create innovation together with startups and other partners and roll out the best practices. For example... We will accumulate examples such as next-generation convenience stores where the first real and tech convenience store will open at our new Takanawa headquarters and the smart city project we are working on with JR East and develop solutions that contribute to solving social issues as Wakon Cross. Another focus at the new Takanawa headquarters is investment in human resources. As part of our transformation into human resource-first company, we will use the relocation of our HQ as an opportunity to create an environment where employees can take on challenges for success. We aspire to be a company that inspires passionate challenges through work style update by strengthening internal and external collaboration and shifting to well-balanced work style and KDDI job style personnel system. Finally, today's summary. We aspire to be a company that inspires passionate challenges by committing to enhancing the power to connect and creating new values by digital data and AI. And the consolidated financial performance and the shareholder return was explained earlier. As we look to the future, we will continue our initiatives to grow together with all of our stakeholders, and I ask you for your continuous support. Thank you for your attention.

Thank you for waiting. We would like to start a meeting on KDDI financial results of the fiscal year ended March 2025, followed by the questions and answers session. Thank you for joining us after a few busy schedules. I'm your MC today, Miya Kaba 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 IR website for on-demand distribution. Let me introduce today's attendees. Matsuda, President and CEO, Representative Director. Kuwahara, Executive Vice President, Executive Director, Business Solution Sector. Saishoji, Managing Executive Officer, CFO, Executive Director, Corporate Sector. Takezawa, Managing Executive Officer, Executive Director, Personal Business Sector. Katsuki, Managing Executive Officer, CSO and CDO, General Manager, Corporate Strategy Division. Akita, Executive Officer, Executive Director, Corporate Management. Seven items uploaded on our IR website, three related business results, four related to the TSE disclosure. Please read the disclaimer in each document about what's listed in the material, our performance, including what will be shared during the Q&A and subscription targets. Now we would like to entertain questions from you. If you have a question, first give us your affiliation and your name to give many of you an opportunity to inquire, allow us to limit the number of questions to two per person. If you have two questions, wait for the answer to your first question and then raise the second question. If you have a question, please raise your hand. SMPC Niko Securities, Kikuchi-san. SMBC Niko Securities Kikuchi, thank you. Your presentation, I think it was pretty impressive. EPS, the income, the growth, and also the return to shareholders, share buyback, and payout ratio dividend. But everything had already been known, actually. Something new. It's rather difficult for us to seek something new from this presentation. What are your goals? What are your targets specifically? Perhaps you might have covered everything, but something symbolic, for instance, if you look at NTT Global, softback Miyagawa-san, on AI, it's easy to see. We don't really know whether they can actually pull it off, but that's what they say. Mr. Takahashi, former president, now chairman, did something symbolic in Lawson in a few years' time. Whether Mr. Takahashi was right or not, I think it will be evaluated as a result. Matsuda-san, something symbolic in a good way, something that you leave as legacy, what are you going to build? Probably main brand, AU, strengthening AU, or maybe not AU, but something called KDDI-X that could happen, and communication to differentiate from the UQ. That's about the first lane, and I think that's great. So DX, EX, you have been talking about this for a while, but it looks like there's some lack of resources, revenues, 3 trillion yen, operating income, 500 billion yen is the perhaps target. It can be numbers, something symbolic. You can talk about something symbolic. It depends. can be something about the structure, please share those with us today because I would like to just take that as a souvenir. Thank you for your question. You are right. If you look at the business results today, former President Mr. Takahashi, he built the foundation and that has led to what I shared with you in my presentation. On several occasions, they had the chance to speak. But this foundation, which has already been established, how we can grow them further, that's my responsibility, my role, as I understand it. So when I shared with you, I talked about I wanted to commit to two things. From customers, they would probably acknowledge that they want the good communication quality. And then to see, to be a business, what kind of business do we want to grow? In what manner? We have data and AI. So integration of data onto AI, I think that's what people generally say, but you mentioned Lawson already. So far, on top of communication, something that is just an ordinary thing, but data, AI layer, additional layer perhaps can be inserted. Can we grow further with that in various kinds of domains? I think it corresponds to each domain under the satellite growth framework. with generic or general foundation, strengthening it further as a platform, that's something that needs to be done. For each and every orbit, how much growth can we envisage? I don't have the exact numbers to share with you at the moment, but what's the next midterm strategy? We have to formulate them, of course. conceptually, we have objective strength. How to capitalize on that communication and on top of that, using data and work with AI. So AI foundation, we have been preemptive and we have been well prepared. That's the structure I hope you will understand. Thank you. Second question. One of the bases about the connection, you have good superiority, but regarding that open signal, Docomo, SoftBank, they want to be ranked number one next time. I don't really think this is the gap that cannot be filled in the next year. If they win over KDDI, your foundation might be lost. And also satellite, in three years' time, all the three players will be probably offering the service. So in addition to connection, what would be the next target? Today it might be difficult, but perhaps on the next occasion you could share that with us, the power to connect. As the next step, as the next target, is there anything that you can really see? Please share that with us. That's my second question. Thank you. about our competitive edge. First, concerning the network part, each company has been really competing with one another, and that's how it should be. Regarding the competitive edge or superiority, one, this is about time or time to market. When? Can we deliver this to customers? So this is the fast mover, the superiority, 5G base stations. We have many base stations, 5G area, sub-6 area, SA standalone. We have been establishing them and then we are in the midst of competition. With intense competition, we would like to do the competition and deliver to the society at large. Next concerns technology. This time... Three communication values have been incorporated into the plans. There are a lot of new technology. We just don't... Let technology be technology, but in a case we have plans in such strong engines, how best we can incorporate technology into those things. We believe that's another axis of competitive edge. So speed, time, timing-wise, we don't want to be beaten. We believe that's part of the pillars in terms of competition. We want to do better. Thank you.

Thank you. Thank you, Kikuchi-san. So next question, please. Nomura Securities, Masuno-san, please. Yes, hello. Masuno from Nomura Securities. I have two questions. So first, about the midterm plan and the current position. So starting with the midterm management strategy. Looking at your company, your feature is... You are rather low-key, but you're always steady, and you always promise, realize your promise, and have been increasing your profit and sales for 20 terms in a row. So corporate culture is reliable. You can depend on KDDI. So my image is... The communications revenue upon the past content, maybe 10 billion plus on profit. And financial, 10 billion plus. And corporate IoT data center, 10 billion plus on profit. And energy, 10 billion plus. So that's one, two, three. $50 billion in total, and AI and the technological advancement and cost reduction, possibly $10 billion. So that is $60 billion a year. That's a 5% increase in profit margin a year. And if you do share buyback, 3% reduction in the number of shares. So if you do that, 8% EPS growth. And how many years you can repeat that will be the key. So it's an accumulation of the cycle. So that is the base result if you execute this. So my question is, this kind of bottom-up initiative, can you realize all this? Or are there any new ideas in the next medium-term plan period? So this steady accumulation of the measures and your next move, if you could share with us anything. Thank you. Thank you very much. So our steady steps towards the next stage, we have to do that, and that is why we're seeing a virtuous economic cycle and reimbursement. Now, as you rightly said, This year's building blocks, we have to build all these measures. EPS need operating income. 60 billion growth is needed in operating income. So we need to break this down and execute the measures. Now, each and every measure will grow. There are ones that will continuously grow and other additional measures, and that's why we showed you the timeline. In the past, we plowed the seas, and they are now growing and harvesting the finance and loss in energy and business segments, business services segment. These have been growing, but they all have more room for growth. So it's not just a linear growth. We hope the growth area will grow with the combination of AI and grow faster in the next medium-term plan period. Of course, we have to think this hard in the next one year. It's not that we have any magic wand. AI can change all the operating components, and so we want to utilize leverage AI to grow all these. Thank you. So towards summer to fall, I think we can exchange views on your next medium-term plan. So I look forward to the next opportunity. Next question. the price revision this time. I've been watching you for a long time, but the existing user's price has changed, and this is the first time in the existing 30 years you are adding new services. It's not the revenue, it's the service upgrade. And there's a risk that this may cause opposition, but Ponta Pass and Starlink and these benefits are included, and 300 yen, three coins. So I think this is convincing. Of course, we never know until we try, but the consumers, the users, I think will understand this to a certain extent. So my question is... will change the entire user base. So this will have quite a big impact on the sales and profit. But to what extent? How much is incorporated in this year's plan? Year one, it's not full 12 months, but what kind of sales and income impact are you anticipating? It's difficult to say this in front of customers, I know, but how much positive plus impact are you thinking of? Thank you for the question. So the service revision this time, it's not just the revision per se, but the structure for this year is mobile revenue 30 billion yen. and financial and energy lawson twenty billion level and business services segment i o t growth area growth inclusive for forty billion and the technological advancement twenty billion so total one hundred ten billion yen block this is the kind of growth we want to achieve on the other hand As shown on the right side earlier, rucked and roaming revenue decreases, and the return to our partners, and one-off temporary headquarter relocation, these one-off events. So all-inclusive, 50 billion. So plus 60 billion will be realized. Now, this is the first round of Going forward, we will do further investment and further value creation. So mobile revenue, $30 billion is our forecast this time. with the service revision. Since last year, we've been discussing heavily internally. And as you rightly said, how can this value be convincing and persuasive, safe and secure and stress-free? This... out of reception range or overseas or a congested area. If it's a value that can offer a safe and secure sense of comfort, we think it will be accepted. So that is how we set this level. Thank you very much.

Masuno-san, thank you. Next, do you have a question? Please raise your hand. Okamura-san, please. Thank you. Okasan Securities Okumura is my name. Thank you. About the leverage, what are you thinking about leverage? Competitors? Thank you for your question. Regarding this issue, net debt EBITDA times 1.5 times, excluding financial business. As KDDI, using financial leverage, we would like to allocate more resources for growth towards the next mid-term management strategy. We would like to do this exercise. For instance, 1.5 times 2.2. That means that there will be some additional 1 trillion yen, and we would like to use that for investment without fail. Anything else? Well, thank you. Some supplementary information about financial business. AU financial loan-to-deposit ratio, LDR, that's exceeding 100% regarding this level. For your company, is it something normal or mortgage loan growth? Is it something that needs to be covered? Do you have to be concerned about this? Right. Thank you for your question. Concerning the ratio, we would like to lower this, the deposit part. We must increase the deposit more. Concerning this, in the past, centering on Jibun Bank, we came up with measures concerning deposits, but in addition to those, group as a whole, how best we can increase deposits. We already launched a project using the whole of the group. We would like to acquire more deposits. Thank you. Second question. next term and beyond shareholder return. If possible, could you talk about this? This time there was sales of shares by major shareholders. Then the total return was close to 100%, limiting what you can use for investment. But next term and then beyond, what would be the balance concerning the investment to the extent possible? Well, return investment we need to strike a good balance between the two but as I shared with you concerning the cash allocation one is utilizing the financial leverage that's one but on the other hand the We would like to give returns to shareholders, including CapEx and M&A and investment for future. I think you are talking about the balance there. Here, financial leverage. We would like to put that into the scope of what we can study. Thank you for your detailed explanation. Thank you.

Thank you very much, Okamura-san. Next question, please. Daiwa Securities, Tokunaga-san, please. Daiwa Securities, Tokunaga. I have two questions. First is competitive landscape. First, the high price zone raising with DAZN and Locksoft Bank and Rakuten have not followed suit much. So your price revision, the current situation, is it more promising than when you developed your guidance? Or you never know until you look at the competitor's plan, the high price plan with UQ. The competitive landscape will change completely. So what is your view on the competition? Thank you very much. So the competitive environment, so personal services segment, Takizawa-san will answer. Yes, thank you very much, Takizawa from personal business sector. So your question on the competition. We announced, and before that, Dokomo made a move. Dokomo, South Bank, as Miyagawa-san said, the financial results briefing, agree in the general direction, as I understand, looking at the right timing. We made the announcement the other day. The new price plan reception has not started. And before that, our current plan is still being received and accepted. So right now, we do not have any traction yet on the competitive environment, nothing that I can share with you at this point in time. But the purpose of our service revision, as Matsuda-san said earlier, We want to set a virtuous cycle, positive cycle, and offer value to our customers. We have three in communications and two out of value. Value link was established this time. First, we want to deliver this value to our customers, first and foremost. And that's when the competition starts. Thank you. I hope this answers your question. So regarding UQ, I have a follow-up question. So if Y-Mobile does not revise UQ and Y-Mobile, competition may change. What do you think about that? Thank you, UQ. This time we simplified into two. One, the stepwise plan is Tokutoku 2. And the price we prepared this time, the gigabyte doubled this time, a big jump. And with that, we also attached other values. So quantitatively, subscription plus. One who wants to look at just individual ones or Netflix, I think 20% will come back and still 200 yen economic benefit. So SoftBank, I don't know what they will do. But this time, the plan we are proposing to our customers this time is I think offers a certain amount of value and economic benefit. That is our current view. Thank you. Thank you very much. My second question is the change on your KPI. This time, mobile revenues... Until now, mobile and added value were our viewpoint, but those are combined. So mobile revenues, this is not just communications, but also the product support and contents, and financial is singled out. So you changed your KPI. What is your purpose? For example, repair and compensation, product support. or contents, you can add more added value, and there's Pantapass. So could you elaborate on qualitative, quantitative reasons of the change, please? Yes. So let me start. So the service revision this time, the new price plan includes... communications and added value the barrier between the two is disappearing so how we evolve our plan is one key point ponta pass and subscription plus we want to stress the added value on the other hand value link plan will increase its momentum. And so the related added value should be shown in one bulk, in one group. And that is the reason or the trigger for this change. And financials, because of the business nature, we think it's better shown separately. So we divided that part. Thank you very much.

Tokunaga-san, thank you. We are running out of time. So next question will be the final question. And just one question, please. So if you have a question, raise your hand. Morgan Stanley, Tsusaka-san, please. Morgan Stanley, Tsusaka. Thank you. About KDDI, how to earn. I would like to get your input from the equity market. Shareholders want certain things, and what you actually implement, they are not always linked, but... Now, if you look at consumers, if you pin in them with various services, in a good way, they offer added values, In a bad way, it's just a bundle. The plants will be so limited because they will be bundled and consumers will have to buy something they don't even need. And unless you increase the prices, the population is not actually increasing. So on the part of consumers... increasing revenues and profit in consumers' business would be rather difficult. That's how I look at it. On the other hand, unique to KDDI or unique to telecom operators, know-how, technological prowess, networks, solutions, or what customers want, if In the enterprise, if you could sort of address those issues, solve those problems, that's one possible way. What would be the sound way to go for consumers? Imposing things in a bad way of describing things, this may not really be sustainable. This is how I look at this matter. As long as you can continue, yes, of course you can continue, but in a longer term to transform the society with certain solutions, if the management resources can be shifted to those areas and then try to make more money, I think somehow that would be healthier, sounder. How do you look at this? If I could just say one more thing. On the part of investors, regarding investment in your company, stability is one. Many investors want stability. For instance, Lawson's acquisition, that happened, but... Later, people may appreciate this, but back then they didn't want this because for retail... If they wanted to make an investment, they could have done that. That's not particularly something they are looking for in KDDI. So that's kind of a gap. I think we might see that kind of a gap in the future of capital allocation. How to make money, how to grow your business for KDDI or for communications industry, what would be the optimal? What is your thinking? Please share that with us. Thank you. Near the outset of my presentation, I mentioned this. Combining existing things and making it in a bundle, that's not what we wanted to do. Once again, about the communication values, we shed light on that anew. In the communication history, 3G, 4G, 5G. For customers, what are the values? They have been discussed extensively, but 5G has been launched for four years, and then we are looking at the possible next generation, how to enter into the mature generation. As a technology, there are various kinds of technology related to 5G, but how do you communicate them to or deliver them to customers? There have been some gaps, but by shedding light and communications. sort of changing the values. We are now talking about the values to the customers, but that's still what the value-linked plan is all about. Rather than combining existing things, once again, we want to sort of inculcate the power of communication and the offer values. We need to continue this 5G SCA or beyond 5G or 6G. What will be the values? We won't be able to see them. So we were particular about them in coming up with this So at the outset, you're talking about bundling existing things and trying to increase. That's not what we wanted to do. We are proud to say that we created new values. And in addition, about ICT solutions, I think it's about the 2B environment, but offering those solutions. Since we have many touch points, strong touch points with corporate customers, In the ICT, there must be some expected values, not just communications, but on top of that, including AI. We would like to build them and then deliver them to customers with a sense of speed, how best we can pull this off quickly. I think that's really about how we can make money. You mentioned Lawson towards the end. It's not that we wanted to do something retail. Lawson had certain things, including problems. They need to reduce labor. They have to do this, and that's an area where we can help them. Also, Lawson is deeply rooted in community in terms of how they deploy outlets, stores. There are certain things we can do there. For instance, in terms of AI processing, not centralized AI processing, but distributed processing systems, When that happens, it's also true for our base station's location is important. Maybe we can find a good synergy. So inclusive of that, we have been looking at Lawson Airports. It's not just retail per se. More broader perspective is what we have in terms of our Airports.

Thank you, Tsutaka-san. So with that, since time has come, we would like to close financial results briefing of KDDI Corporation for the fiscal year ended March 2025. Thank you very much for your attendance.