1. KDDI HOME
  2. Vision & Strategies
  3. Mid-term Management Strategy (2026-2028)
  4. Financial and Non-Financial Targets

Financial and Non-Financial Targets

1. Financial Targets

We will focus on sustainable growth and quality improvement to further enhance our enterprise value.

The two pillars KDDI focuses on to enhance corporate value: 'Sustainable Growth' and 'Quality Improvement.' A policy of achieving both growth through business strategy and quality improvement through financial strategy.

To achieve sustainable growth, we aim for a compound annual growth rate (CAGR) of 5% in operating income, driven by the stable growth of the Telecom Core Segment and double-digit growth in the Growth Segments.

A graph showing KDDI's operating income growth targets. Illustrates the plan to achieve a compound annual growth rate (CAGR) of 5% in operating income toward FY29.3, driven by stable growth of the Telecom Core Segment and double-digit CAGR growth of the Growth Segments.
  • Note:Both operating income and profit for the period are presented on an adjusted basis.
  • *Underlying performance driven by business growth: excluding external outflows related to the fictitious transactions and contract cost impairment in FY26-03

To achieve Quality Improvement, in addition to considering the use of leverage for growth investments and executing disciplined investments in conjunction with business portfolio reviews, we will adopt ROE and ROIC spread as management metrics to enhance execution capabilities.
Regarding Capital Allocation, we will aim for a return-based allocation with a stronger focus on capital efficiency. For Shareholder Return, we will maintain stable dividend increases in line with business growth (payout ratio of over 40%, based on adjusted net income).
Maintaining a stable dividend growth as our foundation, flexible share buybacks will be implemented after careful consideration against growth investments.
Furthermore, we will continue to control our traditionally strong, efficient capital investment, keeping a Capex to Sales ratio of 12.0% or less.

Capital allocation policy diagram for FY27.3-FY29.3. Illustrates our policy to execute return-based capital allocation. Generated cash is allocated to disciplined capital investments (targeting a Capex-to-Sales ratio of 12.0% or less), shareholder returns (maintaining stable dividend increases in line with business growth), and growth investments based on returns. It also specifies controlling Net Debt/EBITDA at approximately 2.0x.
  1. *1Excluding Financial Business
  2. *2Core FCF = "Operating CF" - "CAPEX" - "Leasing" + "Net Interest Expense after Tax" Repayment of principal and interest in Cash Allocation part is omitted from above description.

2. Non-Financial Targets

Sustainability Management

The KDDI Group will achieve both business growth and the creation of social value through addressing material issues, and through this virtuous cycle, we aim to enhance sustainable enterprise value.

Conceptual diagram of KDDI's Sustainability Management: Illustrates the structure aiming to enhance corporate value through a virtuous cycle of business growth and social value creation, centered on six materialities.

Six Material Issues (Materialities)

From a long-term perspective, we comprehensively evaluate the "impact on society" and the "impact on the KDDI Group's management" to identify the important management issues (materialities) that we should focus on.