Message from the CEO

Regarding our financial results for the first half of the fiscal year ending March 31, 2025, operating revenues increased by ¥226.1 billion (an increase of 3.6% year-over-year) to ¥6,590.6 billion, marking the fourth straight year of increased revenues and setting a new record high level. Operating profit decreased by ¥30.7 billion (a decrease of 3.2% year-over-year) to ¥920.3 billion, and profit decreased by ¥116.1 billion (a decrease of 17.3% year-over-year) to ¥554.8 billion, due in part to the absence of profits from sales of shares that had been recorded in the previous fiscal year, while EBITDA increased by ¥12.5 billion to ¥1,685.6 billion (an increase of 0.7% year-over-year).

With respect to our forecast for the fiscal year ending March 31, 2025, we have forecasted operating revenues of ¥13,460.0 billion, operating profit of ¥1,810.0 billion, profit of ¥1,100.0 billion and EBITDA of ¥3,330.0 billion. The profit decrease in the first half of the fiscal year was largely driven by a decrease in revenues from mobile and fixed communications services in the Integrated ICT Business and the Regional Communications Business, but our growth areas, including our Global Solutions Business and Smart Life Business, have steadily grown and are proceeding in line with our plans. We are aiming to achieve our fiscal year plan by continuing to strengthen our customer base and improve our network quality, while at the same time working to further expand our growth areas.

I would like to conclude this message by thanking all of our shareholders in advance for their continued understanding and support.

2024 November