Kanden Investor Day ー OPTAGE Inc. December 8, 2025 Today's Agenda 1 1. Business Overview ・・・・ P. 2 2. Initiatives in Growth Areas ・・・・ P. 10 • Overview of OPTAGE • ICT Market Structure and Our Strategic Focus Areas • Overview by Segment • Performance, KPIs, and CAPEX • IT Infrastructure Landscape in Japan • Initiatives in Growth Areas • Synergies with the Kansai Electric Power Group • Where We Are Heading Toward 2035 Overview of OPTAGE ○ We provide fiber-optic internet, mobile services, and connectivity sol ...

Financial Data and Key Metrics Changes - Group service revenue growth accelerated to 5.8% in Q2, supported by growth across Europe and Africa [4] - Group EBITDA grew by 6.8% in the first half, with nearly all markets posting EBITDA growth [4][3] - Over EUR 5 billion returned to shareholders via buybacks and dividends over the last 18 months, with a further EUR 1 billion of buybacks expected in the next six months [3] Business Line Data and Key Metrics Changes - In Germany, the 5G standalone network covers over 90% of the population, serving over 40 million customers and almost 60 million IoT SIMs [5] - Fixed broadband offers gigabit connectivity to three out of four German households, with OXG fiber marketed to 1 million homes [5] - In the U.K., Vodafone serves almost 30 million mobile customers and is the fastest-growing broadband provider, with a gigabit footprint covering about 22 million households [7] Market Data and Key Metrics Changes - The U.K. market is experiencing good commercial momentum, supported by cross-selling opportunities between Vodafone and Three customers [8] - African markets continue to show strong performance, with another set of results reported in line with medium-term double-digit EBITDA growth guidance [8] Company Strategy and Development Direction - The company is focused on improving customer experience, simplifying operations, and delivering sustainable cash flow growth in fiscal year 2026 and beyond [9] - The integration of Vodafone and Three in the U.K. is a top priority, with significant investments in network quality and customer experience [7][8] - The company aims to leverage its unique assets in the market to extend customer experience leadership and drive fixed service growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook due to the turnaround in Germany, the U.K. integration, and strong positions in growing markets across Europe and Africa [9] - The company expects to close the year at the upper end of the growth guidance set out in May, despite anticipated slowdowns in certain markets [4][16] - Management highlighted the importance of disciplined execution focused on operational excellence to capitalize on growth opportunities [91] Other Important Information - The company announced a move to a progressive dividend policy, expecting to grow dividends over time [9][78] - The acquisition of Skaylink is part of the company's strategy to enhance digital services, which now account for over a quarter of B2B revenues [84] Q&A Session Summary Question: EBITDA run rate for the second half and next year - Management indicated that while the first half saw strong growth, a slowdown is expected in the second half due to various factors including marketing expenses and tough comparisons in the U.K. [11][16] Question: Turnaround initiatives in Germany - Management expects continued growth in Germany in the second half, supported by wholesale contributions and improved B2B performance [21][26] Question: Integration progress in the U.K. - Management reported positive early actions and synergy delivery from the integration of Vodafone and Three, with improved churn trends and strong consumer performance [34][38] Question: Impact of proposed legislation in Germany - Management noted that proposed changes to legislation could marginally accelerate fiber building but do not foresee significant impacts on the OXG joint venture [44][46] Question: Performance of Vodafone Türkiye - Management highlighted Vodafone Türkiye's strong performance, with significant EBITDA and cash flow growth, driven by unique digital capabilities [55][58] Question: Future of FWA proposition in the U.K. - Management sees FWA as a great opportunity to leverage existing assets and bridge the gap until fiber is available in all areas [64][66] Question: Common functions EBITDA - Management explained that the negative adjusted EBITDA for common functions is expected to remain negative due to structural factors [67][70] Question: Dividend and buyback outlook - Management confirmed a progressive dividend policy and indicated that buybacks will be assessed based on the company's position and market environment [76][78] Question: Future acquisitions in digital services - Management expressed confidence in the growth of digital services and indicated that more activity in this space, including potential small acquisitions, is likely [82][86]

Amazon Web Services (AWS) Performance & Challenges - AWS's annual gains are typically in the double digits, but this year's performance has been notably poor [1] - AWS's growth rate is not as high as some competitors, such as Microsoft [3] - Concerns exist regarding AWS's ability to reignite growth, despite still having a significant growth rate [3] AWS Outage Impact & Significance - A significant outage impacted AWS, affecting numerous companies including major players like Prime, Fortnite, and Snap [1][4] - The outage highlights AWS's large market share and the extent to which many services rely on it [2][4] - The outage may be a one-off event and not indicative of underlying fundamental issues with the company [6] Strategic Considerations - The discussion suggests a potential strategy of not using a Large Language Model (LLM), contrasting with Amazon's approach, due to current losses associated with LLMs [5] - A potential rebound in Amazon's stock price could signal the end of a negative trend [5]

Industry Overview - The Zacks Wireless Equipment industry is experiencing healthy demand trends due to rapid 5G deployment and upgrades to cloud and fiber network infrastructure [1] - The industry includes companies providing networking solutions, wireless telecom products, and related services for voice and data communications [3] - Key products include integrated circuit devices, system software, two-way radios, satellite telecommunications, and security products [3] Future Trends - Network convergence is a significant trend, with operators combining voice, video, and data communications into a single network, which is expected to reduce service delivery costs and enhance broadband competition [4] - The industry is focused on supporting high user volumes and minimizing performance degradation through scalable solutions [4] Profitability Challenges - Short-term profitability is at risk due to high costs associated with first-generation 5G products, geopolitical tensions, and supply chain disruptions [5] - Elevated customer inventory levels and macroeconomic challenges are additional headwinds affecting profitability [5] Growth Drivers - The demand for advanced wireless products and services is driven by the need for network optimization and the rapid pace of 5G deployment [6] - The expansion of fiber optic networks and the growth of cloud networking solutions are acting as tailwinds for the industry [6] Market Performance - The Zacks Wireless Equipment industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector, with a growth of 34.9% over the past year compared to 17.2% and 22.8% respectively [10] - The industry currently has a Zacks Industry Rank of 96, placing it in the top 39% of over 250 Zacks industries, indicating positive prospects [8] Valuation Metrics - The industry is trading at a trailing 12-month EV/EBITDA of 25.07X, higher than the S&P 500's 17.85X and the sector's 18.23X [13] Notable Companies - **Ubiquiti Inc. (UI)**: Gained 160.3% over the past year, with strong growth opportunities in both emerging and developed economies [16][20] - **InterDigital Inc. (IDCC)**: Achieved an 87.6% increase in stock price, with a long-term earnings growth expectation of 15% [19][20] - **Clearfield, Inc. (CLFD)**: Gained 12.1% over the past year, benefiting from strong demand in fiber optic products and regional service provider verticals [23]