OKINAWA CELLULAR TELEPHONE COMPANY Q4 FY2026 earnings call

Core Strategic Vision and Purpose

• Launches "OCT VISION 2030", with the mission: "Enrich this island's future with new value; Full effort for local Okinawa; Okinawa Cellular", reaffirming the firm's founding commitment to serve Okinawa and its residents.
• The long-term goal is to realize a "Chimu Dondon Smart Island", where "Chimu Dondon" is Okinawan for excitement and heart-thrilling, aiming to deliver an energizing, positive smart future for Okinawa's residents.
• The three core approaches to realizing the vision are: solve unmet local challenges in Okinawa, create new value that brings residents happiness, and contribute to the sustainable growth of Okinawa and the Okinawan economy.

"Cellular 6X Management" Operating Framework

• Centers on two core pillars: Customer Experience (CX) and Employee Experience (EX). CX will enforce customer-first initiatives and services, while EX pursues organizational change to build a company where employees work proactively and with enthusiasm.
• Adds two enabling transformations: Digital Transformation (DX) to boost productivity, and DayX (a coined in-house transformation) to visualize work processes and redesign daily work patterns to improve both productivity and creativity.
• Includes Sustainability Transformation (SX) and Green Transformation (GX) aligned with the firm's local focus. SX aligns employee goals with Okinawa's economic growth, while GX pursues natural resource conservation and commercialized green initiatives to contribute to societal change.
• GX strategy follows the SDGs wedding cake model, framing economic activity as built on a foundation of natural capital. The firm will pursue growth through carbon neutrality and nature-positive practices to improve resident well-being in Okinawa.

Growth Strategy

• Builds on the stable core mobile business to dramatically expand growth segments, targeting total 100 billion yen operating revenue by FY2030.
• Core mobile business will maintain and expand its base through local-focused initiatives, strengthen new customer touchpoints and in-store retail capabilities, and pursue continued growth in cumulative HS active units and total ARPU-eligible revenue, aiming to remain the preferred cellular brand in Okinawa.
• Growth segments will grow to 30 billion yen in total revenue by FY2030: au Denki will enter full retail electricity operations in the current fiscal year to drive sales and profit improvement, while the combined business segment (including existing solutions, agri, and marketplace activities) will leverage the firm's core communication technology to push digitalization in office facilitation and digital BPO, and develop smart city development platforms for local governments to create new growth models. Existing healthcare and smart agriculture operations will expand revenue, and strengthened partnering will accelerate new business development.
• The firm's technical foundation of leading communication quality across Okinawa will support growth, with the goal of building a "Smart Future Infrastructure" that delivers consistent low-latency connectivity even while moving and on remote islands, supported by 5G area expansion to small remote islands to enable new value creation.

Local Contribution Commitment

• In 2023, the firm's total economic ripple effect on Okinawa's economy was calculated at 120 billion yen on 78 billion yen in revenue. The firm targets expanding this ripple effect to 200 billion yen by the early 2030s, which will equal approximately 5% of Okinawa's current 4 trillion yen GDP.

Only 2023 full-year actual revenue is reported: total operating revenue was 78 billion yen. No current-period segment-level absolute financial performance or revenue contribution percentages are provided in this transcript. The firm outlines planned 2030 targets for segments below: 1. Core Mobile Business: Serves as the stable growth foundation for the company's total revenue target of 100 billion yen by 2030. 2. au Denki (Growth Segment): 2030 target revenue of 14 billion yen (1.6x 2024 levels), which will account for 14% of total 2030 target revenue. 3. Business Solutions Segment (Growth Segment): 2030 target revenue of 16 billion yen (2.5x 2024 levels), which will account for 16% of total 2030 target revenue. Combined total 2030 target revenue for both growth segments is 30 billion yen, equal to 30% of the firm's 100 billion yen total 2030 target.

• The firm maintains its long-standing policy of three growth targets: increasing revenue, increasing profit, and continuous annual dividend increases, with a maintained target payout ratio of over 40%. The firm will continue its track record of 13 consecutive years of profit growth and 24 consecutive years of dividend increases.
• Sets the FY2030 financial target of total operating revenue of 100 billion yen (to be achieved as early as possible), with growth segment revenue reaching 30 billion yen.
• Sets a target of over 30% EPS growth from FY2024 levels, reaching over 340 yen per share (up 80+ yen from FY2024's 260 yen).
• Expects cumulative operating cash flow of 100 billion yen between FY2025 and FY2030. 36 billion yen will be allocated to existing capital expenditures, with the remaining balance allocated to strategic growth investments, followed by continued dividend increases and agile share repurchases for shareholder returns.
• The firm targets expanding its total economic ripple effect on Okinawa's economy to 200 billion yen by the early 2030s, to contribute 5% of Okinawa's GDP.

• Okinawa faces multiple structural challenges the firm will seek to address: vulnerable healthcare, education, and transportation infrastructure; natural population decline starting in 2023; data showing 1 in 3 children experience poverty; increasing severity of typhoon and other disaster damage driven by climate change. All of these challenges present operational and market risks that may impact growth projections.
• No other operational failures or financial risks are discussed in this transcript.

No question and answer section is included in the provided transcript.