About Material Issues

| Policy | KDDI'S Material Issues for CSR

KDDI has identified four material issues for CSR where it is focusing its efforts. From the various issues we face in the course of our business activities, we have identified issues with significant social concerns that we need to focus our efforts on to grow sustainably and with society at large.

| Material Issue: Governance |
Offering Reliable Information and Communications Services

ICT provides important "lifelines" for society. The biggest responsibility KDDI faces in its operations is to provide customers with stable information and communications services.
We are therefore committed to avoiding network outages due to natural disasters and equipment failures to the greatest extent possible, and maintaining our ability to always offer high-quality information and communications services 24 hours a day, 365 days a year.

| Material Issue: Society |
Creating a Safe and Secure Information and Communications Society

The phenomenon of children using smartphones and mobile phones to access the Internet and getting trouble is becoming a social problem. KDDI is addressing this situation by conducting KDDI Smartphone and Mobile Phone Safety Classes, through which it aims to raise children's "information literacy." We also encourage the use of filtering to block harmful content. These are some of the many initiatives under way at KDDI with the aim of creating a safe and secure information and communications society. We are also strengthening efforts to close the digital divide among seniors.

| Material Issue: Society |
Vitalizing the Company by Developing a Diverse Workforce

At KDDI, promoting diversity is one aspect of its management strategy for achieving sustainable corporate growth. Respecting the individuality of employees, rather than forcing different people to fit into the same box, we are working to create an organization and environment that harnesses our employees' capabilities by leveraging external differences, internal differences, and differences in corporate organizations. Encouraging diversity puts into practice "Chapter 1: Vision" of The KDDI Group Philosophy, namely "Embracing diversity."

| Material Issue: Environment |
Initiatives to Conserve the Global Environment

Environmental preservation is a need that all mankind faces, and one that requires long-term initiatives. Accordingly, every 5 years KDDI formulates a Medium-term Environmental Conservation Plan including initiatives involving "Low-carbon society," "Recycling-oriented society," and "Biodiversity." To achieve these objectives, in addition to reducing its own environmental impact, KDDI provides ICT services that help to reduce the environmental impact of society and promotes a host of activities involving customers and employees.

| Policy | Process for Identifying Material Issues for CSR

We are engaged in addressing social issues that surround KDDI. We identify four issues that we should focus our efforts on from the many issues which result from dialogues with stakeholders and experts. The four themes rate high in importance in terms of social concern and issues for the sustainable growth of KDDI. Afterwards, a committee that is committed to CSR and the environment selects the material issues.
We also hold dialogues between the management including the President and experts. After careful consideration of everyone's opinions, the President decides on the continuation of material issues.
We use the Global Reporting Initiative (GRI) Guidelines 4th Edition, ISO26000, SASB (TELECOMMUNICATIONS Research Brief), and other documentation as check items for more specific initiatives for the four material issues and reflect those initiatives in our business activities.

Social Issues and the Four Material Issues for CSR

| Infusion| Dissemination of Material Issues for CSR

The CSR & Environment Management Department is the main body responsible for spreading awareness of the promotion of the four material issues.
The material issues cover the 164 companies of KDDI and the Group.
We also work to share the material issues with business partners through the KDDI CSR Procurement Policy implemented in FY2013 and the KDDI Supply Chain CSR Guidelines formulated in FY2015.
Furthermore, we hold proactive dialogues with stakeholders, and apply the opinions and advice obtained from them to the promotion of future CSR activities.

| Activity and Results | Targets, Results and Issues in Material Issues for CSR