CEO Message

On Conclusion of the First Year of the Mid-Term Management Strategy

Under the current Mid-Term Management Strategy, we aim to achieve both sustainable profit growth and enhanced shareholder returns. Our consolidated operating revenue for FY23.3 increased 4.1% year on year to 5,671.8 billion yen, while consolidated operating income was up 1.4% year on year to 1,075.7 billion yen. Against factors such as the impact of price reduction and fuel price hikes, we were able to increase our operating income through steady growth in the focus areas of digital transformation (DX) and financial business, pursuing cost efficiency, and other efforts.
We are steadily advancing efforts toward achieving our goals for business growth: ARPU revenue increase due to 5G promotion, profit growth of 100 billion yen or more in focus areas, and cost efficiency at the level of 100 billion yen.

To achieve our ideal future society, we set out a new vision, "KDDI VISION 2030: The creation of a society in which anyone can make their dreams a reality, by enhancing the power to connect" in May 2022.
To contribute to building a resilient social infrastructure that withstands environmental changes, we will connect and protect lives, connect day-to-day lives, and connect hearts and minds to create a society in which anyone can make their dreams a reality through businesses with our partners while utilizing technology.
Aiming for "a platformer supporting society" that can add value to every industry and life scene, we will promote "business transformation centered on 5G" with a view of the year 2030.

We have established the "materiality (material issues)" centered on the interests of diverse stakeholders such as long-term investors as well as our vision and enterprise impact. With this in mind, we position Sustainability Management at the core and promote reinforcement of the business strategy and the underlying management base.
By doing so, we will aim for the sustainable growth in society and the corporate value improvement with our partners. Our goal is to create a virtuous cycle in which society's growth is fed back on the subsequent business strategies, and the business growth is reflected in society.

In our Business Strategy, we are pursuing our business growth strategy in the focus areas centered on 5G, which is expected to prosper with the Stand-Alone (SA), under the name "Satellite Growth Strategy." With telecommunications―which is the power to connect―at the center, we will make new expansions into business areas that are positioned like satellites. For the core service of 5G communications, we will undertake all kinds of efforts to enhance the power to connect. We will also focus on 5G network building, provision of various services and penetration of 5G-compatible handsets so that multi-brand communications ARPU revenues, will increase in FY25.3 compared to FY22.3.
At the center of new business expansion are DX and life transformation (LX). For corporate customers, we will work on offering DX solutions that support the use of digital technologies to transform their businesses into becoming capable of sustainable growth. As for consumers, in an era of diversifying values, we will deliver an exciting world―both in the physical space and in cyberspace―through LX, which is represented by the metaverse.
In addition, we will expand our financial business. Telecommunications and finance will become closely linked in our future day-to-day lives. In an era where telecommunications and finance blend into our lives, we will develop financial services to become more closely tied to the lives of our customers by maximizing synergy between telecommunications and various financial services.

In addition, to ensure ongoing sustainable growth amid a business environment that is undergoing constant and profound change, it is essential to transform into a company that puts human resources first, which promotes innovation and encourages a high degree of autonomy and growth for employees and organizations. In promoting innovation, we will strengthen R&D and capital investment for 5G and beyond 5G. And we will accelerate efforts for business creation, R&D, AI and advanced security technology efforts based on our Satellite Growth Strategy and will deepen partnerships such as collaboration with startups.

In our Mid-Term Management Strategy, we aim to achieve both business growth and shareholder returns. Besides sustainable profit growth, we will undertake capital expenditures and strategic business investments in 5G and focus areas. Based on a financial policy that aims for a dividend payout ratio of over 40% as shareholder returns, we will also consider flexible repurchasing of our shares.
As we move forward together, I would like to express my sincere appreciation for your continued support and guidance for the KDDI Group.