President's Message

We aim to enhance corporate value still further by taking on new fields of business, continuing to increase profits, and augmenting shareholder returns. President Takashi Tanaka

KDDI positioned the three-year period from the fiscal year ended March 31, 2014, to the fiscal year ended March 31, 2016, as a time of "full-scale income growth." As the pillar of our domestic business strategy, we promoted and deepened our "3M Strategy" (multi-network, multi-device, multi-use) while pursuing our "Global Strategy." With these initiatives, KDDI resulted in operating income of ¥832.6 billion (up 25.1%) and an annual dividend of ¥70 per share (DPS) (35.4% in the dividend payout ratio) as of March 2016, the last year of the term. This shows the achievement of the medium-term targets set out in April 2013, "double-digit growth in operating income" each fiscal year and a "dividend payout ratio above 30%" by the fiscal year ended March 31, 2016.

In the telecommunications market in Japan, business conditions are becoming more challenging as the products and services of mobile telecommunication carriers have become increasingly homogenize, and as inexpensive SIM card services provided by mobile virtual network operators (MVNOs) gain popularity.

On the other hand, new business opportunity like IoT business is just arising. We must "evolve" with a sense of urgency, instead of taking the well-worn path in business, while rapidly responding to the changes in the business environment.

With such background, KDDI announced new medium-term target in May 2016. KDDI will pursue growth via three business strategies that aim at (1) sustainable grow the domestic telecommunications business; (2) to maximize the "au Economic Zone;" and, (3) ambitiously develop global business and satisfy both of profit growth and shareholder returns by achieving "average annual growth of 7% in operating income" and targeted dividend payout ratio of "above 35%" from the fiscal year ended March 31, 2017 to the fiscal year ended March 31, 2019.

Toward the achievement of this new medium-term target, that leads the new era while realizing sustainable growth with a stronger sense of urgency, we will make a concerted effort companywide in our aim to continue improving corporate value.

September 2016
Takashi Tanaka
Takashi Tanaka

  • Note)
    Yoy comparison above is based on IFRS.
    Provisional accounting treatment was applied for the business combination conducted in the fiscal year ended March 31, 2016 and the data has been replaced with confirmed values in the fiscal year ended March 31, 2017.
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