Glossary

Leverages AI to optimize and outsource business processes, contributing to productivity improvement and cost reduction for corporate customers.

Delivers solutions combining AI, cloud, and systems to improve efficiency and sophistication of business operations.

From "era using AI" to "era where AI is embedded in everyday life",
In an AI-pervasive society, "AI- resilient and hard to replace value" becomes a key source of competitive advantage.

A service that enables direct connectivity between smartphones and Apple Watch devices and SpaceX's advanced low Earth orbit Starlink satellites. This allows users to stay connected even outside au 5G/4G LTE coverage, provided there is a clear view of the sky. On smartphones, users can send and receive text messages, access compatible apps, share location data, use AI chat functions, and receive emergency alerts. On Apple Watch, text messaging and location sharing are available.

Board Incentive Plan Trust. A performance-linked stock compensation plan for executives, where company shares are granted as an incentive for stock price appreciation.

A growth domain providing communication, AI, and DX solutions for corporate customers to support digital transformation. It consists of five key areas: AI Integration, Cybersecurity, Connected solutions, Data Centers (DC), and AI-BPO.

Compound Annual Growth Rate. A value calculated by averaging multi-year growth rates into a single, annual figure.

Enables connectivity across devices and systems through IoT and networks, creating added value through data utilization.

Provides security and monitoring services to support the development of safe and secure IT environments.

A strategic initiative to build an integrated digital infrastructure across Japan by combining communications networks with AI computing infrastructure, covering land, sea, and sky to support the platform necessary for data processing and advanced services in the AI era.

A technology that creates a virtual "twin" of a physical space by collecting data from the real world via IoT and other means. Digital twins enable repeated simulations that would be difficult to perform in the real world, leading to cost reduction, shorter development times, and improved quality for new products.

Employee Stock Ownership Plan. A system for granting company shares to employees, typically through an employee stock ownership association.

KDDI's growth strategy that creates new value by integrating technologies, assets, and data across different domains. Through three pillars―Real-Tech Fusion, Infrastructure Fusion, and HR Fusion―KDDI aims to build a business foundation that can sustain competitive advantage in the AI era.

An artificial intelligence technology that generates content―including text, images, and programs―based on patterns learned from large datasets.

An initiative to strengthen execution capabilities through added skill development and enhanced capabilities with AI. Telecom engineers acquire AI and cybersecurity skills and evolve into "dual-capability talent" through practical experience while frontline staff enhance sales capabilities with AI.

An infrastructure strategy that integrates telecommunications and AI platforms to build a low-latency network and AI computing infrastructure covering land, sea, and sky across Japan. Establish a mid- to long-term foundation by connecting data centers, submarine cables, and satellite communications.

The practice of sharing telecommunications facilities, such as mobile phone base stations, with competitors (like SoftBank). Sharing facilities in rural areas and other locations helps reduce capital investment and enables more efficient network deployment.

The shared values and code of conduct for every member of the KDDI Group.

A system that "creates and nurtures professionals" by clearly defining job roles ("job-based") and rewarding individuals directly based on their performance, challenges, and abilities. Its key feature is an emphasis on developing personnel who possess not only specialized skills but also the "human skills" needed to lead organizations to success.

KDDI's long-term vision for 2030, which aims for "The creation of a society in which anyone can make their dreams a reality, by enhancing the power to connect."

Large Language Model. This is the core "brain" of generative AI, trained on vast amounts of text data to perform advanced language processing. KDDI's approach is not to rely on a in-house LLM but to utilize the optimal generative AI for each specific application.

Lifetime Value. The total revenue a company can expect from a single customer throughout their relationship. KDDI's growth strategy aims to maximize LTV by strengthening engagement through bundled services combining telecommunications with finance, energy, and more, rather than focusing on telecommunications alone.

Mobile Network Operator. A carrier that owns and operates its own telecommunications network infrastructure, including base stations, to provide communication services. Japan's four MNOs are NTT DOCOMO, SoftBank, Rakuten Mobile, and KDDI.

Average Revenue Per User per month. Calculated by dividing mobile revenue by the average number of main subscriptions.

The sum of telecommunications revenue and value-added services revenue. Mobile Revenue = Data-related + Basic fees/Voice-related + Various discounts + product support services, etc. + Content, etc.

KDDI provides three brands: "au" (a premium brand offering unlimited data and reliable high-value-added services), "UQ mobile" (a middle tier brand offering simple and affordable plans), and "povo" (an online-exclusive, topping-based plan).

Mobile Virtual Network Operator. A carrier that provides communication services by leasing network infrastructure from MNOs.

A business domain focused on expanding customer touchpoints and driving revenue growth through telecom-based services for individual customers. It consists of five key areas:

A monthly subscription service offered by KDDI that provides a bundle of deals, including coupons for daily life, point rewards, entertainment contents, and support services.

A core strategy that combines digital technologies such as AI with real-world assets, including shops and infrastructure, to enhance customer experience and create new value. It drives the creation of new businesses starting from customer needs, supporting AI-Powered Productivity and AI-Enhanced Lifestyles.

A contractual arrangement where partner companies collaborate on a business and share the resulting revenue based on a predetermined distribution ratio.

Frequency bands used for 5G. Sub6 is suited for wide-area coverage, while millimeter wave (mmWave) offers ultra-high speeds but is susceptible to obstacles. KDDI overlays mmWave on its Sub6 network to build a seamless and comfortable communication area.

A next-generation smart city demonstration model being implemented with co-creation partners at TAKANAWA GATEWAY CITY. This initiative involves consolidating data from the city, station, offices, commercial facilities, robots, and human flow into a city OS, conducting real-time analysis with AI, and reflecting the results from cyberspace back into the real-world city management. The goal is to deploy successful case studies to other cities in the future.

A core business segment responsible for telecommunications and infrastructure. It promotes structural transformation focused on maximizing LTV and aims for stable growth in mobile revenue and profits. It also enhances operational efficiency through AI to strengthen its earnings base and generate investment resources for Group growth.

The three pillars of management set forth by President and CEO Hiromichi Matsuda upon his appointment in April 2025 to realize KDDI VISION 2030. They represent the three perspectives for achieving the vision of becoming "A company that inspires passionate challenges": "Connecting with partners to create the future," "Spreading the power to connect across the world," and "Connecting with customer's present, customer's future."

The amount of data flowing through a communication line. It continues to increase with the spread of video streaming services and is expected to grow further with the advent of the AI era.