Glossary

A service that allows au smartphones to connect directly to Starlink's direct-to-cell satellites using existing au frequencies, enabling communication in out-of-coverage areas wherever you see the sky. Eligible devices can send and receive text messages via the iOS Messages or Google Messages apps and data communication with certain apps. (As of February 2026).

A classification within the business services segment (corporate business). The "Base" area refers to telecommunications, while the "Growth" area refers to value-added services, including IoT-related services, data centers, and digital BPO.

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

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

A system and business domain that realizes safe, stable, and high-quality mobility worldwide by embedding communication functions (primarily cellular) in vehicles and connecting them through KDDI's Global Communications Platform (GCP).

The core domain that supports the growth of all KDDI businesses, centered on advancing 5G telecommunications, data-driven practices, and the social implementation of generative AI.

BPO stands for Business Process Outsourcing. KDDI conducts this business through its group company, Altius Link, Inc., primarily offering contact center and BPO services. It goes beyond simple outsourcing by undertaking business process optimization using AI and digital technologies.

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.

Artificial intelligence that creates new content, such as text, images, and programs, based on the data it has learned. KDDI utilizes it for operational efficiency and in its corporate business platform, WAKONX.

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.

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."

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.

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.

Mobility as a Service. A concept that treats mobility as a single service, seamlessly connecting various modes of transportation such as buses, trains, and taxis.

A virtual space on the internet. KDDI offers services such as "αU (Alpha U)." It is positioned in Orbit 2 of the Satellite Growth Strategy.

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 that drives growth under the Satellite Growth Strategy. Specifically, it refers to the DX, finance, and energy businesses.

Five domains aimed at achieving further growth in response to the IoT society, new technologies, and consumer diversification under the Satellite Growth Strategy. It includes mobility, space, healthcare, Web3/metaverse, and sports & entertainment.

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

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

A business strategy within KDDI's Mid-Term Management Strategy (FY23-03 through FY26-03). With the 5G telecommunications, data-driven practices, and generative AI at its core, the strategy accelerates business growth by expanding into growth areas (Orbit 1) such as finance, energy, and DX. For the next phase of growth, it aims to expand into five defined areas designated as Orbit 2: mobility, sports & entertainment, Web3/metaverse, healthcare, and space.

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.

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.

Launched in May 2024 under the "KDDI BUSINESS" corporate brand, WAKONX is the name of the business platform for the era of AI integration. It is a brand designed to realize KDDI VISION 2030, co-creating industry-specific platforms for mobility, logistics, and warehousing with partner companies and offering them as solutions. It consists of a Network Layer, Data Layer, and Vertical Layer.