Medium-Term Management Plan (FY2020.3-FY2022.3)

We aimed for continuous growth and enhance shareholder return by offering customer experience value which goes further than expected and it has brought us a secured solid customer base and a steady growth in consolidated operating income up to now.
From now on, full-scale digitization is speeding onward against the backdrop of continual technological advances encompassing 5G (5th Generation Mobile communications System), and it will bring us big changes in the competitive environment of Japans telecommunications market.
Amid this age of epochal change, KDDI drew up a new three-year medium-term management plan (FY2020.3-FY2022.3) to realize "the integration of telecommunications and life design."

Sustaining Profit Growth and Further Strengthening Shareholder Returns

Since its establishment in October 2010, KDDI has achieved 18 straight years of growth in operating income, with its strengths as a comprehensive communications carrier translating into continued business growth. KDDI has also focused on enhancing shareholder returns, increasing dividends for 17 fiscal years in a row.
Under the new medium-term management plan unveiled in May 2019, KDDI targets growth of 1.5 times in earnings per share (EPS) by the fiscal year ending March 31, 2025, compared with the level in the fiscal year ended March 31, 2019, while sustaining growth in profits.
Regarding shareholder returns, KDDI has steadily increased dividends toward a dividend payout ratio of at least 40%, while taking a flexible approach to buying back its own shares.
In principle, KDDI retires all the shares it buys back. Through these initiatives, we intend to continue balancing sustained profit growth with stronger shareholder returns.

• [1]

  Except KDDI shares owned by executives' compensation BIP Trust Account and ESOP Trust Account

Our Growth Story

01: Earnings expansion via "the integration of telecommunications and life design"

02: Operating revenue expansion via the strengthening of growth domains

Under our new medium-term management plan, we have positioned the new Business Services segment as a pillar of growth to accompany the life design domain.
In the new Business Services segment, KDDI aims to increase the total number of IoT connections from eight million as of March 31, 2019 to 18 million by March 31, 2022, by creating recurring business centered on IoT operations and providing various business platforms in Japan and other countries around the world.
In both growth domains, KDDI is focusing on the targets it set for increasing operating revenue in the life design domain from ¥946 billion in the fiscal year ended March 31, 2019, to ¥1.5 trillion by the fiscal year ending March 31, 2022, and expanding operating revenue in the new Business Services segment from ¥886.4 billion to ¥1.0 trillion over the same time frame.

Business Expansion through Collaboration with Partners

03: Capital expenditures and cost reductions

Specifically, KDDI is advancing measures to increase business efficiency through systemization and the reform of work processes as well as improvements in the cost efficiency of network operations through the use of network virtualization and AI. Management targets a total of ¥100 billion in cost reductions over the next three years that will translate into stronger profit growth.