ESG Presentation Meeting

The survey on the mindset after appointment is conducted using the same questionnaire for males and females. As a result, our impression is that there is not such a significant gap between males and females. When asked why they have a negative view of their promotion to line manager, they attributed it to the work style. In some departments, being the person in charge means that they are inclined to work long hours, or as a member of the group leader class, it takes more effort to navigate the narrow space between junior staff and senior staff, and it becomes difficult to control their own time.
On the other hand, more than 30% of all female line managers are also raising children. They say that the people around them have a better understanding of their situation than before. In addition, with the work style reform that was implemented in January 2017, employees now leave the office by 8:00 PM. As a result, there are opinions about how this has made it easier to work, and there are expectations that things will continue to gradually improve. (Mase)
I do not have actual data for this, but some female employees worry about whether they can succeed at being a line manager before they are promoted. However, I think there is an increasing number of employees who have positive views once they assume their position and experience the greater responsibility, authority, and job satisfaction that it entails. Moving forward, we aim to continue actively promoting female employees to line managers, with the hope of cultivating leaders that can make positive contributions to society. (Dobashi)

As for the appointment of the new president, the candidates were discussed by the Nomination Advisory Committee, and then the matter was taken up at the Board of Directors meeting, which made the final decision. The current president has served for many years, so his successor has been under consideration for a long time. We thought that the next new medium-term management plan should be considered under the new president in place, and that is why the change is being made at this time. (Dobashi and Tanaka)

A communication environment does need to be established for IoT, and the revitalization of local industry and the use of IoT lead to greater demand for communications even in local areas, so we would like to continue our efforts in this area over the long term. To do so, it is necessary to establish the environment that is used for this purpose. We believe there is still room for IoT to develop in terms of solving regional issues, and the continued emergence of concrete applications will lead to greater usage. (Abe)
One goal of our Smartphone and Mobile phone Safety Classes is to eliminate the negative aspects of mobile phone usage among youth. As the aim is not to increase the au share, we do not collect any data how it contributes to our actual performance. However, there are seniors in classes who become interested in using smartphones and we sometimes hear attendees say "I will visit au Shop after this class". Although it is to enhance literacy of senior ages and not an activity that aims to boost sales, we take pride in the fact that it leads to an increased number of au users and increased corporate value. (Torimitsu)
The enhancement of ESG activities improves the overall strength of the company, including the cultivation of human resources, and we believe this is directly connected to improving our business results. Regarding the visualization of the relationship between ESG activities and business results, we would like to pursue efforts that address this issue in the future. (Dobashi)

We are currently employing more mid-career recruits than before as we aim to expand the life design business, but we are not implementing any particular activities for the inclusion of mid-career employees. However, to promote our philosophy throughout the company, we ask all employees to participate in study sessions three times per year. These study sessions bring employees together from various departments to have discussions about the philosophy. I believe this opportunity to meet and talk with mid-career employees and other employees with different corporate culture backgrounds are unique aspect of our company. (Mase)

We are most concerned with how to make cooperation in local areas, even more than cooperating with other companies. Whenever KDDI attempts to do business in a local region, we work to establish a solid relationship with the local area while identifying issues, establishing a basic framework, and gathering and analyzing data, and we cooperate with local academic organizations and others to form an industry-government-academia partnership. Only then the project can be materialized. Our tendency is to consider how we can best provide various communications that match the local area. At the same time, we need to take a step-by-step courteous approach in our efforts. (Abe)

Currently, the reduction of CO2 emissions is a global issue, and KDDI is implementing the KDDI GREEN PLAN (a long-term promotion to make 7% reduction in CO2 emissions by the year 2030). Previously, our environmental efforts mostly involved a risk-based approach. Now, however, we view this as an opportunity to offer a variety of products and services that contribute to CO2 reduction not just for our company, but for society as a whole. Though we are currently unable to provide concrete numbers for the reduction amounts quantitatively, we recognize this as a future issue. (Torimitsu)
The regional revitalization efforts that we discussed this time are aimed at predicting how much fish can be caught, but the data is also useful in terms of reducing the environmental load, including boat fuel costs. It's yet implemented only at a single location, but if prediction-based fishing can be deployed nationwide, I believe that, it can contribute to the environment by reducing the amount of energy consumption and controlling fishing costs over the long term. (Abe)

You have a valid point. There are obstacles and limits to the disclosure of concrete and specific information about those meetings by top management. However, the two points described here (p. 57) consist of a summary of the actual comments from the independent outside directors and outside Audit & Supervisory board members. So, take the Brexit issue as an example of how our discussions are held from wide-ranging, diversified viewpoints such as the trade problems and the tax system, thereby generating a discussion that would otherwise not materialize if all members were from inside the company. We can also become aware of things that would ordinarily go unnoticed by people from within the company, leading to unexpected suggestions about our internal company systems that we use as a matter of course. At the Board of Directors meeting, there are opinions from a variety of perspectives, as well as insights based on a variety of experiences and advanced specialized knowledge, which are extremely helpful in many cases. (Tanaka)
When the Board of Directors started involving the participation of independent outside directors, the sense of tension increased. A deeper understanding can be gained by having serious debates on the matters, and I get the sense that this has energized the board. I now recognize that we should devise ways to improve the shareholders' understanding in this area, and I hope that we can look at this issue and investigate how to better present the information in future reports and other disclosures. (Dobashi)

Broadly speaking, the bonuses and stock remuneration are based on the medium-term management plan, and the KPI are set based on the items that are designated as important in the individual fiscal year plan (not disclosed outside the company). The bonuses and stock remuneration are decided depending on the degree to which these targets are met. The proportional amount of stock remuneration described on p. 58 is the average for internal directors. For executive officers and managerial staff, the proportional amount of this linked remuneration is lower. There is a slight difference between the proportional amount of linked remuneration, depending the position of each director. (Tanaka)

We started implementing the work style reform about one year ago, in January 2017. Up to that point, our long-standing company culture was to perform whatever work was necessary, regardless of the amount of time, to achieve our targets once they had been set and the initial goal was to reduce the amount of work performed outside of regular business hours. With the implementation of the work style reform, we initially set target figures and made a year-long effort to reduce work outside regular hours. In our current situation, we have eliminated the work performed outside of regular hours to a considerable extent. However, simply eliminating the work outside regular hours does not lead to an improvement in the performance of the work, so we are now pursuing efforts aimed at improving productivity. Some of our particular efforts are to improve work efficiency through RPA, to make it easier to work outside of the office by establishing a system of mobile work, and to lighten the work load by reconsidering how we conduct our business operations. However, this is still not enough, so we will continue our efforts to improve productivity in the future.
Also, starting this year, we began pursuing efforts in health management as part of our work style reform. (Dobashi)

Regarding the Board of Directors' discussions of complicated IT technological matters, we have made improvements by (1) creating documents that are easy to understand even for outside directors, (2) making the background information very clear, and (3) clarifying the problem areas in consideration of in-company discussions so that every participant can understand to make effective discussion in the meetings. As for M&A, we have incorporated a process whereby PMI status updates are provided regularly.

We started after having discussions with the local governments, who understand the major issues in the region. We also have bases in the region, so we have had opportunities to hold discussions with local government leaders in the past. While doing so, we first considered how many people in the region were able to cooperate with us. Then, we established a basic framework with the fisheries experimental station, university, and others based on the collection and analysis of data other than the communications that we provide. After that, we could finally engage in the project. This process was a valuable learning experience, and I think it will help with other regional revitalization activities in the future. Although mackerel fishing was presented as an example this time, we believe that our knowledge of the overall process can be applied to other cases. (Abe)

We are making progress in developing a platform in the automotive and other industries. This time we introduced the primary sector industry which can highly contribute to society, but we are now making efforts to the extent what we can. In addition, because KDDI possesses the means to conduct sales through services such as au WALLET Market, we hope to contribute to the business through our sales channels in the future. (Abe)

Although we do not regularly collect data, a change appears to have occurred since fiscal year 2015 (when we set the goal of appointing 90 female employees to line managers). At that time, the proportion of female employees with a desire to take a management position was less than 30%, even among the female managerial candidates. There is data from the end of the last fiscal year about how the mindset has changed since then, and it will be reported separately through the IR Office. If you listen to the actual opinions of company employees, just about everyone would like to take a management position. However, the promotion of employees from management positions to line managers is regarded as an issue. (Mase)

Each manager candidate is assigned a general manager or deputy general manager, who acts as a sponsor. The company does not have an established system for other line manager candidates, but we do think there is a need for a system of support. Specifically, we think there is a need for vertical networking between female employees, so that the managerial candidates can get support from line managers, and the line managers can get support from managers or higher ranking positions. There is an event scheduled for tomorrow that welcomes the participation of female employees, and we think it will help reinforce these vertical connections. (Mase)