President's Message

In the IoT and 5G era, the KDDI Group will work together to realize KDDI's vision of "Integration of Telecommunications and Life Design." To this end, we will pioneer the new era and drive transformation, aiming to further increase our corporate value.

We would like to express our gratitude to our shareholders and investors for your constant support and understanding.

Under the medium-term targets up to March 31, 2019, KDDI set a strategy of "transforming into a business that provides customer experience value" and sought to increase its corporate value by "both achieving sustainable growth and enhancing shareholder returns."
Over the past two years, the environment surrounding the domestic telecommunications market has changed dramatically. The services provided by Japanese three major mobile telecommunications operators have become homogenized, low-cost smartphones supplied by MVNOs have spread, and there have been regulatory changes as well, with the issuance of the Ministry of Internal Affairs and Communications guidelines for normalizing handset sales. Even as the three major operators have entered into other fields outside of telecommunications seeking to create new earnings, companies of various industries have entered the mobile telecommunications market as MVNOs, thrusting the industry into an era of competition across industry boundaries. The fiscal year ending March 31, 2019 is the final year of the current medium-term business plan, and we expect to see this competition heat up even more intensely. However, we aim to achieve our medium-term financial target of operating income CAGR of 7%.

We will also accelerate our initiatives towards realizing the vision of "Integration of Telecommunications and Life Design" in preparation for the measures of our next medium-term plan. In Integrating Telecommunications and Life Design, telecommunication business, our solid foundation, will form the core upon which we will overlay essential lifestyle services for customers such as content, commerce, energy, finance, and education.

Furthermore, as we fully enter the age of IoT and 5G, we will work to develop pioneering services by speeding up new value proposals, as well as enhancing the home IoT services, while expanding the Low Power Wide Area (LPWA) telecommunication technology for IoT and taking steps to promote connected cars.

If we are to win out in this cross-industry competition going forward, we must continue to deepen our understanding of customers and propose services that provide them with a positive experience. Our approach to achieving this will be to expand life design services for the coming era not only through our own efforts, but in collaboration with partner companies as well.

We will also continue to focus on initiatives in our enterprise business and global business.
In our enterprise business, we will engage with the changes in our customers' businesses and seek to contribute to customers' core businesses in all industry sectors. In our global business, we will further expand our telecommunications businesses for individual customers in Myanmar and Mongolia, while in our TELEHOUSE brand datacenter operations, which have bases in 47 locations, we will aim to continue strengthening our earnings capability and expanding our business scale, mainly in our services in Europe, where is especially competitive.

KDDI encompasses many Group companies not only in Japan but also overseas following our recent business domain expansion.
The KDDI Group will work together to pioneer a new era and drive transformation, aiming to realize further increase in corporate value through sustainable profit growth.

I appreciate your continuing support and guidance for the KDDI Group.

April 2018
Makoto Takahashi
Makoto Takahashi

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