President's Message

Tomorrow, Together Offering new lifestyles centered on 5G technologies, we are striving toward the realization of a resilient future society through co-creation

First of all, I would like to express my sincere appreciation to all our stakeholders for your continuous support.

Since its establishment, KDDI has made realizing a truly connected society part of the KDDI Group Mission Statement. Our business is strongly intertwined with society and directly connected to customers' lives. Under the slogan Zutto, Motto, Tsunagu Zo, au (Connecting more and always with au), we aim to provide telecommunications services that are always reliable, no matter what with the intention of delivering a thrilling customer experience by always going further than expected.

Due to the COVID-19 pandemic, the structure of day-to-day life as we know it has been completely upended and, amid an ongoing rapid digital shift affecting every aspect of society, telecommunications have taken on an increasingly important role. In addition, with new telecommunications providers entering the market and competition heating up, services and pricing plans are diversifying and the telecommunications industry itself is undergoing major changes. Amid this situation, KDDI is returning to its customer-oriented roots and continuing to meet customers' constantly changing expectations to realize its Company Vision of being the company the customer can feel closest to.

In 2020, KDDI and KDDI Research, Inc. announced KDDI Accelerate 5.0, which aims to build a society for the next generation by 2030 and accelerate the realization of Society 5.0 through 5G as promoted by the government. We are launching measures to establish new lifestyles for consumers and build a resilient future society that supports Japan's economic development and provides solutions to social issues. To this end, we will utilize orchestration and other technologies in seven fields that support the evolution of the network layer, platform layer, and business layer, including 5G networks.

To ensure its ability to promptly adapt to the changes of this era and promote its medium- to long-term vision, KDDI aims to achieve overall growth through sustainable growth in existing businesses as well as new innovations under its Medium-Term management plan spanning the period of April 1, 2019 to March 31, 2022 (FY2020.3-FY2022.3) and now in its final fiscal year.

In the Personal Services segment, we strive to offer pricing plans that meet various needs and are adapted to diverse lifestyles through unlimited use without anxiety "au," simple and secure price "UQ mobile," and choose freely with toppings "povo" services. Enhancing experience value, we will continue swiftly creating an environment where customers can genuinely appreciate the AUGUMENTED EXPERIENCE that is only possible with 5G. In addition, as telecommunication fee revenues are impacted by falling fees, we aim to expand our non-telecommunications businesses. In the Life Design Domain, we are enhancing our services, especially "au PAY," which is a smartphone payment service that acts as a customer contact, as well as "au Smart Pass Premium," which allows customers to enjoy entertainment and exciting next-generation experiences, including via 5G. As for point circulation, we will continue working to expand the number of places where customers can use Ponta Points and to make points more attractive. Through these efforts, we aim to expand the "au Economic Zone," especially in the areas of finance, energy, and commerce. We will steadily work on the "integration of telecommunications and life design" and provide new experience value to customers.

In the Business Services segment, companies' digital transformation (DX) is accelerating across a wide range of industries and uses, and corporate business models are changing profoundly. We are stably growing our core existing mobile and fixed-line telecommunications businesses. To achieve growth across the entire Business Services segment, we will pursue synergy with core businesses by increasing the number of IDs, enhancing engagement, and expanding business domains into the NEXT Core Business that will drive future growth, specifically "Corporate DX" that supports customers' smart work, "Business DX" centered on IoT, and "Business infrastructure services" of data centers and call centers. In preparation for the era of full-scale 5G, we have followed KDDI DIGITAL GATE, our new business development center, with the establishment of KDDI Research Atelier, a research and development center that offers new lifestyle options, as well as a new corporate department center to support customers' DX in Toranomon district in Tokyo. These three locations are working together to accelerate open innovation with the aim of creating new experience value and businesses, promoting KDDI Accelerate 5.0 initiatives, and becoming a digital integrator for this era, in which telecommunications are becoming seamlessly integrated with all kinds of physical things.

In addition, to ensure ongoing sustainable growth amid a business environment undergoing constant and profound change, employees and organizations will require a high degree of autonomy and growth. KDDI considers human resources its most important resource. With the aim of transforming into a company that puts human resources first and has made their development and enhancement the foundation of management, we are working on this across three pillars: introducing KDDI Version Job Style Personnel System, realizing Declaration of KDDI New Work Styles, and promoting Internal DX.

Furthermore, to achieve the KDDI's SDGs for 2030 we formulated KDDI Sustainable Action initiatives. These initiatives target sustainable growth with society by "connecting and protecting lives," "connecting day-to-day lives," and "connecting hearts and minds" through the pursuit of business partnerships that utilize 5G, IoT, and other technologies. Every year, the effects of global warming grow more severe, and the resulting climate-driven disasters are increasing in Japan and around the world. In April 2021, KDDI announced its agreement with the Task Force on Climate-related Financial Disclosures (TCFD). Going forward, we will continue promoting initiatives aimed at achieving zero CO2 emissions by 2050, such as forcefully promoting the shift toward renewable energy and making disclosures and announcement in line with the TCFD.

As we move forward together, I would like to express my sincere appreciation for your continued support and guidance for the KDDI Group.

May 2021
Makoto Takahashi
Makoto Takahashi
President, KDDI CORPORATION

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