President's Message

Tomorrow, Together In addition to realizing the "integration of telecommunications and life design," we endeavor to provide solutions to social issues and help achieve a truly connected society.

In the KDDI Group Mission Statement, we state our goal: to achieve a truly connected society. To this end, we are working hard to maintain resilient and high-quality telecommunications in line with our duty as a telecommunications operator responsible for critical life lines. At the same time, we provide new experience value to customers in cooperation with various partner companies.

Right now, the global businesses environment is going through a phase of major transition. Full-scale digitization is speeding onward against the backdrop of continual technological advances encompassing 5G (5th Generation Mobile Communications System), IoT, AI and big data. The world is shifting toward a society that not only places greater value on data but is itself data driven. Moreover, the government of Japan is striving to ensure both economic development and the resolution of social issues by integrating leading-edge technologies into all industries and aspects of daily life and thereby realize Society 5.0. [1] Meanwhile, Japan's telecommunications market is seeing massive changes in the competitive environment; autumn 2019 will see the emergence of a fourth telecommunications operator and industry-wide price reductions in light of the rising popularity of inexpensive smart phones and a recommendation by the Ministry of Internal Affairs and Communications.

Amid this situation, telecommunications operators are also working to establish new earnings generators in fields outside of telecommunications and, in April 2019, 5G frequencies were allotted to each company. Going forward, we will continue preparing for an era characterized by a diversity of services made possible by the application of 5G and a wide range of advanced technologies.

Amid this age of epochal change, KDDI drew up a new three-year medium-term management plan (April 2019 - March 2022) to realize the "integration of telecommunications and life design."

With regard to make the medium-term management plan, we have reorganized and integrated our business segments into the Personal Services segment, to provide services to individual customers, and the Business Services segment, to provide services to corporate customers.

In the Personal Services segment, KDDI is enhancing its life design services, which include commerce, finance, energy, entertainment and education, focusing on and coordinating with telecommunications―the foundation of our business―at the core for both our au and other customers. Through these efforts, we aim to further promote the "integration of telecommunications and life design"―the core of our business strategy―while providing new experience value and maximizing revenue based on total ARPA. Furthermore, as our customers use telecommunications, which are indispensable to daily life, in conjunction with various life design services, we aim to engage more with them and leverage this connection to maximize lifetime value, which is the product of multiplying the number of customers (IDs), including those of Group companies, by total ARPA and by use time (retention rate).

In the Business Services segment, KDDI will apply its strength and knowhow in IoT and ICT (Information and Communication Technology) to support its customers' digital transformations. In this way, we will contribute to their businesses, create new business through open innovation with partner companies, and roll out business models that ensure growth alongside partner companies.

In addition, in both segments, we will continue leveraging the knowhow we have cultivated in Japan to bolster our global expansion. In the Personal Services segment, we aim to expand IDs, especially in emerging Asian countries, and develop telecommunications and life design services. In the Business Services segment, we will support customers' global businesses, using our IoT World Architecture as a base.

Furthermore, in line with the drawing up of the medium-term management plan, we have re-examined our expectations and goals with regard to the role we play in customers' lives and society as a whole in this new era. The result was the revamped brand message "Tomorrow, Together," a phrase that communicates the concept of a shared faith in the future as we move forward as partners and continue to grow and develop.

In addition, under the medium-term management plan and as a natural progression from the sustainability activities in which KDDI has engaged to date, the Company has outlined the SDGs [2] it will focus on and set numerical targets. These targets are tied to business strategies, encompassing telecommunications, global business, regional revitalization, education, and finance, as well as to corporate activities, including developing human resources, supporting women's advancement in the workplace, respecting human rights, promoting diversity and inclusion, and conserving the environment. As we strive to reach these targets, we will continue to grow sustainably with society by resolving social issues through our businesses and corporate activities.

By promoting these initiatives, we aim to achieve sustainable profit growth and enhance shareholder returns over the long term. Thank you for your support and guidance regarding these and other efforts past and future as the KDDI Group moves into the future.

  • [1]
    Society 5.0 is a medium―to long-term growth strategy conceived by the Japanese government. It presents a vision of a future society we strive to realize through systems that thoroughly integrate virtual and physical spaces.
  • [2]
    The sustainable development goals (SDGs) are international goals that were adopted at the United Nations General Assembly in September 2015.

May 2019
Makoto Takahashi
Makoto Takahashi

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