First of all, I would like to express my sincere appreciation to all our stakeholders for your continued 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 connects to customers' lives. With a commitment to our mission of connecting and protecting lives, connecting day-to-day lives, and connecting hearts and minds, we will strive to fulfill our crucial roles in society and to deliver a thrilling customer experience by always going further than expected.
KDDI works to solve social issues as an infrastructure company that underpins the information that serves as the basis of society. Telecommunications is now integral to various parts of society and is indispensable to people's daily lives. Moreover, the Japanese government has launched the Vision for a Digital Garden City Nation to advance digital implementation, particularly in regional communities. Thus, promotion of digital transformation (DX) to solve social issues and to revitalize local communities has become increasingly important. KDDI is promoting measures to establish new lifestyles for its customers and to build a resilient future society that supports economic development and provides solutions to social issues.
Amid such changes in the business environment, in May 2022 we formulated KDDI VISION 2030 to achieve the future society we want to be. By further refining our core telecommunications business and enhancing the power to connect, we will strive to achieve KDDI VISION 2030. Furthermore, we will create new added value through the fusion of the physical and cyber space under the concept of KDDI Digital Twin for All and contribute to society's sustainable growth through our business.
At the same time, KDDI will promote the Mid-term Business Strategy (FY2022-24) that looks ahead to 2030.
Based upon sustainable management, we aim to achieve the sustainable growth of society and the enhancement of corporate value together with our partners, through the Satellite Growth Strategy as our business strategy, and Strengthening of Management which supports the strategy.
The Satellite Growth Strategy aims to build out 5G service areas by thoroughly focusing on life lines such as railroads and commercial districts, and to improve quality of experience. In this way, KDDI seeks to further develop our telecommunications business and to expand our focus areas centered on telecommunications.
The five focus areas are (1) digital transformation (DX), (2) finance, (3) energy, (4) life transformation (LX), and (5) Regional Co-Creation (such as CATV). In particular, DX integrates communication into everything in the form of IoT, and creates an environment where customers can utilize 5G without being aware of it. To that end, we will provide business platforms that meet the individual needs of various industries and accelerate our customers' DX. We are aiming for a virtuous cycle of DX, where people's lives are transformed by the newly created added value. Furthermore, in finance, we are developing various businesses to maximize synergy with telecommunications. By linking mobile telecommunications services with various financial services, such as au Jibun Bank, the cashless payment service au PAY, and the au PAY Card credit card, we are expanding the range of available services so that our customers can economically and conveniently utilize various financial services from their personal smartphones. In the area of LX, KDDI launched αU, a metaverse and Web3 service, in March 2023. The service connects the real and virtual worlds to create a fulfilling future society in which users can attend live music performances, enjoy art, have conversations with friends and go shopping anytime, anywhere.
KDDI is also addressing carbon neutrality, which is a major issue on a global scale, and other sustainability issues through its operations. au Renewable Energy, Inc. opened for business in April 2023 and will work with communities, municipalities, and corporate partners to operate a renewable energy power generation business centered on solar power. KDDI is aiming to achieve net-zero CO2 emissions by fiscal 2030 and the Group as a whole by fiscal 2050. In order to achieve these targets, we will promote energy efficiency and shift to renewable energy for mobile phone base stations and telecommunications equipment.
In addition, to ensure ongoing sustainable growth amid a business environment that is undergoing constant and profound change, employees and organizations must drive innovation and acquire a high degree of autonomy and growth to become a "human resources first company." In promoting innovation, we will strengthen R&D and capital investment for 5G and beyond 5G. And we will accelerate efforts for business creation, R&D, Web 3/AI, and advanced security technology efforts based on our Satellite Growth Strategy and will deepen partnerships such as collaboration with startups. We will also collaborate with our competitors on various projects, such as with NTT to promote the global standardization of optical network technologies, and with Softbank to share 5G equipment. In order to transform into a "human resources first company", we are working on three pillars; KDDI Version Job Style Personnel System, realizing Declaration of KDDI New Work Styles, and Internal DX. By utilizing "KDDI DX University" to advance DX skills of all employees and develop professional human resources, we will also shift personnel to focus areas.
Lastly, we will promote the "KDDI Philosophy" as a common way of thinking and code of conduct for management and employees. Through the synergistic effect of the corporate governance system that respects human rights and guarantees transparency and fairness, we will strengthen the risk management and information security system and strive to promote the KDDI group management.
As we move forward together, I would like to express my sincere appreciation for your continued support and guidance for the KDDI Group.
President, Representative Director, CEO, KDDI CORPORATION
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