Since its establishment, KDDI has made realizing a truly connected society part of the KDDI Group Mission Statement. As a communications carrier responsible for essential lifeline infrastructure, we strive to fulfill our mission of maintaining resilient, high-quality telecommunications and, 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.
In recent years, as full-scale digitization advances, powered by the development of such technologies as the 5th Generation Mobile Communications System (5G), IoT, AI, and big data, we are seeing a transformation into a data-driven society that places even greater value on data. The widespread adoption of these technologies will accelerate digital transformation (DX) in all industries and enable the eventual realization of "Society 5.0 : Co-creating the future for SDGs," in which economic development will complement the resolution of social issues.
Japan's telecommunications market is undergoing a period of immense change. With the amendment of the Telecommunications Business Act in October 2019, the entry of a fourth telecommunications carrier, and anticipated growth in smartphone payment and other smartphone-based services, the competitive environment is undergoing major changes.
Under these conditions, in March 2020, we began offering much-anticipated 5G service in Japan. 5G has the potential to greatly change society, transforming individual lifestyles, values, and ways of doing business. We are thus on the verge of an exciting new era.
In addition to responding rapidly to such changes, under the medium-term management plan (April 2019 - March 2022) established last year, KDDI is working to achieve continued growth in existing businesses while ambitiously pursuing new innovation. By doing so, we aim to achieve sustainable growth.
In the Personal Services segment, in 2019 we introduced a new pricing plan for smartphones with unlimited monthly data in anticipation of the 5G era. au 5G enables the instantaneous, stress-free, unrestricted handling of large volumes of data. Under the concept "UNLIMITED WORLD au 5G," indicating freedom from conventional restraints, we will work with partners across a wide range of industries to provide augmented experience in all areas of daily life, including entertainment, sports, and art. In addition, through the "integration of telecommunications and life design," we aim to maximize the total product of the number of Group IDs x engagement x total ARPU. Specifically, by enhancing the appeal of au PAY, the smartphone payment service we launched in 2019, we will reinforce customer engagement, and through natural, pleasant suggestions made from customer perspectives using big data, we will expand the number of Group IDs, the foundation of our existing telecommunications business. Furthermore, by further enhancing the au PAY app and positioning it as a "super app" that serves as a portal for all aspects of daily life, we aim to provide customers with new experience value, thereby maximizing total ARPU.
In the Business Services segment, companies' DX is accelerating across a wide range of industries and uses, and their very business models are changing greatly. While stably growing our existing mobile and fixed-line telecommunications businesses, we will work with diverse partners as a digital integrator for this era, in which telecommunications are becoming seamlessly integrated with all kinds of physical things, mainly through KDDI DIGITAL GATE, our 5G/IoT era business development center aimed at supporting customers' DX. By doing so, we will advance the creation of new experience value and businesses only possible in the 5G era. Furthermore, through the IoT World Architecture, we will further expand IoT in Japan and overseas and continue working to expand the scale of our businesses around the world.
In order to contribute to the sustainable growth of society, KDDI is advancing sustainability activities centered on its six material sustainability issues on a group-wide basis. In light of the need to respond to such social issues as increasingly severe natural disasters, the resilient foundation of the telecommunications and the sustainable development of regions and cities, and as telecommunications become further integrated into every part of society, KDDI's mission of ensuring reliable communications is more important than ever.
In 2020, we revisited KDDI's SDGs, which we linked with the medium-term management plan (April 2019 - March 2022), to clearly designate eight social issue categories based on the scale of related social issues and the business areas in which KDDI can contribute as a communications carrier. In addition, laying out our commitment to continuing to work toward the solution of diverse social issues through our businesses, we have formulated the new KDDI Sustainable Action, in line with the KDDI SDGs for 2030. By, for example, using 5G and IoT to drive regional revitalization, and providing affordable, high-quality telecommunications services in developing countries, we aim to generate profit while solving social issues.
The KDDI Group works to "connect and protect lives", "connect day-to-day lives", and "connect hearts and minds". Through KDDI Sustainable Action, we will work to solve social issues as we aim for sustainable growth with society at large.
The spread of the COVID-19 has had an immense impact on the activities of industry and society at large around the world. In line with the policies of KDDI Sustainable Action, we announced KDDI's Basic Policy toward COVID-19, which is based on five central pillars aimed at, among other things, contributing to the construction of a resilient social infrastructure that is resistant to environmental changes by promoting Digital Transformation (DX) for individual and corporate customers such as telework, online education, and remote medical care. Going forward, we will rally our group-wide strength as the company providing lifeline which "connect and protect lives", "connect day-to-day lives", and "connect hearts and minds" to continue to fulfill our corporate mission of supporting the daily lives of our customers and industry.
October 1, 2020, will mark the 20th anniversary of KDDI's establishment.
We will continue to move forward, together with customers, partners, and society at large, sharing a faith in the future as we aim to sustainably grow profit and reinforce shareholder returns from a long-term perspective.
As we move forward together, I would like to express my sincere appreciation for your continued support and guidance for the KDDI Group.
President, KDDI CORPORATION
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