In accordance with the KDDI Group Mission Statement, which calls for contributing to the development of an affluent communications-oriented society, our mission as a telecommunications operator in charge of a critical lifeline has been to maintain strong and high-quality communications. At the same time, we collaborate with a variety of partner companies to offer proposals with new experience value to customers.
The business and social environment around the world is in a period of major change. With the progress in full-scale digitization through the development of technologies such as 5G (5th generation mobile communications systems), IoT, AI, and big data, we are transforming into a data-driven society that places even greater value on data. In addition, governments are aiming to realize Society 5.0  by incorporating these advanced technologies into a variety of industries and aspects of social life, both for economic development and for solutions to social issues. Against this backdrop, the telecommunications business environment is undergoing major changes, as competition grows increasingly intense due to factors such as the entry of new telecommunications providers, and as we embark on an era of digital transformation (DX) that spurs innovation in all industries through the use of telecommunications and Internet. Furthermore, 5G trial service will begin in 2019, heralding the era of fully realized 5G/IoT that will follow. This coming new era will be characterized by the creation of a broad range of services that utilize a variety of cutting-edge technologies.
To achieve sustainable growth while quickly responding to such changes in the business environment, KDDI established the medium-term management plan (FY2019 - FY2021) for the next three years. With regards to individual customers, we will strive to deepen customer engagement by using telecommunications together with a variety of life design services, thereby leading to the maximization of lifetime value, which is calculated as the number of customers (IDs) including those in the group companies x total ARPA x usage period (retention rate). With regards to corporate customers, we will support the DX of customers by leveraging KDDI's IoT and ICT related technology and expertise, thereby contributing to the customers' core businesses. At the same time, we will also create new business through open innovation with partner companies, and develop business models that we can grow together with the partner companies. By expanding the growth businesses with a focus on telecommunications services, we will make further progress in the integration of telecommunications and life design, which is central to the business strategies, and we will achieve new value creation in the 5G/IoT era, both in Japan and around the globe.
Furthermore, in conjunction with the establishment of the medium-term management plan, KDDI has re-examined the question of how best to exist in this new era with respect to customers and society, and we have revised our brand message. 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.
The entire company is pursuing sustainability activities to contribute to the sustainable growth of society. In addition, we have established KDDI's target SDGs  in the medium-term management plan (FY2019 - FY2021). KDDI aims to achieve targets related to the business strategies in areas such as telecommunications, global business, regional revitalization, education, and finance, as well as targets related to the company's business activities, such as developing human resources, supporting women's advancement in the workplace, respecting human rights, promoting D&I , and long-term environmental targets. Through our efforts to resolve social issues, KDDI aims to achieve sustainable growth both in the company and in society.
As we move forward together, I would like to express my sincere appreciation for your continued support and guidance for the KDDI Group.
- Society 5.0, which is one of Japan's medium-to-long term growth strategies, is defined as a future society that Japan should aspire to, and is achieved through a system that highly integrates cyberspace (virtual space) and physical space (real space).
- SDGs (an abbreviation of "Sustainable Development Goals") are a collection of global goals that were adopted at the United Nations Summit in September 2015.
- D&I is an abbreviation of "diversity and inclusion."
President, Makoto Takahashi
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