New Value Creation Model: "Fusion"

To further differentiate ourselves by leveraging our great strengths that are difficult for AI to replace, we will advocate "Fusion," as a value creation model through cross-domain, as a new growth structure, and strengthen and create businesses.
Built on a foundation of robust Group governance that underpins the trust of our customers, we will further strengthen the management foundation enabling Fusion, which encompasses the customer base, data platforms, and partnering capabilities we have cultivated over the years, to enhance our execution capabilities for value creation.

Overview of 'Fusion,' the value creation approach in KDDI's new mid-term management strategy. This diagram shows the structure where 'Real-Tech Fusion' at the core is supported by 'Infrastructure Fusion' and 'HR Fusion' as twin pillars. Furthermore, it illustrates the hierarchical structure where these are built upon "the management foundation enabling Fusion" (customer base, data platform, etc.), all underpinned by 'Robust Group Governance.'

(1) Real-Tech Fusion: The Core of Value Creation

At the core of our value creation is "Real-Tech Fusion," which combines the strengths of our AI-resilient real-world assets with technology.
We will transform the customer experience by leveraging technology while focusing on differentiation that only our real assets can provide.
By bringing together the power of our solid infrastructure (Infrastructure Fusion) and the human resources who master it (HR Fusion), we will create and socially implement customer-centric experiential value.

[1] "AI-Powered Productivity" to Support Corporate Business Growth

We will promote the social implementation of physical AI, which combines physical domains like robotics with AI, to contribute to corporate business growth.

[2] "AI-Enhanced Lifestyles" to Transform Lifestyles and Experiences

We will provide Lifestyle Intelligence by utilizing our real touchpoints, such as au Style/au shops and Lawson stores, to transform the daily lives of each and every customer.
We will enhance customer experiential value by offering a diverse range of services centered on telecommunications.

Examples of KDDI's digital twin technology applications. A comparison between 'Field Digital Twin' supporting 'AI-Powered Productivity' (advanced inspection and maintenance through drones + AI) and 'Customer Digital Twin' supporting 'AI-Enhanced Lifestyles' (personalized optimal experiences through customer data utilization).

(2) The Twin Pillars Supporting Value Creation

[1] Infrastructure Fusion

"Infrastructure Fusion" is what underpins Real-Tech Fusion.
As a symbol of this infrastructure strategy, the "Digital Belt" Initiative aims to build a nationwide low-latency network and AI computing infrastructure that covers the land, sea, and sky of the Japanese archipelago by integrating our conventional telecommunications foundation with a new AI foundation.
We will design and consider this with a long-term perspective toward 2040 and concentrate our management resources on it.

Land In addition to the existing data centers (Sakai, Miyazaki, Tama, Oyama), we will proceed with the construction of new bases, starting with Kansai region, connected by all-optical networks.
Sea As AI responsiveness becomes more critical, we will leverage Japan's geographical advantage of connecting Asia and the United States in a straight line to promote the installation and maintenance of high-capacity, low-latency optical submarine cables.
Air & Space Regarding communications between Earth and space, which are increasing in importance with the development of the space industry, we will expand our Power to Connect into outer space.
Diagram illustrating KDDI's 'Digital Belt Initiative'―a plan to build a nationwide low-latency network and AI computing infrastructure. This plan shows the construction of an integrated telecommunications and AI infrastructure covering land, sea, and sky by combining a communication network spanning the Japanese archipelago, data centers, submarine cables, and satellite communications.

[2] HR Fusion

"HR Fusion" is the driving force behind the execution of Real-Tech Fusion.
We will promote the evolution of our existing network engineers and front-line personnel into "ambidextrous talent" who will drive social implementation.
By expanding the capabilities of our network engineers to handle new domains, the KDDI Group will establish a structure of 3,000 AI professionals and 2,000 security professionals.
Furthermore, we will transform our several-thousand-strong customer-facing workforce into a force that creates new customer experience value by mastering technology. Through these initiatives, we will foster a corporate culture that continuously generates innovation.