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• The Path of Value Creation • Value Creation Process

The Path of Value Creation

(Operating income*1: Billions of yen) 1,200

1,000

800

Dec. 2010 600 Takashi Tanaka appointed president Oct. 2000 DDI CORPORATION (now KDDI CORPORATION) established Yuusai Okuyama appointed president 400 Jun. 2001 Tadashi Onodera appointed president

200

0 20012002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Apr. 2002 Jan. 2007 Feb. 2009 Third-generation service begins Integrates FTTH business UQ Communications Inc. Oct. 2003 with Electric Power launches “UQ WiMAX” Tele- Launch of “KDDI Hikari Plus” Company, Incorporated commercial service optical fi ber service (FTTH) Oct. 2011 communications Apr. 2008 Nov. 2003 KDDI launches its Consolidation of Chubu CDMA 1X WIN service commences fi rst iPhone Business, etc. Co., Inc. (ctc) Industry’s fi rst fl at-rate packet service introduced Personal FY2004.3–FY2008.3 au spent fi ve consecutive years at No. 1 for net additions in market share*4 Services Jul. 2008 May 2011 Segment “Jibun Bank” begins service “au Insurance” begins service Life Design Domain

1989 Jan. 2006 Feb. 2011 Started “TELEHOUSE” data center business KDDI merges with KDDI Matomete POWEREDCOM Offi ce Corporation is established Business Services Segment and Others

Oct. 2006 Mar. 2008 Mobile number portability EMOBILE Ltd. begins voice service nationwide (MNP) is launched Jul. 2008 SoftBank Corporation launches Japan’s fi rst sales of the iPhone

Sector Mar. 2008–Oct. 2010 EMOBILE signs a roaming agreement with NTT Docomo Inc.

Note: Company and service names are as of June 2020. *1 Results for fi scal years ended March 31. Figures up to the fi scal year ended March 31, 2014 are based on Japanese GAAP and fi gures for the fi scal year ended March 31, 2015 onward are based on IFRS (International Financial Reporting Standards). *2 On a closing price basis for the end of October 2000 to the end of March 2020 (monthly) *3 CAGR: Compound Average Growth Rate 16 KDDI CORPORATION | INTEGRATED REPORT 2020

Improve customer value using The rising popularity of high-speed high-volume transfer and the integration of for enhanced experience Popularization of mobile phones telecommunications and life design

( Market capitalization*2: Trillions of yen) 12 Fiscal year ending Apr. 2018 March 31, 2021 Makoto Takahashi Operating income target appointed president ¥1.03 trillion 10 IFRS

Japanese GAAP 8

6

Fiscal year ended March 31, 2020 Operating income 4 ¥1,025.2 billion

Three-Year Three-Year Medium-Term Medium-Term Targets Medium-Term Targets Targets (FY20.3–) 2 (FY14.3–FY16.3) (FY17.3–FY19.3) EPS: Increase of 1.5 times in six years Double-digit growth in operating Operating income CAGR*3 7% income each fi scal year Dividend payout ratio: Dividend payout ratio over % Dividend payout ratio over 30% 35 Over 40% 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (plan) Mar. 2012 Mar. 2014 Mar. 2016 Jul. 2019 Mar. 2020 “au Smart Value” starts service Achieved an actual population coverage MobiCom Corporation LLC becomes a “au Data MAX Plan,” the fi rst unlimited “Data MAX 5G Netfl ix Sep. 2012 ratio of 99% for 800MHz “ LTE” consolidated subsidiary data plan in Japan, is launched Pack” is launched with “au 4G LTE” starts service Jul. 2014 Jan. 2017 the start of 5G Signed a joint business agreement with MPT*5 BIGLOBE Inc. becomes a Jun. 2020 Apr. 2013 and on the launch of consolidated subsidiary “Data MAX 5G ALL Jupiter the Myanmar telecommunications business Jul. 2017 STAR Pack” is launched Telecommunications Oct. 2015 “au Pitatto Plan” and “au Flat Plan” Co., Ltd. (J:COM) is UQ Communications’ service start service (industry’s fi rst consolidated “UQ mobile” starts*6 unbundled plans) May 2014 Mar. 2016 Jan. 2018 Apr. 2020 “au PAY Card” is launched Jupiter Shop Channel Co., Ltd. is consolidated AEON Holdings Corporation of Japan becomes “TELASA” service is Apr. 2016 a consolidated subsidiary launched “au Denki” is launched Feb. 2019 May 2020 “au Insurance & Loans” is launched Initiated the “Smart Money Concept” “au WALLET Points” and Mar. 2012 Aug. 2015 Aug. 2016 Apr. 2019 “Ponta Points” are “au Smart Pass” is launched “au WALLET Market” is launched A capital and operational alliance is formed “au PAY” is launched integrated with ENERES Co., Ltd.*7 au Jibun Bank is consolidated Jan. 2017 Jun. 2019 “au PAY Market” is launched au Kabucom Securities Co., Ltd. becomes an affi liate Apr. 2013 Feb. 2017 Feb. 2018 KDDI Matomete Offi ce Iret Inc. becomes a consolidated subsidiary KDDI Digital Security Inc. is founded with LAC Co., Ltd. expands nationwide ARISE analytics Inc. is founded with Sep. 2018 Japan Ltd. “KDDI DIGITAL GATE” opens Aug. 2017 Jan. 2019 SORACOM, INC. becomes a Scrum Inc. Japan is founded with Scrum Inc. consolidated subsidiary Mar. 2019 Dec. 2017 KDDI IoT World Architecture begins KDDI Digital Design Inc. is founded accepting applications with Nomura Research Institute, Ltd. Sep. 2013 Dec. 2017 Sep. 2018 Apr. 2020 NTT Docomo Inc. , Inc. signals it will enter the SoftBank Corporation begins offering “Ultra Giga Rakuten enters the launches its fi rst sales telecommunications business Monster+” and “Mini Monster” (unbundled plans) telecommunications 8 of the iPhone Jun. 2019 business as an MNO* NTT Docomo begins offering “Giga Ho” and “Giga Light” (unbundled plans) Oct. 2019 The amended Telecommunication Business Act enters into force *4 Share among NTT DOCOMO, INC. (NTT DOCOMO), SoftBank Corp. (SoftBank), and *6 Slated to be integrated with KDDI in October 2020 KDDI + Okinawa Cellular Telephone Company (au) *7 Made a consolidated subsidiary in December 2018 *5 MPT: Myanma Posts & Telecommunications *8 MNO:

KDDI CORPORATION | INTEGRATED REPORT 2020 17