New Branding The KDDI Group Mission Statement Brand Statement The KDDI Group values and cares about the material Who determines the future? And where does it start? If two roads stretch out before you, choose the one you’ve never traveled, Corporate Strategy and emotional well-being of all its employees, and because you will embark on a journey of discovery. The future isn’t a mystery someone conjures up somewhere. delivers a thrilling customer experience by always going It’s not something long-awaited that comes from afar. If there are two ways of doing something, choose the more challenging one, The future exists inside each and every one of us. because you will learn something new. further than expected with the ultimate goal of achieving Business Overview That’s why KDDI wants to connect the people of the world, If two futures unfold before you, a truly connected society. linking ideas and businesses as closely as possible and choose the one you could never have imagined, because it will thrill and excite you. connecting possibilities like dots across a page to transcend borders, defy convention, and overcome limitations. If the future is born of the choices we make, Targeting Sustainable Growth boring choices lead to a boring future. So let’s throw destiny a curve ball. We know that encounters spark inspiration and nurture creativity. Let’s look beyond our usual partner That’s why we want to keep connecting. and work with someone different, By combining communications with life design, breaking old rules and conventions. Something new is sure to take shape. we will help the world grow in a powerful, sustainable way. Company Information A new story is bound to begin. No one knows what the future holds, It’s time to take a bold step forward. To approach life with zeal. Table of Contents Because the world is an incredibly interesting place. but that’s exactly what makes life interesting. So let your heart soar further than ever before. With a reliable partner like KDDI at your side, New Branding Move towards a future that no one could ever have dreamed. KDDI Group Mission Statement and Brand Statement 2 every obstacle becomes a welcome challenge. Fusing communications and life design, Corporate Strategy au wants to be the force that brings everyone together. Message from the President 4 Medium-term Management Plan (FY2019–FY2021) 6 We want to make tomorrow brighter for us all. The future is more exciting when you create it yourself. Special Feature: The 5G Era Starts Here 8 Business Overview So let’s move forward, together, and explore the extraordinary. Together, we can do anything. Personal Segment 10 Business Segment 14 Global Business: Connecting the world through trusted networks 18 Targeting Sustainable Growth A Sustainable Society 20 Sports Sponsorship 23 Research & Development 24 Company Information 26 2 3 KDDI CORPORATION / Corporate Profile 2019–2020 Message from the President In accordance with the KDDI Group Mission Statement, With regard to corporate customers, we will support New Branding which calls for contribution to the development of an the DX of customers by leveraging KDDI’s IoT and ICT affluent communications-oriented society, our mission related technology and expertise, thereby contributing to as a telecommunications operator in charge of a critical the customers’ core businesses. At the same time, we lifeline has been to maintain strong and high-quality will also create new business through open innovation communications. At the same time, we collaborate with a with partner companies and develop business models variety of partner companies to offer proposals with new that we can grow together with the partner companies. Corporate Strategy experience value to customers. By expanding the growth businesses with a focus on telecommunications services, we will make further The business and social environment around the world progress in the integration of telecommunications and is in a period of major change. With the progress life design, which is central to the business strategies, in full-scale digitization through the development and we will achieve new value creation in the 5G/IoT era, of technologies such as 5G (5th generation mobile both in Japan and around the globe. Business Overview communications systems), IoT, AI, and big data, we are transforming into a data-driven society that places Furthermore, in conjunction with the establishment of the even greater value on data. In addition, governments medium-term management plan, KDDI has re-examined are aiming to realize Society 5.0*1 by incorporating these the question of how best to exist in this new era with advanced technologies into a variety of industries and respect to customers and society and created the aspects of social life, both for economic development revamped brand message “Tomorrow, Together.” Targeting Sustainable Growth and for solutions to social issues. Against this backdrop, the telecommunications business environment is The entire company is pursuing sustainability activities undergoing major changes, as competition grows to contribute to the sustainable growth of society. In increasingly intense due to factors such as the entry of addition, we have established KDDI’s target SDGs*2 in new telecommunications providers, and we embark on the medium-term management plan (FY2019–FY2021). an era of digital transformation (DX) that spurs innovation KDDI aims to achieve sustainable growth together with Company Information in all industries through the use of telecommunications society by engaging in the resolution of social issues for and the Internet. the purpose of achieving targets related to the business strategies as well as the Company’s business activities. To achieve sustainable growth while quickly responding to such changes in the business environment, KDDI I wish to express my sincere appreciation for your established the medium-term management plan (FY2019 continued guidance and support of the KDDI Group –FY2021) for the next three years. With regard to going forward. individual customers, we will strive to deepen customer engagement by using telecommunications together with Takashi Tanaka Makoto Takahashi a variety of life design services, thereby leading to the May 2019 Chairman President maximization of lifetime value, which is calculated as the number of customers (IDs) including those in the group Makoto Takahashi Tomorrow, Together companies x total ARPA x usage period (retention rate). President In addition to realizing the “integration of telecommunications and life design,” we endeavor to provide solutions to social issues and help *1 Society 5.0 is one of Japan’s medium-to-long term growth strategies to achieve a human-centered society through a system which integrates cyberspace (virtual spaces) and physical space (real-world spaces) to a high degree. *2 SDGs (an abbreviation of “Sustainable Development Goals”) are a collection of global goals that were adopted at the United Nations Summit in achieve a truly connected society. September 2015. 4 5 KDDI CORPORATION / Corporate Profile 2019–2020 Medium-term Management Plan (FY2019–FY2021) Thus far, KDDI has emphasized sustainable profit growth and the strengthening of shareholder New Branding returns, established a robust customer base, and achieved steady growth by promoting the Creating Innovation toward the 5G Era Company’s transformation into a business which provides “customer experience value” that 1 We will actively deploy 5G to form the next-generation of social infrastructure and create new forms of experience value through business development by means of co-creation with exceeds the expectations of customers. various partner companies and open innovation which incorporates the original ideas of Going forward, significant changes in the competitive environment are expected in addition to startup companies and advanced technologies while also positively utilizing 5G in regional revitalization projects. the advances in full-scale digitization through the development of technologies such as 5G. In order to rapidly respond to changes in such an era and realize the “integration of telecommunications and life design” that the Company is targeting, we formulated the medium-term management plan Corporate Strategy (FY2019–FY2021) for the next three years. The Integration of Telecommunications and Life Design 2 We aim to expand our growth businesses around the core telecommunications infrastructure. For individual customers, we will offer “exciting” experiences which originate from the smartphone while together with corporate customers we will build new business models focusing on the keywords of “main business contribution” and help drive their digital transformation. Company Vision 1. The company that customers can feel closest to Business Overview 2. The company that continues to produce excitement Further Expansion of Global Business In addition to applying the telecommunications business developed through our domestic 3. Contributing to the sustainable growth of society 3 consumer business and the knowledge and know-how from our life design business to the consumer business in Myanmar and Mongolia, we aim to expand into markets in the Asian region where there is room for growth. Moreover, in the corporate business segment, we will further expand our global ICT business in Japan and around the world in an integrated manner around our data center business and the “IoT Worldwide Architecture” which is KDDI’s comprehensive IoT platform for domestic and overseas