Corporate Profile KDDI 2020-2021 Message from the President KDDI CORPORATION / Corporate Profile 2020–2021 Corporate Strategy Since its establishment, KDDI has upheld the KDDI Group the development of sustainability in rural areas and cities, Mission Statement, which calls for “achieving a truly KDDI’s mission of “connecting” in the connected society.” As a mission of a telecommunications era integrating into things has become increasingly more company that provides an important lifeline, we strive to important for all social issues. KDDI formulated the “KDDI maintain resilient and high-quality telecommunications, Sustainable Action”—KDDI’s initiatives for the SDGs tar- and under the slogan “Connecting more and always with geted at 2030 with the determination to continue working au,” we aim to provide telecommunications services that to resolve the various social issues through business going maintains continuous connections at all times. forward. While utilizing and IoT, we will contribute to the sustainable growth of society by “connecting and In recent years, full-scale digitization has continued its protecting lives,” “connecting day-to-day lives,” and march forward with the advance of 5G, IoT, AI, big data, “connecting hearts and minds.” Business Overview and other technologies, which has shifted us toward a data-driven society that finds greater value in data. The current effects of the COVID-19 pandemic have Through the penetration of these technologies, the digital become too great for economic and social activities transformation (DX) movement will accelerate in all indus- throughout the world. Based on the concept of “KDDI tries, and “Society 5.0 for SDGs” will develop and realize Sustainable Action,” the KDDI Group announced “KDDI’s an economy that resolves social issues as expected. Basic Policies for Response to the COVID-19 Pandemic” Given the circumstances, we started to offer “au 5G,” centered on the five policies for the promotion of individual the fifth-generation mobile telecommunications service, and corporate customers’ DX, such as telework, online in March of this year. “5G” will become the era of tele- education, and remote medical care, and contributions communications by integrating into all kinds of “things.” to the building of a resilient social infrastructure resistant Completely changing individual lifestyles and values, as to environmental changes. As a company that provides Company Information well as the whole concept of business, this exciting era is lifelines connecting lives, lifestyles, and minds, KDDI will just around the corner. mobilize the efforts of the Group to fulfill our social mission of continued support for everyone’s life and industries. Last year, we introduced a rate plan with no upper limit on the volume of monthly data for individual customers ahead In August 2020, KDDI and KDDI Research, Inc., formu- of the 5G era. A large volume of data can be instantly lated “KDDI Accelerate 5.0,” which aims to build a resil- and freely handled with no stress on the “au 5G” service, ient future society in the era of the new normal. We will and under the concept of “UNLIMITED WORLD au 5G,” accelerate the realization of “Society 5.0” as promoted by which is free from conventional restrictions, we will collab- the government through the use of technology and the orate with partners from a variety of different industries to orchestration of seven fields that support the evolution provide a new augmented experience in all facets of life, of platform layers, business layers, and network layers, including entertainment, sports, and art. including 5G networks.

Among our corporate customers, DX in companies October 1, 2020, marked the 20th anniversary of KDDI’s Takashi Tanaka, Chairman Makoto Takahashi, President has accelerated in a variety of different industries and establishment. scenes of use and the business models have significantly Tomorrow, Together changed. Centered on “KDDI DIGITAL GATE,” which is a We will continue to move forward, together with custom- business development base in the 5G/IoT era that sup- ers, partners, and society at large, sharing faith in the ports customers’ DX, as a digital integrator in the telecom- future as we aim to both sustainably grow profit and rein- munications era integrating into all kinds of “things,” we force shareholder returns from a long-term perspective. Tomorrow, Together will collaborate with the different partner companies and proceed to create new experience value and businesses that are specific to the 5G era. As we move forward together, I would like to express my Working with all our partners, we will create new value in the sincere appreciation for your continued support and 5G era, aiming to grow sustainably with society. Toward the achievement of the SDGs, KDDI is also pro- guidance for the KDDI Group. moting sustainability activities on a company-wide basis. As with the responses to intensified large-scale disasters, making telecommunications infrastructure resilient, and October 2020 Makoto Takahashi, President

2 3 Medium-term Management Plan (FY2019–FY2021) KDDI CORPORATION / Corporate Profile 2020–2021

Thus far, KDDI has emphasized sustainable profit growth and the strengthening of shareholder Corporate Strategy returns, established a robust customer base, and achieved steady growth by promoting the Creating Innovation toward the 5G Era We will actively deploy 5G to form the next-generation of social infrastructure Company’s transformation into a business that provides “customer experience value” that exceeds 1 and create new forms of experience value through business development by the expectations of customers. means of co-creation with various partner companies and open innovation which incorporates the original ideas of startup companies and advanced Going forward, significant changes in the competitive environment are expected in addition to 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 quickly respond to changes in the times and to realize the “integration of telecommunications and life design” that we aim to achieve, KDDI developed the Medium-Term Management Plan for three years between FY 2019 and FY 2021. The Integration of Telecommunications and Life Design We aim to expand our growth businesses around the core telecommunications 2 infrastructure. For individual customers, we will offer “exciting” experiences which originate from the smartphone while together with corporate customers Company Vision we will build new business models and help drive their digital transformation. Business Overview 1. The company that customers can feel closest to

2. The company that continues to Further Expansion of Global Business produce excitement In the business for individual customers, in addition to applying the knowledge and 3 know-how from the telecommunications business and the life design business 3. Contributing to the sustainable developed in to the consumer business in Myanmar and Mongolia, we aim to expand into markets in the Asian region where there is room for growth. growth of society Moreover, in the business for corporate customers, 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 markets. Company Information

Strategies Utilizing Big Data 4 We will utilize data to thoroughly understand customers and maximize the KDDI will further promote the “integration of experience value through “appealing proposals” based on the customer’s perspective. Furthermore, we will promote the digital transformation of our telecommunications and life design” to expand customers’ companies by using big data in various industries with the rapid its businesses around telecommunications and expansion of the digitization and networking of devices due to 5G and IoT in fully intends to achieve sustainable growth in the future. accordance with the seven business strategies listed on the following page in order to realize the creation of new value in the 5G/IoT era in Expanding the Finance Business Japan and around the world. We aim to strengthen customer engagement and achieve profit growth through 5 the smartphones which have become the center of our lifestyles by making payment and financial services a regular part of our customers’ daily lives and by proposing smartphone-centric financial experiences. For individual customers For corporate customers

Experience Earnings model value transformation Growth as a Group e F Manufact thcar in es urin Experience eal an Operational vic g We aim to utilize company assets to the utmost and support the growth of H ce er 6 value efficiency S group companies to maximize mutual synergies as well as to expand and R strengthen the new foundations of growth for the entire group. E e t e a n e c i c l r t

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n e T t r g r fo n a , i n g h s in is E Experience p m f New business n or ar nd er ta F a creation Sustainability gy on value tio ati n n Educ Constructio We have promoted sustainability activities on a company-wide basis in order 7 to contribute to the sustainable growth of society. In May 2020, when looking End user Experience ahead to 2030, the company set new SDGs titled “KDDI Sustainable Action” experience value to confirm the commitment to work consistently on solving the variety of value different social issues through our businesses. As a company that provides lifelines connecting and protecting lives, connecting day-to-day lives, and connecting hearts and minds, KDDI will mobilize the efforts of our Group to fulfill our social missions.

4 5 KDDI CORPORATION / Corporate Profile 2020–2021 Accelerating Society 5.0 with 5G to create an even brighter society for the future The three layers that form the foundation of KDDI Accelerate 5.0 Corporate Strategy New Lifestyles / Economic Mechanisms / Social Systems

Education Production Logistics and Regional Entertainment and healthcare and sales transportation Smart cities revitalization ᕣ Business Layer

In our current society with various social issues Consumer data Industrial data City OS including the spread of COVID-19, Open Open KDDI has a responsibility to strongly promote “Society 5.0,” The KDDI Group’s platform environment which was proposed by Japanese Cabinet Office, ᕢ Platform Layer as a company that enriches our society. Upgrade the open business environment and collaborate with domestic and international companies

The KDDI Group’s 5G / Beyond 5G ᕡ Network Layer Upgrade diverse infrastructure to be resilient, and introduce world-class advanced technologies Business Overview

KDDI Corp. and KDDI Research, Inc. formulated KDDI Accelerate 5.0 — a concept that envisions the sThe three layers that form the foundation of KDDI Accelerate 5.0 future in 2030. We aim to create a resilient future society to establish new lifestyles for people, as well as spur economic development and solve social issues in Japan, through the evolution of three layers, along with Technologies in Seven Fields that Unify Physical and Cyber Spaces research and development in seven fields to support that evolution.

To accelerate Society 5.0, technology evolution is required to further accelerate the integration of physical spaces, About KDDI Accelerate 5.0 where real people and things exist, and cyber spaces, which are the world of computers. Data is collected from physical spaces, analyzed in cyber spaces, and then fed back into physical spaces again. This cycle is supported by technologies in seven fields and close collaboration (orchestration) between those

technologies. Company Information 1. Background

As the effects of the COVID-19 pandemic drag on, the resilient business model, supporting economic growth in Technologies in Seven Fields that Support KDDI Accelerate 5.0 need has grown rapidly for telework, online education, Japan and an even brighter society, bursting with vitality, remote healthcare and the like, highlighting the social for the future. Against this social backdrop, we put The seven technologies refer to network, security, IoT, guidance on how to utilize it in physical spaces. importance of the ICT infrastructure that maintains eco- together KDDI Accelerate 5.0 with the aim of contributing platforms, AI, XR, and robotics. XR and robotics enable the use of this information in nomic activity and consumers’ peace of mind and safety to the era of the new normal by actively working to build Networks connect physical and cyber spaces, and physical spaces. XR makes use of human senses, and in Japan. In addition, each industry is expected to create a networks and platforms and to create business models. security ensures the safety of both spaces. robotics physically animates drones and robots. IoT sends information collected from physical spaces Repeating these cycles will increasingly optimize social to cyber spaces. Information accumulated on platforms and economic activities. in cyber space is analyzed by AI, which then provides 2. Upgrading the environment in three layers

To realize KDDI Accelerate 5.0, we will upgrade the environment in three layers. Cyber space The proliferation of 5G 1 Network Layer: provide feedback on forecast results in physical spaces. Data analysis, learning, forecast service will drive the inte- The network layer forms the base of a new social founda- KDDI will upgrade the open platform of advanced technol- gration of physical and tion. To engrain 5G in Japanese society and industry, we ogies for each industry in Japan through domestic collab- cyber spaces. And when need to quickly roll out highly reliable networks based on oration with Japan’s corporate platforms and venture Technology and we enter the beyond 5G the latest technologies across the country. companies while integrating its 5G network and the era, the feedback from KDDI will introduce the technologies of overseas advanced cloud technologies of global IT companies. orchestration in cyber spaces to physical * companies to maintain Japan’s international competitive- seven fields spaces will be enhanced. *X Cross eality ness and will lead efforts to adopt world-class advanced 3 Business Layer: These kinds of changes are Data (collection) Feedback (optimization) technologies in Japan. In addition, KDDI will accelerate the The business layer is positioned on top of resilient net- being accelerated by nationwide rollout of its 5G network mainly through proac- works and open platforms to create new services and research such as AI, XR tive forward-looking investments and infrastructure sharing solutions. By integrating cyber and physical spaces and robotics that spur in rural areas. through open innovation with companies in other indus- changes in human behav- tries, we aim to enhance engagement with customers, ior; and the Life Design 2 Platform Layer: evolve into a resilient business model. KDDI will accelerate Business platform that The platform layer is built on top of the network layer. It Society 5.0 with the aim of creating economic growth in Physical space KDDI is promoting. creates unprecedented new value by using cyber spaces Japan, as well as an even brighter society for the future. eal society, lives, experiences, new business to analyze data collected from physical spaces and to then sTechnology and orchestration in seven fields

6 7 Sustainability KDDI CORPORATION / Corporate Profile 2020–2021

Contributing to the sustainable growth of society Corporate Strategy

KDDI promotes sustainability activities in order to contribute to the sustainable growth of society. Particularly regarding SDGs, we as the KDDI Group put effort into the resolution of social issues and aim for sustainable growth with society through the “KDDI Sustainable Action” connecting and protecting lives, connecting day-to-day lives, and connecting hearts and minds. Business Overview Company Information

Aim for sustainable growth with society and “Connecting and protecting lives, connecting Connecting and protecting lives Connecting and protecting lives Improvement of the telecommunications Promotion of the initiatives to conserve the global day-to-day lives, and connecting hearts and minds” infrastructure that keeps connecting at any time environment As a company that strives to maintain resilient and high-quality telecommunications and provides KDDI recognizes that as a telecommunications company KDDI established and is executing the “KDDI GREEN providing lifelines, it has the responsibility of providing PLAN 2017–2030,” which is the Fourth Medium-term lifelines, we gather our group’s strength and fulfill our social mission to keep supporting day-to-day lives stable telecommunications services that are available Environmental Conservation Plan covering the period from and industries, and aim to become a company that will be loved and trusted by all the stakeholders. around the clock, 365 days a year, regardless of condi- FY 2017 to FY 2030. We promote “the measures against tions. We introduce disaster-resistant facilities, ongoing global warming,” “formation of a recycling-oriented soci- implement disaster response training, anticipate every ety,” and “conservation of biodiversity” as the three possible large-scale disaster scenario, and prepare and focused issues. Particularly in “the measures against implement measures on a daily basis. In order for custom- global warming,” based on the Paris Agreement’s long- ers in the affected area to be able to use mobile phones term goal adopted in COP21 and the government’s plan To fulfill the mission of a telecommunications company providing lifelines as quickly as possible when a disaster occurs, we deploy for the global warming countermeasures, we have specifi- “on-vehicle base stations,” “mobile base stations,” etc. cally set our CO2 emissions reduction goal in FY 2030 at Since its establishment, KDDI has upheld the KDDI Group Mission Statement, which calls for “achieving a truly nationwide. In addition, as a countermeasure for the 7% as compared to FY 2013 and have been promoting connected society,” and has engaged in resolving social issues as the mission of a telecommunications company maritime area if it is difficult to provide the initiatives. Furthermore, we will proactively drive a shift to providing important lifelines. In the medium-term management plan (fiscal years 2019-21), we uphold “contributing to service on land, we deploy the “ship-mounted base renewable energy to achieve net-zero CO2 emissions by the sustainable growth of society” as our company vision. station.” Furthermore, as a countermeasure for isolated 2050 and reduce the environmental impact on society KDDI aims for sustainable growth by giving our full attention to not only our growth but also social issues and affected areas, we have been proceeding with the practi- through the use of ICTs. practicing growth through the initiatives for SDGs with the two axes of “sustainable growth of existing businesses” and cal use of base stations utilizing helicopters and drones. “challenge to new innovations”.

sShip-mounted base s“KDDI Ocean Link” cable ship equipped with a station ship-mounted base station

8 9 Sustainability KDDI CORPORATION / Corporate Profile 2020–2021

Connecting day-to-day lives Connecting day-to-day lives Connecting hearts and minds Connecting hearts and minds Corporate Strategy Utilize advanced technologies, such as 5G and IoT, Developed the infrastructure in a developing country Promoting diversity and inclusion Execution of workstyle reform to aim for a society and realize locally owned sustainable development by improving the telecommunications infrastructure One aspect of “The KDDI Group Philosophy,” which outlines where everyone is healthy and feels job satisfaction To make the resolution of local issues the sustainable initia- and providing services the kind of company that we wish to become is the idea KDDI believes that the health of our employees is an import- that “embracing diversity.” This philosophy clearly states tive, KDDI considers that local companies that continually In Myanmar, where the improvement of the telecommunica- ant management issue, expresses the “KDDI Group that mutual respect and understanding of people regardless provide support in local sites and human resource develop- tions infrastructure was imperative, KDDI has proceeded with Declaration of Health-focused Management,” builds the of gender, age, nationality, disability, sexual orientation, ment are the “keys.” We provide advanced technologies, the improvement of the telecommunications service environ- system to support the health of each employee at an orga- religion, and other diverse characteristics and values are such as 5G, IoT, AI, and drones, and the business know-how ment through the joint venture with “Myanma Posts and nizational level, and proactively promotes various initiatives. essential to the sustainable growth of the company, and we in the digital transformation (DX) era by cooperating with local Telecommunications” (MPT) and , and We promote the drastic change of mind/behavior from are engaged in promoting diversity and inclusion to enable educational institutions. With an eye toward the fostering of currently, smartphones can be used in the entire country. conventional workstyles and establish an exclusively diverse human resources to accept one another and work the momentum for founding a company and the development With an eye toward the further improvement of the quality of responsible organization “Work Style Reform & Health together. We also promote the support of activities by of local human resources who have expertise in ICT and the telecommunications services, we have been implementing a Management Department” toward the realization of the persons with disabilities and LGBT, improve the pleasant latest management, we proceed with the initiatives toward long-term training program in Japan for the MPT personnel workplace environment where all employees are in good

workplace environment for everyone where anyone can Business Overview improvement of the educational environment. As part of the who will be responsible for the next generation. health, work vigorously, and exhibit a high level of perfor- actively participate, and aim to foster a corporate culture initiatives, we have concluded a comprehensive partnership In Dullu in the western mountainous area in Nepal, KDDI mance. We have held all-employee interview sessions by an that respects diversity. We see the promotion of participa- agreement with Iwate Prefectural University aimed at local Foundation applied the submarine cable technology that in-house counselor twice a year since 2019 and imple- tion by women as a management issue, and by taking revitalization, and as part of the human resource development KDDI has cultivated to build the broadband regional network mented the improvement of the workplace environment and various development measures, we focus on the develop- project, we have been implementing lectures of the enPiT in which optical fiber and Wi-Fi were combined. Improvement medical cooperation. ment and appointment of female leaders. (note) curriculum, a project adopted by the Ministry of of the ICT environment, such as medical, education, and Education, Culture, Sports, Science and Technology since tourism, will progress, and it will be utilized for various July 2019. purposes. Note) enPiT: Education Network for Practical Information Technologies Company Information

sAn event for female leader candidates sAn interview by an in-house counselor

sOnline lecture held in July 2020 sOptical fiber cable laying work in Nepal Response to the COVID-19 Connecting day-to-day lives Connecting hearts and minds Fused together the learning opportunity and advanced Provision of services, such as payment and finance, Basic policy Provision of the location information big data technology and provided a place for edutainment which can be easily and conveniently used For the effects of the COVID-19, based on the idea of Following the issuance of the nationwide expansion of the “KDDI Sustainable Action” formulated under the the “declaration of a state of emergency” and with a KDDI provided a domed VR space in the “Antarctic Research While people’s lifestyles diversify, financial systems have determination to keep putting efforts into the resolution view to having it utilized for the countermeasures for Center” pavilion, which was opened for a limited time only become complex and diverse as well. KDDI has proactively of various social issues through businesses, the KDDI the COVID-19, KDDI provided the location information within the children’s career and social experience facility put effort into financial services, such as the establishment Group gathers strength as the company that provides big data analytical tool “KDDI Location Analyzer” to 47 “KidZania,” which is run by our group company. In the activity of the “Jibun Bank (currently, au Jibun Bank) in 2008.” With the lifelines connecting and protecting lives, connect- prefectures and 20 government ordinance-designated in which advanced technologies, such as VR, were com- a view to further enhancing the payment and financial ing day-to-day lives, and connecting hearts and minds, cities for free for a limited time only in April 2020. By bined, children became members of an Antarctic research business, an intermediate financial holding company “au and fulfills our social mission by considering and visualizing people’s movements, changes in the staying expedition and observed the number of living penguins as Financial Holdings” commenced its operations in April executing the responses with the following five policies population before and after “the declaration of a state biologists. By experiencing the tasks of the Antarctic research 2019. In order for customers to feel “finance” more familiar being the axes. of emergency,” sex and age groups, and the moves of expedition, we provided the opportunity to enjoy learning to them by providing one-stop financial services, we will residents could be comprehended, and it was utilized about the future of the global environment protection. accelerate the “Smart Money Concept” to provide secure 1. We ensure the safety of our customers and employ- for municipal measures. With the concepts of the realization of a sustainable and convenient payment and financial experience with ees of the Company and affiliated companies above society and the creation of a prosperous future for children smartphones being used as a gateway. all else. who will support it, KDDI will provide a wide variety of valu- 2. We continue to respond to the rise in telecommuni- cations traffic and maintain telecommunications able experiences. services, which are the foundation and lifeline of society. 3. We actively collaborate with governments, munici- palities, and public organizations, etc. 4. We contribute to the construction of a resilient social infrastructure that is resistant to environmental changes by promoting DX for individual and corpo- rate customers such as telework, online education, and remote medical care. 5. We offer customer experiences that can alleviate worries and difficulties in life and fill the heart. sResidence area distribution of the visitors to Station

sA child learning in the “Antarctic Research Center” pavilion

10 11 Special Feature KDDI CORPORATION / Corporate Profile 2020–2021

5G area rollout plan Corporate Strategy

In March 2020, we started offering the 5G service in partial areas in 15 prefectures. Regarding 5G base Rollout to the major cities in all prefectures in stations, we are scheduled to establish 10,000 sta- and after the summer of 2020 Over

tions by March 2021 and 50,000 stations by March Partial areas in 15 50,000 2022, and we will expand area coverage across the Number of 5G prefectures across 10,000 stations stations country. We established a joint venture company Base Stations the country 5G on the Rise “5G Japan Corporation” with Softbank in April 2020 to be Deployed and have been promoting the early expansion of The end of The end of The end of the 5G area coverage in local regions by sharing the March 2020 March 2021 March 2022 KDDI launched the fifth generation mobile communication service “au 5G” in March 2020. Based on the infrastructure. s5G base station rollout plan hybrid network of the advanced 5G and resilient 4G LTE and by fusing with the life design service, we will

We will initially try to promptly expand area Business Overview deliver the value of an exciting experience to customers. We will provide new services together with all coverage by introducing the Non-Stand Alone to install 5G base stations in 4G LTE networks, and in the future, we will kinds of partners to support the digital transformation (DX) of our customers while also actively undertaking shift to the Stand Alone that uses exclusive 5G network facilities that can maximally bring out the features of 5G, such the application of 5G to regional revitalization as an important issue. as network slicing and mobile edge computing (MEC).

Individual customers Corporate customers

UNLIMITED WORLD Co-creation and innovative changes by 5G Company Information “5G for Everyone” started The 5G era will continuously connect all kinds Air transportation Logistics Manufacturing Security Real estate of things to the network and transition to a With the concept “UNLIMITED WORLD au 5G,” au will deliver new experi- stage in which telecommunications blend into ences for a variety of daily scenes. We will offer 5G services popular with all kinds of things. As a digital integrator, KDDI customers, such as the service to enjoy high-quality 5G content at a flat rate, proceeds with the initiatives toward the cre- ation of new experience value and businesses a rate plan to fully enjoy content with unlimited data capacity, and a lineup of sPartner companies putting effort into innovation by utilizing 5G mobile phones meeting a wide range of needs. that are specific to the 5G era together with customers in the various business types and fields by combining 5G and technologies, such as IoT and AI.

Augmented Entertainment Showroom Inc. under the KDDI support system offers “smash.”, a vertical theater application that specializes in content that can be watched on a smartphone. The service has a lineup of high-quality videos in a wide range of genres that offers the function to store part of the video and a social func- AWS Wavelength x au 5G tion to connect users to each other. KDDI will offer a diverse range of entertainment services that will include collaborations KDDI is partnering with Amazon Web Services, with partners to deliver a 5G experience that will be familiar Inc. (AWS) to bring the compute and storage with customers. s“smash.” specializes in videos that can be watched on a service AWS Wavelength to Japan. By placing smartphone AWS Wavelength near devices that use the au Augmented Community 5G network, developers can easily build and provide ultra-low latency applications such as As a new initiative in the virtual “Augmented Community” space machine learning inference, IoT, VR/AR, and that synthesizes the real and virtual worlds, KDDI sponsors gaming by using familiar AWS services, APIs, “Virtual Shibuya au 5G Halloween Fes”, where watching movies and tools. on the road and a variety of different events can be enjoyed in “Virtual Shibuya”, which is Shibuya City’s official distribution platform. Through the “Augmented Community”, we will work sUltra-low latency edge computing - AWS Wavelength x au 5G to build a borderless community where different cultures and people, such as sports, comedy, and tourism, fuse together to build a sustainable social infrastructure. ©KDDI/au 5G/Virtual Shibuya au 5G Halloween Fes

12 13 Personal Services segment KDDI CORPORATION / Corporate Profile 2020–2021

Pursuing a More Enjoyable The network you can connect to at any time and the rate plans according to the Corporate Strategy Future Together with customer usage. Customers Support that will get closer to the customer anywhere. au is packed with “affordable” and “reliable” services.

High-quality network Provision of services that meet a wide variety of needs We launched the fifth generation mobile telecommunica- tions service “au 5G” in March 2020 and have been KDDI integrated UQ Communications’ “UQ mobile” proceeding with expanding coverage across the country. service and started offering it as our brand from October rnes

ie nes au 5G compatible models can be used in the 4G LTE 2020. UQ mobile launched the service in 2015 as KDDI’s Business Overview network as well with a population coverage ratio of more MVNO, and its low-price and high-quality service has than 99%. In addition, we have implemented separate been highly esteemed. After the inheritance of the ser- measures to ensure that the network is easy to connect vice, we will improve the efficiency of management to and provide a highly reliable network quality in areas resources and strive to provide better value rate plans for nerne u O nerinen in where large numbers of people gather, such as around customers and more highly convenient services. Our nneins city train stations, tourist sites, sporting events, and live mobile phone business will be deployed with multiple concerts. We will offer more fun and new experience in brands such as “au”, “UQ mobile”, and our group com- the communication environment that is comfortable to pany’s “BIGLOBE mobile” and “J:COM MOBILE.” to use at any time. meet a wide variety of customer needs. *The population coverage ratio is calculated based on areas where ins en u eni u nsurne communication is available in more than 50% of locations in the ns ie approximately 500 m2 sections used for the national census. Company Information Rate plans chosen by customers

au has led other companies in offering innovative rate Making customer lifestyles more enjoyable plans according to the change of customer usage, such as the introduction of the Student Discount plan in 2000 and convenient through the integration of and the flat packet rate plan in 2003. In June 2020, we launched a good value rate plan “Data MAX 5G ALL telecommunications and life design STAR Pack” that offers unlimited data usage and comes with popular entertainment content in a set. By using the Economical and comfortable With au, you can enjoy all types of content in various locations at any time through a network that is “Kaetoku Program,” the first remaining value setting type comfortable to use. We stand close to and deliver pleasant experiences to customers by enhancing the of a device purchase program among domestic telecom- KDDI provides Internet services that are comfortable to life design services that make the daily lives of customers more enjoyable and convenient based on a munications companies, the latest smartphone can be use at home and in outing destinations. “au Hikari,” reliable telecommunications service. used at an affordable price. which is an optical network broadband service, is ultra- high-speed telecommunications of up to 10 Gbps (in Full-fledged support limited areas), and you can comfortably use it for con- tent, such as videos and online games, as well as tele- au provides various support options according to cus- work and online education. If you make a contract for the Delivering excitement to the lifestyles of each individual tomer requests. We accept inquiries by phone and with WiMAX 2+ service, you can also use high-speed Internet “My au” in which customers can check their usage fees in the outing destination. If you use the target Internet To individual customers, we provide smartphone, mobile phone, and other mobile communication services as well as and go through various procedures on a website or app, services and an au smartphone in a set, you can sub- fixed-line services including “au Hikari.” In addition to our own mobile phone services, our group companies are also and customers can make inquiries using the message scribe to “au Smart Value” or “au Smart Value mine” that providing mobile phone services as our MVNOs. function at any hour. Paid-membership “au Smart will discount the au smartphone usage fees, and you can Going forward, we will further expand and integrate telecommunications services with life design services, such as Support” in which dedicated advisers provide support for economically use your smartphone and the Internet. commerce, finance, energy, entertainment, and education, to provide new forms of experience value for the enjoyment how to use smartphones and other devices has been and convenience of our customers. In order to do so, our goal is to understand customers’ needs by analyzing various receiving good reviews as well. In Twitter’s “au Support,” types of data, offering appealing proposals, and becoming an important part of our customers’ lives. we transmit “support information” for our products and services, as well as “helpful information” that makes people want to tell someone. Furthermore, compensa- tion services have been prepared with the expectation of device loss, theft, and failure to enable subscribers to use their devices with a sense of reassurance at all times.

14 15 Personal Services segment KDDI CORPORATION / Corporate Profile 2020–2021

Promotion of the Smart Money Concept with a focus on the smartphone payment Corporate Strategy Bring good values to your everyday life Education x 5G, IoT service “au PAY” and “Ponta Point” “au Denki” is an electricity service in which Ponta au’s life design services are also expanding into the —Make payments and financial services in customers’ day-to-day lives more convenient— points will be given according to the monthly field of education. We created a comprehensive part- electric bills. nership with the KCJ Group, which operates You can use “au Denki App” on your smartphone “KidZania” to integrate learning spaces with 5G, IoT, Smart money concept au PAY is more advantageous with Ponta where you can easily check daily electricity usage, view and other cutting-edge technologies for the cultivation the prediction of the electric bill in the month and of children’s physical and intellectual vitality. The Point compare with similar households. English conversation school AEON is applying ICT and KDDI is promoting the “smart money concept” to com- You can subscribe to gas services with au Denki, data analysis technologies from KDDI to promote DX prehensively provide payment, financial, and other In May 2020, KDDI changed the point service into the such as “Toden ( Electric Power) Gas for au,” for the purpose of individually optimizing learning and services around the smartphone. The “smart money common point service “Ponta Point,” and the subscriber “Chuden () Gas for au,” or maximizing learning efficiency. We also cooperate with concept” will make smartphone payment and the finan- base exceeding 100 million, which is in the largest class “KANDEN (Kansai Electric Power) Gas for au”. You can Mates, which operates “Shingaku Juku (cram school) cial experience a more familiar practice and further in Japan, was born. With this, Ponta Point, which can be use city gas at a good rate and can check monthly Mates” and “Kobetsu Shido Juku (private tutoring Business Overview enhance engagement with the customer by providing accumulated by purchasing products and using services billing amounts on the “au Denki App.” cram school) WAYS” and launched a support service one-stop financial services, including “saving,” “pay- at partner companies, can be accumulated together with “edich” that watches over learning plans and responds ments,” “investment,” “borrowing,” “preparations,” and the payment portions used through “au PAY” and “au to questions online. “planning” centered around the “au PAY” and “Ponta PAY Card.” Point.” au PAY is a payment service that anyone can use if he/she has a smartphone. At Ponta partner companies Realizing the smart money concept that are also au PAY participating stores, if you present the au PAY app’s digital Ponta card or Ponta card and KDDI established the “Jibun Bank (currently, au Jibun pay by au PAY, you can accumulate two times more Bank)” in 2008, and the “au Simple Payment” introduced points. When charging from your credit card “au PAY in 2010 made it possible to combine pay charges for Card” to au PAY, you can also accumulate points and

digital content and shopping together with the au com- use it economically. Company Information munications charges. We actively enhanced our payment and financial service offerings by launching “au WALLET” Good value shopping with the points in 2014, “au Insurance & Loans” in 2016, and “au iDeCO” in 2018. In 2019, we established the intermedi- “au PAY Market” is an integrated EC shopping mall Enjoy non-stop entertainment Deploying au services and technologies to ate holding company “au Financial Holdings” aimed at where you can meet various products and stores ranging and around the world further enhancing the payment and financial business from daily necessities to gourmet, fashion, interior, and “au Smart Pass Premium” offers various services to and transferred financial business companies, such as au home appliances. It is a very good value EC service meet customer needs, such as entertainment content We are deploying our business experience, knowhow, like videos, music, and book services, support for Jibun Bank, under its umbrella. Going forward, by gath- where you can receive up to 15% reward points accord- and highly reliable technical capabilities cultivated repair charges, and unlimited use of security apps. through the operation of au services in Japan to delight ering the group companies’ strengths centered around ing to the amount of shopping and “Valuable Point One can experience VR content on a wide range of oversea customers as well. Through a joint operation “au PAY” and “Ponta Point,” we will promote the Smart Exchange Site” where you can exchange current Ponta models that can be enjoyed with fully realistic feeling, with Myanma Posts and Telecommunications (MPT) Money Concept and deliver the smartphone-centric, points with up to 1.5 times more points that are limited to as well as the content to experience 5G, such as and Sumitomo Corporation in Myanmar, as well as secure, and safe financial and payment services to our the au PAY Market, and the free premium product multi-angle videos of a public talk at an “au 5G MobiCom Corporation we have invested in since its customers. shipping service for au Smart Pass Premium member Special Event.” establishment in Mongolia, we are serving as the customers is available. leading general telecommunications carrier in terms of *The content above is information as of August 2020 revenue and market share there. Through them, we are offering high-quality services, as well as the services tailored for lifestyles, such as mobile money.

You can use if you are not an au user! Charging Saving/Investment Various credit cards Point management Loans Savings, Bank transfer Stock trading and investment trust/ transfers Telecommunications Deposit at a convenience store/ iDeCO into an ATM Foreign currency saving/FX Save up Use No charging au Simple Payment Borrowing sMPT Sule Shop in Myanmar Electricity Fixed-line (Payment by combining with the au PAY Card revolving payment communications communications charges) au Jibun Bank auto charging au PAY Smart Loan (Small loans) au PAY Card auto charging au Jibun Bank Card Loan (Big loans) (In the first half of FY 2020)

Insurance, Investment Pay/Send pension Money transfer between Preparations au PAY accounts au Nonlife Insurance Online Real world Withdrawal to au Jibun Bank au Life Insurance Payment of utility charges (March)

Payments

sMobiCom LifeStyle Shop in Mongolia sSmart money concept sau PAY app x Finance to make it a super app

16 17 Business Services segment KDDI CORPORATION / Corporate Profile 2020–2021

Pursuing the Tomorrow of Corporate Strategy Create Innovations Together with Customers Growth and Evolution KDDI is actively engaged in open innovation. Through collaboration with a diverse range of partners including large companies, startup companies, and local governments, we are aiming for sustainable growth together with our customers by envisioning new business strategies and models in the 5G era and creating a series of new businesses and services.

KDDI DIGITAL GATE KDDI MUGENLABO ie u n ener “KDDI DIGITAL GATE” is a business development base in the 5G era. We form a team with a customer to find MUGEN NO TSUBASA

issues from the user’s viewpoint and conduct the cre- MUGENLABO Business Overview ation of solution ideas, prototyping, and verification in the SHIEN Program ~Business Co-Creation Program~ euri n co-creation workshop that is based on design thinking. ewr ie s ne KDDI’s richly experienced facilitators and designers will accompany customers. Furthermore, we promptly build Enterprise (Projects) Startup Enterprise (Assets)

and verify service ideas in agile development in a one- Commercialization Support Real assets New project themes Business ideas day to one-week cycle and are fully equipped with the Customer base New business ideas Technologies facilities necessary for service verifications utilizing 5G. Development and Budget for execution 5G use cases marketing supports eie uniins erii n ers We mobilize innovative ideas for startup, advanced n seie eene technologies of 5G and IoT, the KDDI Group’s technolog- s“MUGEN NO TSUBASA” and “MUGENLABO SHIEN PROGRAM ical support, and assets that we have accumulated to 2020” promote the co-creation of businesses. Since the estab-

lishment in September 2018, a total of 400* corporate KDDI launched a business co-creation platform “KDDI Company Information customers have used it as a place where new ideas and MUGENLABO” in 2011 and has supported 83* startup Becoming a true partner that works with customers encounters are generated. companies so far. In 2014, we set up the “partner Since May 2020, we have started providing all ser- alliance” which gathers large enterprises in Japan in and contributor for customer’s business vices online ranging from experience tours to workshops order to expand the business co-creation fields with and scrum developments and supported customers’ startups. Currently, the “partner alliance” has become KDDI believes that digital transformation (DX) is about creating innovative forms of business value issue resolution and new business creation. the largest enterprise community in Japan which con- through collaboration with partners who set their sights on a diverse set of values and utilization *As of September 2020 tains over 40 enterprise participation. In September of various digital technologies. As “a digital integrator,” the KDDI Group is mobilizing its network, 2020, we were awarded first place in the “Innovative technologies, and expertise to fully support our customers’ businesses in the 5G/IoT era. Enterprise Rankings” for the third straight year, which was announced by the Executive Committee of the Innovation Leaders Summit. In FY 2020, we launched two new programs: “MUGEN NO TSUBASA,” which is ALL KDDI Contributes to Customers’ Business Development through IoT a business co-creation program aimed at new business creation in the 5G era, and “MUGENLABO SHIEN Business PROGRAM,” which is a program to support startup businesses through partner alliance’s real assets. By KDDI has always proposed cutting-edge, optimal KDDI has put effort into IoT for about 20 years. To mixing startup’s ideas and technological capabilities solutions based on our resilient and high-quality support customers’ business innovations and problem with the real assets that KDDI and the partner alliance telecommunications infrastructure. In the 5G/ resolution, we offer diverse solutions and the number have, KDDI MUGENLABO leads the consecutive and IoT era, the relationships between customers and of contracted lines exceeded 12 million in total*. We cross-industrial business co-creation in Japan. companies will be reconfigured because of advances offer consultations in order for the IoT technology to sKDDI DIGITAL GATE (Toranomon, Tokyo) *As of August 2020 in sensor technology and telecommunications. This is be used in customers’ businesses, sensors that are because the analyses using AI of data obtained from essential in adopting IoT, the network infrastructure, advanced sensors and telecommunications will make and accumulation, visualization, and analyses of data in Virtual experience tour Remote workshop Remote scrum development personalization more sophisticated, make it possible to a one-stop manner and have a lineup of IoT solutions continuously provide even better services, and trigger tailored for customer needs. In addition, by combining a change into a recurring model (cyclical business). the data of au smartphone location information and The KDDI Group will concentrate AI, IoT, security, data the data that a customer has, we will also contribute analysis, and other group resources on top of our to new value creation. We have been proceeding highly reliable cloud to continue helping our customers with verifications and practical use of IoT in various transform their businesses to the best of our ability. business types and fields, such as mackerel farming

management, detection of the predictive failure of the Explaining the overview of the facilities in an open space Explaining the of WS in a workshop room Explaining scrum development in an engineer room plant equipment, and sophistication of logistics centers. sKDDI DIGITAL GATE’s online experience *As of June 2020

18 19 Business Services segment KDDI CORPORATION / Corporate Profile 2020–2021

KDDI “IoT Worldwide Architecture” supporting global DX Promotion of the smart factory by “5G x IoT” quantities of data obtained by various sensors at once Corporate Strategy and the collective control of facilities became possible, JFE Steel Corporation introduced 5G in April 2020 in JFE which will lead to the optimization of the entire manufac- The KDDI “IoT Worldwide Architecture” is a business platform to promote customers’ global expansion that utilizes Steel East Japan Works (Chiba) and has been promoting turing floor. It is also expected to contribute to making it the abundant experience from putting effort into IoT for about 20 years and staff members in about 100 or more bases JFE Steel’s stable operation and to make it a smart a smart factory and further promoting DX, such as the worldwide who are familiar with local circumstances. With a combination of the “Connectivity Service” that seamlessly factory through the utilization of 4k images, etc. In the improvement of production efficiency, response to free connects lines around the world and provides optimal global telecommunications tailored for customer needs; the manufacturing floor where real time and stableness are layout change within the factory, and support for the “Data Service” that supports the will or choice, accumulation, visualization, and analyses of data collected from IoT required, by utilizing KDDI’s 5G, the collection of large collaboration between facilities and workers. devices and the application for the next business; and the “Professional Service” that responds to legal regulations and acquisition of certifications, we will strongly support customers’ global digital transformation (DX).

Since 2016, KDDI and MOTOR CORPORATION recurring model (cyclical business) by combining cut- Smart Work have been jointly promoting the construction of a global ting-edge technologies, such as 5G. Business Overview telecommunications platform to provide high quality and In March 2020, we cooperated with Toward the realization of worker-centric workstyles in the stable telecommunications between the cloud and the DIGITAL SOLUTIONS CORPORATION and SORACOM new normal era, KDDI supports businesses through on-board equipment needed for connected cars. We and started providing the “Global IoT Package” that telework systems. apply and expand this platform and provide it to corpo- provides the collection, storage, visualization, and utiliza- We offer the video conferencing services, such as rate customers as the KDDI “IoT World Architecture.” We tion of data in a one-stop manner. This is a package in “Cisco Webex Meetings” and “Microsoft Teams” to pro- help customers in various industries utilize IoT worldwide which the highly scalable cloud service, global roaming mote business through smooth communication with the by providing roaming and an optimal network utilizing our service, and a device certified by the Radio Act* come as team or client company while working from home. We Worries about back-office operations will be sup- group company SORACOM’s telecommunications, data a set, and this can be used with one device, and we also offer security remote services such as “KDDI ported by our cloud services such as the electronic storage, and analysis features offered in cooperation with support a small start by a customer who promotes Flex Remote Access” and “CPA” to build the telework contract service “CLOUDSIGN,” an attendance manage- , Ltd. and Toshiba Corporation, as well as support global expansion. environment that can be used at ease. ment service “KING OF TIME,” etc. for relevant laws and device certifications. In addition, we *Regarding the countries and regions where the service can be offered will vigorously support the corporate transition to a by obtaining the radio wave-related regulations, please contact us. Company Information

Global Promoting regional revitalization through local partnerships —Solving local issues— Connected Cars IoT that connects to all things Suuport KDDI's “IoT Worldwide Architecture” Higashi Matsushima City, Miyagi Prefecture Nagashima Town, Prefecture Toyota Smart Center Example 1 Introduced agricultural IoT that supplies water Example 2 Implemented the migration and settlement Global Telecommunications Global Communication and fertilizers in a fully automated manner measure by “Guide VR -12K-” Platform Apply and develop Platform In June 2019, KDDI introduced the AI watering and With a view to utilizing vacant houses and promoting fertilizing system “ZeRo.agri” to the agricultural product settlement, Nagashima Town, which has issues, such as cultivation base “Sachi Mitsuru Sato KDDI Evolva population outflow and a shortage of workers, has pro- Nobiru,” which is operated in Higashi Matsushima City moted the expansion of the scope of the vacant house Plants, building facilities, household appliances, Connected car construction machinery, etc. by KDDI Evolva. “ZeRo.agri” is a system where AI calcu- renovation costs eligible for subsidies and the improve- lates and judges the necessary amount of water accord- ment of the environment that both the lenders and tenants ing to the growth of crops and automatically supplies it can easily use by cooperating with a real estate company from tubes for intravenous drip at the right time. It was and a financial institution since January 2018. While introduced with a view to “improving crop yields and inquiries on vacant houses and migration increased, Support DX of LP gas business operators This platform was built by SAN-AI OIL CO.,LTD. and taste (quality)” by utilizing IT and “realizing the enhance- guiding to vacant houses that are scattered over the island KDDI after continuing demonstration experiments since ment of work by automation and manpower” by the in the town had been a heavy burden. For this issue, KDDI In April 2020, KDDI started offering the “KDDI Gas 2019, and launched in April 2020. It has been used for a division of labor between IT and people, and as a result, implemented the migration and settlement measure by the Platform Service” that realizes the collection, storage, wide variety of customers. By utilizing this platform, the number of cherry tomato shipments achieved a high-definition VR service “Guide VR -12K-” with and visualization of data for LP gas business operators efficiency of meter reading and delivery operations is record of 1.6-fold year-on-year (2.4-fold in the most Nagashima Town, Kawasho House Co., Ltd., and by utilizing IoT. In addition to the remote automated expected. shipped month), and the harvest time was shortened by Nagashima Mirai Kikaku LLC. The properties registered in meter reading utilizing LPWA, the gas portal site that *An abbreviation for Network Control Unit. A telecommunications device one week. In the “MCPC award 2019” held in November the vacant house bank in the town and information on the enables the registration of gas charge billing information with built-in cellular LPWA 2019, this initiative won the Mobile Business Award in surrounding areas were made into high-definition VR for consumers, the construction support app that can which the case that content, and remote simply install the NCU* that is necessary for LP gas achieved the private viewing has Portal site Visualization business operators’ operational efficiency, residual Automated remarkable sales become possible. VR was Consumer Message Rate display Security* meter reading management delivery quantity prediction, calculation of delivery routes, etc. Centralized Centralized monitoring expansion or installed in three locations monitoring system for 24 hours a day, utilizing AI will be provided. We will support DX of LP gas 365 days a year performance in and outside Nagashima business operators and aim to improve the experience Gas portal improvement by Town and was utilized in value of LP gas customers. KDDI Gas Platform introducing a the migration and settle-

sService structure chart *Security is provided by a certified system is chosen. ment promotion event held security institution by Nagashima Town.

20 21 Global Business KDDI CORPORATION / Corporate Profile 2020–2021

Connecting the world through trusted technology Corporate Strategy

Americas 1953 •Kokusai Denshin Denwa Co., Ltd. (KDD) was established. For over the past 60 years since its foundation under the original name Kokusai Denshin Denwa (KDD), • KDDI America, Inc. 1956 •The first international telex line was established between Tokyo and San Francisco. KDDI has, as a Japanese pioneer of international telecommunications, connected Japan and over 190 • KDDI DO BRASIL SOLUÇÕES EM TECNOLOGIA LTDA. 1963 •The first television broadcast between Japan and the United States was countries around the world. Through future-creating technology, KDDI will continue to support • UBIK do Brazil Soluções em Tecnologia Ltda. successfully received at the Ibaraki Space Communications Research Facility. comfortable digital lives for people in both the business and consumer realms. • TELEHOUSE International Corp. of America 1964 •The first transpacific cable (TCP-1) entered service. •Joined the International Telecommunications Satellite Organization (INTELSAT). 1966 •Opened the Ibaraki Satellite Communication Center and began television transmissions between Japan and the USA. 1969 •Opened the Yamaguchi Satellite Communication Center and established a satellite channel between Japan and Europe. Business Overview 1973 •Launched international direct dialing services. 1977 •Joined the International Maritime Satellite Organization (INMARSAT). 1989 •Established the first Telehouse data center in the New York area (USA). •The first optical undersea cable in the Pacific Ocean and the third trans-pacific rope cable (TPC-3) entered service. 1990 •Established a Telehouse data center in London (UK). 1995 •Invested in MobiCom (Mongolia). 1996 •Established a Telehouse data center in Paris (France). 2000 •Established a Telehouse data center in Hong Kong. 2001 •Launched the world’s first international IP-VPN service for corporations.

meria Company Information Over 100 bases 2007 •Established a Telehouse data center in Beijing (China). 2008 •Established a Telehouse data center in Singapore. in 60 cities overseas 2010 •Established Telehouse data centers in Hanoi (Vietnam) and Shanghai (China). ia eania •The “” optical undersea cable between Japan and the US began operation. 2011 •Established a Telehouse data center in Istanbul (Turkey). 2012 •Started providing the shortest route between Japan and Europe via the “RJCN (Russia-Japan Cable Network)” optical undersea cable between Japan and Russia. •Established Telehouse data centers in Frankfurt (Germany) and Moscow (Russia). 2014 •Entered the telecommunications business in Myanmar. 2016 •The “FASTER” optical undersea cable between Japan and the US began operation. •Established the fifth data center in London (UK), “Telehouse London Docklands North Two.” 2019 •Connected Cars business was launched. 2020 •Services related to the KDDI “IoT Worldwide Architecture” were launched. •Operation starts at the fourth building of the Telehouse data center in Frankfurt Europe Asia and Oceania (Germany).

• KDDI EUROPE Ltd. • KDDI CHINA CORPORATION • KDDI Singapore Pte Ltd • KDDI DEUTSCHLAND GmbH • KDDI SHANGHAI CORPORATION • KDDI Thailand Ltd. Providing strong support for customers’ businesses worldwide • KDDI FRANCE SAS • Shanghai KDDI Communications • KDDI MALAYSIA Sdn. Bhd • KDDI Russia LLC Engineering Co., Ltd. • KDDI India Private Limited By using its over 100 locations in 60 cities around the globe, the KDDI • TELEHOUSE International Corp. • KDDI GUANGZHOU CORPORATION • KDDI PHILIPPINES Corporation of Europe • KDDI HONG KONG LTD. • KDDI Vietnam Corporation Group contributes to the development of customers’ businesses by • TELEHOUSE International Corp. of • KDDI TAIWAN CORPORATION • KDDI AUSTRALIA Pty Ltd. quickly understanding the challenges they face both domestically and Europe Ltd. Paris Branch • KDDI Korea CORPORATION • PT. KDDI INDONESIA overseas through the diverse and secure cloud platforms, through the • TELEHOUSE Deutschland GmbH • TELEHOUSE BEIJING BEZ • KDDI Myanmar Co., Ltd. provision of the high-performance and high-value added “Telehouse” • TELEHOUSE Moscow • TELEHOUSE BEIJING BDA Co., Ltd. • TELEHOUSE Singapore data centers, through the provision of networks that seamlessly • TELEHOUSE Istanbul • TELEHOUSE SHANGHAI Zhangjiang • TELEHOUSE International Corp. • KDDI European Research Office • TELEHOUSE SHANGHAI Jinqiao of VIETNAM connect over 190 countries around the world, through the utilization • TELEHOUSE HONG KONG CCC • MobiCom Corporation of leading-edge IoT technology, and through the provision of optimal • KDDI Beijing Representative Office • KDDI Summit Global Myanmar Co., Ltd. solutions. By helping customers achieve their digital transformations • KDDI Shanghai Representative Office • FunCreate Myanmar LTD. globally, KDDI will contribute to the creation of new experience value. • KKBOX Inc. • BRACNet Limited

22 23 Research & Development KDDI CORPORATION / Corporate Profile 2020–2021

Research and Development for Evolving 5G Corporate Strategy

Demonstration experiments for 5G standalone Development of network slicing for 5G era architecture

KDDI has been conducting research and development to KDDI has been conducting research and development of maximize the advantage of 5G. In February 2020, we network technology for 5G era. In January 2020, we have completed a 5G core standalone network trial with developed a new slicing technology which virtually telecommunication equipment manufacturer. 5G stand- partitions radio access networks and has completed the alone architecture, which consists of 5G radio access world’s first demonstration. In 5G era, we will provide technology and 5G mobile core network independent of communication functions suitable for different applica- existing mobile core network for 4G, realizes all of the tions or requirements according to the purpose in each Business Overview expected capabilities for 5G, “enhanced Mobile case. The technology enables us to flexibly provide Broadband”, “Ultra-Reliable and Low Latency multiple different services without any additional network Communications” and “massive Machine Type equipment. Communications”.

Creating an advanced future by evolving communication systems and exploring frontiers Company Information of technologies KDDI will realize an advanced and exciting future society by evolving communication systems and exploring frontiers of technologies, through research and development based on the latest telecommunication technologies and novel ideas, as well as cooperation with a variety of companies Research and Development for Realizing a Smart Future Society and research institutions.

Development of the remote monitoring The athlete training support system by sports system for autonomous-driving vehicles action recognition AI

Research & Development for Highly Reliable Telecommunications KDDI has been conducting research and development of KDDI has been putting effort into research and develop- autonomous driving to realize the next-generation mobil- ment in a wide range of fields to create new experience Recovering communications services in a disaster area using “helicopter base station” ity society. In February 2019, we demonstrated values. In October 2019, we developed the athlete 5G-enabled multi-vehicle autonomous driving on a public training support system that can be utilized for the In order to realize a reliable and resilient network, a helicopter for the first time in Japan. Since this road for the first time in Japan. In this experiment, we improvement of athletes’ skills. In this system, AI recog- KDDI has been conducting research and develop- demonstration showed the possibilities to provide confirmed that 5G improves safety of remote vehicle nizes and analyzes their forms and activities from the ment to maintain communications services in a temporary communication services in disaster areas monitoring and control that are required in the “level 4” videos taken by smartphones. Furthermore, the system disaster area. In November 2019, in Uonuma City, and to find victims quickly, we received the 31st autonomous driving, in which driver attention is not provides advice to improve their forms based on the Niigata Prefecture, we conduted a demonstration of “Radio Achievement Award” by the Chairman of the mandatory. Furthermore, we participated in the demon- analysis results and sensing data obtained from a built-in building a cell site and estimating location of victims Board of the Association of Radio Industries and stration of autonomous driving service with providing the sensor in a ball. using a small-sized mobile station which is on-board Businesses. remote vehicle monitoring system to Hitachiota City, Ibaraki Prefecture in June 2019.

Advice on the form Sports tech service

Stored data Online coaching Video Sports action recognition • An athlete’s action AI (Estimating • Movement of ball an athlete’s action) Evaluation Condition Smartphone management Sensing ball

sA helicopter equipped with a small-sized base station sA view inside of the helicopter sConceptual diagram of the athlete training support system

24 25 Corporate Profile(As of March 31, 2020) Organization Chart (As of October 1, 2020) KDDI CORPORATION / Corporate Profile 2020–2021 Corporate Strategy HOKKAIDO Regional Office Company Name KDDI CORPORATION Shareholders’ Meeting Audit TOHOKU Regional Office Date of Establishment June 1, 1984 Supervisory Board KITA-KANTO Regional Office Main Business Telecommunications business Board of Directors Audit Supervisory MINAMI-KANTO Regional Office Head Office 3-10-10, Iidabashi, Chiyoda-ku, Tokyo, Japan Board Members Chairman CHUBU Regional Office Registered Place of Business 2-3-2, Nishishinjuku, Shinjuku-ku, Tokyo, Japan Audit Supervisory HOKURIKU Regional Office President Makoto Takahashi Board Members’ Office President KANSAI Regional Office Capital 141,852 million yen CHUGOKU Regional Office Total Employees 44,952 (consolidated base) Corporate Management SHIKOKU Regional Office Committee KYUSHU Regional Office

Corporate Risk Management Division Business Overview Major Shareholders

Corporate Strategy Planning Division Name Number of Shares Held (Shares) Ratio of Shareholding (%) Corporation 335,096,000 14.54

TOYOTA MOTOR CORPORATION 298,492,800 12.95 Corporate Sector Corporate Management Division The Master Trust Bank of Japan, Ltd. (Trust Account) 222,197,700 9.64 General Administration Division Human Resources Division Japan Trustee Services Bank, Ltd. (Trust Account) 130,888,800 5.68 Corporate Procurement Division Note: KDDI excludes the treasury stocks (51,194,050 shares) that it holds from the list of major shareholders above. In addition, the ratio of shareholding is calculated by subtracting the treasury stocks. Furthermore, the treasury stocks do not include the company shares (4,270,910 shares) held by the “Board Incentive Plan” (BIP) trust and the “Employee Stock Ownership Plan” (ESOP) trust. Corporate ＆ Marketing Communications Sector Corporate Communications Division Company Information Consolidated Statements (IFRS) Marketing Communications Division

Year Ended March 31, 2018 Year Ended March 31, 2019 Year Ended March 31, 2020 Operating Revenues (Millions of Yen) 5,041,978 5,080,353 5,237,221 Technology Sector Technology Planning Division Compared with Previous Year (Growth Rate) (+6.2%) (+0.8%) (+3.1%) Mobile Network Technical Development Division Operating Income (Millions of Yen) 962,793 1,013,729 1,025,237 Network Technical Development Division Compared with Previous Year (Growth Rate) (+5.5%) (+5.3%) (+1.1%) Information Systems Division Engineering Division

Advanced Operations Management Division Executive Members (As of June 17, 2020) Operations Division Directors Chairman, Representative Director Takashi Tanaka Global Engineering & Operations Division

President, Representative Director Makoto Takahashi Information Security Division Executive Vice Presidents, Representative Directors Takashi Shoji Shinichi Muramoto Senior Managing Executive Officer, Director Keiichi Mori Global Consumer Business Sector Global Consumer Business Planning Division Managing Executive Officers, Directors Kei Morita Toshitake Amamiya Global Consumer Business Division Hirokuni Takeyama Executive Officer Director Kazuyuki Yoshimura Personal Business Sector Personal Business Planning Division 1 1 Directors Goro Yamaguchi* Keiji Yamamoto* Consumer Sales Division Shigeo Ohyagi*1*3 Riyo Kano*1*3 Business & Services Development Division Shigeki Goto*1*3

Audit & Supervisory Full-time Audit & Supervisory Board Members Yasuhide Yamamoto Kenichiro Takagi Solution Business Sector Solution Business Planning Division Board Members Audit & Supervisory Board Members Toshihiko Matsumiya*2 *3 Jun Karube*2 *3 Service Planning and Development Division Shin Honto*2*3 Solution Sales Division Solution Engineering Division *1. Goro Yamaguchi, Keiji Yamamoto, Shigeo Ohyagi, Riyo Kano, and Shigeki Goto are outside directors. *2. Toshihiko Matsumiya, Jun Karube, and Shin Honto are outside Audit & Supervisory Board members. IoT Business Development Division *3. Directors Shigeo Ohyagi, Riyo Kano, and Shigeki Goto as well as Audit & Supervisory Board members Toshihiko Matsumiya, Global ICT Business Division Jun Karube, and Shin Honto are independent officers pursuant to Rule 436-2 of the Securities Listing Regulations of , Inc.

26 27 Main Domestic Companies and Affiliates(As of October 1, 2020) KDDI CORPORATION / Corporate Profile 2020–2021 Corporate Strategy

Mobile Business I C C Product Sales Business a Commr if In C IC pitr op Cann Co t Commniation In oo artnr In ir an ir Co t oao Co t

Fixed-line Business Financial Business a inania oin Corporation C ommniation Co In a t anamnt Corporation a inania artnr Corporation a inania ri Corporation Internet-related Business a Inran Co t Business Overview I In a in an Corporation I In a aom riti Co t omott In a aymnt Corporation apan Intrnt an Co t I IC C apan tor nar Corporation I Commniation In

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28 29 Sports Sponsorship History KDDI CORPORATION / Corporate Profile 2020–2021

As part of its initiatives to improve the value of the au brand, KDDI has signed sponsorship

agreements with sporting events, teams, and other organizations. In addition to contributing to Corporate Strategy 1953 Mar. •KOKUSAI DENSHIN DENWA CO., LTD. (KDD) was 2006 Jan. •The comprehensive music service “LISMO” was launched. the development of local communities and the sporting world by supporting sports, KDDI will established. create new experience value, such as sports spectating experiences that utilize various Jun. •“HIKARI one” (now “au Hikari”), a joint FTTH service with 1984 Jun. •Daini-Denden Planning Company was established. TEPCO, was launched. communications technologies, including 5G. 1985 Apr. •DDI CORPORATION (DDI) launched operations. Dec. •“EV-DO Rev. A,” an upgraded version of “CDMA2000 1x EV-DO” was adopted. Support for football Dec. •Long-distance call service connection numbers were decided for new common carriers 2008 Mar. •Converted Wireless Broadband Planning to an operating As a sponsor for the Japan national football team, KYOTO SANGA F.C. and (DDI 0077, TWJ 0070, JT 0088). company, setting the stage to launch UQ Communications GRAMPUS, au has been putting effort into the improvement of Inc. spectating experience inside and outside the stadium. For the Japan national 1986 Oct. •DDI began leased circuit service between Tokyo, Nagoya, and Osaka. Jul. •A mobile online bank “Jibun Bank” was established. football team, we provided a VR video that shot the behind-the-scenes activities of the national team players before the match and put effort into the 1987 Mar. •NIPPON IDOU TSUSHIN CORPORATION was established. Oct. •Data center brands from both inside and outside of Japan were integrated with “Telehouse”. improvement of the spectating experience outside the stadium in June 2019. Sep. •The three new common carriers began domestic long-

In addition, we will use the communications technology to attempt to create distance call services between Tokyo, Nagoya, and Osaka. 2011 Feb. •KDDI MATOMETE OFFICE CORPORATION was established. Business Overview “new football experiences” as it wholeheartedly supports football in Japan. 1988 Dec. •IDO launched car telephone service using the Hi-Cap May •Mobile nonlife insurance “au Sonpo (non-life insurance)” analog cellular system within the 23 wards of Tokyo. was established. Support for sport climbing 1989 May •IDO launched Handy Phone Service (a compact lightweight Aug. •Joint business creation platform “KDDI∞LABO (Mugen cellular phone). Labo)” started. The novelty and freedom offered by sport climbing resonates with au value, 2012 Feb. •Corporate venture capital “KDDI Open Innovation Fund” was and in the interest of creating new experience value, au has been supporting it 1992 Dec. •DDI completed national service network. established. as an official sponsor. We formed “TEAM au,” consisting of talented climbers, 1994 Jun. •IDO launched PDC systems. and are providing support for the development and popularization of sport Mar. •“au Smart Value” and “au Smart Pass” were launched. 1997 Mar. •DDI and IDO decided to jointly introduce the CDMA system. climbing in Japan. We provide the spectating styles to further enjoy sport Sep. •“4G LTE,” Fourth-Generation LTE standard for high- speed climbing, such as the “sports action recognition AI” technology provided for Jul. •“DION” (now “au one net”) Internet connection service was communication service, was launched. launched. the first time in the “IFSC World Championship” held in August 2019. 2014 Mar. •Achieved an actual population coverage ratio of 99% for

1998 Dec. •KOKUSAI DENSHIN DENWA CO., LTD. (KDD) and Teleway “platinum” band 800MHz “au 4G LTE service.” Company Information Japan Corporation merged to create KDD Corporation. May •“au WALLET” service was launched. Jul. •Started distribution of the LTE-Advanced technology Support for “TGR TEAM au TOM’S” 1999 Apr. •IDO and DDI CELLULAR Group completed the nationwide, “Carrier Aggregation (CA).” au is sponsoring “TGR TEAM au TOM’S” in the “SUPER GT,” which is Japan’s seamless cdmaOne network. largest GT race. In addition, au will also take on the bruising battle with “TGR •IDO and DDI CELLULAR Group launched the “EZweb” and Jul. •Entered into agreement and commenced joint business with “EZaccess” Internet connection services. TEAM au TOM’S” in the competitive environment where technological innova- Myanma Posts and Telecommunications (MPT). tions change at a dizzying pace just like the telecommunications business by 2000 Jul. •IDO and DDI CELLULAR Group launched the “au,” a uniform Dec. •“au VoLTE,” a next-generation voice call service, was supporting the telecommunications infrastructure that transmits the massive nationwide mobile communications brand. launched. volumes of race data that impact the outcome of the race in real-time to the Oct. •DDI CORPORATION, KDD Corporation, and IDO 2016 Apr. •“au Denki” electricity supply service was launched. engineers who are developing the race strategy. CORPORATION merged and formed a new company. •“au Insurance & Loans” financial service was launched. The trade name of the new entity was DDI CORPORATION, and it operated under the new KDDI corporate brand. 2017 Jul. •To separate the smartphone and other mobile device charges from the communications charges, new rate plans Nov. •The seven companies of the DDI CELLULAR Group merged “au Adjust Plan” and “au Flat Plan” were launched. Support for the Japan esports Union (JeSU) to form “au CORPORATION.” •“au HOME” IoT service for households was launched. au is an official sponsor of the “Japan esports Union (JeSU),” the only esports 2001 Apr. •Corporate name was changed to “KDDI CORPORATION.” 2018 Jan. •IoT communication service “KDDI IoT Connect LPWA” was league in Japan. Esports are a diverse form of competition that does not launched. Oct. •au CORPORATION was merged with KDDI CORPORATION. depend on physical features or gender and that anyone can participate in. As Sep. •“KDDI DIGITAL GATE,” a digital business development site, part of the Company’s efforts for the development of a rich communication 2002 Apr. •Third-generation () mobile phone service (CDMA2000 had opened in Tokyo (Toranomon). society, au is supporting the popularization of esports and the development of 1x) was launched. 2019 Feb. •Midway bank holding company “au Financial Holdings ® young athletes in Japan by further expanding 5G services, au Hikari, and other Dec. •“Chaku-Uta ” service was launched. Corporation” was established. Initiated the SmartMoney communications services. 2003 Oct. •“KDDI Hikari Plus” (now “au Hikari”), a suite of optical concept. fiber-based services, was launched. Apr. •Smartphone payment service “au PAY” was launched. Nov. •Sales of “INFOBAR,” the first model from the au design May •Renewed the brand slogan “KDDI: Tomorrow, Together,” Support for YOKOHAMA DeNA BAYSTARS project, began. “au: Explore the extraordinary.” •“CDMA 1X WIN,” an enhanced 3G mobile phone service KDDI has concluded a partnership agreement for the building of the “smart based on CDMA2000 1x EV-DO technology, was launched. Jul. •“au Data MAX Plan,” the first unlimited data plan in Japan, stadium” that utilizes 5G and IoT. In the “Community Ballpark” concept aimed was launched. 2004 Oct. •“KDDI Hikari Direct” (for corporate customers) service was at nurturing communication driven by baseball and becoming a local landmark launched. 2020 Mar. •“au 5G”, Fifth-Generation Mobile Communication Service, that YOKOHAMA DeNA BAYSTARS and Yokohama Stadium have been was launched. Nov. •EZ “Chaku-Uta-Full®” service was launched. proceeding with, we will provide support through 5G and IoT. By building the May •au Point service was integrated into the common point “smart stadium” that utilizes various technologies, we will create new experi- 2005 Feb. •“KDDI Metal Plus” service was launched. service “Ponta”. ence value for customers, such as remote spectating. Oct. •“Cable-plus Phone” fixed-telephone service integrated with Oct. •UQ Communications Inc.’s “UQ mobile” business was ©YDB CATV was launched. integrated.

30 31 KDDI CORPORATION https://www.kddi.com/english/

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