KDDI VISION 2030 and Mid-Term Management Strategy Devised

13/05/2022

May 13,2022

-- KDDI Corporation

upon sustainability management that aims to achieve the sustainable growth of society and the enhancement of corporate value together with our partners On May 13, 2022, In order to build a resilient future society that supports Japans economic development and that provides solutions to social issues, the KDDI Group has raised KDDI VISION 2030 while promptly responding to changes in our business environment, and formulated Mid-Term Management Strategy (FY23.3-FY25.3).

Upon sustainability management that aims to achieve the sustainable growth of society and the enhancement of corporate value together with our partners, the KDDI group will strengthen the 5G-driven evolution of its telecommunications business, the expansion of focus areas centered around telecommunications, and the strengthening of its business infrastructure that supports these objectives.

KDDI VISION 2030 The creation of a society in which anyone can make their dreams a reality, by enhancing the power to connect.

Mid-Term Management Strategy Sustainability management Together with our partners, the KDDI Group will aim for the sustainable growth of society and the enhancement of corporate value, by promoting our Satellite Growth Strategy and the strengthening of its business infrastructure that supports it. The group has also defined the new material issues that encompass social problems and our businesss levels of importance comprehensively from a long-term perspective.

[New Materiality]

Promotion of innovation centered on telecommunications

Realization of safe, secure, and prosperous society

Carbon neutral

Strengthening the group management base through progressing governance

Human resources first

Advancing stakeholder engagement

Mid-Term Management Strategy Satellite Growth Strategy (business strategies) We will strengthen the 5G-driven evolution of its telecommunications business, the expansion of focus areas centered around telecommunications. We will aim to maximize the KDDI Groups corporate value especially in the five focus areas below.

(1)

DX (digital transformation)

We will bring telecommunication into everything (cars, industrial equipment, and various meters, etc.) through IoT to organize an environment in which customers can enjoy using 5G without being aware of its presence. To do that, we will provide business platforms that satisfy individual needs by industry, supporting customers in creating businesses. We will look to a healthy DX cycle in which newly arising added values transform peoples living.

(2)

Finance

We will drive an increase of users Financial Cross-Use, contributing to improving engagement through telecommunication and finance. We will also scale up various finance features to grow KDDI Groups finance companies.

(3)

Energy

We will continue to enhance our power retail business and enter businesses related to carbon neutrality to contribute to carbon neutrality.

(4)

LX (life transformation)

We will create new businesses that will give rise to innovation in diversifying consumption and experiences, as seen in mobility, space and Metaverse, through KDDIs technology strategy Life Transformation Technology (LX Technology).

(5)

Regional Co-Creation such as CATV

Dealing with issues unique to regional areas such as depopulation and aging population, we will eradicate digital divide and create together with the areas. We will also offer management support to regional CATV stations and companies supporting regional areas across Japan, to drive regional business co-creation efforts.

Mid-Term Management Strategy Enhancing business infrastructure KDDI group will especially enhance the three areas below to contribute to the sustainable growth of ourselves and society.

(1)

Achieving carbon neutrality

KDDI is aiming to achieve net-zero CO2 emissions by 2030 and the Group as a whole by 2050. In order to achieve these targets, by promoting energy efficiency and shift to renewable energy.

(2)

Transforming into a Human resources first company

In order to transform into a company that puts human resources first and considers their development and enhancement to be the foundation of management, we are working on this across three pillars; introducing the KDDI Version Job Style Personnel System, realizing Declaration of KDDI New Work Styles, and promoting Internal DX. By utilizing KDDI DX University [

1] to advance DX skills of all employees and develop professional human resources, we will also shift personnel to focus areas.

(3)

Promoting the KDDI group management and strengthening the corporate governance system

For KDDI Groups sustainable corporate management, we will ensure respect for human rights in our business activities, enhance our risk management and information security system, and strengthen governance, with consideration to increasing our group companies and diversifying our businesses in association with the advancement of the Satellite Growth Strategy.

Management targets Sustainability Aiming for sustainable growth of society and enhancement of corporate value with partners through promoting satellite growth strategy and strengthening management base to support it

Business growth ARPU revenue increase due to 5G promotion (FY22.3 vs. FY25.3)

Profit growth in focus areas 100 billion yen or more

Cost efficiency 100 billion yen target

Financial policies

Prioritize capital expenditures and strategic business investments

Dividend payout ratio over 40%

Flexible share repurchases

EPS growth Continue to aim for 1.5x growth versus FY19.3

[1]

An internal personnel training institution launched in 2020

The information contained in the articles is current at the time of publication.

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KDDI VISION 2030 and Mid-Term Management Strategy Devised

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