Performance Highlights by Segment for the Fiscal Year Ended March 31, 2016

The KDDI Group is developing "3M Strategy" as a growth strategy for domestic business and "Global Strategy" for expanding business overseas. The KDDI Group has four reporting segments: "Personal Services", "Value Services", "Business Services" and "Global Services" for driving this strategy.

Business Outline

This segment provides mobile and fixed-line communications services for individual customers.

In addition to providing mobile communications services, chiefly under the "au" brand, and selling mobile handsets, in fixed-line communications, our services include "au HIKARI" brand FTTH services, CATV services and other services. The segment is also working to expand the provision of "au WALLET Market" that makes use of au shops, and in April 2016 it entered the electric power retailing business.

Activities by Segment: Personal Services Segment

Business Outline

This segment provides individual customers with content, settlement and other value-added services.

The segment will make "au Smart Pass" and other subscription services more attractive, boost its commerce business with "au WALLET Market powered by LUXA," and strengthen the finance business, which will include insurance and housing loans from April 2016 to maximize the "au Economic Zone" to contribute to higher merchandise value and increased value ARPA.

Activities by Segment: Value Services Segment

Business Outline

This segment provides diverse solutions, including cloud services that seamlessly utilize networks and applications across smartphones, tablets and other mobile devices, to a wide range of corporate customers, ranging from small and medium-sized businesses to major corporations.

Activities by Segment: Business Services Segment

Business Outline

This segment offers the one-stop provision of ICT solutions to corporate customers, centered on our "TELEHOUSE" data centers. In addition, we are working aggressively to expand customer businesses, such as the telecommunications business in Myanmar and Mongolia.

Activities by Segment: Global Services Segment

Business Outline

In addition to construction of equipment supporting network services and call center operations, this domain also engages in ICT research and development.

• The composition ratio is calculated based on the simple sum of the sales for each segment as being 100%.