The Path of Value Creation

Retaining a strong customer base inside and outside Japan

(As of March 31, 2019/Personal Services Segment)

Mobile ID subscriptions

26.95 million
FTTH subscriptions

4.45 million
CATV RGU [5] households

5.48 million
Global Consumer Business

No.1 in domestic shares in both Myanmar and Mongolia

Touchpoints both online and offline

(As of March 31, 2019)

Approx. 2,300 au shops nationwide/15.49 million "au Smart Pass" and "au Smart Pass Premium" members/MAU over 10 million use "au WALLET" app

Develop new pricing plans ahead of the industry

Nov. 2003

Industry's first flat-rate packet service introduced
Mar. 2012

Launch of "au Smart Value" and "au Smart Pass"
Jul. 2017

Start of "au Pitatto Plan" and "au Flat Plan"
Aug. 2018

Start of "au Flat Plan 25 Netflix Pack"
Jul. 2019

Start of "au Data MAX Plan"

No.1 in brand strength and customer satisfaction and in both corporate and individual services

J.D. Power "No. 1 in Mobile Phone Service Satisfaction" [6] for three years/(UQ mobile) J.D. Power "No. 1 in Low-Cost Smartphone Service Satisfaction" [7] for two years/J.D. Power "No.1 in Business Mobile Phone Service Satisfaction" (Large Corporations/Medium-Sized Enterprises Market Segment) [8] for three years

[1]

Share among NTT DOCOMO, INC. (NTT DOCOMO), SoftBank Corp. (SoftBank), and KDDI + Okinawa Cellular Telephone Company (au)
[2]

Results for fiscal years ended March 31. Figures up to the fiscal year ended March 31, 2014 are based on Japanese GAAP and figures for the fiscal year ended March 31, 2015 onward are based on IFRS (International Financial Reporting Standards).
[3]

On a closing price basis for the end of October 2000 to the end of March 2019 (monthly)
[4]

CAGR: Compound Average Growth Rate
[5]

RGU: Revenue Generating Units. Each household's subscription to CATV, highspeed Internet connection, or telephony services each represent one RGU.
[6]

J.D. Power 2016-2018 Mobile Phone Service Satisfaction Study. The 2018 study is based on responses from 27,600 mobile phone users in Japan.
[7]

J.D. Power 2018-2019 Low-Cost Smartphone Service Satisfaction Study. Based on the survey conducted in FY2019 responses from 4,000 users who bought and use smartphones or SIM cards with service from contracted operators.
[8]

J.D. Power 2016-2018 Business Mobile Phone Service Satisfaction Study. The 2018 survey is based on 2,890 responses received from 2,287 companies with 100 or more employees.

KDDI's Value Creation Cycle

The four sources of KDDI's value are its "customer base," "touchpoints," "innovativeness," and "brand strength" that have been built over the years since its establishment. We will further refine and enhance these sources of value and optimally allocate the Company's management resources to maximize KDDI's corporate value. In doing so, we aim to achieve our medium-term management plan for the fiscal year ending March 31, 2022.

KDDI's Surrounding Business Environment

Political (Government/Legislation)

Comprehensive verification of competition rules in the telecommunications business field
Complete separation of telecommunication fees and handset prices

Economic