The Sustainability Expected of a Telecommunications Company

KDDI is aiming to enhance mobile telecommunications quality and realize a society that can fully utilize high-quality telecommunications by providing reliable fixed-line and internet services. In the Operations Division, we will continue working together to monitor network operations to enable the provision of telecommunications as a lifeline during natural disasters.
Effects from COVID-19 have driven an increase in teleworking and other data use, along with rapid changes in telecommunications use in Japan. Although overall telecommunications traffic volume has not been affected, daytime fixed-line telecommunications traffic has increased by up to 63%. KDDI has therefore swiftly taken measures to maintain the telecommunications environment. In addition, we fulfilled our social responsibility as a telecommunications operator by working to safely provide a telecommunications environment to the many passengers, crew members, and health care providers on the large cruise ship that arrived in the Port of Yokohama in February 2020.
Going forward, we will continue helping every day to build safe and secure social foundations through telecommunications.

As a KDDI Sustainable Action initiative, KDDI proclaimed its aim of zero CO2 emissions by 2050.
Because our businesses possess large-scale infrastructure, we need to ensure both environmental protection and sustainable business operations.
To achieve these dual goals, we must conduct a full-scale review of our energy consumption and take measures to deploy new technologies. We have been working to reduce electric power use by installing an efficient air-conditioning control system and a more efficient interflow and direct flow transformer in 2019. Furthermore, we have begun to consider using fuel cell batteries and installing new energy-efficient air-conditioning technology. In addition, as a medium- to long-term initiative, we review power distribution technology and develop power storage technology. Going forward, we will continue these unceasing efforts to help reduce CO2 emissions for society as a whole.

In Japan, due to the declining population and urban centralization, the issue of regional depopulation will continue to get worse going forward. To address this issue, we at KDDI will continue to help create a society where everyone can live a full life, free of inequality, and regardless of place of residence, through telecommunications.
From March 2020, we began fully offering 5G commercial services. I think we can leverage the characteristics of 5G, namely high speed, low latency, and multiple connections, in various fi elds including remote healthcare and education, agriculture, industry, and smart cities. To build the foundation for this, we began providing 5G commercial services in major cities across Japan from summer 2020, and we aim to offer 5G commercial services in every prefecture by March 2021.
Through the adoption of 5G, we will continue helping to realize a new society that solves the issues confronting rural areas.

Mainly in developing countries in Asia, KDDI is working to help develop industry by providing inexpensive high-quality telecommunications services and upgrading telecommunications infrastructure with the aim of ensuring there are no residents living outside of our telecommunications area. In Myanmar, from 2014, we have worked to upgrade the telecommunications service environment through a joint business with Myanma Posts & Telecommunications (MPT) and Sumitomo Corporation, thereby contributing to the development of the country. As of March 31, 2020, MPT was No. 1 in market share.
In Mongolia, we have been operating the comprehensive communications carrier MobiCom Corporation LLC since its founding in 1995. Every year, the company is selected for the Top 100 Mongolian Companies, which are chosen by the Mongolian government and Mongolian National Chamber of Commerce and Industry. In 2019, the company was awarded 17th place, the highest placement among telecommunications providers, signaling a high evaluation.

Rural Japan is facing various social issues, such as a declining birthrate, aging population, declining population, aging infrastructure, and increasing number of natural disasters. Attempts are being made to realize Society 5.0, which would help solve these issues through ICT. KDDI believes that to make these initiatives sustainable, we need to train the personnel, venture companies, and local companies that will take up the responsibility of solving these issues at the local level. To date, KDDI has worked with over 60 municipalities to solve problems, and the Company is collaborating with regional universities and technical colleges to promote corporate and human resources training for innovation, starting businesses, and DX, by leveraging its track record to date.
In addition, we established the KDDI Regional Initiatives Fund in April 2019 for regional revitalization by providing funding to training companies. Going forward, KDDI will continue to contribute to the sustainable development of society by working to train human resources that will develop regional areas and shape the future.

In a society undergoing rapid digitization, a huge responsibility for telecommunications providers is to build a safer society where privacy and security are protected. With adoption of smartphones and cellphones widespread and increasingly younger people using them, KDDI respects UNICEF's Convention on the Rights of the Child and has been offering the KDDI Smartphone and Mobile Phone Safety Classes at elementary, middle, and high schools across Japan since the fi scal year ended March 31, 2006. These classes provide children with the means to use their own judgment to avoid risks, enabling them to safely and securely use smartphones and mobile phones.
The cumulative number of classes held is around 33,000, with attendees exceeding 6,110,000. In addition, we hold courses for seniors to learn basic phone functions and ways to use phones safely and securely. These classes have reached a cumulative total of around 1,500, with approximately 27,000 attendees. Going forward, we will continue to carry out these initiatives aimed at building a safe, rich, digital society.

KDDI declared "embracing diversity" as part of the KDDI Group Philosophy and is working to continue building an organization that leverages diversity.
To promote the advancement of women, we set a target of hiring 200 female line managers as of March 31, 2021, and are conducting various training, mentoring, and career design programs.
KDDI promotes the employment and advancement of people with disabilities. We maintained an employment rate of 2.53% for people with disabilities, which is above the legally mandated level, as of June 1, 2020, by establishing a special subsidiary to contract KDDI's operations and expanding the range of activities, such as operating cafés at offices. We are also proactively working to quickly address LGBT issues. For example, the "au" Family Discount can also be applied to same-sex partners, and internal systems treat same-sex partners and their children as family members.
As an operator who has a public mission, we will continue helping realize a diverse and inclusive society by providing a work environment and services that respect diversity.

KDDI has undertaken work style reforms and health management as an important management issue for a long time. To further promote these initiatives, we established the Management Department as an organization dedicated to these causes in January 2019.
We are creating a company where all employees can stay healthy while achieving high performance by having a framework of around 40 internal counselors to conduct two annual interviews with every employee and asses their mental and physical health. With the spread of COVID-19, we formulated a basic policy based on the policies of KDDI Sustainable Action. The first of five items in the policy is "ensuring the safety of customers and employees of KDDI and its affiliates above all else." To prevent the spread of infections, around 90% of KDDI employees are working from home.
Going forward, we will continue striving to be a company that contributes to the sustainable development of society and where employees thrive.