IR Meetings

SDGs Presentation Meeting (December, 3, 2020)

Materials

Presentation (9.7MB)

Part 1: Explanation of "KDDI's Target SDGs"

Executive Vice President Muramoto explained the "KDDI Sustainable Action" formulated this year. He introduced our "company vision" aiming for sustainable growth together with society and the credo, the goals and the efforts about KDDI Sustainable Action.
After that, Executive Director Shiroiwa of the Human Resources Division discussed "A three pillar-transformation component of "Declaration of KDDI New Work Styles", "KDDI Version Job Style Personnel System" and "In-house DX".
Deputy Executive Director Maeda of Technology Planning Division discussed "KDDI Accelerate 5.0", and Executive Director Tanaka of General Administration Division discussed "KDDI's Disaster Preparedness" with a Focus on Preparing for Earthquakes in the Tokyo Metropolitan Area.
Participants gained a better understanding the contributions to sustainable growth of society that we are aiming to achieve.

Part 2: Q&A Session

In the Q&A session, Senior Managing Executive Officer Muramoto and the panelists provided answers to questions from the participants.

Questioner 1

• Amid the increasing interest in mobile phone fees, how is KDDI going to offer acceptable services and price plans?

  

  To deliver services and price plans acceptable to customers is a critical mission for private enterprises, including KDDI, and we will draw on our knowledge in our efforts to realize customers' preferred services and price plans.
  In relation to today's presentation, we should focus our efforts on providing better services in 5G before other companies.
  One point is network. We will endeavor to accelerate our pursuit to create better quality networks than our competitors.
  The other point is to develop services and content in which users can feel and experience the benefits of 5G using features uniquely 5G. Our expedited efforts will include how we can deliver the enjoyment of "real" experiences to customers in a virtual world.
  Through these points, we wish to win our customers' support with unrivaled services and price plans.
  In addition to working on the business operations themselves, we believe that solidly working on the range of social contributions and ESG will lead to our customers' support. We would like to infuse efforts into that as well, in parallel with our other efforts.

Questioner 2

• In building resilient communications infrastructure, what issues are you aware of regarding the entire supply chain and what are your countermeasures for them?

  

  As I mentioned briefly in the "KDDI Accelerate 5.0" presentation, we need to discuss and establish measures with partners to mitigate against procurement risk and the risk of a drop in the utilization rate of manufacturing plants in different countries in the event of a prolonged impact of COVID-19. Particularly with technologies, KDDI is relying on global partners in some aspects, and therefore we will firmly build a solid supply chain, which includes ensuring that our supply routes are robust.
  We also need to care for the supply chain for not only network devices, but also for the components included in such devices and the diversity of other devices of the 5G era.
  We are also aware of the risk of sanctions the U.S. may impose on China. Since KDDI procures most of its network devices from European vendors, we will not sustain direct impact from this; however, it is necessary to care for the supply chain of peripheral devices and the parts thereof.
  In that respect, we are reinforcing collaborative relationships with domestic vendors as well as the partnerships with overseas vendors. Considering our plan to absorb our Japanese business partners' network technologies, we are also eyeing open network solutions, including O-RAN and virtualization.

Questioner 3

• How do you think SDGs and ESG efforts will contribute to the improvement of KDDI's capacity to create cash flow? How do efforts for SDGs and ESG, which are investments, create monetary return or economic benefits?

  

  To start with the conclusion: we by no means consider this a trade-off.
  Our SDGs efforts are contributing to solutions to social issues through our business, and everything is linked. We can create a cycle of our efforts consequentially catering to the society and in return bringing KDDI's sales profit.
  Naturally, there are differences in time frame and progress for each theme. For example, we do not expect early returns on our investments in the area of regional revitalization.
  In that sense, I explained that we are engaged in efforts that will lead to sustainable business in regions. This will also require personnel development. Such matters need some time to firmly establish themselves.
  Despite such differences in time frame, we were able to confirm that, while deepening discussions on KDDI Sustainable Action with the Group, our business itself will connect with social issues from the perspective of SDGs. Fortunately, KDDI can contribute to the government's Society 5.0 through its current business and future business that it seeks to develop, not to mention to the solutions to different social issues in the Japanese society as a whole. In that sense, each and every one of our employees can work on this with pride.

Questioner 4

• What is KDDI's long-term policy for the development of 5G networks as new social infrastructure?

  

  As I mentioned in the "KDDI Accelerate 5.0" presentation, KDDI is planning to develop 5G and beyond 5G with an investment of 2 trillion yen and implement the latest technologies in the Japanese society by 2030. By pushing forward the development of an environment for the platform layer and business layer at the same time in addition to the network layer, KDDI will contribute to Society 5.0 and digital transformation and create a new economic mechanism, a new social system, and new lifestyles for people through such pursuits. We hope to contribute as much as we possibly can.

Look of the presentation meeting