CEO Message

First of all, I would like to express my sincere appreciation to all our stakeholders for your continued support.

Since its establishment, KDDI has made realizing a truly connected society part of the KDDI Group Mission Statement. Our business is strongly intertwined with society and directly connects to customers' lives. With a commitment to our mission of connecting and protecting lives, connecting day-to-day lives, and connecting hearts and minds, we will strive to fulfill our crucial roles in society and to deliver a thrilling customer experience by always going further than expected.

In May 2022 we formulated KDDI VISION 2030 to achieve the future society we want to be and by further refining our core 5G Communications business and enhancing the power to connect, we are striving to achieve KDDI VISION 2030.
At the same time, based upon sustainable management, we are aiming to achieve the sustainable growth of society and the enhancement of corporate value together with our partners, through the Satellite Growth Strategy as our business strategy, and Strengthening of Management which supports the strategy in the Mid-term Business Strategy (FY2022-24).

Now in society where communications are integrated into every scene, the social role of communications become even more important, and the evolution of AI technology is creating new value of the next era. In Japan, there are also expectations for changes in the structure of industries in order to achieve a sustainable society, such as increased productivity and decarbonized society.

Amid we are responding to rapid changes in the environment surrounding society as a whole, including the development of a digital social infrastructure based on Data and Generative AI, we have extended Mid-Term Strategy period one year (FY2022-25) and strategy updated as "New Satellite Growth Strategy".

As for "New Satellite Growth Strategy", we are enhancing our Power to Connect, creating new value with our partners in core business that "Data-Driven" practices and social implementation of "Generative AI" as based on high-quality, highly reliable "5G communications".
As for social implementation of "Generative AI", we are aiming to create new value partnering with startups that possesses R&D capabilities of LLM (Large-scale language model) as of top class in Japan, utilizing KDDI's Group the computing infrastructure and the network resources.

As business areas (Orbit1) which coordination with our core business and driving our growth, we are focused on three areas "DX", "Finance", "Energy", and accelerate growth through coordination with our partners and maximizing synergies with telecommunications, etc.
Especially in "DX", "WAKONX" (wakon-cross) had started as a new business platform of AI integrated era from May 2024.
"WAKONX" will accelerate the solving of social/industry issues and business growth of Japanese companies by providing AI, Data Infrastructure, Networks, Operation and Maintenance in one-stop service those are essential to accelerate DX in society.

And the following five areas are set in business areas challenging new growth (Orbit2). Orbit2 are "Mobility", "Space", "Health care", "Sports and Entertainment", "Web3/metaverse".
By utilizing our strengths in communications and new technologies, we challenge customers to change their lifestyles through partnering and we seek to expand business further.

Also, we concluded a capital and business partnership agreement with Lawson, Inc. (Lawson) in February 2024 to drive forward "New Satellite Growth Strategy" strongly in the real consumer life scene. In Co-creation with LAWSON, toward the achievement of "Real x Tech Convenience Stores", we will accelerate "Retail Tech" utilizing AI and DX and will sophisticate marketing effectively using data and will accelerate the expansion of Ponta economic zone. We aim to achieve sustainable growth of society and increase corporate value of both companies.

In addition to the promotion of "New Satellite Growth Strategy", by promoting initiatives for the future under the themes of "To Global", "With Life", and "For Future", we are aiming to be "The company the customer can feel closest to" and "The creation of a society in which anyone can make their dreams".

KDDI is also addressing carbon neutrality, which is a major issue on a global scale, and other sustainability issues through its operations.
As for "Realization of carbon neutrality", reviewing goals, we are aiming to achieve "Net-Zero" CO2 emissions from the entire supply chain including Scope 3 by fiscal 2040.
Then in order to achieve these targets, we are aiming to achieve net-zero CO2 emissions the Group as a whole by fiscal 2030, and we will promote energy efficiency and shift to renewable energy for mobile phone base stations and telecommunications equipment.

In addition, to ensure ongoing sustainable growth amid a business environment that is undergoing constant and profound change, employees and organizations must drive innovation and acquire a high degree of autonomy and growth to become a "human resources first company."
As for drive innovation, we continue to take on the challenge of R&D of advancing business technology looking Beyond 5G/6G, and accelerate open innovation through industry-academia-government coordination and collaboration with external partners. Infrastructure Sharing with SoftBank Corp., etc., we are working on collaboration with other companies that compete with us.
In order to transform into a "human resources first company", we are working three-part reform; "Penetration of the new human resources system", "Develop professional human resources by KDDI Version Job Style Personnel System", "Increase employee engagement."
By utilizing "KDDI DX University" to advance DX skills of all employees and develop professional human resources, we will also shift personnel to focus areas.

Lastly, we will promote the "KDDI Philosophy" as a common way of thinking and code of conduct for management and employees. Through the synergistic effect of the corporate governance system that respects human rights and guarantees transparency and fairness, we will strengthen the risk management and information security system and strive to promote the KDDI group management.

As we move forward together, I would like to express my sincere appreciation for your continued support and guidance for the KDDI Group.

May 2024
Makoto Takahashi
President, Representative Director, CEO, KDDI CORPORATION