Corporate Profile KDDI 2020-2021
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Corporate Profile KDDI 20 20 - 2 0 2 1
Message from the President KDDI CORPORATION / Corporate Profile 2020–2021
Corporate Strategy
Since its establishment, KDDI has upheld the KDDI Group the development of sustainability in rural areas and cities,
Mission Statement, which calls for “achieving a truly KDDI’s mission of “connecting” in the telecommunications
connected society.” As a mission of a telecommunications era integrating into things has become increasingly more
company that provides an important lifeline, we strive to important for all social issues. KDDI formulated the “KDDI
maintain resilient and high-quality telecommunications, Sustainable Action”—KDDI’s initiatives for the SDGs tar-
and under the slogan “Connecting more and always with geted at 2030 with the determination to continue working
au,” we aim to provide telecommunications services that to resolve the various social issues through business going
maintains continuous connections at all times. forward. While utilizing 5G and IoT, we will contribute to
the sustainable growth of society by “connecting and
In recent years, full-scale digitization has continued its protecting lives,” “connecting day-to-day lives,” and
march forward with the advance of 5G, IoT, AI, big data, “connecting hearts and minds.”
Business Overview
and other technologies, which has shifted us toward
a data-driven society that finds greater value in data. The current effects of the COVID-19 pandemic have
Through the penetration of these technologies, the digital become too great for economic and social activities
transformation (DX) movement will accelerate in all indus- throughout the world. Based on the concept of “KDDI
tries, and “Society 5.0 for SDGs” will develop and realize Sustainable Action,” the KDDI Group announced “KDDI’s
an economy that resolves social issues as expected. Basic Policies for Response to the COVID-19 Pandemic”
Given the circumstances, we started to offer “au 5G,” centered on the five policies for the promotion of individual
the fifth-generation mobile telecommunications service, and corporate customers’ DX, such as telework, online
in March of this year. “5G” will become the era of tele- education, and remote medical care, and contributions
communications by integrating into all kinds of “things.” to the building of a resilient social infrastructure resistant
Completely changing individual lifestyles and values, as to environmental changes. As a company that provides
Company Information
well as the whole concept of business, this exciting era is lifelines connecting lives, lifestyles, and minds, KDDI will
just around the corner. mobilize the efforts of the Group to fulfill our social mission
of continued support for everyone’s life and industries.
Last year, we introduced a rate plan with no upper limit on
the volume of monthly data for individual customers ahead In August 2020, KDDI and KDDI Research, Inc., formu-
of the 5G era. A large volume of data can be instantly lated “KDDI Accelerate 5.0,” which aims to build a resil-
and freely handled with no stress on the “au 5G” service, ient future society in the era of the new normal. We will
and under the concept of “UNLIMITED WORLD au 5G,” accelerate the realization of “Society 5.0” as promoted by
which is free from conventional restrictions, we will collab- the government through the use of technology and the
orate with partners from a variety of different industries to orchestration of seven fields that support the evolution
provide a new augmented experience in all facets of life, of platform layers, business layers, and network layers,
including entertainment, sports, and art. including 5G networks.
Among our corporate customers, DX in companies October 1, 2020, marked the 20th anniversary of KDDI’s
Takashi Tanaka, Chairman Makoto Takahashi, President has accelerated in a variety of different industries and establishment.
scenes of use and the business models have significantly Tomorrow, Together
changed. Centered on “KDDI DIGITAL GATE,” which is a
We will continue to move forward, together with custom-
business development base in the 5G/IoT era that sup-
ers, partners, and society at large, sharing faith in the
Tomorrow, Together
ports customers’ DX, as a digital integrator in the telecom-
future as we aim to both sustainably grow profit and rein-
munications era integrating into all kinds of “things,” we
force shareholder returns from a long-term perspective.
will collaborate with the different partner companies and
proceed to create new experience value and businesses
that are specific to the 5G era. As we move forward together, I would like to express my
Working with all our partners, we will create new value in the sincere appreciation for your continued support and
guidance for the KDDI Group.
5G era, aiming to grow sustainably with society. Toward the achievement of the SDGs, KDDI is also pro-
moting sustainability activities on a company-wide basis.
As with the responses to intensified large-scale disasters,
making telecommunications infrastructure resilient, and October 2020
Makoto Takahashi, President
2 3
Medium-term Management Plan (FY2019–FY2021) KDDI CORPORATION / Corporate Profile 2020–2021
Thus far, KDDI has emphasized sustainable profit growth and the strengthening of shareholder
Corporate Strategy
1
returns, established a robust customer base, and achieved steady growth by promoting the Creating Innovation toward the 5G Era
We will actively deploy 5G to form the next-generation of social infrastructure
Company’s transformation into a business that provides “customer experience value” that exceeds and create new forms of experience value through business development by
the expectations of customers. means of co-creation with various partner companies and open innovation
which incorporates the original ideas of startup companies and advanced
Going forward, significant changes in the competitive environment are expected in addition to technologies while also positively utilizing 5G in regional revitalization projects.
the advances in full-scale digitization through the development of technologies such as 5G. In order
to quickly respond to changes in the times and to realize the “integration of telecommunications
and life design” that we aim to achieve, KDDI developed the Medium-Term Management Plan for
three years between FY 2019 and FY 2021.
2
The Integration of Telecommunications and Life Design
We aim to expand our growth businesses around the core telecommunications
infrastructure. For individual customers, we will offer “exciting” experiences
which originate from the smartphone while together with corporate customers
Company Vision we will build new business models and help drive their digital transformation.
Business Overview
1. T
he company that customers can
feel closest to
2. T
he company that continues to
3
Further Expansion of Global Business
produce excitement In the business for individual customers, in addition to applying the knowledge and
know-how from the telecommunications business and the life design business
3. C
ontributing to the sustainable developed in Japan to the consumer business in Myanmar and Mongolia, we aim
to expand into markets in the Asian region where there is room for growth.
growth of society Moreover, in the business for corporate customers, we will further expand our
global ICT business in Japan and around the world in an integrated manner around
our data center business and the “IoT Worldwide Architecture,” which is KDDI’s
comprehensive IoT platform for domestic and overseas markets.
Company Information
4
Strategies Utilizing Big Data
We will utilize data to thoroughly understand customers and maximize the
KDDI will further promote the “integration of experience value through “appealing proposals” based on the customer’s
perspective. Furthermore, we will promote the digital transformation of our
telecommunications and life design” to expand customers’ companies by using big data in various industries with the rapid
its businesses around telecommunications and expansion of the digitization and networking of devices due to 5G and IoT in
fully intends to achieve sustainable growth in the future.
accordance with the seven business strategies
listed on the following page in order to realize
the creation of new value in the 5G/IoT era in
5
Expanding the Finance Business
Japan and around the world. We aim to strengthen customer engagement and achieve profit growth through
the smartphones which have become the center of our lifestyles by making
payment and financial services a regular part of our customers’ daily lives and
by proposing smartphone-centric financial experiences.
For individual customers For corporate customers
Experience Earnings model
value transformation
6
M a n u fa ct u
Growth as a Group
a lt h c ar e Fin
an Operational ic es rin
g We aim to utilize company assets to the utmost and support the growth of
Experience He ce
S erv
value efficiency group companies to maximize mutual synergies as well as to expand and
strengthen the new foundations of growth for the entire group.
R et
E n t e rt a i n m e
e
e
rc
ail
nc
Customer Customer
me
Fin a
telecommunications telecommunications
C om
ing try,
ish fores
nt
Tr a
ng
,
Experience mi f
ns p
Far and
New business
7
er rta Sustainability
En
o
value t io creation
gy ion
ucat
n
Ed Con s t r uc t i on We have promoted sustainability activities on a company-wide basis in order
to contribute to the sustainable growth of society. In May 2020, when looking
End user ahead to 2030, the company set new SDGs titled “KDDI Sustainable Action”
Experience
experience to confirm the commitment to work consistently on solving the variety of
value
value different social issues through our businesses. As a company that provides
lifelines connecting and protecting lives, connecting day-to-day lives, and
connecting hearts and minds, KDDI will mobilize the efforts of our Group to
fulfill our social missions.
4 5
KDDI CORPORATION / Corporate Profile 2020–2021
Accelerating Society 5.0 with 5G to create an even brighter society for the future
The three layers that form the foundation of KDDI Accelerate 5.0
New Lifestyles / Economic Mechanisms / Social Systems
Corporate Strategy
Education Production Logistics and Regional
Entertainment and healthcare and sales transportation Smart cities revitalization
Business Layer
In our current society with various social issues
Consumer data Industrial data City OS
including the spread of COVID-19, Open Open
KDDI has a responsibility to strongly promote “Society 5.0,”
which was proposed by Japanese Cabinet Office, The KDDI Group’s platform environment
Platform Layer
as a company that enriches our society. Upgrade the open business environment and collaborate with domestic and international companies
The KDDI Group’s 5G / Beyond 5G
Network Layer
Upgrade diverse infrastructure to be resilient, and introduce world-class advanced technologies
Business Overview
KDDI Corp. and KDDI Research, Inc. formulated KDDI Accelerate 5.0 — a concept that envisions the sThe three layers that form the foundation of KDDI Accelerate 5.0
future in 2030.
We aim to create a resilient future society to establish new lifestyles for people, as well as spur
economic development and solve social issues in Japan, through the evolution of three layers, along with Technologies in Seven Fields that Unify Physical and Cyber Spaces
research and development in seven fields to support that evolution.
To accelerate Society 5.0, technology evolution is required to further accelerate the integration of physical spaces,
About KDDI Accelerate 5.0 where real people and things exist, and cyber spaces, which are the world of computers.
Data is collected from physical spaces, analyzed in cyber spaces, and then fed back into physical spaces again.
This cycle is supported by technologies in seven fields and close collaboration (orchestration) between those
technologies.
Company Information
1. Background
As the effects of the COVID-19 pandemic drag on, the resilient business model, supporting economic growth in Technologies in Seven Fields that Support KDDI Accelerate 5.0
need has grown rapidly for telework, online education, Japan and an even brighter society, bursting with vitality,
remote healthcare and the like, highlighting the social for the future. Against this social backdrop, we put The seven technologies refer to network, security, IoT, guidance on how to utilize it in physical spaces.
importance of the ICT infrastructure that maintains eco- together KDDI Accelerate 5.0 with the aim of contributing platforms, AI, XR, and robotics. XR and robotics enable the use of this information in
nomic activity and consumers’ peace of mind and safety to the era of the new normal by actively working to build Networks connect physical and cyber spaces, and physical spaces. XR makes use of human senses, and
in Japan. In addition, each industry is expected to create a networks and platforms and to create business models. security ensures the safety of both spaces. robotics physically animates drones and robots.
IoT sends information collected from physical spaces Repeating these cycles will increasingly optimize social
to cyber spaces. Information accumulated on platforms and economic activities.
in cyber space is analyzed by AI, which then provides
2. Upgrading the environment in three layers
To realize KDDI Accelerate 5.0, we will upgrade the environment in three layers.
Cyber space The proliferation of 5G
1 Network Layer: provide feedback on forecast results in physical spaces. Data analysis, learning, forecast service will drive the inte-
The network layer forms the base of a new social founda- KDDI will upgrade the open platform of advanced technol- gration of physical and
tion. To engrain 5G in Japanese society and industry, we ogies for each industry in Japan through domestic collab- cyber spaces. And when
need to quickly roll out highly reliable networks based on oration with Japan’s corporate platforms and venture we enter the beyond 5G
Technology and
the latest technologies across the country. companies while integrating its 5G network and the era, the feedback from
KDDI will introduce the technologies of overseas advanced cloud technologies of global IT companies. orchestration in cyber spaces to physical
*
companies to maintain Japan’s international competitive- seven fields spaces will be enhanced.
*XR: Cross Reality
ness and will lead efforts to adopt world-class advanced 3 Business Layer: These kinds of changes are
Data (collection) Feedback (optimization)
technologies in Japan. In addition, KDDI will accelerate the The business layer is positioned on top of resilient net- being accelerated by
nationwide rollout of its 5G network mainly through proac- works and open platforms to create new services and research such as AI, XR
tive forward-looking investments and infrastructure sharing solutions. By integrating cyber and physical spaces and robotics that spur
in rural areas. through open innovation with companies in other indus- changes in human behav-
tries, we aim to enhance engagement with customers, ior; and the Life Design
2 Platform Layer: evolve into a resilient business model. KDDI will accelerate Business platform that
The platform layer is built on top of the network layer. It Society 5.0 with the aim of creating economic growth in Physical space KDDI is promoting.
creates unprecedented new value by using cyber spaces Japan, as well as an even brighter society for the future. Real society, lives, experiences, new business
to analyze data collected from physical spaces and to then
sTechnology and orchestration in seven fields
6 7
Sustainability KDDI CORPORATION / Corporate Profile 2020–2021
Contributing to the sustainable growth of society
Corporate Strategy
KDDI promotes sustainability activities in order to contribute to the sustainable growth of society. Particularly
regarding SDGs, we as the KDDI Group put effort into the resolution of social issues and aim for sustainable growth
with society through the “KDDI Sustainable Action” connecting and protecting lives, connecting day-to-day lives,
and connecting hearts and minds.
Business Overview
Company Information
Aim for sustainable growth with society and
“Connecting and protecting lives, connecting Connecting and protecting lives Connecting and protecting lives
Improvement of the telecommunications Promotion of the initiatives to conserve the global
day-to-day lives, and connecting hearts and minds” infrastructure that keeps connecting at any time environment
As a company that strives to maintain resilient and high-quality telecommunications and provides KDDI recognizes that as a telecommunications company KDDI established and is executing the “KDDI GREEN
providing lifelines, it has the responsibility of providing PLAN 2017–2030,” which is the Fourth Medium-term
lifelines, we gather our group’s strength and fulfill our social mission to keep supporting day-to-day lives
stable telecommunications services that are available Environmental Conservation Plan covering the period from
and industries, and aim to become a company that will be loved and trusted by all the stakeholders. around the clock, 365 days a year, regardless of condi- FY 2017 to FY 2030. We promote “the measures against
tions. We introduce disaster-resistant facilities, ongoing global warming,” “formation of a recycling-oriented soci-
implement disaster response training, anticipate every ety,” and “conservation of biodiversity” as the three
possible large-scale disaster scenario, and prepare and focused issues. Particularly in “the measures against
implement measures on a daily basis. In order for custom- global warming,” based on the Paris Agreement’s long-
To fulfill the mission of a telecommunications company providing lifelines ers in the affected area to be able to use mobile phones
as quickly as possible when a disaster occurs, we deploy
term goal adopted in COP21 and the government’s plan
for the global warming countermeasures, we have specifi-
“on-vehicle base stations,” “mobile base stations,” etc. cally set our CO2 emissions reduction goal in FY 2030 at
Since its establishment, KDDI has upheld the KDDI Group Mission Statement, which calls for “achieving a truly nationwide. In addition, as a countermeasure for the 7% as compared to FY 2013 and have been promoting
connected society,” and has engaged in resolving social issues as the mission of a telecommunications company maritime area if it is difficult to provide the mobile phone initiatives. Furthermore, we will proactively drive a shift to
providing important lifelines. In the medium-term management plan (fiscal years 2019-21), we uphold “contributing to service on land, we deploy the “ship-mounted base renewable energy to achieve net-zero CO2 emissions by
the sustainable growth of society” as our company vision. station.” Furthermore, as a countermeasure for isolated 2050 and reduce the environmental impact on society
KDDI aims for sustainable growth by giving our full attention to not only our growth but also social issues and affected areas, we have been proceeding with the practi- through the use of ICTs.
practicing growth through the initiatives for SDGs with the two axes of “sustainable growth of existing businesses” and cal use of base stations utilizing helicopters and drones.
“challenge to new innovations”.
sShip-mounted base s“KDDI Ocean Link” cable ship equipped with a
station ship-mounted base station
8 9
Sustainability KDDI CORPORATION / Corporate Profile 2020–2021
Connecting day-to-day lives Connecting day-to-day lives Connecting hearts and minds Connecting hearts and minds
Corporate Strategy
Utilize advanced technologies, such as 5G and IoT, Developed the infrastructure in a developing country Promoting diversity and inclusion Execution of workstyle reform to aim for a society
and realize locally owned sustainable development by improving the telecommunications infrastructure One aspect of “The KDDI Group Philosophy,” which outlines where everyone is healthy and feels job satisfaction
To make the resolution of local issues the sustainable initia- and providing services the kind of company that we wish to become is the idea KDDI believes that the health of our employees is an import-
tive, KDDI considers that local companies that continually that “embracing diversity.” This philosophy clearly states ant management issue, expresses the “KDDI Group
In Myanmar, where the improvement of the telecommunica-
provide support in local sites and human resource develop- that mutual respect and understanding of people regardless Declaration of Health-focused Management,” builds the
tions infrastructure was imperative, KDDI has proceeded with
ment are the “keys.” We provide advanced technologies, of gender, age, nationality, disability, sexual orientation, system to support the health of each employee at an orga-
the improvement of the telecommunications service environ-
such as 5G, IoT, AI, and drones, and the business know-how religion, and other diverse characteristics and values are nizational level, and proactively promotes various initiatives.
ment through the joint venture with “Myanma Posts and
in the digital transformation (DX) era by cooperating with local essential to the sustainable growth of the company, and we We promote the drastic change of mind/behavior from
Telecommunications” (MPT) and Sumitomo Corporation, and
educational institutions. With an eye toward the fostering of are engaged in promoting diversity and inclusion to enable conventional workstyles and establish an exclusively
currently, smartphones can be used in the entire country.
the momentum for founding a company and the development diverse human resources to accept one another and work responsible organization “Work Style Reform & Health
With an eye toward the further improvement of the quality of
of local human resources who have expertise in ICT and the together. We also promote the support of activities by Management Department” toward the realization of the
telecommunications services, we have been implementing a
latest management, we proceed with the initiatives toward persons with disabilities and LGBT, improve the pleasant workplace environment where all employees are in good
long-term training program in Japan for the MPT personnel
improvement of the educational environment. As part of the workplace environment for everyone where anyone can health, work vigorously, and exhibit a high level of perfor-
who will be responsible for the next generation.
Business Overview
initiatives, we have concluded a comprehensive partnership actively participate, and aim to foster a corporate culture mance. We have held all-employee interview sessions by an
In Dullu in the western mountainous area in Nepal, KDDI
agreement with Iwate Prefectural University aimed at local that respects diversity. We see the promotion of participa- in-house counselor twice a year since 2019 and imple-
Foundation applied the submarine cable technology that
revitalization, and as part of the human resource development tion by women as a management issue, and by taking mented the improvement of the workplace environment and
KDDI has cultivated to build the broadband regional network
project, we have been implementing lectures of the enPiT various development measures, we focus on the develop- medical cooperation.
in which optical fiber and Wi-Fi were combined. Improvement
(note) curriculum, a project adopted by the Ministry of ment and appointment of female leaders.
of the ICT environment, such as medical, education, and
Education, Culture, Sports, Science and Technology since tourism, will progress, and it will be utilized for various
July 2019. purposes.
Note) enPiT: Education Network for Practical Information Technologies
Company Information
sAn event for female leader candidates sAn interview by an in-house counselor
sOnline lecture held in July 2020 sOptical fiber cable laying work in Nepal
Response to the COVID-19
Connecting day-to-day lives Connecting hearts and minds
Fused together the learning opportunity and advanced Provision of services, such as payment and finance, Basic policy Provision of the location information big data
technology and provided a place for edutainment which can be easily and conveniently used For the effects of the COVID-19, based on the idea of Following the issuance of the nationwide expansion of
the “KDDI Sustainable Action” formulated under the the “declaration of a state of emergency” and with a
KDDI provided a domed VR space in the “Antarctic Research While people’s lifestyles diversify, financial systems have
determination to keep putting efforts into the resolution view to having it utilized for the countermeasures for
Center” pavilion, which was opened for a limited time only become complex and diverse as well. KDDI has proactively
of various social issues through businesses, the KDDI the COVID-19, KDDI provided the location information
within the children’s career and social experience facility put effort into financial services, such as the establishment Group gathers strength as the company that provides big data analytical tool “KDDI Location Analyzer” to 47
“KidZania,” which is run by our group company. In the activity of the “Jibun Bank (currently, au Jibun Bank) in 2008.” With the lifelines connecting and protecting lives, connect- prefectures and 20 government ordinance-designated
in which advanced technologies, such as VR, were com- a view to further enhancing the payment and financial ing day-to-day lives, and connecting hearts and minds, cities for free for a limited time only in April 2020. By
bined, children became members of an Antarctic research business, an intermediate financial holding company “au and fulfills our social mission by considering and visualizing people’s movements, changes in the staying
expedition and observed the number of living penguins as Financial Holdings” commenced its operations in April executing the responses with the following five policies population before and after “the declaration of a state
biologists. By experiencing the tasks of the Antarctic research 2019. In order for customers to feel “finance” more familiar being the axes. of emergency,” sex and age groups, and the moves of
expedition, we provided the opportunity to enjoy learning to them by providing one-stop financial services, we will residents could be comprehended, and it was utilized
about the future of the global environment protection. accelerate the “Smart Money Concept” to provide secure 1. We ensure the safety of our customers and employ- for municipal measures.
With the concepts of the realization of a sustainable and convenient payment and financial experience with ees of the Company and affiliated companies above
society and the creation of a prosperous future for children smartphones being used as a gateway. all else.
2. We continue to respond to the rise in telecommuni-
who will support it, KDDI will provide a wide variety of valu-
cations traffic and maintain telecommunications
able experiences. services, which are the foundation and lifeline of
society.
3. We actively collaborate with governments, munici-
palities, and public organizations, etc.
4. We contribute to the construction of a resilient social
infrastructure that is resistant to environmental
changes by promoting DX for individual and corpo-
rate customers such as telework, online education,
and remote medical care.
5. We offer customer experiences that can alleviate
worries and difficulties in life and fill the heart.
sResidence area distribution of the visitors to Shinjuku Station
sA child learning in the “Antarctic Research Center” pavilion
10 11
Special Feature KDDI CORPORATION / Corporate Profile 2020–2021
5G area rollout plan
Corporate Strategy
In March 2020, we started offering the 5G service in
partial areas in 15 prefectures. Regarding 5G base Rollout to the major cities in all prefectures in
stations, we are scheduled to establish 10,000 sta- and after the summer of 2020 Over
tions by March 2021 and 50,000 stations by March Partial areas in 15 50,000
5G on the Rise
2022, and we will expand area coverage across the Number of 5G prefectures across 10,000 stations stations
the country
country. We established a joint venture company Base Stations
“5G Japan Corporation” with Softbank in April 2020 to be Deployed
and have been promoting the early expansion of The end of The end of The end of
March 2020 March 2021 March 2022
the 5G area coverage in local regions by sharing the
KDDI launched the fifth generation mobile communication service “au 5G” in March 2020. Based on the s5G base station rollout plan
infrastructure.
hybrid network of the advanced 5G and resilient 4G LTE and by fusing with the life design service, we will
We will initially try to promptly expand area
deliver the value of an exciting experience to customers. We will provide new services together with all
Business Overview
coverage by introducing the Non-Stand Alone to install 5G base stations in 4G LTE networks, and in the future, we will
kinds of partners to support the digital transformation (DX) of our customers while also actively undertaking shift to the Stand Alone that uses exclusive 5G network facilities that can maximally bring out the features of 5G, such
the application of 5G to regional revitalization as an important issue. as network slicing and mobile edge computing (MEC).
Individual customers Corporate customers
UNLIMITED WORLD Co-creation and innovative changes by 5G
Company Information
“5G for Everyone” started The 5G era will continuously connect all kinds Air transportation Logistics Manufacturing Security Real estate
of things to the network and transition to a
With the concept “UNLIMITED WORLD au 5G,” au will deliver new experi- stage in which telecommunications blend into
ences for a variety of daily scenes. We will offer 5G services popular with all kinds of things. As a digital integrator, KDDI
customers, such as the service to enjoy high-quality 5G content at a flat rate, proceeds with the initiatives toward the cre-
a rate plan to fully enjoy content with unlimited data capacity, and a lineup of ation of new experience value and businesses sPartner companies putting effort into innovation by utilizing 5G
mobile phones meeting a wide range of needs. that are specific to the 5G era together with
customers in the various business types and
fields by combining 5G and technologies, such
as IoT and AI.
Augmented Entertainment
Showroom Inc. under the KDDI support system offers
“smash.”, a vertical theater application that specializes in
content that can be watched on a smartphone. The service has
a lineup of high-quality videos in a wide range of genres that
offers the function to store part of the video and a social func- AWS Wavelength x au 5G
tion to connect users to each other. KDDI will offer a diverse
range of entertainment services that will include collaborations KDDI is partnering with Amazon Web Services,
with partners to deliver a 5G experience that will be familiar Inc. (AWS) to bring the compute and storage
with customers. s“smash.” specializes in videos that can be watched on a service AWS Wavelength to Japan. By placing
smartphone AWS Wavelength near devices that use the au
5G network, developers can easily build and
Augmented Community provide ultra-low latency applications such as
As a new initiative in the virtual “Augmented Community” space
machine learning inference, IoT, VR/AR, and
that synthesizes the real and virtual worlds, KDDI sponsors
gaming by using familiar AWS services, APIs,
“Virtual Shibuya au 5G Halloween Fes”, where watching movies
and tools.
on the road and a variety of different events can be enjoyed
in “Virtual Shibuya”, which is Shibuya City’s official distribution
platform. Through the “Augmented Community”, we will work sUltra-low latency edge computing - AWS Wavelength x au 5G
to build a borderless community where different cultures and
people, such as sports, comedy, and tourism, fuse together to
build a sustainable social infrastructure. ©KDDI/au 5G/Virtual Shibuya au 5G Halloween Fes
12 13
Personal Services segment KDDI CORPORATION / Corporate Profile 2020–2021
Pursuing a More Enjoyable The network you can connect to at any time and the rate plans according to the
Corporate Strategy
Future Together with customer usage.
Support that will get closer to the customer anywhere.
Customers au is packed with “affordable” and “reliable” services.
High-quality network Provision of services that meet a wide variety
of needs
We launched the fifth generation mobile telecommunica-
tions service “au 5G” in March 2020 and have been KDDI integrated UQ Communications’ “UQ mobile”
proceeding with expanding coverage across the country. service and started offering it as our brand from October
Smartphones,
mobile phones au 5G compatible models can be used in the 4G LTE 2020. UQ mobile launched the service in 2015 as KDDI’s
Business Overview
network as well with a population coverage ratio of more MVNO, and its low-price and high-quality service has
than 99%. In addition, we have implemented separate been highly esteemed. After the inheritance of the ser-
measures to ensure that the network is easy to connect vice, we will improve the efficiency of management
to and provide a highly reliable network quality in areas resources and strive to provide better value rate plans for
Internet au HOME Entertainment Shopping where large numbers of people gather, such as around customers and more highly convenient services. Our
connections city train stations, tourist sites, sporting events, and live mobile phone business will be deployed with multiple
concerts. We will offer more fun and new experience in brands such as “au”, “UQ mobile”, and our group com-
the communication environment that is comfortable to pany’s “BIGLOBE mobile” and “J:COM MOBILE.” to
use at any time. meet a wide variety of customer needs.
*The population coverage ratio is calculated based on areas where
Points, payment au Denki au Insurance & communication is available in more than 50% of locations in the
Loans, iDeCo approximately 500 m2 sections used for the national census.
Company Information
Rate plans chosen by customers
Making customer lifestyles more enjoyable au has led other companies in offering innovative rate
plans according to the change of customer usage, such
and convenient through the integration of as the introduction of the Student Discount plan in 2000
and the flat packet rate plan in 2003. In June 2020, we
telecommunications and life design launched a good value rate plan “Data MAX 5G ALL
STAR Pack” that offers unlimited data usage and comes
Economical and comfortable Internet
with popular entertainment content in a set. By using the
With au, you can enjoy all types of content in various locations at any time through a network that is “Kaetoku Program,” the first remaining value setting type
comfortable to use. We stand close to and deliver pleasant experiences to customers by enhancing the of a device purchase program among domestic telecom- KDDI provides Internet services that are comfortable to
life design services that make the daily lives of customers more enjoyable and convenient based on a munications companies, the latest smartphone can be use at home and in outing destinations. “au Hikari,”
reliable telecommunications service. used at an affordable price. which is an optical network broadband service, is ultra-
high-speed telecommunications of up to 10 Gbps (in
Full-fledged support limited areas), and you can comfortably use it for con-
tent, such as videos and online games, as well as tele-
au provides various support options according to cus- work and online education. If you make a contract for the
Delivering excitement to the lifestyles of each individual tomer requests. We accept inquiries by phone and with WiMAX 2+ service, you can also use high-speed Internet
“My au” in which customers can check their usage fees in the outing destination. If you use the target Internet
To individual customers, we provide smartphone, mobile phone, and other mobile communication services as well as and go through various procedures on a website or app, services and an au smartphone in a set, you can sub-
fixed-line services including “au Hikari.” In addition to our own mobile phone services, our group companies are also and customers can make inquiries using the message scribe to “au Smart Value” or “au Smart Value mine” that
providing mobile phone services as our MVNOs. function at any hour. Paid-membership “au Smart will discount the au smartphone usage fees, and you can
Going forward, we will further expand and integrate telecommunications services with life design services, such as Support” in which dedicated advisers provide support for economically use your smartphone and the Internet.
commerce, finance, energy, entertainment, and education, to provide new forms of experience value for the enjoyment how to use smartphones and other devices has been
and convenience of our customers. In order to do so, our goal is to understand customers’ needs by analyzing various receiving good reviews as well. In Twitter’s “au Support,”
types of data, offering appealing proposals, and becoming an important part of our customers’ lives. we transmit “support information” for our products and
services, as well as “helpful information” that makes
people want to tell someone. Furthermore, compensa-
tion services have been prepared with the expectation of
device loss, theft, and failure to enable subscribers to
use their devices with a sense of reassurance at all times.
14 15
Personal Services segment KDDI CORPORATION / Corporate Profile 2020–2021
Promotion of the Smart Money Concept with a focus on the smartphone payment
Corporate Strategy
Bring good values to your everyday life Education x 5G, IoT
service “au PAY” and “Ponta Point” “au Denki” is an electricity service in which Ponta au’s life design services are also expanding into the
—Make payments and financial services in customers’ day-to-day lives more convenient— points will be given according to the monthly field of education. We created a comprehensive part-
electric bills. nership with the KCJ Group, which operates
You can use “au Denki App” on your smartphone “KidZania” to integrate learning spaces with 5G, IoT,
where you can easily check daily electricity usage, view and other cutting-edge technologies for the cultivation
Smart money concept au PAY is more advantageous with Ponta
the prediction of the electric bill in the month and of children’s physical and intellectual vitality. The
Point
compare with similar households. English conversation school AEON is applying ICT and
KDDI is promoting the “smart money concept” to com- You can subscribe to gas services with au Denki, data analysis technologies from KDDI to promote DX
prehensively provide payment, financial, and other In May 2020, KDDI changed the point service into the such as “Toden (Tokyo Electric Power) Gas for au,” for the purpose of individually optimizing learning and
services around the smartphone. The “smart money common point service “Ponta Point,” and the subscriber “Chuden (Chubu Electric Power) Gas for au,” or maximizing learning efficiency. We also cooperate with
concept” will make smartphone payment and the finan- base exceeding 100 million, which is in the largest class “KANDEN (Kansai Electric Power) Gas for au”. You can Mates, which operates “Shingaku Juku (cram school)
cial experience a more familiar practice and further in Japan, was born. With this, Ponta Point, which can be use city gas at a good rate and can check monthly Mates” and “Kobetsu Shido Juku (private tutoring
Business Overview
enhance engagement with the customer by providing accumulated by purchasing products and using services billing amounts on the “au Denki App.” cram school) WAYS” and launched a support service
one-stop financial services, including “saving,” “pay- at partner companies, can be accumulated together with “edich” that watches over learning plans and responds
ments,” “investment,” “borrowing,” “preparations,” and the payment portions used through “au PAY” and “au to questions online.
“planning” centered around the “au PAY” and “Ponta PAY Card.”
Point.” au PAY is a payment service that anyone can use if
he/she has a smartphone. At Ponta partner companies
Realizing the smart money concept that are also au PAY participating stores, if you present
the au PAY app’s digital Ponta card or Ponta card and
KDDI established the “Jibun Bank (currently, au Jibun pay by au PAY, you can accumulate two times more
Bank)” in 2008, and the “au Simple Payment” introduced points. When charging from your credit card “au PAY
in 2010 made it possible to combine pay charges for Card” to au PAY, you can also accumulate points and
digital content and shopping together with the au com- use it economically.
Company Information
munications charges. We actively enhanced our payment
and financial service offerings by launching “au WALLET” Good value shopping with the points
in 2014, “au Insurance & Loans” in 2016, and “au
iDeCO” in 2018. In 2019, we established the intermedi- “au PAY Market” is an integrated EC shopping mall Enjoy non-stop entertainment Deploying au services and technologies to
ate holding company “au Financial Holdings” aimed at where you can meet various products and stores ranging and around the world
further enhancing the payment and financial business from daily necessities to gourmet, fashion, interior, and “au Smart Pass Premium” offers various services to
and transferred financial business companies, such as au home appliances. It is a very good value EC service meet customer needs, such as entertainment content We are deploying our business experience, knowhow,
like videos, music, and book services, support for and highly reliable technical capabilities cultivated
Jibun Bank, under its umbrella. Going forward, by gath- where you can receive up to 15% reward points accord-
repair charges, and unlimited use of security apps. through the operation of au services in Japan to delight
ering the group companies’ strengths centered around ing to the amount of shopping and “Valuable Point
One can experience VR content on a wide range of oversea customers as well. Through a joint operation
“au PAY” and “Ponta Point,” we will promote the Smart Exchange Site” where you can exchange current Ponta models that can be enjoyed with fully realistic feeling, with Myanma Posts and Telecommunications (MPT)
Money Concept and deliver the smartphone-centric, points with up to 1.5 times more points that are limited to as well as the content to experience 5G, such as and Sumitomo Corporation in Myanmar, as well as
secure, and safe financial and payment services to our the au PAY Market, and the free premium product multi-angle videos of a public talk at an “au 5G MobiCom Corporation we have invested in since its
customers. shipping service for au Smart Pass Premium member Special Event.” establishment in Mongolia, we are serving as the
customers is available. leading general telecommunications carrier in terms of
*The content above is information as of August 2020 revenue and market share there. Through them, we
are offering high-quality telecommunication services,
as well as the services tailored for lifestyles, such as
mobile money.
You can use
if you are not an
au user!
Charging Saving/Investment
Various credit cards Point management
Loans Savings, Bank transfer Stock trading and investment trust/
transfers iDeCO
Telecommunications Deposit at a convenience store/
into an ATM Foreign currency saving/FX
Save up
Use No charging
au Simple Payment
(Payment by combining with the
Borrowing sMPT Sule Shop in Myanmar
Electricity Fixed-line
communications charges) au PAY Card revolving payment
communications au PAY Smart Loan (Small loans)
au Jibun Bank auto charging
au PAY Card auto charging au Jibun Bank Card Loan (Big loans)
(In the first half of FY 2020)
Insurance, Investment Pay/Send
pension
Money transfer between Preparations
au PAY accounts au Nonlife Insurance
Online Real world Withdrawal to au Jibun Bank au Life Insurance
Payment of utility charges (March)
Payments
sMobiCom LifeStyle Shop in Mongolia
sSmart money concept sau PAY app x Finance to make it a super app
16 17
Business Services segment KDDI CORPORATION / Corporate Profile 2020–2021
Pursuing the Tomorrow of
Create Innovations Together with Customers
Corporate Strategy
Growth and Evolution
KDDI is actively engaged in open innovation. Through collaboration with a diverse range of partners including large
companies, startup companies, and local governments, we are aiming for sustainable growth together with our
customers by envisioning new business strategies and models in the 5G era and creating a series of new businesses
and services.
KDDI DIGITAL GATE KDDI MUGENLABO
Mobile IoT Cloud and
data center
“KDDI DIGITAL GATE” is a business development base in
the 5G era. We form a team with a customer to find MUGEN NO TSUBASA
issues from the user’s viewpoint and conduct the cre- MUGENLABO
Business Overview
ation of solution ideas, prototyping, and verification in the SHIEN Program
~Business Co-Creation Program~
Security and co-creation workshop that is based on design thinking.
Network managed Voice calls
KDDI’s richly experienced facilitators and designers will
accompany customers. Furthermore, we promptly build Enterprise (Projects) Startup Enterprise (Assets)
and verify service ideas in agile development in a one- Commercialization Support
Real assets
day to one-week cycle and are fully equipped with the New project themes Business ideas
Customer base
New business ideas Technologies
facilities necessary for service verifications utilizing 5G. Budget for execution 5G use cases
Development and
marketing supports
Satellite communications Electricity and others We mobilize innovative ideas for startup, advanced
and satellite telephone technologies of 5G and IoT, the KDDI Group’s technolog- s“MUGEN NO TSUBASA” and “MUGENLABO SHIEN PROGRAM
ical support, and assets that we have accumulated to 2020”
promote the co-creation of businesses. Since the estab-
lishment in September 2018, a total of 400* corporate KDDI launched a business co-creation platform “KDDI
Becoming a true partner that works with customers
Company Information
customers have used it as a place where new ideas and MUGENLABO” in 2011 and has supported 83* startup
encounters are generated. companies so far. In 2014, we set up the “partner
and contributor for customer’s business Since May 2020, we have started providing all ser-
vices online ranging from experience tours to workshops
alliance” which gathers large enterprises in Japan in
order to expand the business co-creation fields with
and scrum developments and supported customers’ startups. Currently, the “partner alliance” has become
KDDI believes that digital transformation (DX) is about creating innovative forms of business value
issue resolution and new business creation. the largest enterprise community in Japan which con-
through collaboration with partners who set their sights on a diverse set of values and utilization *As of September 2020 tains over 40 enterprise participation. In September
of various digital technologies. As “a digital integrator,” the KDDI Group is mobilizing its network, 2020, we were awarded first place in the “Innovative
technologies, and expertise to fully support our customers’ businesses in the 5G/IoT era. Enterprise Rankings” for the third straight year, which
was announced by the Executive Committee of the
Innovation Leaders Summit. In FY 2020, we launched
two new programs: “MUGEN NO TSUBASA,” which is
a business co-creation program aimed at new business
ALL KDDI Contributes to Customers’ Business Development through IoT
creation in the 5G era, and “MUGENLABO SHIEN
Business PROGRAM,” which is a program to support startup
businesses through partner alliance’s real assets. By
KDDI has always proposed cutting-edge, optimal KDDI has put effort into IoT for about 20 years. To mixing startup’s ideas and technological capabilities
solutions based on our resilient and high-quality support customers’ business innovations and problem with the real assets that KDDI and the partner alliance
telecommunications infrastructure. In the 5G/ resolution, we offer diverse solutions and the number have, KDDI MUGENLABO leads the consecutive and
IoT era, the relationships between customers and of contracted lines exceeded 12 million in total*. We cross-industrial business co-creation in Japan.
companies will be reconfigured because of advances offer consultations in order for the IoT technology to sKDDI DIGITAL GATE (Toranomon, Tokyo) *As of August 2020
in sensor technology and telecommunications. This is be used in customers’ businesses, sensors that are
because the analyses using AI of data obtained from essential in adopting IoT, the network infrastructure,
advanced sensors and telecommunications will make and accumulation, visualization, and analyses of data in
Virtual experience tour Remote workshop Remote scrum development
personalization more sophisticated, make it possible to a one-stop manner and have a lineup of IoT solutions
continuously provide even better services, and trigger tailored for customer needs. In addition, by combining
a change into a recurring model (cyclical business). the data of au smartphone location information and
The KDDI Group will concentrate AI, IoT, security, data the data that a customer has, we will also contribute
analysis, and other group resources on top of our to new value creation. We have been proceeding
highly reliable cloud to continue helping our customers with verifications and practical use of IoT in various
transform their businesses to the best of our ability. business types and fields, such as mackerel farming
management, detection of the predictive failure of the Explaining the overview of the facilities in an open space Explaining the flow of WS in a workshop room Explaining scrum development in an engineer room
plant equipment, and sophistication of logistics centers.
sKDDI DIGITAL GATE’s online experience
*As of June 2020
18 19Business Services segment KDDI CORPORATION / Corporate Profile 2020–2021
KDDI “IoT Worldwide Architecture” supporting global DX Promotion of the smart factory by “5G x IoT” quantities of data obtained by various sensors at once
Corporate Strategy
and the collective control of facilities became possible,
JFE Steel Corporation introduced 5G in April 2020 in JFE which will lead to the optimization of the entire manufac-
The KDDI “IoT Worldwide Architecture” is a business platform to promote customers’ global expansion that utilizes Steel East Japan Works (Chiba) and has been promoting turing floor. It is also expected to contribute to making it
the abundant experience from putting effort into IoT for about 20 years and staff members in about 100 or more bases JFE Steel’s stable operation and to make it a smart a smart factory and further promoting DX, such as the
worldwide who are familiar with local circumstances. With a combination of the “Connectivity Service” that seamlessly factory through the utilization of 4k images, etc. In the improvement of production efficiency, response to free
connects lines around the world and provides optimal global telecommunications tailored for customer needs; the manufacturing floor where real time and stableness are layout change within the factory, and support for the
“Data Service” that supports the will or choice, accumulation, visualization, and analyses of data collected from IoT required, by utilizing KDDI’s 5G, the collection of large collaboration between facilities and workers.
devices and the application for the next business; and the “Professional Service” that responds to legal regulations and
acquisition of certifications, we will strongly support customers’ global digital transformation (DX).
Since 2016, KDDI and TOYOTA MOTOR CORPORATION recurring model (cyclical business) by combining cut- Smart Work
have been jointly promoting the construction of a global ting-edge technologies, such as 5G.
telecommunications platform to provide high quality and In March 2020, we cooperated with TOSHIBA
Business Overview
Toward the realization of worker-centric workstyles in the
stable telecommunications between the cloud and the DIGITAL SOLUTIONS CORPORATION and SORACOM
new normal era, KDDI supports businesses through
on-board equipment needed for connected cars. We and started providing the “Global IoT Package” that
telework systems.
apply and expand this platform and provide it to corpo- provides the collection, storage, visualization, and utiliza-
We offer the video conferencing services, such as
rate customers as the KDDI “IoT World Architecture.” We tion of data in a one-stop manner. This is a package in
“Cisco Webex Meetings” and “Microsoft Teams” to pro-
help customers in various industries utilize IoT worldwide which the highly scalable cloud service, global roaming
mote business through smooth communication with the
by providing roaming and an optimal network utilizing our service, and a device certified by the Radio Act* come as
team or client company while working from home. We Worries about back-office operations will be sup-
group company SORACOM’s telecommunications, data a set, and this can be used with one device, and we
also offer security remote access services such as “KDDI ported by our cloud services such as the electronic
storage, and analysis features offered in cooperation with support a small start by a customer who promotes
Flex Remote Access” and “CPA” to build the telework contract service “CLOUDSIGN,” an attendance manage-
Hitachi, Ltd. and Toshiba Corporation, as well as support global expansion.
environment that can be used at ease. ment service “KING OF TIME,” etc.
for relevant laws and device certifications. In addition, we *Regarding the countries and regions where the service can be offered
by obtaining the radio wave-related regulations, please contact us.
will vigorously support the corporate transition to a
Company Information
Connected Cars Global IoT that connects to all things Promoting regional revitalization through local partnerships —Solving local issues—
Suuport
KDDI's “IoT Worldwide Architecture”
Higashi Matsushima City, Miyagi Prefecture Nagashima Town, Kagoshima Prefecture
Toyota Smart Center Example 1 Introduced agricultural IoT that supplies water Example 2 Implemented the migration and settlement
Global Telecommunications Global Communication and fertilizers in a fully automated manner measure by “Guide VR -12K-”
Platform Apply and develop Platform
In June 2019, KDDI introduced the AI watering and With a view to utilizing vacant houses and promoting
fertilizing system “ZeRo.agri” to the agricultural product settlement, Nagashima Town, which has issues, such as
cultivation base “Sachi Mitsuru Sato KDDI Evolva population outflow and a shortage of workers, has pro-
Nobiru,” which is operated in Higashi Matsushima City moted the expansion of the scope of the vacant house
Plants, building facilities, household appliances,
Connected car construction machinery, etc. by KDDI Evolva. “ZeRo.agri” is a system where AI calcu- renovation costs eligible for subsidies and the improve-
lates and judges the necessary amount of water accord- ment of the environment that both the lenders and tenants
ing to the growth of crops and automatically supplies it can easily use by cooperating with a real estate company
from tubes for intravenous drip at the right time. It was and a financial institution since January 2018. While
introduced with a view to “improving crop yields and inquiries on vacant houses and migration increased,
Support DX of LP gas business operators This platform was built by SAN-AI OIL CO.,LTD. and taste (quality)” by utilizing IT and “realizing the enhance- guiding to vacant houses that are scattered over the island
KDDI after continuing demonstration experiments since ment of work by automation and manpower” by the in the town had been a heavy burden. For this issue, KDDI
In April 2020, KDDI started offering the “KDDI Gas 2019, and launched in April 2020. It has been used for a division of labor between IT and people, and as a result, implemented the migration and settlement measure by the
Platform Service” that realizes the collection, storage, wide variety of customers. By utilizing this platform, the number of cherry tomato shipments achieved a high-definition VR service “Guide VR -12K-” with
and visualization of data for LP gas business operators efficiency of meter reading and delivery operations is record of 1.6-fold year-on-year (2.4-fold in the most Nagashima Town, Kawasho House Co., Ltd., and
by utilizing IoT. In addition to the remote automated expected. shipped month), and the harvest time was shortened by Nagashima Mirai Kikaku LLC. The properties registered in
meter reading utilizing LPWA, the gas portal site that *An abbreviation for Network Control Unit. A telecommunications device one week. In the “MCPC award 2019” held in November the vacant house bank in the town and information on the
with built-in cellular LPWA
enables the registration of gas charge billing information 2019, this initiative won the Mobile Business Award in surrounding areas were made into high-definition VR
for consumers, the construction support app that can which the case that content, and remote
simply install the NCU* that is necessary for LP gas Visualization
achieved the private viewing has
Portal site
business operators’ operational efficiency, residual Automated Consumer Message Security*
remarkable sales become possible. VR was
meter reading Rate display
management delivery
quantity prediction, calculation of delivery routes, etc. Centralized Centralized monitoring
for 24 hours a day,
expansion or installed in three locations
monitoring system
utilizing AI will be provided. We will support DX of LP gas 365 days a year
performance in and outside Nagashima
business operators and aim to improve the experience Gas portal improvement by Town and was utilized in
value of LP gas customers. KDDI Gas Platform introducing a the migration and settle-
sService structure chart *Security is provided by a certified system is chosen. ment promotion event held
security institution by Nagashima Town.
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