KDDI

Basic Information

Stock Code
9433
Industry
Information and Communications Industry
Category Detail
Telecommunications Services
Prefecture
Tokyo
Establishment Year
June 1984
Listing Year
September 1993
Official Website
https://www.kddi.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Soracom, Miq, AIR-U, Mitsubishi Corp, Mitsubishi UFJ, Vision, Japan Communications, NTT, SoftBank, Okinawa Cellular Telephone, FiberGate, SoftBank Group

Overview

KDDI is a major domestic telecommunications company founded in 1984 and an industry leader that deploys mobile communications business and international communications infrastructure centered on the au brand.

Current Situation

KDDI recorded consolidated sales of approximately 5.7 trillion yen and net profit of approximately 638 billion yen for the fiscal year ended March 2024, maintaining a stable revenue base. Its core mobile phone business secures market share with diverse brands centered on au. It leverages extensive infrastructure assets such as international networks, satellite communications, and submarine cables to strengthen dedicated line services for corporations. In recent years, it has expanded financial services and energy sales businesses, focusing on IT solutions amid digitalization and DX initiatives. It is proactive in environmental considerations and promoting women's empowerment, and in 2025, it will relocate its headquarters to Takanawa in Minato-ku, Tokyo, to advance joint development of cutting-edge technologies and smart city projects. Amid intensifying domestic and international competition, it pursues strategies balancing sustained profitability and new business development. Learning from major communication outages, it strengthens stable supply systems while aiming for growth in AI and cybersecurity domains.

Trivia

Interesting Facts

  • Former KDD exclusively handled international communications infrastructure as a privatized special corporation.
  • KDDI is a designated public institution under the Disaster Countermeasures Basic Act, ensuring communication priority.
  • 'au' brand boasts high recognition in Japan's domestic mobile market.
  • Made Jupiter Telecom (J:COM) a consolidated subsidiary, entering cable TV.
  • Promotes fusion of communications and retail through management involvement in Lawson.
  • Focusing on high-speed quality improvements following communication outages and personal data leaks.
  • Addressing broad customer segments with diverse sub-brands.
  • Satellite phone services used for multifaceted domestic and international applications.
  • Established financial services subsidiaries, achieving diversification beyond communications.
  • KDDI has capital ties with many major trading companies and financial institutions.
  • Planned relocation to Takanawa Gateway as center of smart city vision.
  • Active group deployment in music and video streaming businesses.
  • Deploys Japan's first corporate fiber dedicated line services.
  • Engages in cultural activities such as production support for anime films and concerts.
  • Former major shareholder TEPCO experienced share sales.

Hidden Connections

  • Kyocera and Toyota Motor Corporation support KDDI's business base as major shareholders.
  • NTT and KDDI compete in international communications infrastructure as sibling companies.
  • Integrated services provided through collaboration between KDDI's financial subsidiary and Mitsubishi UFJ Bank.
  • Lawson's 50% stake jointly managed with Mitsubishi Corporation to fuse communications and retail.
  • Artius Link established integrating call center business with Mitsui & Co.
  • KDDI inherited international satellite communications infrastructure from former KDD, linked with major domestic networks.
  • Subsidiary UQ Communications leads WiMAX business.
  • Extensive involvement as sponsor/collaborator in Studio Ghibli films.

Future Outlook

Growth Drivers

  • Expansion of next-generation communications infrastructure via 5G and 6G
  • Increasing demand for corporate solutions from digitalization promotion
  • New service creation from expanded IoT and AI utilization
  • Increased cross-selling in finance and energy sectors
  • Acceleration of DX and smart city businesses
  • Demand for sustainability investments and eco-friendly products
  • Deployment of communications and ICT services in global markets
  • Expanded utilization of video and music streaming services
  • Youth acquisition via online-only brands
  • Service enhancements from rising security needs
  • Customer base diversification and experience improvements
  • Expansion of international communications networks

Strategic Goals

  • Achieve top market share in corporate DX support
  • Reach over 90% utilization of renewable energy
  • Maintain top domestic customer satisfaction for au brand
  • Contribute to decarbonized society across the group
  • Create new business models via AI and IoT integration
  • Nationwide full deployment of next-generation communications services
  • Build workplaces realizing diversity and inclusive society
  • Complete digital shift in financial services
  • Significant expansion of revenue ratio from overseas markets
  • Achieve world-class information security systems

Business Segments

Corporate Mobile Communications

Overview
Provides comprehensive corporate communications infrastructure to support business efficiency.
Competitiveness
Extensive communications infrastructure and diverse solution offerings
Customers
  • Large Corporations
  • Small and Medium Enterprises
  • Public Institutions
  • Educational Institutions
  • Medical Institutions
Products
  • Corporate Mobile Phone Contracts
  • Mobile Data Communications
  • Telework Support Services
  • Corporate Security Solutions
  • M2M/IoT Communications

Dedicated Lines and Network Services

Overview
Provides high-quality business network environments.
Competitiveness
Abundant infrastructure assets including international networks
Customers
  • Financial Institutions
  • Manufacturing
  • Logistics Companies
  • Broadcasters
  • Data Centers
Products
  • Fiber Optic Dedicated Lines
  • IP-VPN
  • Relay Broadcasting Services
  • Data Center Services
  • Cloud Infrastructure

ICT Solutions and Services

Overview
Promotes customers' DX with the latest ICT technologies.
Competitiveness
Advanced IT technologies and specialized support systems
Customers
  • Government Agencies
  • Corporate IT Departments
  • Educational Institutions
  • Telecom Carriers
  • Retail
Products
  • Systems Integration
  • Cloud Services
  • Data Analytics and AI Services
  • Security Measures
  • Network Design and Operation

Financial Services

Overview
Supports digitalization and convenience improvements in finance.
Competitiveness
Integrated operation of financial services linked with communications
Customers
  • Insurance Companies
  • Banks
  • Individual Customers
  • Corporate Customers
  • Payment Platform Operators
Products
  • Mobile Banking
  • Casualty Insurance
  • Electronic Payment Services
  • Points Programs
  • Loan Services

Energy-Related Services

Overview
Operates new power business and provides energy-saving services.
Competitiveness
Energy management technology linked with communications
Customers
  • General Households
  • Corporate Users
  • Local Governments
  • New Power Suppliers
Products
  • Electricity Retail Services
  • Energy Management
  • Renewable Energy Supply
  • Energy Data Analytics
  • Power Equipment Maintenance

Content Distribution Services

Overview
Plans and distributes diverse digital content.
Competitiveness
Multi-content deployment and distribution technology
Customers
  • Video Streaming Platforms
  • Music Distribution Operators
  • Publishers
  • Advertising Agencies
  • Entertainment Companies
Products
  • Video Distribution
  • Music Distribution
  • Digital Publishing
  • News Services
  • Advertising Distribution

Communications Infrastructure Operation and Management

Overview
Supports efficient operation of communications infrastructure.
Competitiveness
Nationwide tower and facility network
Customers
  • Telecom Carriers
  • Data Center Operators
  • Broadcasters
  • Local Governments
Products
  • Base Station Equipment Management
  • Communications Tower Ownership
  • Data Center Operations
  • Network Maintenance
  • Traffic Monitoring

Mobility and IoT Solutions

Overview
Provides mobility-related services utilizing IoT.
Competitiveness
Innovative services from communications-IoT integration
Customers
  • Automakers
  • Logistics Companies
  • Public Transportation
  • Smart City Operators
Products
  • IoT Communication Services
  • Vehicle Digital Management
  • Traffic Information Provision
  • Remote Monitoring
  • Smart Mobility

Marketing and CRM Services

Overview
IT services supporting customer engagement.
Competitiveness
CRM deployment leveraging communications infrastructure
Customers
  • Retail Chains
  • Telecom Carriers
  • Financial Institutions
  • Advertisers
Products
  • Customer Data Analytics
  • Points Services
  • Advertising Delivery Platforms
  • Campaign Management
  • Loyalty Programs

Call Center and BPO Services

Overview
Deploys services realizing business efficiency and customer satisfaction improvements.
Competitiveness
Operations rich in digital technology utilization and industry knowledge
Customers
  • Telecom Industry
  • Retail
  • Finance
  • Various Service Industries
Products
  • Customer Service Call Centers
  • Outsourcing Services
  • AI Chatbot Implementation Support
  • Business Process Optimization
  • Digital Contact Management

Education and Language Services

Overview
Language-related business supporting diverse learning styles.
Competitiveness
Operation of in-group language education brands
Customers
  • Individual Learners
  • Educational Institutions
  • Corporate Training
Products
  • English Conversation Schools
  • Online Language Learning
  • Educational Content Distribution

Retail and Convenience Stores

Overview
Retail and service business under the Lawson brand.
Competitiveness
Operations under joint management with telecom company
Customers
  • General Consumers
  • Franchise Stores
Products
  • Convenience Store Operations
  • Logistics Support
  • Payment Service Integration

Competitive Advantage

Strengths

  • One of Japan's largest communications infrastructure holdings
  • Broad customer base through multi-brand deployment
  • Strong synergies with financial and energy businesses
  • Extensive international networks and satellite communications technology
  • High technological capabilities and stable management base
  • Expansion of diverse content distribution businesses
  • Capital support from major shareholders
  • Diverse ICT services for corporations
  • Active DX and new technology adoption
  • Nationwide sales channels
  • Comprehensive customer support systems
  • Leading initiatives in environmental and social contributions

Competitive Advantages

  • Customer retention through multi-brand strategy centered on au
  • Differentiation via unique infrastructure like international submarine cables and satellite communications
  • Cross-selling business integrating energy and finance
  • Continuous investment in cutting-edge technologies and new business development capabilities
  • Stable supply chain through capital alliances with major trading companies
  • High-quality corporate networks and cloud services
  • Extensive sales network and diverse channel deployment
  • Superior brand recognition and trust
  • M&A and alliance strategies leveraging abundant funding
  • Diversification strategy in digital content business
  • Ongoing growth potential based on stable financial base
  • Alignment with sustainable development goals and social recognition

Threats

  • Profit pressure from intensifying price competition
  • Equipment renewal costs due to rapid technological innovation
  • Market fluctuations from new mobile operators' entry
  • Communications infrastructure risks from international situations
  • Increased operational burdens from stricter regulations
  • Risks from personal information protection and security issues
  • Market contraction risks from domestic population decline
  • Service outage risks from natural disasters
  • Competitors' catch-up in cutting-edge technology innovations
  • Changes in international communications regulations and tariffs
  • Changes in business environment from new energy policies
  • Service impacts and reputational risks from cyber attacks

Innovations

2022: Large-Scale, High-Resolution Holography Technology Revealed

Overview
Developed and publicly revealed the world's first large-scale, high-definition holography technology.
Impact
Creates new experiential value in video communications

2024: Corporate Business Brand Unified as 'KDDI BUSINESS'

Overview
Integrated and refreshed corporate business brands under a unified brand.
Impact
Promotes brand recognition and sales efficiency improvements

2023: Call Center Subsidiary Management Integration

Overview
KDDI Evolva and Ririai Communications integrated to establish 'Artius Link'.
Impact
Strengthens operational efficiency and DX promotion

2020: Online-Only MVNO 'povo' Launched

Overview
Launched fully online new pricing plans, expanding customer base.
Impact
Successfully acquired new customers

2023: Capital and Business Alliance via IIJ Share Acquisition

Overview
Acquired approx. 10.9% of IIJ shares, building stable collaboration base.
Impact
Expected to strengthen corporate solutions

Sustainability

  • Fulfilling responsibilities as a designated public institution ensuring priority communications during disasters
  • Continuous selection as 'Nadeshiko Brand' strengthening diversity through women's empowerment
  • Energy-saving equipment investments aimed at reducing environmental impact
  • Promotion and expansion of green energy utilization
  • Strengthening ties with local communities through social contribution activities
  • Building internal SDGs promotion systems and improving transparency
  • Active implementation of waste reduction and recycling activities
  • Strengthening environmental and social considerations in supply chains
  • Advanced customer information protection and security enhancements
  • Promoting shift to sustainable business models
  • Promoting development of resource-saving, environmentally friendly products and services
  • Expansion of community coexistence and work-life balance support programs