#1Tomorrow, Together KDDI Business Services Segment Investor Briefing Presentation March 23, 2023 KDDI Corporation The creation of a society in which anyone can make their dreams a reality, by enhancing the power to connect. EKDDI VISION 2030#2Index 1. Sustainability Management and Evolution of Power to Connect Mori Executive Director, Solution Business Sector 2. KDDI's Strengths and DX (NEXT Core) Kuwahara Deputy General Manager, Solution Business Sector ➤ Toward resolution of customer issues > "Transforming Business Models" Making Data Traffic a Source of Business Growth 2#31. Sustainability Management and Evolution of Power to Connect#4Tomorrow, Together おもしろいほうの未来へ。 KEDİ au The creation of a society in which anyone can make their dreams a reality, by enhancing the power to connect. Е ☐ KDDI VISION 2030 000 יון Desanan 2011"N 143517 E West 02 anos 143 mon Arrival 5#5Medium-Term Management Strategy 5 Sustainability Management Together with our partners, committed to sustainable growth of society and increasing corporate value simultaneously Satellite Growth Strategy 5G driving evolution of telecommunications business, expand focus areas with telecom at core Economic value Social value Corporate value improvement Environmental Sustainable growth in society value Business Strengthening of Strategy Management Partnering DX Space Finance Education 5G Communi- cations Mobility LX Regional co-creation -CATV, etc.- Energy Health care#6Realizing a Sustainable Society Addressing labor shortages Responding to work style changes Resolving Regional Issues Initiatives for Carbon Neutral Realization of a Safe and Secure Society Autonomous Driving FAI 058 6#7Creating a society in which anyone can make their dreams a reality KDDI Digital Twin for All 7#8Digital Twin Concept Analyze, Predict, Simulate 8 Cyber Space Data Collection Digital Twin Feedback (Value Creation/ Problem Solving) Physical Space Accelerating Transformation through New Value Creation#9Beyond the 5G Era PF PF PF NEMENENEN 9 Virtual Services/ platform With virtualization platform technology, enormous amounts of data processed and high value added All photonic network Devices With fully optical network achieving super-high speed, low cost, and low power consumption Telecommunication incorporated in all aspects, bringing an exponential increase in traffic and energy use#10For Corporate and Individual Customers DX to B to C LX Digital Transformation Life Transformation 10#11Evolution of Mobility, Robotics and Drones Mobility Evolution through Data Flat-rate unlimited rides on-demand short mobility service m mobi Community Mobility RESPECT YOU, au 小竹肉原 take-mukaihara Fill Senkawa SEET Kanamecho kebukurg Itabashi Kita-kebukuro Komagom 11 mobi The areas covered by the service are identified, developed, and refined based on human flow data and car route data A future where robots and people coexist in harmony City data is collected in real time and analyzed with AI to give optimal orders to robots 空間自在 JR JR東日本 JR EAST カメラデータ。 サイバー空間 データ連携 AI分析 ロボット 都市OS プラットフォーム 案内ロボット パーソナル モビリティ センサーデータ 顧客データ 入退館データ 清掃ロボット 配送ロボット ロボット フィジカル空間 Higashi Nagasaki 1881 Shiinamachi SANG Ochiai-minami-nagasaki 中井 Naka 落合 Ochial BB Mejro Zoshigaya Gokokup Myogadani 下集合 Gakushuanshita AR Takadanobaba Omokagebashi 千石 Sengoku 本站 Hon-komage Hakutan B OpenStreetMap contributors Inspecting the deterioration of infrastructure using drones SmartDrone Using autonomous drones to create digital twins of deteriorated infrastructure Using AI to instantly identify areas that need repairing#12"Starlink" Available at Anywhere, Quickly, and over Wide Area Deployed for au base station backhaul KDDI over 60 years knowledge of satellite communications Early introduction for corporate and municipal customers Operation started at the site of landslides SpaceX ☑ over 3,000 low earth orbit satellites Maritime Construction Mountainous Video Inquiries; areas & distri- About Isolated bution 1,000* islands in Chichibu city (January 2023) 立入禁止 *As of March, 2023 STARLINK KDDI BCP 12 Ensure communications in affected areas, goods delivery by smart drones#13Evolution of Power to Connect Connecting & Protecting Lives Connecting Day-to-Day Lives Connecting Hearts & Minds ✓ Building a resilient infrastructure for communication and disaster response ✓ Conserving the environment ✓ Sustainable development for cities and communities ✓ Building the infrastructure for developing countries ✓ Developing human resources for the next generation ✓ Creating a digital society for affluence and peace of mind ✓ Promotion of diversity and inclusion ✓ Fostering health and a purpose in life 13#142. KDDI's Strengths and DX (NEXT Core)#15Overview of KDDI Corporate Business Telecommunication (Power to connect) Fixed-Line Communication Corporate DX DX (Business Innovation) Synergy Mobile (4G/5G) Business IoT Business Infrastructure DX Services 15#16Profitability of Business Services Segment Improved Operating Revenue and Operating Income Operating Profit Margin (Unit: yen billions) 1,130.0 1,042.1 996.6 941.6 886.4 13.8% 18.0% 18.2% 16.8% 15.8% 122.2 149.0 167.5 187.1 206.0 FY19.3 FY20.3 FY21.3 FY22.3 FY23.3(E) 14.5% 16.1% 17.6% FY19.3 FY20.3 FY21.3 FY22.3 FY23.3(E) Percentage of consolidated 12.5% profit 16#17Expansion Based on Enterprise Customer Base Customer Base Track record of providing various services domestically and internationally Expanding Business Domain and IDs Mobile Network/ Smart devices Fixed-Line Network IoT domain expansion Enterprise 1,000+ companies Over 90% of the market SMES 400K+ companies KDDI KDDI まとめてオフィス Overseas 190+ countries DX (NEXT Core) Existing telecom business (Customer base) ID expansion 17#18Leveraging Off Connected Car Achievements Expanded supply to major Japanese automobile manufactures Expanding in 7 regions globally TOYOTA Mazda SUBARU SUZUKI Tomorrow, Together KDDI Global Telecommunication Platform Integrating management of different communication lines in each country to provide stable telecommunications Providing wide range of support for customer needs - from negotiations with carriers to operations Operating in Japan, North America, China, Europe, Australia, Middle East and India 18#19Toward Resolution of Customer Issues 19#20Customers' Issues Differ in Short-term and Long-term The main short-term issue is operational efficiency, and the main long-term issue is transforming business models Short-term Issues 1st Productivity improvements & cost reductions 2nd Work style reforms (telework, paperless, etc.) 3rd Rapid performance & data management (real-time) 4th Enhanced Security 5th Strengthen internal communication Medium-to-Long-term Issues 1st Rapid performance & data management (real-time) 2nd Productivity improvements & cost reductions 3rd Business model transformation 4th Customer focused management 5th Work style reforms (telework, paperless, etc.) 20 8th Business model transformation Source: Corporate IT Trends Survey Report 2021, Japan Users Association of Information Systems, created by Mizuho Industry Research and us#21DX (NEXT Core) to Solve Customers' Issues Existing telecom business DX (NEXT Core) Corporate DX Business DX Short-term Management Issues (Work style reform/ Operational efficiency improvement) Medium- & Long-term Issues (Business Model Transformation) Data-driven Digital Twin Customer base Managed Zero Trust Addressing outsourcing needs, etc. Business Infrastructure Services Data- driven Digital BPO Call center Time Axis 21#22Corporate DX Understanding Customers' Issues Using "Managed" as a Springboard Managed (communication + α) system Handle the customer's entire IT environment About 20 years of operational experience Multi-vendor Multi-cloud End-to-end communication Building a secure Customer Case Studies ICT Center operations overwhelmed Outsourced all regular tasks and troubleshooting Half of ICT members shifted to transformational work Customers can focus on own core businesses 22 structure + Knowledge base developed by working with Toyota, GAFAM, and others Before deployment After deployment#23Business Infrastructure Services Further Explore Outsourcing Needs Pursue economies of scale and develop digital BPO services Operations outsourcing Maintenance, service operation, knowledge management, etc. Consulting/SI Visualization of all operations, defining "As is" and "To be" Analyzing outsourcing operations Aiming for business integration of BPO business*1 (TOB is scheduled to start) KDDI Evolva ✓ KDDI Group Relia, Inc. Mitsui & Co. Group Outsourcing needs for common operations BPO/Contact Center Economies of scale • Improvement of bidding competitiveness Expansion of business areas and resources Efficient Investment Expanding Digital BPO*2 domestically and internationally Established a top-level market share position *1 Subject to the completion of procedures required under each country's competition laws, the conclusion of the tender offer, and the completion of the squeeze-out procedure (if necessary). *2 BPO method whereby a series of outsourced operations are outsourced not only by human resources but also by utilizing digital technologies such as AI to achieve greater efficiency in outsourced operations. 23#24"Transforming Business Models" Making Data Traffic a Source of Business Growth 24#25Business DX 25 25 Foundation for New Value Co-creation Steady expansion in IoT Connections IoT Connections Expansion at domestic and abroad (Unit: million) Of which, international 30.0 Exceeded 13 million 24.5 Foundation for new value co-creation Contribute to transformation and sustainable growth of customers' businesses ΑΙ ☑ data analysis 8.0 3/'19 3/'20 3/'21 3/'22 12/'22 New value creation with partners Business development & Cloud Communication infrastructures & IoT operational know-how 5G#26Business DX Case Study Mazda Connected App "MyMazda App" Achieve consistency in UI/UX, important for overseas expansion Supporting the global expansion of connected services 26 Europe U.S./Canada STOP START Japan Global standard UI/UX Roll out to overseas ● Expanding to Japan, North America, and Europe, receiving and managing approximately 80 million transactions per month • Contributes to high app user reviews and engagement B 9:41 mazda DRIVING RANGE 175 MILES 4 No Notifications STOP START CHARGE Close Remote 1 L-Þ 9:41 < コンディションモニター 2030/6/28989:32:21 ●ベスライドして MAZDA MX-30 53,120 KM 次回メンテナンス予定日 2020/09/27 次回メンテナンス予定 60,000 km 次回メンテナンス Q マイマツダショップに連絡 REMOTE STATUS SERVICE HELP SEARCH Home Screen Condition Monitor (after switching to Japanese display) *The images are for illustrative purposes only. They may differ from the actual application screen.#27Business DX Consumer/ Customer IoT × Data Utilization PAY Customer Experience Employee Products/ Equipment IoT Services platform Tomorrow, Together KDDI Sustainable Management Core Systems Operation Transformation Business Collaboration Operational strengths Nearly 20 years of work in IoT, running over 30 million lines Operational experience cultivated in au/consumer domain IoT, sensors and mobile data collection and utilization in apps Contribute to rapid creation and development of new businesses 27#28Business DX Business Entry Opportunities with IoT Utilization & Cloud Shift Conventional (On-premises) Development from scratch Application Server NW Present (Cloud Shift) Rapid cloud-based development model SaaS IaaS Agile development NW 28 88 亞 Call center#2929 29 Business DX Group's Expert Human Resources for Agile Development scruminc. japan Supporting DX for over 8,000 customers KDDI KDDI Agile Development Center About 9 years extensive experience in agile development KDDI Digital Divergence Group iret World-class cloud implementation, design and operational know-how KDDI KDDI Web Communications Diverse communication services for both online and the real Agile Development 40 teams aws Over 2,500 AWS certifications KDDI KDDI Digital Divergence Holdings * A website creation service established in 2007 in Germany that lets anyone create websites effortlessly SHARE LOUNGE Jindoo* 2 million+ in use#30Business DX Practical Application of Digital Twin Using GEOTRA KDDI GPS Big Data Transportation, Infrastructure, Facility data, etc. Human flow data + AI Together with Real estate and Municipalities utilized for post pandemic urban development 30 GEOTRA Digital Twin of Urban human flow before Visualization of Human Simulation Analysis flow and Usage dynamics GEOTRA X present Utilize human flow data in Tokyo Sta. area for urban development TOKYO TATEMONO#31Business DX Making Digital Twin Easier to Use Solving data analysis challenges Automated and solved complexity of data analysis with Digital Twin Conventional Data analysts making full use of tools to analyze data term Long- One- High level of shot expertise Platform to be launched Efficiency/Automation Repeat countless simulations at high speed Short- Labor High efficient precision term Solving challenges in Supply chain Reproducing Big Data in Cyber Space Prediction inventory and automated ordering Excess inventory, High return rate Reduction in return rate, Contribution to profit 31 Continuous simulation enables highly accurate and practical data analysis#32Business DX Digital Twin with Videos and Images New value creation with partners Business development & Cloud Communication infrastructures & IoT operational know-how KVMS KDDI Video Management Service Enhanced Al video analysis + KDDI Video Management Service KDDI Cloud Data storage at 3 domestic DC sites KDDI Wide Area Virtual Switch 5G 5G B C Reproduce factory video images in the cloud (Digital Twin) Combining 5G SA Slicing, MEC, etc., aiming to provide optimal networks for use cases and scenes warehouse plant plant Head office 32#33Business DX Data-driven to Provide PF for Each Industry Automotive industry Railroad industry Construction and real estate industry Energy industry Media industry Automated operation Video transmission/ relay Simulation of human flow Drone Inspection/ Surveillance Viewing analysis Network slicing 5G Platform Telecommunications ID & Authentication Charging & Billing Settlement Location data Data analysis, etc. Partners 33#34Business Infrastructure Services US East Coast Interconnection DC to Support Data Traffic Growth In major cities in Japan and abroad 47 locations Low latency and secure connections to major clouds TELEHOUSE About 3,000 companies worldwide internet hubs United Kingdom | | US West Coast I Germany Beijingl Shanghai France | IUS East Coast | Turkey | Japan Vietnam | THong Kong France Germany Thailand* Hong Kong US West Coast United Kingdom * Scheduled to open in May 2023 Singapore China 34#35Video 4 minutes 35#36Business Infrastructure Services Expand based on High Connectivity Ecosystem High value-added data center Build a robust ecosystem with megaclouds, content providers, and end users Hyperscaler/ Mega Cloud Providers Expand success cases in Europe to Southeast Asia No. 1* connectivity in the World London No. 1* connectivity in France Paris adherence connection request end users Content Providers connection request Telecom carrier * Source: peeringdb.com as of March 2023 March 2022 Expansion May 2022 Expansion Expand success cases into Bangkok Southeast Asia Scheduled to open May 2023 36#3737 Corporate DX DX (NEXT Core) Business DX FY23.3 FY23.3 Revenue image (E) 100 billion yen scale 150 billion yen scale YOY +20% over YOY +20% over Business Infrastructure Services Medium-Term Data center Business 100 billion yen per year scale BPO Business 250 billion yen per year scale Cloud Voice DX Data center Summary Managed Security IoT Construction Development BPO Call center#38Growth of DX (NEXT Core) Aim for Double-digit Operating Income CAGR Growth Operating revenue DX Promotion NEXT Core business drives business growth Operating income Overall Business Services segment Double-digit CAGR growth NEXT Core Aim for double-digit CAGR growth Double-digit CAGR growth Aiming for about 20% over Consolidated Operating Profit FY22.3 FY25.3 FY22.3 FY25.3 38#39Summary Pursue synergies between telecommunications (Power to connect) and DX (Business innovation) • Addressing Customers' Issues ranging from short-term "labor shortage" to long-term management issues stock "Business Model Transformation" Data Traffic as Foundation of Business Growth DX銘柄2022 Digital Transformation DX Stock: Companies listed on the Tokyo Stock Exchange that have a mechanism to promote DX (Digital Transformation) that leads to an increase in corporate value. The Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE) select and introduce companies in each industry category that have built in-house and have an excellent track record of digital utilization. 39#40Tomorrow, Together KDDI Disclaimer Statements made in these documents with respect to the KDDI Group's performance targets, projected subscriber numbers, future forecasts and strategies that are not historical facts are forward-looking statements about the future performance of the KDDI Group, based on company's assumptions and beliefs in light of the information available at the time they were made. They therefore include certain risks and uncertainties. Actual results can differ from these statements due to reasons including, but not limited to, domestic and overseas situation, economic, trends, competitive position, formulation, revision or abolition of laws and ordinances, regulations or systems, government actions or intervention and the success or lack thereof of new services. Consequently, please understand that there is a possibility that actual performance, subscriber numbers, strategies and other information may differ significantly from the forecast information contained in these materials or other envisaged situations.