| Invested through |
|
|---|---|
| Asset Classes | Listed equity |
| Impact strategy | Impact Equities and Bonds |
| Bloomberg ticker | 9433 JP |
| ISIN code | JP3496400007 |
| Industry group | Telecommunication Services |
| Aligned with SDGs |
KDDI is the second largest telecom operator in Japan. It owns and operates a nationwide communications network that serves mobile, fixed line and cable TV. The Personal Services segment through which the company serves consumers and households generates 85% of total revenues, 14% of revenues are from the Business Services segment and the remaining 1% comes from other products and services. The company serves more than 52 million mobile phone subscribers under the 'au' brand, 4.4 million ‘fiber-to-the-home’ customers and 5.4 million cable-TV subscribers. An increasing share of revenues is coming from e-commerce, resale of electricity and financial services such as digital payments, credit cards and mortgage loans. 95% of revenues are from Japan, the other 5% of revenues are mainly from Asian countries and the US. KDDI was founded in 2000 through a merger of KDD, DDI and several other telecommunication companies. KDDI, headquartered in Tokyo, has 39,000 employees, of which 5,000 overseas employees.
Investment rationale
Communication is a basic need of people. Telecommunication networks are increasingly important to connect with family and friends and to keep societies functioning properly. The Covid-19 pandemic has shown how important digital communication networks have become in our daily lives.
In Japan, KDDI provides high quality, safe and reliable communication networks. The company has made significant investments in disaster recovery and emergency measures to guarantee networks continue to operate after earthquakes and typhoons that hit Japan on a regular basis. It also has special products and services for elderly users and education programs for young people and children.
Outside Japan, KDDI has built modern mobile communication networks in Mongolia, Myanmar, Bhutan and Nauru to provide access to telecom and internet services for the local population. In the United States KDDI has made investments in two mobile operators that provide their services specifically to immigrant populations.