KDDI Digital Divergence Holdings Launched

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May 13,2022

KDDI Corporation

―KDDI Agile Development Center Split Off to Enhance Agile Development Business―

On May 12, 2022, KDDI established an intermediary shareholder company "KDDI Digital Divergence Holdings Corporation." ("KDH"). On the same day, KDDI also established "KDDI Agile Development Center Corporation" ("KAG"), to take on agile development business. KDDI will further transfer its subsidiaries "iret," "KDDI Web Communications," "Scrum Inc. Japan," and the new company "KAG," a total of four companies, to be group companies of KDH, on the scheduled date of July 1, 2022.

By developing a designated digital transformation (DX) structure, KDDI will enhance support and development for DX, strengthening collaboration within the group, increasing diverse employees, aiming to expand its DX business.

DX Development System

<Structure as of July 1, 2022>

In the Mid-Term Management Strategy (FY23.3-FY25.3), KDDI announced "Satellite Growth Strategy" ("this Strategy") to advance its telecommunication business through 5G and expand focus areas centered around telecommunication. DX is one of the focus areas of this Strategy, with KDH's main business being supporting customers' DX.
Until now, KDDI has been supporting the DX of corporate customers, including with KDDI DIGITAL GATE, a base of DX business development opened in 2018, and KDDI 5G Business Co-creation Alliance that began in 2020. By establishing KDH, KDDI will achieve effective collaboration between group companies and expand business collaboration with diverse external DX companies as well, to maximize value across the entire group's DX business.

Since 2013, KDDI has also been developing its service through agile development. By splitting off its agile development into KAG, KDDI will capitalize on the agile development experience so far to support the DX development of corporate customers. By establishing KAG, KDDI will organize various environments for engineers to work efficiently bringing out their best engineering expertise, expand locations to regional areas, hire personnel actively, and respond to the rising demand for DX development, enhancing resources both in quantity and quality.

In a rapidly changing business environment, companies are expected to differentiate themselves and transform their businesses through technology. By establishing KDH and KAG, KDDI will continuously stay connected with customers and society through telecommunication, driving DX to bring added value, creating new businesses with 5G, enhancing non-communication businesses, to accelerate the solving of social issues and transforming businesses.

■Outline of KDH

  • (1)
    Trade Name: KDDI Digital Divergence Holdings Corporation
  • (2)
    Location: 2-10-1 Toranomon, Minato-ku, Tokyo
  • (3)
    Business: Functions for the planning, formulation, and advancement of the business strategies of group companies in DX business, and management business of group companies
  • (4)
    Stated Capital: 100 million yen
  • (5)
    Date of Establishment: May 12, 2022
  • (6)
    Shareholders: KDDI Corporation 100%

■Outline of KAG

  • (1)
    Trade Name: KDDI Agile Development Center Corporation
  • (2)
    Location: 2-10-1 Toranomon, Minato-ku, Tokyo
  • (3)
    Business: Agile development and maintenance business
  • (4)
    Stated Capital: 100 million yen
  • (5)
    Date of Establishment: May 12, 2022
  • (6)
    Shareholders: KDDI Corporation 100%

(Reference)

Outline of iret

Company Name iret, Inc.
Main Business Areas IT consulting, system development, system maintenance and operation, server housing and hosting
Date of Establishment October 15, 2003
Location of the Head Office Toranomon Hills Mori Tower, 1-23-1 Toranomon, Minato-ku, Tokyo
Representative Mitsumasa Iwanaga, President
Major Shareholders and Shareholding Ratio KDDI Corporation 100%
Stated Capital 70 million yen

Outline of KDDI Web Communications

Company Name KDDI Web Communications, Inc.
Main Business Areas Cloud hosting, web services, platform business
Date of Establishment February 25, 1987
Location of the Head Office D-LIFEPLACE MINAMI AOYAMA 10F, 2-26-1 Minamiaoyama, Minato-ku, Tokyo
Representative Masato Yamazaki, President
Major Shareholders and Shareholding Ratio KDDI Corporation 100%
Stated Capital 65 million yen

Outline of Scrum Inc. Japan

Company Name Scrum Inc. Japan
Main Business Areas Holding licensed Scrum Inc. seminars, sending out Scrum coaches, consulting, and more
Date of Establishment January 29, 2019
Location of the Head Office TORANOMON TWIN BLDG., 2-10-1, Toranomon, Minato-ku, Tokyo
Representative Minoru Araki, President
Major Shareholders and Shareholding Ratio KDDI Corporation 51%, Scrum Inc. 44%, ESM, Inc. 5%
Stated Capital 75 million yen
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