KDDI : Creating New Consumption Experiences that Merge the Online and Offline Worlds

December 16, 2019

＜Press Release＞

KDDI Corporation

Mitsubishi Corporation

Loyalty Marketing, Inc.

Lawson, Inc.

Creating New Consumption Experiences that

Merge the Online and Offline Worlds

KDDI Corporation (headquarters: Chiyoda-ku, Tokyo, President Makoto Takahashi, hereinafter,

"KDDI"), Mitsubishi Corporation (headquarters: Chiyoda-ku, Tokyo, President and CEO Takehiko

Kakiuchi, hereinafter "MC"), Loyalty Marketing, Inc. (headquarters: Shibuya-ku, Tokyo, President

Tsuyoshi Hasegawa, hereinafter "LM"), and Lawson, Inc. (headquarters: Shinagawa-ku, Tokyo, President and CEO Representative Director Chairman of the Board Sadanobu Takemasu, hereinafter, "Lawson"), agreed to a new initiative designed to create new consumption experiences that merge the online and offline worlds.

• Initiative to address the structural changes in the consumption society

In recent years, the number of contact points with customers through the Internet is increasing due to the penetration of digital technologies, and the structure of the consumption society is significantly changing. Amidst such changes, KDDI, LM, and Lawson shared a common desire to adapt to the changing consumption society and sustainably provide value to customers. Going forward, the companies will strive to create highly sustainable consumption experiences that are satisfying and convenient through partnerships between each of their businesses. Moreover, MC will contribute to the realization of a better consumption society by leveraging business foundation centered on the offline worlds and collaborating with MC group companies.

＜Diagram of the initiative to address the structural changes in consumption experiences＞

• Member base of over 100 million

Starting from after May 2020, KDDI and LM will integrate the point systems of both companies into the common "Ponta" service operated by LM and promote the linking of their respective IDs.

The result will create Japan's largest class member base of over 100 million people and further integration with settlement services will lead to over 22 million mobile accounts and annual points awarded of over 200 billion yen.

Moreover, KDDI and LM will strive to cooperate in regard to deeper data marketing utilizing the member base and the creation of new businesses.

1. Expansion of the member base

・Integration of the au WALLET points granted by KDDI into the "Ponta point" system, and the linking of the au ID and Ponta ID.

・Expansion of economic zones through the joint promotion of data marketing which utilizes points and settlement infrastructure

・Implementation of the "au PAY" smartphone settlement service features on the Ponta app

・Implementation of the "Digital Ponta card" function on the au WALLET app

２．Mutual use of affiliated stores

・Promotion of the accumulation of "Ponta point" and the use of "au PAY" at stores affiliated with au PAY and Ponta (over 1.7 million places)

• Developing next-generation convenience store services that involve data and financial services

KDDI and Lawson will combine the assets of both companies with the goal of creating new consumption experiences which merge online and offline worlds to develop next-generation

convenience store services that involve data and financial services.

The companies will provide new consumption experiences through OMO (note) utilizing a member base of over 100 million people and advanced technologies ("5G" fifth-generation mobile communication system and robotics) at the real-world points of contact in Lawson's roughly 14,600 stores.

Moreover, KDDI will promote "au PAY" at Lawson stores as a highly convenient settlement service.

1．Creation of new consumption experiences with respect to convenience stores (scheduled for FY21.3)

・Implementation of data marketing programs centered around personalization through ID linking and the provision of next-generation convenience store services

・Development of subscription-based services and other new services for convenience stores visitors ・Realization of stress-free purchasing experiences through mobile ordering and unmanned, robotic

kiosks

・Enhancement of the ability to attract customers through OMO and the streamlining of inventory management and other aspects of store management through advanced technologies

2．Promotion of "au PAY" at Lawson stores as a highly convenient settlement service (After May 2020)

・Implementation of the "au PAY" features on the Lawson app

・Promotion of the use of "au PAY" on Lawson by setting a high rate of reduction

Through this partnership, KDDI, MC, LM, and Lawson will create new consumption experiences that merge the online and offline worlds.

(Note) OMO refers to the use of data marketing, 5G, and other advanced technologies to analyze insights and the latent needs of customers based on personal data to achieve mutual exchange across the customers

End