Kansai Electric Power Group Overview

Business Segments

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Information and Telecommunications BusinessOverview

Makoto Araki
Director
Representative Executive Officer,
Vice President

Risks

Arranging an extensive menu of options that respond tocustomer needs, we provide comprehensive IT services led byOPTAGE Inc., our group company, for households andbusiness firms utilizing AI, IoT, and other digital technologies.
Our Group’s IT business has been growing as a primarysource of revenue along with the comprehensive energy
business through its strengths in both tangible aspects, suchas its tightly woven optical fiber networks extending
throughout the Kansai region, and intangible aspects, such as
our high-quality service and robust support system, earning ahigh degree of customer satisfaction over a long term.
Medium-term Management Plan Targets
Ordinary income
43 billion yen

More than
35 billion yen on
average• Changes in competitive environment caused by new entrants• Changes in business structure with the emergence ofinnovative new technologies• Intensifying price-cutting competition
Business strategies

Directions totake

More than
45 billion yen❶ Demonstrate overwhelming
competitiveness in information andcommunication infrastructure services inthe Kansai region, and increase profits.
❷ Promote provision of high value-added
services and creation of new solutions
that contribute to increasing the valueof information and communication
infrastructure services as well as
operating outside the Kansai region.

5-year Efforts

Customer satisfaction ranking No. 1
for 16 years in a row
No. 1 provider in the Kinki region in the RBB TODAY
Broadband Awards 2022 (announced in January 2023)
Awarded for 16 consecutive years from 2007 to 2022

Low-Cost SIM Awards in the 2022 2nd Half
Won the highest overall satisfaction rate
Source: RBB TODAY“2022 2nd Half Low-Cost SIM Awards”

1 Increase profitability
2022

2021-2023

2025Business) unique community-based services.

ROA

2021 result

2022 result

12.06%

13.21%

Business environment• Develop next-generation data centers.
• Provide Group assets (optical fiber, station buildings,transmission towers, utility poles, etc.) toward the spread of
5G communications.
2 Solutions

Opportunities• Provide IoT and high value-added solutions centering on the• Growing need for high-speed and stable communication• Provide new solutions to respond to the needs of cloudagainst the backdrop of video viewing, remote work, etc.

Kansai Electric Power Group Integrated Report 2023

• Provide eo’s ultra high-speed services and mineo’s (Personal /5G core network.

computing and DX.

• Growing needs for business efficiency and automation, with• Set up new green data centers and promote green power

the acceleration of DX promotion

source procurement.

88

Kansai Electric Power Group Overview

Business SegmentsValue Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Information and Telecommunications BusinessInitiatives in fiscal 2022
Consumer services
eo Optical services, offered by the group company OPTAGE
Inc., are FTTH services utilizing a proprietary high-speed,
reliable optical fiber network spreading all over Kansai, andhave established the largest market share in the Kansai region
for detached houses. Their bundled service package of eo
Optical Fiber Internet, eo Optical Fiber Telephone, and eo
Optical Fiber Television is a major contributor to revenue
growth in our IT business.
In fiscal 2022, “eo Optical 10/5 GB Services” became
available in almost all areas with Optical Fiber Internet, andwith the growing demand for high-speed internet, the service
has been chosen by approx. 60% of new subscribers, driving
the growth of the company’s FTTH services even amid market
maturity.
Number of “eo Optical” subscriptions:

1.71million
Customer satisfaction ranking

No. 1for16 years in a row

services to keep customers satisfied in accordance with theirvarying needs, so its services will continue to be chosen bymore and more customers.

OPTAGE also offers the cell phone service mineo, which
was launched in 2014 nationwide and has more than 1.2 million
subscribers in the MVNO industry, crowded with more than
1,000 companies. It offers original value through “co-creationwith fans” mainly on a community website, as well as low
prices and unique services not offered by other providers. In
fiscal 2022, in order to meet customer expectations, newmenus and enhanced functions were added to mineo,
including the introduction of a new course to “Maisoku,” anunlimited data plan, and the launch of the eSIM service. These
one-of-a-kind services have been successful in steadily
expanding the customer base.
The values unique to mineo, “co-creation with fans,” will befurther enhanced to provide services to as many customers aspossible.

Services for corporate customers
As services for corporate customers, in addition to fiber-optic
internet services for enterprises, extensive services areprovided covering consulting, system development, cloudcomputing, AI/IoT, etc. Line services in which OPTAGE has anadvantage and solution services combined with the provisionof lines are chosen by many customers.
The number of subscriptions to its line services continued
to grow steadily in fiscal 2022, and the company has satisfied
diverse customer needs by providing one-stop support forline, cloud, security, and operation.
Additionally, in response to the growing need for data
centers that can communicate with cloud services, etc. withlow latency and excellent connectivity, OPTAGE has decided
to develop a connectivity data center in Kita-ku, Osaka(scheduled to start operation in fiscal 2025). Through this andother projects, the company is also taking on new challenges
toward sustainable growth.

No. 1 provider in the Kinki region in the RBB TODAY
Broadband Awards 2022 (announced in January 2023)
Awarded for 16 consecutive years from 2007 to 2022

Number of “mineo” subscriptions:

Moreover, focusing on creating new services to help
customers to live more affluent lives and to further promote
the smart home IoT business, the company has launched“IOPT,” a service that enables home appliances to be operated
by apps or voice and connected to sensors.
OPTAGE will continue to provide infrastructure services
that form a basis for comfortable living and develop quality

Kansai Electric Power Group Integrated Report 2023

1.25 million

Low-Cost SIM Awards in the 2022 2nd Half

Won the highest
overall satisfaction rate

Source: RBB TODAY “2022 2nd Half Low-Cost
SIM Awards”
Rendering of OPTAGE Sonezaki Data Center89