Presentation Materials

This is President Kato of NTT DOCOMO.

For the nine months ended December 31, 2013, operating revenues were nearly flat year-on-year at 3,363.6 billion yen, while operating income decreased by 13.5 billion yen to 688.7 billion yen. Net income rose by 13.7 billion yen, to 430.2 billion yen.

While aggressive sales of smartphones and steady expansion of new areas contributed to increased revenue, the growing impact of Monthly Support resulted in revenues remaining flat versus the same period in the previous fiscal year. At the same time, though we pushed ahead with further cost efficiencies, additional build-out of LTE base stations and expansion in new areas led to increased costs, with reduced operating income but an increase in earnings.

First, in handset sales we focused on the iPhone and three other recommended models, selling almost 9.87 million smartphones, a year-on-year increase. As a result, the number of smartphones in use rose to 22.78 million, with LTE subscriptions reaching 19.02 million, both significant increases. With better MNP performance, we also saw steady improvement in both net additions and churn rate, leaving us feeling certain that we are achieving results in this new stage of competition.

With regards to the LTE network, under our plan to double the number of base stations, we expect to complete installation of 52,000 stations within the fiscal year, exceeding our initial target. We are also making a strong push to deliver the world's fastest download speeds of up to 150Mbps1 in Tokyo, Nagoya, and Osaka through quad-band LTE, which maximizes the use of four spectrum bands.

Additionally, in our proprietary "dmarket" services, the popular "dvideo," "danime" and "dhits" were joined by the "dkids" service, which has also gotten off to a strong start. Packaged services for smartphones, including the "Osusume Pack" and the "Anshin Pack" have also seen steady growth.

We will continue to take full advantage of docomo's four greatest strengths—devices, networks, service, and rates/channels—while continuing to push aggressively ahead with efforts to ensure that customers will want to choose and continue to use docomo.

As we head into the crucial spring selling season, all of us at docomo are determined to work as one in the robust pursuit of our business.

1. In the transmission speed for the LTE network. Based on figures disclosed by each company (as of October 2013). It can be used in some areas of the Tokyo, Nagoya, and Osaka regions. Transmission speed is the maximum downlink speeds, and will vary depending on the communications environment.