Presentation Materials

For the fiscal year ended March 31, 2015 (FY2014), we recorded a decline in both operating revenues and income, which were 4,383.4 billion yen (down 1.7% year-on-year) and 639.1 billion yen (down 22.0% year-on-year), respectively. While we managed to meet the revised operating income guidance, we take these results very seriously.

On the other hand, we achieved a significant improvement in a number of operational indicators, e.g., the number of net additions, acquisition of customers using the Mobile Number Portability (MNP) system and churn rate, etc., owing to the introduction of the new billing plan and "docomo Hikari" optic-fiber broadband service. We thus believe we were able to lay the foundation for a path to growth in FY2014.

Meanwhile, we have successfully expanded the revenues from the Smart Life domain including "dmarket" and other services. We also moved ahead with the coverage expansion and speed enhancement of LTE network, launching the super-high-speed "PREMIUM 4G" service while improving the efficiency of capital expenditures. Also, as a result of our cost efficiency improvement efforts, we achieved savings in excess of our initial budget.

With respect to the prospects for the fiscal year ending March 31, 2016 (FY2015), we are projecting an increase in both operating revenues and income, which are estimated to be 4,510 billion yen (up 126.6 billion yen year-on-year), and 680 billion yen (up 40.9 billion yen year-on-year), respectively.

In the telecommunications business, we aim to grow revenues by promoting the subscription to the new billing plan and "docomo Hikari" optic-fiber broadband service, and encouraging subscribers' migration to larger data buckets. In the Smart Life domain, we will accelerate the implementation of various measures aimed at expanding the "dmarket" services, and broaden the sphere of our offerings by entering the "home domain." Further, we will also step up our enterprise sales and work to expand B2B2C businesses.
On the network side, we will further strengthen our "PREMIUM 4G" service by enhancing its maximum transmission speed to 300Mbps. At the same time, we will also continue to pursue rigorous cost efficiency improvement. We position FY2015 as the period for managing business attaching utmost importance to results in view of our future growth.

As for shareholder returns, for the second straight year, we plan to raise our annual dividend by 5 yen to 70 yen per share.

In conjunction with the results announcement for FY2014, we unveiled the "New Initiatives toward Delivery of Medium-term Targets" and our new brand slogan. We plan to integrate our billing/payment/ID platforms placing the "docomo Point" loyalty point system at the core, in order to deliver more benefits, fun and convenience to the everyday lives of our customers. We will endeavor to create new added value in collaboration with a wide range of external partners, thereby contributing to Japan's growth and bringing abundance to society.

To this end, we look forward to enjoying the continued support and understanding of our valued shareholders and investors.