Presentation Materials
Principal Questions and Answers Earnings Release for FY2006 (ended Mar. 31, 2007)
Announced on April 27, 2007
Please be advised that the following text has been edited/modified from the original Q&A conversations for the sake of clarity.
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ARPU/MOU/No. of Subscribers
Q1 It seems that you are projecting a steeper year-on-year decline in ARPU for FY2007. Explain the reasons.
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Q2 Your data ARPU has grown remarkably. What are the reasons behind the growth?
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Q3 How do you foresee the pace of decline in MOU going forward?
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Q4 The number of your net additional subscribers for FY2006 was approximately 1.48 million. You are expecting a smaller number of approximately 1.27 million in FY2007. What are the reasons for this decrease?
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Q5 What are the challenges you think you need to overcome to regain the No. 1 position in the monthly share of subscribers?
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International Services Revenues
Q6 How much do you think you can grow your international services revenues going forward from the current level?
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Q7 Have you been able to increase inbound roaming revenues?
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Handset Procurement Costs
Q8 Do you think you will be able to reduce your handset procurement costs and subscriber acquisition costs in FY2007?
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Q9 In your forecast, the handset procurement costs are projected to decrease in FY2007 compared to the previous fiscal year. Do you think this trend will continue over the middle- or long-term?
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Profit Outlook
Q10 Is the impact from the revised depreciation/amortization rules associated with the tax system reform factored into your FY2007 forecasts?
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Q11 You mentioned you will develop and offer handsets/services that are "one step ahead" under the "DoCoMo 2.0" initiative. How much do these new services account for in your FY2007 revenue forecasts?
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Q12 Will you make a specific commitment for your results with numeric targets with regard to taking this opportunity of launching a new brand strategy, "DoCoMo 2.0"?
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Q13 When do you think you will be able to return your operating income to the 1 trillion yen level you once achieved?
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Q14 Do you foresee any risks of failing to meet your operating income target for FY2007 like in FY2006?
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R&D and Service Development
Q15 You have dedicated your R&D resources primarily for network and handset-related development so far. If you are to achieve your goal of "moving one step ahead", don't you think you will need to strengthen your service development efforts even further?
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Q16 What benefits are you enjoying as a result of spending R&D costs?
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Q17 What kind of new services are you planning to offer with your high-speed network?
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Return to Shareholders
Q18 Your payout ratio will rise to 44% as a result of increasing your dividends by 800 yen in FY2007. Do you see any possibility of further raising your payout ratio to over 50% in the future?
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Q19 You mentioned you do not have a specific target for your dividend payout ratio. Do you have a target for your total "shareholder return ratio", including dividends and repurchase of own shares?
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Others (Distributor Commissions and Capital Expenditures)
Q20 The revision of the distributor commission system for handset sales is now under discussion. What is your view on this issue?
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Q21 How much in capital expenditures will be required to respond to the spectrum reassignment in the 800MHz band?
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