Presentation Materials

In the third quarter ended December 31, 2012, operating revenues were 3,370.8 billion yen, up 196.6 billion yen from the same period in the previous year, and operating income was 702.2 billion yen, down 41.6 billion yen from the same period in the previous year.

Increased revenues were obtained through the expansion of packet revenues and equipment sales revenues achieved through active sales and marketing and increased usage of smartphones and docomo LTE Xi. Although progress was made in efforts to reduce costs, increases in expenses for equipment sold and commissions to agent resellers aimed at being more competitive and expenses due to the expansion of business into new areas led to the result of increased revenue with reduced income. We will further bolster our efforts with the aim of achieving the 820.0 billion yen forecast in operating income for the current fiscal year.

The smartphone and Xi user base is steadily expanding, but the competitive environment surrounding us remains severe. The Company believes that the three key issues to be addressed in order to reinforce competitiveness are to:

• further accelerate the migration to smartphones and Xi, and expand the user base;
• refine overall capabilities of devices, networks and services in the core businesses; and
• execute structural reforms aimed at strengthening the management structure.

The Company will fully engage in addressing these issues, and endeavor to achieve a recovery in profitability as soon as possible.

Furthermore, the policy on shareholder return centered on "continuation of stable dividends" is as has been explained in the past. This fiscal year, an annual dividend of 6,000 yen per share is scheduled to be paid as initially planned. We ask for the continued goodwill and support of our shareholders and investors.