Presentation Materials

In the fiscal year ended March 31, 2014, operating revenues were on par with the previous year at 4,461.2 billion yen, while operating income decreased by 18 billion yen year-on-year to 819.2 billion yen.

In addition to a net increase in subscribers since the third quarter of this fiscal year, when we introduced the iPhone, and significant improvement in mobile number portability performance, there was also a steady increase in the number of smartphone and "dmarket" subscriptions.

At the same time, although we worked to strengthen our management practices and while improvements in cost efficiency exceeded planned levels, the failure to reach sales targets and an increase in expenses during the spring selling season led to a decline in profits from the previous year.

On April 10, 2014, we announced a new billing plan in response to feedback from customers.
In the fiscal year ending March 31, 2015, we will move ahead with initiatives to establish a new path to growth centered on this new billing plan by increasing the number of subscribers; promoting packet use and voice communications; and by optimizing marketing expenditures.

The four key points of the new billing plan are as follows:

1. "Zutto DOCOMO Discount" offering graduated savings favoring long-term users;
2. "U25 Ouen Discount" allows young users to join helpful discount services anytime of the year;
3. "Kake-hodai," which is the first of its kind to provide flat rate domestic calls; and
4. "Pake-aeru" offering benefits for family use and using over multiple devices owned by a single user.

This new billing plan is a pioneering system capable of supporting smartphones, feature phones, tablets and M2M, and will strengthen sales of smartphones and promote the use of multiple devices. We will also further expand services such as "dmarket", with the aim of differentiating ourselves from competitors.

Our network already offers the highest downlink speeds in Japan, with up to 150 Mbps using "quad-band LTE", but this summer we also plan to launch VoLTE1, which offer high-quality voice call and fast response, and during the fiscal year ending March 31, 2015 we will also introduce ultra-high-speed communications with downlink speeds of up to 225 Mbps using LTE-Advanced.

Our forecast for the year ahead is for operating income of 750 billion yen, and we are getting back on track toward growth through measures aimed at medium-term growth, including improvements in customer satisfaction through new billing plan offerings, fully leveraging the impact of our introduction of the iPhone and new devices and services, enhancement of our network, and a transformation of our business portfolio.

Finally, we plan to maintain our annual dividend at 60 yen per share based on our policy of continuing stable dividends for shareholders. In addition, we have set an upper limit of 500 billion yen for acquiring treasury stock.

As always, We ask for the continued goodwill and support of our shareholders and investors.

1 An abbreviation for "Voice over LTE". This is a voice IP service which leverages LTE technology.

Kaoru Kato

President and Chief Executive Officer