Presentation Materials

As we announced our fiscal 2013 results in April, we regarded fiscal 2014 as a year of laying the foundation for new growth. In the first three months, our operating revenues were 1.0753 trillion yen, a year-on-year decrease of 38.3 billion yen, and our operating income was 209.6 billion yen, a year-on-year decrease of 37.8 billion yen. Despite these declines, results were strong and on track with the annual business plans and we believe fiscal 2014 is off to a good start.

Significant improvements in MNP and the churn rate have resulted in a net increase in subscribers of more than five-fold compared with the level of growth from last year. In addition, we are seeing the results of new product releases, including the 2014 summer lineup of mobile devices and the iPad. Tablet sales have grown approximately 30% year on year, and the number of smartphones in use has surpassed 25 million units.

Customers have also been responding favorably to our new billing plans, and as of the end of June we reached 4.67 million contracts. DOCOMO Shops received an award from an independent research organization, ranked No.1 in "Hospitality Level."

In our network infrastructure, we continue to strengthen our efforts to expand our LTE base stations. As of the end of fiscal 2013, we had tripled the number of base stations operating at speeds of 100Mbps or more. An independent organization recognized our network for achieving the highest customer satisfaction and the fastest LTE download transmission speed. In addition, on June 24 we initiated VoLTE, Japan's first premium-quality voice and video call service, and already many customers are enjoying the superior sound quality and fast response time of this service. In fiscal 2014, we plan to offer LTE-Advanced, with extra-high-speed data transmission speeds of up to 225 Mbps during reception.

In the "dmarket," "d magazine" topped 200,000 subscriptions in the first month after our launch of the service, and "dmarket" store sales have also been growing steadily. Going forward, we intend to further enhance these services.

On July 1, we introduced a new business structure aimed at enhancing customer satisfaction by establishing a new organization where we will optimize group formation in local areas to deliver services that are more closely tied with community. We have also begun to shift resources to focus areas we have earmarked for service enhancement.

During the current fiscal year our entire company is determined to unite in efforts to further strengthen sales under our new billing plans, continue to expand our new business, and firmly establish a growth path.