Presentation Materials

For the first six months of the fiscal year ending March 31, 2016 (FY2015/1H), we recorded an increase in both operating revenues and income, which were 2,215 billion yen (up 42 billion yen year-on-year) and 462.6 billion yen (up 63 billion yen year-on-year), respectively. In our business management this fiscal year, we have attached a strong focus on the recovery of telecommunications business, expansion of income from smart-life business and other businesses and cost efficiency improvement, and our performance in the second quarter continued to improve toward our medium-term targets following the trends in the first quarter.

Our operational indicators are also showing strong performance; the number of net additions increased by 1.6-fold over the same period of the previous fiscal year to 1.9 million, the net outflows of customers using the Mobile Number Portability (MNP) system decreased by 80% year-on-year to some 40,000, and our churn rate was maintained at a low level of 0.58%. Meanwhile, the total number of new billing plan subscriptions topped 24 million on October 7, 2015, and the total number of subscription applications to "docomo Hikari" optical-fiber broadband service is expected to cross the 1 million mark shortly. And our "dmarket" portal continued to enjoy steady growth, with its combined subscriptions reaching 13.95 million as of September 30, 2015.

As for the LTE network, we have aggressively expanded the coverage of our "PREMIUM 4G" service, rolling out 7,700 compatible base stations in 640 cities across Japan. In October 2015, we started offering transmission speeds of up to 300Mbps, the fastest mobile transmission in Japan, thus further improving the breadth, speed and comfort of access of our LTE network while improving the efficiency of capital expenditures.

With respect to cost efficiency improvement initiatives, we achieved savings totaling 130 billion yen in FY2015/1H, making faster progress than initially projected in our initial full-year plan.

Furthermore, we received the No. 1 ranking in the customer satisfaction survey conducted by J.D. Power-an institute specialized in international customer satisfaction analysis-for two straight years, and we will step up our efforts even further so we can continue to win the patronage of many customers in the future.

In light of the year-on-year gains in both operating revenues and income for the first half and the continued trend of income recovery, we decided to revise our full-year guidance for FY2015. In the new forecast, operating income was revised upward by 30 billion yen to 710 billion yen.

Going forward, we will continue to manage our business with a strong emphasis on results toward our medium-term target of achieving at least 820 billion yen in operating income, recovering the FY2013 level. To this end, we look forward to enjoying the continued support and understanding of our valued shareholders and investors.