Presentation Materials

I would like to extend our deepest sympathy and condolences to all those affected by the 2016 Kumamoto earthquakes. We pray for the earliest possible recovery. Both NTT DOCOMO and the NTT Group will continue to devote ourselves to the restoration and reconstruction of the disaster-stricken areas.

For the fiscal year ended March 31, 2016 (FY2015), we recorded an increase in both operating revenues and income, which were 4,527.1 billion yen (up 3% year-on-year) and 783 billion yen (up 23% year-on-year), respectively. We managed to deliver a solid income recovery as a result of our company-wide endeavors toward growth of income from smart life business and other businesses, turnaround of telecommunications business and improved cost efficiency.

In these years, we have successfully strengthened our competitiveness through the implementation of various reforms, including the introduction of iPhone and launch of the new billing plan and "docomo Hikari" optical-fiber broadband service. Meanwhile, by addressing such issues as cost efficiency improvement and review on loss-making businesses, we transformed ourselves into a lean organization and established a path toward growth.

In the fiscal year ending March 31, 2017 (FY2016), we will aim to maintain this momentum and generate 4,620 billion yen in operating revenues (up 2% year-on-year) and 910 billion yen in operating income (up 16% year-on-year). This operating income projection, however, includes the impact from the change of depreciation method and the income excluding this effect is estimated to be 860 billion yen. This implies that we expect to achieve our medium-term operating income target of 820 billion yen one year ahead of our initial plan.

With respect to the enhancement of shareholder returns that we committed in our medium-term targets, we plan to raise our annual dividend for FY2016 by 10 yen to 80 yen per share. In addition, we plan to conduct an open-market share repurchase in the period from May 2 through December 31, 2016 using the remaining authorization of approximately 200 billion yen out of the prescribed upper limit of 500 billion yen.

Positioning FY2016 as the year of a "vibrant leap for growth" beyond income recovery, we will strive to secure income from telecommunications business by improving cost efficiency and boosting our ARPU by leveraging our new billing plan, while at the same time expanding the income from our smart life business and other businesses primarily through the pursuit of "+d" open collaboration initiatives together with partners.

During this fiscal year, we will start rolling out new pricing measures catered to customers' diversifying needs in earnest. For the full year, we plan to provide returns worth 70 billion yen to the hands of our customers through (1) rate options suited for light-usage customers, (2) introduction of two new schemes providing users with a choice between courses with or without cancellation fees, and (3) additional benefits for long-term users. The negative impact from these measures are planned to be offset by further cost efficiency improvement endeavors. We will devote maximum efforts toward the fulfillment of our two major principles of "enhancing customer satisfaction" and "sustained growth of the company."

To this end, we look forward to enjoying the continued support and understanding of our valued shareholders and investors.