Presentation Materials

Medium-Term Strategy 2020 "Declaration beyond"

On April 27, 2017 in conjunction with our results presentation for the fiscal year ended March 31, 2017 (FY2016), we announced our Medium-Term Strategy 2020 "Declaration beyond" Looking ahead to the year 2020 and beyond, through the execution of the six "beyond declarations" that make up this strategy, with 5G we will deliver "value and inspiration" for our customers and realize the "co-creation of new values with partners," thereby creating a future of abundance.

Specifically, we will strengthen our business foundations by stepping up returns to our customers and making investments for growth. Concurrently, we will address the convergence and evolution of 5G and "docomo Hikari" broadband services with other value-added services that bring innovation to customers’ lifestyles. As we move ahead with our endeavors, we will strive to transform our own business structure to achieve a stable and sustainable growth.

In our "Declaration beyond," we will focus on the managerial targets of proactively continuing customer returns through ongoing cost efficiency improvement, while increasing our operating free cash flow and shareholder returns by strengthening our cash generation capability.

FY2016 Results Highlights

For FY2016, we recorded an increase in both operating revenues and income, which were 4,584.6 billion yen (up 1.3% year-on-year) and 944.7 billion yen (up 20.7% year-on-year), respectively.

All of our medium-term targets announced in FY2014 were met one year ahead of plan, including the recovery of operating income, expansion of income from Smart life business and cost efficiency improvements. We also made steadfast progress in upgrading our LTE network in anticipation of our future 5G rollout, and successfully increased the number of "+d" partners. We thus believe that in FY2016 we made "a vibrant leap towards further growth beyond income recovery."

Among our efforts to improve returns to our customers, we added new billing plans to cater to the demands of our diverse customer base, especially long-term subscribers, customers with limited usage, young and elderly users.

For LTE, we implemented measures to strengthen and evolve our network through the use of new technologies. In March 2017, we launched a communication service that offers Japan’s fastest maximum download speed of 682Mbps. We also conducted effective speed measurements on our network, which showed very favorable results. We will continue our efforts to construct a network that provides customers with stable connections and a comfortable experience, while concurrently making further enhancements to prepare for the coming "age of 5G."

The number of our "+d" partners has grown to 236. Through our actions on "Declaration beyond," we will further accelerate value co-creation in collaboration with our partners.

As a result of company-wide efforts for cost efficiency improvement, we met our annual target of 110 billion yen in cost reductions for FY2016. Going forward, we will continue to seek further improvements.

FY2017, the first year in our "Declaration beyond," is the year in which we will "tackle evolution." While addressing proactive customer returns and the reinforcement of all our business foundations, we will aim to achieve steadfast income growth through cost efficiency improvements and other corporate efforts. In our first steps for customer returns this fiscal year, we will introduce the "Simple Plan" and "Share Pack 30," and also automatically transfer customers’ "docomo Points" (worth 30 billion yen) to "d POINTs". Additional customer return measures worth some several billions of yen are planned for implementation later this fiscal year.

Our target for operating free cash flow in FY2017 is 910 billion yen. We are also raising our dividend forecast to 100 yen per share, up 20 yen to express gratitude to our shareholders upon our 25th anniversary.

As always, we look forward to enjoying the continued support and understanding of our valued shareholders and investors.