Message from the CEO
Message from the CEO to our shareholders and investors.
2019 New Year's Greetings from the CEO
As we kick off 2019, I would like to extend my warmest greetings and express some thoughts for the new year.
Looking back on 2018
Positioning 2018 as "the year to innovate and take action," we have steadily implemented various measures to deliver on our Medium-Term Strategy 2020 "Declaration beyond," while tackling the transformation of our business foundation.
In May, we commenced a new style of business management centered on "d POINT CLUB membership" and rolled out new services, e.g., "d Payment" and "Point Investment," that are designed to make our point program even more compelling to customers.
For Japan, 2018 was a year marked by numerous natural disasters such as earthquakes and floods. We responded to these emergencies joining forces across different regions to fulfill "DOCOMO's mission" to secure the lifeline service of telecommunications, and received many comments of appreciation from our customers.
In October, we celebrated the 20th anniversary of our initial public offering. I would like to take this opportunity to once again extend my heartfelt gratitude to our valued shareholders and other stakeholders for your continued support and patronage over the years.
To live up to the expectations of our shareholders, we decided to raise the planned dividend payment to a total of 110 yen per share for the fiscal year ending March 31, 2019, up 10 yen from the previous fiscal year, and executed in December 2018 the largest scale share repurchase program in our corporate history totaling 600 billion yen. We also reviewed our policy and decided to cancel all treasury shares in our possession going forward.
DOCOMO is selected as a constituent of three globally prominent ESG indices and is also included in all ESG indices adopted by the Government Pension Investment Fund (GPIF) of Japan. CSR does not exist separately from our business activities; it is in fact synonymous with them. We will continually devote to ourselves to building a sustainable society.
Positioning of 2019
In various facets of society, we are witnessing evolutions of services triggered by "digital transformation" that enable cashless payments and next-generation mobility, etc., which have brought about changes in the competitive dynamics. With the scheduled market entry by a new player, the mobile industry is drawing the attention of the society and expectation of customers is mounting.
We are starting 2019 under these circumstances.
We consider 2019 as "the year of transition for our next stage of growth in the 2020's." In the medium-term management strategy that we unveiled in October 2018, we clearly declared to make a strategic shift towards "business management pivoted on membership base" and "5G roll-out and business creation." Specifically, we raised three goals to achieve a sustainable growth in the 2020's despite a turbulent environment: (1) "Execution of customer returns and evolution of customer touchpoints"; (2) "Revenue opportunity creation centered on customer base"; and (3) "Growth driven by 5G". We will aim to transform ourselves by tackling these goals in 2019.
Initiatives for 2019
With respect to the first goal, for our customers, we will provide returns by introducing a new rate structure that is simple and offers great value. We will also proactively encourage migration of subscribers from 3G feature phones to smartphones.
For the second goal, we will further accelerate digital marketing tailored to each customer leveraging the data that we have accumulated through our long-term relationship with customers, and thereby reinforce our customer base that is built on "members." Meanwhile, we will also strive to expand our merchant and enterprise partners. By connecting our partners with our reinforced customer base using the assets we own, we will create new profit opportunities in the "non-telecommunications" domain, e.g., Smart life services and enterprise solutions, etc.
As for the third goal, 5G, we plan to at last launch its pre-commercial service in conjunction with the World Cup Rugby games in September 2019. Taking advantage of the "high-speed and large-capacity" transmission capability of 5G, we will allow customers to take an early glimpse of 5G services with the delivery of new sensory experiences in sports viewing and e-sports events, etc. Also, in collaboration with over 2,000 partners, we will create new services that can solve socials issues relating to industries, medical services and disaster preparedness/prevention and contribute to regional vitalization. We will actively communicate these undertakings to society to boost the momentum of 5G in the run up to its full commercial service launch scheduled for 2020.
There are less than 570 days to go until the Tokyo 2020 Olympic and Paralympic games. Perceiving this event as the biggest opportunity for us to showcase 5G after its commercial launch, we will step up our preparatory efforts so that both our domestic and overseas customers can enjoy the technical prowess, superior quality and splendid offerings of NTT DOCOMO.
As we move forward in our endeavors, I ask for the continued support of our valued shareholders and investors.
President & CEO
NTT DOCOMO, INC.
- NTT DOCOMO is a Gold Partner (Telecommunications Services) of the Olympic and Paralympic Games Tokyo 2020.