Slide 1: Opening remarks
Thank you for taking your time for our meeting today. I will now begin my presentation using the slides. Since we already announced our financial results for the fiscal year ended March 31, 2021 (FY2020) yesterday, I will skip that part and begin from the guidance for FY2021. If you have any questio
Slide 2: Agenda
docomo 1. FY2020 Results Highlights 2. FY2021 Guidance and Principal Actions
Slide 3: FY2020 Results Highlights
FY2020 Results Highlights ¢°como FY2019 FY2020 Changes Changes (Billions of yen) ~~ ad (2) — (1) (%) Operating revenues 4,651.3} 4,725.2} +73.9 +1.6% Operating profit 854.7 913.2} +58.6 +6.9% Profit attributable to shareholders 591.5 629.0; +37.5 +6.3% of NTT DOCOMO, INC. Adjusted free cash flow 893
Slide 4: Results by Segment
Results by Segment docomo C=) FY2019 FY2020 Ch (Billions of yen) full year full year oa (1) (2) Telecommunications Coenen aeniees 3,687.0 3,684.3 “2.7 business . Operating profit 706.5 721.1 +14.6 Smart life Operating revenues 543.7 616.2) +72.5 business Operating profit 32.5 59.4 +26.9 Other Operat
Slide 5: Key Factors behind Changes in Operating Profit
Key Factors behind Changes in Operating Profit docomo (Billions of yen) i H H i Other H Selling | Other operating | Selling expenses: | operating revenues: | revenues: Down 69.8 | expenses: Mobile Up 72.8 | Down32.5 t p 46. communications . 913.2 services revenues { | Network- 854.7 down 16.7 relate
Slide 6: Key Operational Indicators (1)
Key Operational Indicators (1) décomo a a Changes “d POINT CLUB” members (Million) 75.09 81.95 +9% “d POINT CARD” registrants 43.26 50.78 +17% “d POINTS” used (Billion points) 199.8 249.3 +25% “d POINTS” used at partners’ stores, etc. 121.1 176.0 +45% ee sss 82.63 43% 5G subscriptions 0.014 3:09 oa
Slide 7: Key Operational Indicators (2)
Key Operational Indicators (2) d5como FY2019 FY2020 (1) (2) Finance/Payment transactions handled 5,320.0 6,980.0 +31% (Billions of yen) “d CARD” transactions 4,150.0 5,250.0 +27% Changes “d Payment” transactions 399.0 810.0 +103% “d CARD” members (Nillion members) 12.97 14.37 +11% “d CARD GOLD” 6.85
Slide 8: 2. FY2021 Guidance and Principal Actions
1. FY2020 Results Highlights docomo 2. FY2021 Guidance and Principal Actions
Slide 9: FY2021 Guidance
Jumping to Page 8, our guidance for FY2021. We are projecting an increase in both revenues and profits. Operating revenues is estimated to be 4,790 billion yen, up 64.8 billion yen year-on-year, and operating profit 920 billion yen, up 6.8 billion yen year-on-year. Capital expenditure is projected t
Slide 10: FY2021 Guidance by Segment
Page 9 presents our guidance by segment. In telecommunications business, we project a decrease in mobile communications services revenues due mainly to the launch of new rate plans, “ahamo” and “Giga Plan”. However, these rate plans will also bring about a positive impact of increasing our customer
Slide 11: Transforming into a new DOCOMO
FY2021 is the year for us to tackle the challenge to transform ourselves into a new DOCOMO. This page lists up the phrases that I convey strongly to our employees to explain this new journey. One is the pursuit of customer-first. Previously, we had focused on customer satisfaction, but from now, we
Slide 12: Principal actions planned for FY2021
From here, I will briefly explain the principal actions planned for FY2021. We have identified key initiatives for each business, i.e., telecommunications, Smart life, and enterprise.
Slide 13: Expanding customer base and 5G transition
First, we will endeavor to expand our customer base, attaching a particular emphasis on the transition to 5G. The total number of “ahamo” subscriptions reached over 1 million as of April 30. While we cannot predict how much further the subscriptions will grow, this plan is extremely well received by
Slide 14: 5G coverage expansion
To accelerate the transition to 5G, coverage expansion becomes important. We have completed the roll out of 7,100 5G base stations by the end of FY2020, and we aim to increase the number to 20,000 within FY2021 aiming to build 5G coverage that exceeds those of other carriers. As exemplified by the s
Slide 15: Digitalization of sales channels
Regarding the digitalization of our sales channels, which basically consist of the three elements of call centers, digital channel and shops, we plan to introduce AI- based customer support in our call centers and promote digital transformation of brick-and-mortar stores, so we can operate our busin
Slide 16: Data science talent
About our data science talent. Even if we sell our products and services via digital channels, it would be meaningless if we cannot utilize the data we accumulate from our sales activities. We will therefore implement measures that will allow us to utilize customers’ purchase data and usage logs, et
Slide 17: Finance/payment business
Our finance/payment business has become a major driver for the growth of our Smart life (non-telecom) business. The expansion of breadth is very important, but at the same time, it is also essential to have customers use “d CARD” and “d Payment” in their everyday activities. We want to make our serv
Slide 18: Creation of new lifestyles
This is about the creation of new lifestyles. Because we have committed to step up our sales efforts for 5G, it is indispensable to enrich our video content including those that offer high-quality audio. We will expand our portfolio of movies, drama and “dTV” content, and increase the variety of VR/
Slide 19: 5G solutions for enterprise
As for 5G solutions, we will first aim to develop many 5G solutions in Japan and expand their adoption among the enterprise customers. Meanwhile, we are also considering how to roll out these solutions in other global markets. For the sale of these solutions, we can capitalize on the sales channels
Slide 20: Business d Account
About “Business d Account”. This is a service intended for the domestic Japanese market. This service is designed for businesses (as opposed to consumers) and companies that sign up for this service will be able to assign a “d Account” ID to each employee. With a single ID, the employee users will b
Slide 21: Sustainability management
Finally, about sustainability management. Because we consume a large amount of energy in our business operations, decarbonization is positioned as one of our important pillars for sustainability. In addition to saving energy consumption, we are required to actively introduce green/renewable energy w
Slide 22: The new of today, the norm of tomorrow
The new of today, the norm of tomorrow docomo 21
Slide 23: Appendix
Appendix 22
Slide 24: Principal Services Included in Each Reportable Segment
Principal Services, etc., Included in Each Reportable Segment Telecommunications business @ Mobile communications services + 5G services * LTE (Xi) services *FOMA services (3G) * International services *Sales of handset/equipment for each service etc. Optical fiber broadband service and other teleco
Slide 25: Special Note Regarding Forward-Looking Statements
Special Note Regarding Forward-Looking Statements forward-looking statements and projected figures concerning our future performance contained or referred to inthis document are based on a series of umptions, projections, estimates, judgments and beliefs of the management that have been made in ligh