Ntt Inc · TSE:9432
Ntt — NTT Docomo — FY2021 Earnings Presentation
33 slides from Ntt's earnings presentation, May 12, 2022
Slide 1: FY2021 Financial Results and FY2022 Guidance
FY2021 Financial Results and FY2022 Guidance May 12, 2022
Slide 2: FY2021 Results Highlights; FY2022 Guidance and Principal Actions
1. FY2021 Results Highlights 2. FY2022 Guidance and Principal Actions 1
Slide 3: FY2021 Results Highlights (DOCOMO group/Integrated ICT)
FY2021 Results Highlights (DOCOMO group/Integrated ICT) IFRS (Billions of yen) FY2020 FY2021 Changes full year full year Changes (1) (2) (2) –(1) Operating revenues 5,880.9 5,870.2 -10.7 -0.2% Operating profit 1,060.0 1,072.5 +12.6 +1.2% Profit attributable to shareholders 749.6 752.1 +2.5 +0.3% of
Slide 4: FY2021 Results Highlights (Former DOCOMO group)
FY2021 Results Highlights (Former DOCOMO group) IFRS (Billions of yen) FY2020 FY2021 Changes full year full year Changes (1) (2) (2) –(1) Operating revenues 4,725.2 4,713.8 -11.4 -0.2% Operating profit 913.2 927.9 +14.7 +1.6% Profit attributable to shareholders 629.0 648.0 +19.0 +3.0% of NTT DOCOMO,
Slide 5: FY2021 Results Highlights (Communications group)
FY2021 Results Highlights (Communications group) (Billions of yen) FY2020 FY2021 Changes full year full year Changes (1) (2) (2) –(1) Operating revenues 1,070.4 1,047.6 -22.8 -2.1% Operating profit 137.3 135.1 -2.2 -1.6% Profit attributable to shareholders 115.7 100.5 -15.1 -13.1% of NTT DOCOMO, INC
Slide 6: FY2021 Results Summary
FY2021 Results Summary Achieved year-on-year profit growth for total group • Revenues decreased but profit grew over the previous year. Delivered profit increase in line with guidance. • Implemented strategic rate reductions, recovering competitive momentum toward expansion of customer base Former ✓
Slide 7: FY2022 Guidance and Principal Actions
1. FY2021 Results Highlights 2. FY2022 Guidance and Principal Actions 6
Slide 8: Growth and Business Portfolio Transformation
Growth and Business Portfolio Transformation Transform business portfolio to become an integrated ICT company and achieve sustainable growth 【Operating revenues】 Enterprise business • Expand growth domains, e.g., mobile, cloud, solutions, etc. Over Generate • Offer value to customers—from large corp
Slide 9: FY2022 Guidance (DOCOMO Group/ Integrated ICT)
FY2022 Guidance (DOCOMO Group/ Integrated ICT) IFRS FY2021 FY2022 Changes (Billions of yen) full year full year (2) –(1) (1) (2) Operating revenues 5,870.2 5,984.0 +113.8 Operating profit 1,072.5 1,084.0 +11.5 Profit attributable to shareholders 752.1 748.0 -4.1 of NTT DOCOMO, INC. Capital expenditu
Slide 10: FY2022 Guidance by Segment (DOCOMO Group/ Integrated ICT)
FY2022 Guidance by Segment (DOCOMO Group/ Integrated ICT) IFRS FY2021 FY2022 Changes (Billions of yen) full year full year (2) － (1) (1) * (2) Operating revenues 1,719.5 1,774.0 +54.5 Enterprise Operating profit 251.6 279.0 +27.4 Operating revenues 960.4 1,081.0 +120.6 Smart life Operating profit 19
Slide 11: Enterprise
Enterprise 10
Slide 12: Growth of Enterprise Business
Growth of Enterprise Business Achieve steadfast growth by expanding revenues through sales force integration of DOCOMO and Communications and reinforcement of mobile/cloud/solutions, etc., while improving cost efficiency. Operating revenues (billions of yen) Operating profit (billions of yen) 1,774.
Slide 13: Convergence of Mobile/Fixed/Cloud Services
Convergence of Mobile/Fixed/Cloud Services One-stop provision of mobile/fixed/cloud services that can be freely combined and used by all customers Package offering of mobile/fixed voice services Faster and centralized mobile access & cloud connection (Started October/end 2021) (Started March/end 202
Slide 14: Value Proposition to Large Corporations
Value Proposition to Large Corporations Expand Smart X/BBX businesses through mobile/cloud-first innovative solutions and co-creation with partners, thereby contributing to DX of society and industry. Co-creation with partners Reinforcement of advanced services/solutions 5G Open Partner Program: Ove
Slide 15: Value Proposition to SME Customers
Value Proposition to SME Customers Help realize regional vitalization and decentralized society by stepping up DX support to all enterprise customers/municipal governments in each region. Strengthen nationwide sales structure/touchpoints Enrichment of DX support services DX support structure compris
Slide 16: Smart Life
Smart Life 15
Slide 17: Further Expansion of Smart Life Business
Further Expansion of Smart Life Business Achieve growth driven mainly by marketing solutions and finance/payment services, and step up actions to address new domains, e.g., roll-out of “docomo Denki”, etc. Operating revenues (billions of yen) Operating profit (billions of yen) Growth of marketing so
Slide 18: Actions for Business Expansion
Actions for Business Expansion Aim for further growth leveraging our membership base and data. Expansion of marketing solutions Further growth of finance business Roll-out of “docomo Denki” Support value chain of member stores Strengthen customer base through cross Expand transactions by increasing
Slide 19: Strengthen New Business Domains
Strengthen New Business Domains Construct a one-stop ecosystem in new business areas (e.g., medical, XR, etc.) at an early date. Health care/Medical XR Provide services ranging from health management Create new market and expand business through to treatment to prescription one-stop offering from se
Slide 20: Consumer Communications
Consumer Communications 19
Slide 21: Expansion of Customer Base
Expansion of Customer Base Expand customer base by offering rate plans catered to diverse customer needs and promoting cross-sale of life-related services Enrichment of rate plans 5G subscriptions (Million subs) 22.50 Cross-sale of life-related services 11.53 3.09 FY2020 FY2021 FY2022 20
Slide 22: Channel Reform
Channel Reform Evolution to hybrid channel converging brick & mortal with online. Remote customer attendance docomo Shops Provision of online consulting service Utilize existing ～Enable anyone to casually use online services ～ resources for remote Optimal shop count/size for each area customer atten
Slide 23: Realize High-Quality & Economical Network
Realize High-Quality & Economical Network Pursue 5G customer experience that offers speed and coverage superior to the competitions’ and achieve transformation to a more economical and highly reliable network. Pursue economic efficiency & reliability enhancement 5G customer experience superior to th
Slide 24: ESG Initiatives
ESG Initiatives Actions toward delivery of carbon neutrality target by 2030 ◼ Promoted green initiatives at data centers, e.g., increased energy savings and provision of green power using renewable energy. Approx. 60% saving ◼ Use of renewable energy* disproportionally higher than the Max. 10％ reduc
Slide 25: Reinforcement of Business Operation Structure
To take effect July 1 Reinforcement of Business Operation Structure Accelerate further growth by Support customers in all regions adopting company structure for by strengthening regional Smart life business management structure Smart Life company DOCOMO ◼ Strengthen and optimize business operations
Slide 26: New Structure from July 1
New Structure from July 1 Integrate functions and clarify business responsibilities to accelerate the execution of medium-term strategy 25
Slide 27: Changing worlds with you.
Changing worlds with you. docomo 26
Slide 28: Appendix
Appendix 27
Slide 29: (Ref) Key Operational Indicators (1)
(Ref) Key Operational Indicators (1) FY2020 FY2021 Changes “d POINT CLUB” members (Million) 81.95 89.08 +9% “d POINT CARD” registrants 50.78 57.86 +14% “d POINTs” used (Billion points) 249.3 270.3 +8% “d POINTS” used at partners’ stores, etc. 176.0 208.1 +18% Mobile telecommunications service subscr
Slide 30: (Ref) Key Operational Indicators (2)
(Ref) Key Operational Indicators (2) FY2020 FY2021 Changes Finance/Payment transactions handled (Billions of yen) 6,980.0 8,860.0 +27% “d CARD” transactions 5,250.0 6,610.0 +26% “d Payment” transactions 810.0 1,256.0 +55% “d CARD” members (Million members) 14.37 15.67 +9% “d CARD GOLD” 7.97 8.89 +12
Slide 31: FY2021 Results by Segment (former DOCOMO Group)
FY2021 Results by Segment (former DOCOMO Group) IFRS FY2020 FY2021 (Billions of yen) Changes full year full year (2) –(1) (1) (2) Telecommunications Operating revenues 3,684.3 3,660.8 -23.6 business Operating profit 721.1 686.8 -34.3 Smart life Operating revenues 616.2 619.0 +2.8 business Operating
Slide 32: Change of Reportable Segment (Overview)
Change of Reportable Segment (Overview) Former segments New segments Mobile communications services For enterprise customers: Optical fiber broadband service Mobile communications services Telecom Other telecommunications services Fixed-line communications services Enterprise Device sales Revenues:
Slide 33: Special Note Regarding Forward-Looking Statements
Special Note Regarding Forward-Looking Statements All forward-looking statements and projected figures concerning our future performance contained or referred to in this document are based on a series of assumptions, projections, estimates, judgments and beliefs of the management that have been made