Ntt Inc · TSE:9432
Ntt — NTT Docomo — FY2023 Earnings Presentation
34 slides from Ntt's earnings presentation, May 10, 2024
Slide 1: FY2023 Financial Results and FY2024 Guidance
FY2023 Financial Results and FY2024 Guidance May 10, 2024 Changing worlds with you. NTT DOCOMO, INC. *The financial figures contained in this material are unaudited reference information prepared for internal management purposes. 1
Slide 2: FY2023 Results Highlights, Key Actions, FY2024 Guidance
1. FY2023 Results Highlights 2. Key Actions Planned for Each Business 3. FY2024 Guidance Changing worlds with you.
Slide 3: FY2023 Results Highlights
FY2023 Results Highlights Recorded year-on-year increase in both revenues and profit IFRS FY2022 FY2023 Year-on-year (Billions of yen) Full year Full year Changes (%) Operating revenues 6,059.0 6,140.0 +81.0 +1.3% Operating profit 1,093.9 1,144.4 +50.5 +4.6% Profit attributable to shareholders of
Slide 4: FY2023 results by segment
FY2023 Enterprise and Smart life recorded increase in revenues and profit results by segment Consumer communications comparable to prior year IFRS FY2022 FY2023 Year-on-year (Billions of yen) Full year Full year Changes (%) Operating revenues 1,805.7 1,881.7 +76.0 +4.2% Enterprise Operating prof
Slide 5: Key factors behind changes in FY2023 operating profit
Key factors behind Overall profit increased significantly driven mainly by accelerated growth in Enterprise and changes in FY2023 Smart life businesses, with Consumer communications maintaining prior year level as a result of operating profit improved equipment balance of payments and cost efficie
Slide 6: FY2023 Enterprise business revenues
FY2023 Enterprise revenues grew steadily driven mainly by integrated solutions, making favorable Enterprise business progress toward mid-term target of generating ¥2 trillion in enterprise revenues in FY2025 revenues Enterprise business revenues (Billions of yen) Medium-term target: FY2025 enterpr
Slide 7: FY2023 dPOINT Club membership
FY2023 Total no. of dPOINT Club members topped 100 million dPOINT Club dPOINT partner network continues to expand membership No. of dPOINT Club members (Millions) 100 mil members 94.8 89.1 82.0 dPOINT partners 75.1 (dPOINT/d-Barai merchants) 70.1 900,000 companies/3 mil shops 65.6 61.4 (As of Ma
Slide 8: FY2023 Finance/Payment transactions
FY2023 Finance/payment transactions grew to ¥13 trillion Finance/Payment transactions High rate of growth maintained in both credit card and QR code payments Finance/payment transactions (Payments made with credit card, QR code, etc.) (Billions of yen) ¥13.12 trillion 11,090 5-fold in 7 years 8,
Slide 9: FY2023 dCARD membership
FY2023 No. of dCARD GOLD holders topped 10 million dCARD membership GOLD card ratio reached 60%, the highest level in industry, making positive contributions to revenue growth dCARD members Total dCARD members (Millions) 17.75 mil 10.65 mil Growth rate from 2015 to 2023 after renewal of dCARD GO
Slide 10: FY2023 Marketing solutions revenues
FY2023 Achieved significant increase in revenues as a result of steadfast expansion of marketing DX Marketing solutions and capital/business alliance with INTAGE, Inc. revenues Over ¥130 billion ¥96 billion Year-on-year: +40％ “DOCOMO Retail DX program” for distributors/retailers Reinforcement
Slide 11: FY2023 5G subscriptions
FY2023 Total no. of DOCOMO 5G subs increased steadily, accounting for over 40% of total 5G subscriptions subscriptions Mobile phone service subscriptions (Million subs (Source :TCA)) 87.49 89.94 5G subscription rate 20.60 5G* YoY (As of Mar, 31, 2024): +44% 29.74 40%* 4G* 39.72 3G* 3.4 Modules 17.
Slide 12: FY2023 Mobile communication ARPU
FY2023 Mobile communication Pace of decline of mobile communication ARPU slowed ARPU Mobile communication ARPU Changes in ARPU: Peer comparison* (Yen) 3,980 yen (Full year actual) DOCOMO Company A Company B FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 * Comparison of mobile-related ARPU
Slide 13: Key Actions Planned for Each Business
１．FY2023 Results Highlights ２．Key Actions Planned for Each Business ３．FY2024 Guidance
Slide 14: Consumer: Enhanced customer experience value
<Consumer> Aim to enhance customer experience by offering great value and convenience through Enhanced customer experience value “dPOINT” life, further improving its ease of use Kid’s Keitai Child- raising Investment, support / loan, Child ・ insurance オリックス・クレジット monitoring Peace -of- mind Shoppin
Slide 15: Consumer: FY2024 actions
<Consumer> Propose optimal service mix catered to the individual needs of each customer with seamless FY2024 actions communication Newly launch/further refine service offerings Expand merchants Communication Smart life Non-DOCOMO services services Non-DOCOMO mobile user mobile user Set up proposal
Slide 16: Consumer: EC expansion with Amazon
<Consumer> Further enhance customer experience leveraging strategic alliance EC expansion with Amazon © NTT DOCOMO, INC. All rights reserved. | 16
Slide 17: Consumer: Evolution of entertainment/finance services
<Consumer> Evolution of entertainment/ Continue implementing measures aimed at improving the attractiveness of each service finance services Video services Investment Periodic investment service via dCARD 2024 summer (planned) Purchase of investment trust using dPOINT 2024 autumn (planned) G
Slide 18: Consumer: Expansion of merchant network
<Consumer> Continue to expand merchant network, aiming to build an attractive economic sphere Expansion of merchant network Provide marketing solutions to partners for their growth Expansion of merchant network Connecting partners and customers through marketing DX Merchants For distributors/ret
Slide 19: Consumer: Service mix proposals
<Consumer> Strengthen proposals through service mixes, with the aim of expanding both revenues and Service mix proposals customer base Communication & Video Communication & Payment Use of multiple services Planned for launch summer/fall 2024 @ 2024 Disney & Upsell communications Upsell communicati
Slide 20: Consumer Service Company for further growth
<Consumer> For further growth Consolidate consumer-related organizations to drive enhancement of customer experience July 2022 July 2024 New DOCOMO Group Operate consumer-related organizations in integrated way established Newly create Consumer Service Company Smart Life Business Company Effects o
Slide 21: Enterprise: Initiatives for large enterprises
<Enterprise> Initiatives for large enterprises Roll-out of solutions/services leveraging advanced technologies New solutions that leverage “tsuzumi” Enhance value of IoT solutions through 5G consulting More than 200 cases of introduction consultations. Started offering communication environment co
Slide 22: Enterprise: Initiatives for small and medium-sized companies
<Enterprise> Initiatives for small and medium-sized Assist regional communities and companies solve issues with mobile + solutions companies Regional co-creation solutions “DOCOMO Business Package” Solution of regional issues through the use of LGPF* Strengthen problem-solving assistance capabilit
Slide 23: Network reinforcement
Network Accelerate implementation of initiatives to construct a network reinforcement that resilient to environmental changes and disaster Improve network quality perceived by customers Strengthen network resilience Early detection of Build network resilient against experienced quality environment
Slide 24: Initiatives for revenue generation using network assets
Initiatives for Accelerate overseas rollout of OREX using OREX SAI as a hub revenue generation using network assets Push forward field trials with overseas operators for early commercial launch Commercial launch Customer (Overseas telcos) FY23-24 Procure Sell, build, operate 販売・構築・運用 Verificatio
Slide 25: Reinforcement of global business
Reinforcement of Global operating holding company, “NTT DOCOMO Global, Inc.” to be established in July 2024 global business Accelerate overseas business deployment putting NTT Digital and OREX SAI* under its control Plan to establish “NTT DOCOMO Global, Inc.” in July 2024 to expand DOCOMO grou
Slide 26: Sustainability actions
Promote utilization of renewable energy as part of Scope 2 reduction measures. Sustainability actions Steadily implement measures toward achievement of net-zero emissions by 2040. GHG emissions*1 and key initiatives Utilization of renewable energy Supply chain (Scope3) FY2023 renewable energy ut
Slide 27: FY2024 Guidance
1. FY2023 Results Highlights 2. Key Actions Planned for Each Business 3. FY2024 Guidance
Slide 28: FY2024 Guidance
FY2024 Aim to achieve year-on-year increase in both revenues and profit Guidance IFRS FY2023 Year-on-year (Billions of yen) FY2024 Actual Guidance Changes (%) Operating revenues 6,140.0 6,244 +104.0 +1.7% Operating profit 1,144.4 1,170 +25.6 +2.2% EBITDA 1,867.8 1,891 +23.2 +1.2% Profit attributab
Slide 29: FY2024 Guidance by segment
FY2024 Aim to achieve year-on-year increase in revenues and profit in both Consumer and Enterprise Guidance by segment businesses IFRS FY2023 FY2024 Year-on-year (Billions of yen) Actual Guidance Changes (%) Operating revenues 4,476.1 4,489 +12.9 +0.3% Smart life* 1,090.8 1,200 +109.2 +10.0% Consu
Slide 30: Growth of operating profit
Growth of operating Sustained increase projected for operating profit driven by profit business expansion in growth areas (Billions of yen) 1,170.0 Asset utilization 1,144.4 ▲295 1,093.9 11,149 FY2022 FY2023 FY2024 © NTT DOCOMO, INC. All rights reserved. | 30
Slide 31: Changing worlds with you.
Changing worlds with you. docomo
Slide 32: Appendix
Appendix BSREECHREBATUC. docomo
Slide 33: Progress of medium-term management targets
Progress of medium- term management Expansion of growth areas and efficiency improvement of existing businesses targets FY2023 FY2024 FY2025 Actual Guidance Targets Revenue contribution of Smart life & 48% 51% 50% or higher Growth areas Enterprise businesses Enterprise business ¥2 trillion ¥1,881.
Slide 34: 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