Ntt Inc · TSE:9432
Ntt — NTT Docomo — Investor Day (2024)
36 slides from Ntt's investor day presentation, 2024
Slide 1: Consumer Business Growth Strategy
Consumer Business Growth Strategy Yoshiaki Maeda President & CEO NTT DOCOMO, INC. © NTT DOCOMO, INC. All rights reserved.
Slide 2: Yoshiaki Maeda
2000 Entered NTT DOCOMO, Inc. NTT DOCOMO, INC. 2013 General Manager, Smart Communication Services Dept. President & CEO 2017 Senior Vice President General Manager, Platform Business Dept. 2020 Executive Vice President Executive General Manager, Marketing Platform Division Yoshiaki Maeda 2022 Senior
Slide 3: New DOCOMO Group Vision
New DOCOMO Group Vision
Slide 4: New DOCOMO Group Vision
New DOCOMO Group Vision Foster new connections with Community technology and Invigorate various gatherings of people resourcefulness, and Business Consumer “connections” bring about affluence and Industry structural reform/ Create new life value DX support and lifestyles happiness to the world throu
Slide 5: Network
Network
Slide 6: Initiatives aimed at enhancing the quality of connections
Initiatives aimed at enhancing the quality of “Connections” ■Improved customer experience quality Aiming to be No. 1 in Opensignal*1, an index for evaluating mobile network experience [By the end of fiscal year 2024] *1: "Consistent Quality" Category ■ Network equipment: Performance and cost efficie
Slide 7: Enhancement of customer experience quality
Enhancement of customer experience quality Improve customer experience quality by expanding Sub6 base stations, etc. Expanding Sub6 areas, Expansion of Sub6 coverage mainly in urban areas (Service areas inside Yamanote Line) 130% Mar.31, 2024 Aug.31, 2024 110% March 2025 Strengthening measures for r
Slide 8: Network equipment: Performance & cost efficiency improvement
Network equipment: Performance & cost efficiency improvement Plan to broadly procure latest equipment offering high performance and efficiency from base station vendors in Japan and abroad. Recently received the supply of base station equipment from overseas vendor as a replacement for some of our e
Slide 9: Consumer business
Consumer business ■Customer base ■Mobile communication ARPU ■Evolution of growth areas
Slide 10: Consumer business strategy
Consumer business strategy Further revenue growth Partners/ merchants Finance Marketing solutions Entertainment Data Strengthen service mix New customer base utilization Telecommunications Expand customer base customer base Halt decline of ARPU “d POINT CLUB” membership © NTT DOCOMO, INC. All rights
Slide 11: Consumer business: Revenue aspiration
Consumer business: Revenue aspiration Aim to grow revenues by over ¥350 billion (compared to FY2024 level) by FY2027 Consumer business operating revenues (Billions of yen) 4,489 4,476.1 1,090.8 1,200 Smart life Consumer communications 3,424.8 3,333 FY23 FY24 FY27 * The breakdown data represent the a
Slide 12: Customer base
y, V4, Customer base
Slide 13: Customer base: Future vision
Customer base: Future vision Focus on customer acquisition to expand market share in anticipation of population decliner. Increase loyal users in the young/middle-age group leveraging our service mix. Subscriber share approx. 30% 【Priority targets】 Telecom customers as well as users of “d CARD GOLD”
Slide 14: Customer base reinforcement: Current status
Customer base reinforcement: Current status Net additions performance turning positive and churn rate showing improvement as a result of customer base reinforcement measures YOY changes of handset net additions (retail user) Handset churn rate (retail user) YOY improvement of +30,000 subs in FY24/1Q
Slide 15: Evaluation and future actions
Evaluation and future actions Subscriber acquisitions trending favorably, but issues remain in curbing outflows Subscriber acquisition (port-ins, new sub) Outflow prevention (port-outs, cancellation) Measures Evaluation Measures Evaluation • Handset price review • Promotion of cross-use through • St
Slide 16: Review of rate plan
Review of rate plan Increased “ahamo” data allowance to 30GB with no price changes Background of review Plan details after review From October Rate plan ahamo • With the growth of mobile data usage primarily among 2024 the digital native generation, increasing number of 30GB customers find 20GB mont
Slide 17: Channel reinforcement
Channel reinforcement Expand customer contact points and strengthen proposal capabilities by leveraging channel characteristics Direction of channel reinforcement Approaches in each channel • Strengthening sales promotion at mass retailers and Mass retailer docomo Shop commercial complexes Face-to-f
Slide 18: Mobile Communication ARPU
"Yd . . Mobile Communication ARPU
Slide 19: ARPU outlook
ARPU outlook Aim to reverse the ARPU trend after hitting the bottom during fiscal year ¥4,200 Retail accounts ¥4,140 Approx. ¥100 ¥4,090 ¥4,070 ¥4,050 All accounts ¥3,980 ¥3,950 FY22 FY23 FY24 FY25 FY26 FY27 © NTT DOCOMO, INC. All rights reserved. | 19
Slide 20: Utilization of three-tier price plan
Utilization of three-tier price plan Promote migration to “eximo” by acquiring new customers using “ahamo” and “irumo” and proposing cross-selling of services New Customers For customers who wish to Services enjoy stress-free unlimited data usage with generous support Cross sell For customers lookin
Slide 21: ARPU: Base trend
ARPU: Base trend Average revenue per user has been rising even when user stay on the same rate plan due to increased data usage Changes in data usage ARPU of irumo/eximo subscribers Data usage increasing every year driven by consumption of Percentage of large data-volume users has been increasin
Slide 22: Initiatives for ARPU growth
Initiatives for ARPU growth Accelerate ARPU increase leveraging video services and “Poikatsu” program 【Entertainment x Telecom】 Video offerings 【Finance x Telecom】 “Poikatsu” © NTT DOCOMO, INC. All rights reserved. | 22
Slide 23: Entertainment x Telecom: Video services
Entertainment x Telecom: Video services “Bakuage” subscriptions topped 2.5 million. Promote upsell by driving increased data usage. The percentage of “Bakuage” subscribers who use 7GB or more Upsell ratio for “Bakuage” subscribers Increase of users using 7GB or more after signing up Upsell ratio
Slide 24: Finance x Telecom: Poikatsu
Finance x Telecom: “Poikatsu” Total “Poikatsu” subscriptions topped 200 thousand. Aim to acquire over 1 million subs by March 31, 2025. Subscriber breakdown by plan before joining “d CARD” shopping basket size of “Poikatsu” subscribers “eximo Poikatsu” “eximo Poikatsu” contributing to upsell Als
Slide 25: eximo migration rate
“eximo” migration rate Aim to increase “eximo” migration rate by expanding data usage and leveraging “Poikatsu” program 60%+ 53% 47% (Started offering “eximo” plan in July 2023) * % of users who have switched to “eximo” plan among existing subscribers © NTT DOCOMO, INC. All rights reserved. | 25
Slide 26: irumo downsell effect
“irumo” downsell effect Due to the increase in “eximo” migration rate, the upsell effect of switching to “eximo” is expected to outweigh the “irumo” downsell effect in FY2024/4Q Revenue impact from “eximo”/ “irumo” migration ARPU before and after switch from old to new plan No decline in ARPU caused
Slide 27: Evolution of growth areas
Ya Evolution of growth areas
Slide 28: Evolution of entertainment business
Evolution of entertainment business Become a rights holder in the content field, which is upstream of the value chain, and monetize downstream through distribution/show. Aim for entertainment revenue to reach 310 billion yen in FY2027, a 30% increase from FY2024. IP development Monetize Casting, IP
Slide 29: Marketing leveraging entertainment
Marketing leveraging entertainment Expand telecommunications and finance/payment revenues through strong engagements that are unique to entertainment New customer acquisition Creation of IP content using entertainment as an axis Sale of goods at docomo Shops Cross-sell leveraging membership base Sup
Slide 30: Evolution of finance business
Evolution of finance business Aim to grow revenue size to ¥630 billion by FY2027, a 40% increase from FY2024 through the provision of a wide array of finance services Account Respond to the Become customer’s money life partner needs of both through our collaboration with Monex, Inc. and ORIX Payment
Slide 31: Expansion of marketing solutions business
Expansion of marketing solutions business Grow at a faster pace than market, aiming for revenue size of ¥270 billion in FY2027, a 50% increase from FY2024 Expand use of payment/point services Utilization of marketing solutions Enterprises (Wide range of sectors, e.g., manufacturers, distribution, re
Slide 32: Joint initiatives with Intage for marketing solutions
Joint initiatives with Intage for marketing solutions End-to-end support covering the entire value chain leveraging DOCOMO’s 100 million membership base and Intage’s industry-leading data collection capability ･ Procurement Market survey/ ･ Sales Promotion/ ･Production product development ･ Service
Slide 33: Summary
Summary
Slide 34: Targets for each indicator toward FY2027
Targets for each indicator toward FY2027 FY23 FY24 FY27 Consumer business revenues ¥4,476.1 billion ¥4,489 billion Up ¥350 billion or more Customer base 34.7% 34.7% 35% or higher (Retail user market share*) Retail user mobile ARPU ¥4,090 ¥4,070 ¥4,200 Incl.) Entertainment revenues ¥221.5billion ¥230
Slide 35: Foster new connections with technology and resourcefulness
Foster new connections with technology and resourcefulness, and bring about affluence and happiness to the world through exciting value creation © NTT DOCOMO, INC. All rights reserved. | 35
Slide 36: 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 or during the presentation session are based on a series of assumptions, projections, estimates, judgments and beliefs of