Form 6-K
Table of Contents

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of January, 2010.
Commission File Number: 001-31221
Total number of pages: 65
 
NTT DoCoMo, Inc.
(Translation of registrant’s name into English)
 
Sanno Park Tower 11-1, Nagata-cho 2-chome
Chiyoda-ku, Tokyo 100-6150
Japan
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
     
Form 20-F þ   Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
     
Yes o   No þ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
 
 

 

 


 

Information furnished in this form:
     
  Earnings release dated January 29, 2010 announcing the company’s results for the nine months ended December 31, 2009
  Presentation material

 

 


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
  NTT DoCoMo, Inc.
 
 
Date: January 29, 2010  By:   /S/ OSAMU HIROKADO    
    Osamu Hirokado   
    Head of Investor Relations   
 

 

 


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(DOCOMO LOGO)

Financial Statements

  January 29, 2010 (FASF LOGO)
For the Nine Months Ended December 31, 2009   [U.S. GAAP]                        
     
Name of registrant:
  NTT DoCoMo, Inc. (URL http://www.nttdocomo.co.jp/)
Code No.:
  9437 
Stock exchange on which the Company’s shares are listed:
  Tokyo Stock Exchange-First Section
Representative:
  Ryuji Yamada, Representative Director, President and Chief Executive Officer
Contact:
  Ken Takeuchi, Senior Manager, General Affairs Department / TEL +81-3-5156-1111
Scheduled date for filing of quarterly report:
  February 3, 2010
1. Consolidated Financial Results for the Nine Months Ended December 31, 2009 (April 1, 2009 – December 31, 2009)
(1)  
Consolidated Results of Operations
   
 
          Amounts are rounded off to the nearest 1 million yen.    
                                                 
    (Millions of yen)  
                                    Income before  
    Operating Revenues     Operating Income     Income Taxes  
Nine months ended December 31, 2009
    3,242,364       (4.0 )%     702,653       (5.9 )%     701,687       (1.1 )%
Nine months ended December 31, 2008
    3,378,760             746,785             709,393        
   
(Percentages above represent changes compared to the corresponding previous quarterly period)
Since “Net Income” includes noncontrolling interests from the fiscal year ending March 31, 2010 in accordance with the accounting pronouncement issued in December 2007 relating to noncontrolling interests, “Net Income” is not presented on this page. For further details, see “Noncontrolling Interests in Consolidated Financial Statements” on page 3.
     
(2)     Consolidated Financial Position    
                                 
            (Millions of yen, except per share amounts)  
                    Equity Ratio     NTT DoCoMo, Inc.  
            NTT DoCoMo, Inc.     (Ratio of NTT DoCoMo, Inc.     Shareholders’ Equity  
    Total Assets     Shareholders’ Equity     Shareholders’ Equity to Total Assets)     per Share  
December 31, 2009
    6,494,617       4,528,168       69.7 %   108,835.17 (yen)
March 31, 2009
    6,488,220       4,341,585       66.9 %   103,965.64 (yen)
   
“NTT DoCoMo, Inc. Shareholders’ Equity” was previously referred to as “Shareholders’ Equity” in prior years.
2. Dividends
                                         
    Cash dividends per share (yen)  
    End of the first     End of the second     End of the third              
    quarter     quarter     quarter     Year-end     Total  
Year ended March 31, 2009
          2,400.00             2,400.00       4,800.00  
Year ending March 31, 2010
          2,600.00                    
Year ending March 31, 2010 (Forecasts)
                      2,600.00       5,200.00  
   
Change in forecasts of dividends during the three months ended December 31, 2009: None

 

 


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3. Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2010 (April 1, 2009 – March 31, 2010)
                                                 
    (Millions of yen)  
    Operating                     Income before  
    Revenues     Operating Income     Income Taxes  
Year ending March 31, 2010
    4,276,000       (3.9 )%     830,000       (0.1 )%     825,000       5.7 %
   
(Percentages above represent changes compared to the previous year)
Change in earnings forecasts for the fiscal year ending March 31, 2010 during the three months ended December 31, 2009: No
Since “Net Income” includes noncontrolling interests from the fiscal year ending March 31, 2010 in accordance with the accounting pronouncement issued in December 2007 relating to noncontrolling interests, “Net Income” for the Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2010 is not presented on this page. For further details, see “Noncontrolling Interests in Consolidated Financial Statements” on page 3.
4. Others
                         
(1)
  Changes in significant consolidated subsidiaries (which resulted in changes in scope of consolidation)   None        
(2)
  Application of accounting which is simplified or exceptional for quarterly consolidated financial statements   None        
(3)   Changes in significant accounting policies, procedures and presentation in quarterly consolidated financial statements                
 
  (i) Changes due to revision of accounting standards and other regulations:   Yes        
 
  (ii) Others:   None        
    (See more information on page 13.)                
(4)   Number of issued shares (common stock)                
 
  (i) Number of issued shares (inclusive of treasury stock):   As of December 31, 2009:   43,950,000 shares        
 
      As of March 31, 2009:   43,950,000 shares        
 
                       
 
  (ii) Number of treasury stock:   As of December 31, 2009:   2,344,258 shares        
 
      As of March 31, 2009:   2,190,193 shares        
 
                       
 
 
(iii) Number of weighted average common shares outstanding:
  For the nine months ended December 31, 2009:   41,738,464 shares        
 
      For the nine months ended December 31, 2008:   42,341,664 shares        
     
*  
Explanation for forecasts of operation and other notes:
   
With regard to the assumptions and other related matters concerning consolidated financial results forecasts for the fiscal year ending March 31, 2010, refer to pages 12 and 22.
 
   
Consolidated financial statements in this earnings release are unaudited.

 

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Noncontrolling Interests in Consolidated Financial Statements
Effective April 1, 2009, DOCOMO adopted the accounting pronouncement issued in December 2007 relating to noncontrolling interests in consolidated financial statements. This pronouncement requires “Noncontrolling interests”, which was previously referred to as “Minority interests”, held by parties other than the parent be clearly identified, labeled and presented in the consolidated statement of financial position within equity, but separate from the parent’s equity. This pronouncement also requires changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary be accounted for as equity transactions.
Upon the adoption of this pronouncement, “Net income”, which includes net income or loss attributable to noncontrolling interests, and “Net income attributable to NTT DoCoMo, Inc.” are both presented in the consolidated statements of income and comprehensive income. “Net Income Attributable to NTT DoCoMo, Inc.”, “Basic Earnings per Share Attributable to NTT DoCoMo, Inc.” and “Diluted Earnings per Share Attributable to NTT DoCoMo, Inc.” for the Consolidated Financial Results for the Nine Months Ended December 31, 2008 and 2009, as well as “Net Income Attributable to NTT DoCoMo, Inc.” and “Basic Earnings per Share Attributable to NTT DoCoMo, Inc.” for the Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2010 are as follows:
Consolidated Financial Results for the Nine Months Ended December 31, 2009 (April 1, 2009 – December 31, 2009)
Consolidated Results of Operations
                                 
    (Millions of yen, except per share amounts)  
                    Basic Earnings per Share     Diluted Earnings per Share  
    Net Income Attributable to     Attributable to     Attributable to  
    NTT DoCoMo, Inc.*     NTT DoCoMo, Inc.     NTT DoCoMo, Inc.  
Nine months ended December 31, 2009
    419,346       (4.2 )%   10,046.99 (yen)      
Nine months ended December 31, 2008
    437,705           10,337.45 (yen)      
   
(Percentage above represents changes compared to the corresponding previous quarterly period)
Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2010 (April 1, 2009 – March 31, 2010)
                         
    (Millions of yen, except per share amounts)  
                    Basic Earnings per Share  
    Net Income Attributable to     Attributable to  
    NTT DoCoMo, Inc.*     NTT DoCoMo, Inc.  
Year ending March 31, 2010
    493,000       4.5 %   11,849.33 (yen)
   
(Percentage above represents changes compared to the previous year)
     
*  
“Net Income Attributable to NTT DoCoMo, Inc.” is calculated in the same manner as “Net income” for the fiscal year ended March 31, 2009.

 

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(DOCOMO LOGO)
Earnings Release for the Nine Months Ended December 31, 2009
<< 1. Operating Results >>
1. Business Overview
As Japan’s mobile phone market has continued to mature in line with the rise in cellular penetration rate, competition among operators has intensified in such areas as acquisition of subscribers and further improvement of service offerings.
Under these market conditions, we have moved ahead with our business transformation initiatives from a customer-centric perspective based on our new action plan, “Change and Challenge”. We aim to further grow our revenues by offering a wide array of services catered to the diverse needs of customers, thereby expanding the data communications market.
During the third quarter of this fiscal year, we released 20 different models in our “2009 winter/spring handset” lineup, which are designed to further accelerate personalization of services and expand subscribers’ video usage. In conjunction with the release of the new handsets, we introduced new features and services, including the Auto-GPS function that enables the delivery of information linked with user’s current location and “MyArea” wireless coverage for homes, which creates a private FOMA area in the home as stable wireless environment for high-speed packet communication and also detects registered phones entering/leaving the private FOMA area through a small femtocell base station. In addition, we have taken various steps aimed at enhancing customer satisfaction, such as the launch of “Mail Tsukai-hodai”, which allows FOMA users to send and receive i-mode mails within Japan on an unlimited basis for a flat monthly rate, as part of our efforts to provide customers with more affordable and easy-to-use billing options. As a result of the foregoing, we successfully maintained our churn rate at low levels.
For the three months ended December 31, 2009, we recorded operating revenues and operating income of ¥1,096.6 billion (a decrease of ¥14.4 billion from the same period of the prior year) and ¥217.4 billion (an increase of ¥47.6 billion from the same period of the prior year), respectively. Income before income taxes was ¥221.8 billion and net income attributable to NTT DoCoMo, Inc. was ¥134.6 billion. For the nine months ended December 31, 2009, operating revenues and operating income were ¥3,242.4 billion (a decrease of ¥136.4 billion from the same period of the prior year) and ¥702.7 billion (a decrease of ¥44.1 billion from the same period of the prior year), respectively. Income before income taxes was ¥701.7 billion and net income attributable to NTT DoCoMo, Inc. was ¥419.3 billion.
     
Notes: 1.
Consolidated financial statements as of December 31, 2008 and 2009, and for the three months and nine months ended December 31, 2008 and 2009 in this release are unaudited.
 
  2.
Amounts in this release are rounded off.

 

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Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
Consolidated results of operations for the three months and nine months ended December 31, 2008 and 2009, respectively, were as follows:
<Results of operations>
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Three months ended     Three months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Operating revenues
  ¥ 1,111.0     ¥ 1,096.6     ¥ (14.4 )     (1.3 )%
Operating expenses
    941.1       879.1       (62.0 )     (6.6 )
 
                       
Operating income
    169.8       217.4       47.6       28.0  
Other income (expense)
    (20.6 )     4.4       25.0        
 
                       
Income before income taxes
    149.2       221.8       72.6       48.6  
Income taxes
    60.0       89.7       29.7       49.4  
Equity in net income (losses) of affiliates
    1.8       2.9       1.1       58.4  
Net Income
    91.0       135.0       44.0       48.3  
Less: Net (income) loss attributable to noncontrolling interests
    0.0       (0.4 )     (0.4 )      
 
                       
Net income attributable to NTT DoCoMo, Inc.
  ¥ 91.0     ¥ 134.6     ¥ 43.6       47.9 %
 
                       
EBITDA margin*
    37.4 %     36.3 %   (1.1) point        
 
                       
ROCE*
    3.4 %     4.2 %   0.8 point        
 
                       
ROCE after tax effect*
    2.0 %     2.5 %   0.5 point        
 
                       
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Nine months ended     Nine months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Operating revenues
  ¥ 3,378.8     ¥ 3,242.4     ¥ (136.4 )     (4.0 )%
Operating expenses
    2,632.0       2,539.7       (92.3 )     (3.5 )
 
                       
Operating income
    746.8       702.7       (44.1 )     (5.9 )
Other income (expense)
    (37.4 )     (1.0 )     36.4       97.4  
 
                       
Income before income taxes
    709.4       701.7       (7.7 )     (1.1 )
Income taxes
    279.4       283.8       4.4       1.6  
Equity in net income (losses) of affiliates
    7.7       3.2       (4.6 )     (58.9 )
Net Income
    437.7       421.1       (16.7 )     (3.8 )
Less: Net (income) loss attributable to noncontrolling interests
    (0.0 )     (1.7 )     (1.7 )      
 
                       
Net income attributable to NTT DoCoMo, Inc.
  ¥ 437.7     ¥ 419.3     ¥ (18.4 )     (4.2 )%
 
                       
EBITDA margin*
    40.1 %     38.1 %   (2.0) point        
 
                       
ROCE*
    15.3 %     13.9 %   (1.4) point        
 
                       
ROCE after tax effect*
    9.0 %     8.2 %   (0.8) point        
 
                       
     
*  
EBITDA and EBITDA margin, as we use them in this earnings release, are different from EBITDA as used in Item 10(e) of Regulation S-K and may not be comparable to similarly titled measures used by other companies. For an explanation of our definitions of EBITDA, EBITDA margin, ROCE and ROCE after tax effect, see “Reconciliations of the Disclosed Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures” on page 21.

 

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(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
<Operating revenues>
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Three months ended     Three months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Wireless services
  ¥ 962.6     ¥ 966.2     ¥ 3.6       0.4 %
Cellular services revenues
    919.1       896.6       (22.6 )     (2.5 )
- Voice revenues
    539.6       499.3       (40.4 )     (7.5 )
Including: FOMA services
    475.9       470.7       (5.2 )     (1.1 )
- Packet communications revenues
    379.5       397.3       17.8       4.7  
Including: FOMA services
    365.0       390.4       25.4       7.0  
Other revenues
    43.4       69.7       26.2       60.3  
Equipment sales
    148.4       130.3       (18.1 )     (12.2 )
 
                       
Total operating revenues
  ¥ 1,111.0     ¥ 1,096.6     ¥ (14.4 )     (1.3 )%
 
                       
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Nine months ended     Nine months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Wireless services
  ¥ 2,911.1     ¥ 2,859.5     ¥ (51.6 )     (1.8 )%
Cellular services revenues
    2,791.0       2,662.7       (128.3 )     (4.6 )
- Voice revenues
    1,665.0       1,477.5       (187.5 )     (11.3 )
Including: FOMA services
    1,444.8       1,374.9       (69.9 )     (4.8 )
- Packet communications revenues
    1,126.0       1,185.2       59.2       5.3  
Including: FOMA services
    1,075.9       1,160.3       84.4       7.8  
Other revenues
    120.1       196.8       76.6       63.8  
Equipment sales
    467.6       382.9       (84.8 )     (18.1 )
 
                       
Total operating revenues
  ¥ 3,378.8     ¥ 3,242.4     ¥ (136.4 )     (4.0 )%
 
                       
     
Note:  
Voice revenues include data communications revenues through circuit switching systems.
<Operating expenses>
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Three months ended     Three months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Personnel expenses
  ¥ 63.8     ¥ 64.7     ¥ 0.8       1.3 %
Non-personnel expenses
    534.1       540.9       6.8       1.3  
Depreciation and amortization
    233.9       173.7       (60.2 )     (25.7 )
Loss on disposal of property, plant and equipment and intangible assets
    16.7       11.8       (4.9 )     (29.4 )
Communication network charges
    83.3       78.4       (4.9 )     (5.9 )
Taxes and public dues
    9.2       9.6       0.4       3.9  
 
                       
Total operating expenses
  ¥ 941.1     ¥ 879.1     ¥ (62.0 )     (6.6 )%
 
                       
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Nine months ended     Nine months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Personnel expenses
  ¥ 190.5     ¥ 191.5     ¥ 1.0       0.5 %
Non-personnel expenses
    1,545.4       1,542.8       (2.6 )     (0.2 )
Depreciation and amortization
    582.3       511.5       (70.8 )     (12.2 )
Loss on disposal of property, plant and equipment and intangible assets
    35.4       30.4       (5.0 )     (14.1 )
Communication network charges
    249.1       234.3       (14.9 )     (6.0 )
Taxes and public dues
    29.2       29.2       (0.0 )     (0.1 )
 
                       
Total operating expenses
  ¥ 2,632.0     ¥ 2,539.7     ¥ (92.3 )     (3.5 )%
 
                       

 

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(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
2. Segment Information
(1) Mobile phone business
As of December 31, 2009, total number of our cellular services subscriptions reached 55.44 million, posting an increase of 1.28 million compared to the number as of December 31, 2008, of which FOMA subscriptions accounted for 93.9%, or 52.05 million. The number of subscribers to the new discount services including “Fami-wari MAX50” introduced in August 2007 totaled approximately 34.60 million, while the subscription count of “Value Plan” launched in November 2007 was approximately 29.70 million as of December 31, 2009. Additionally, we continued to implement the various measures with the aim of enhancing customer satisfaction. As a consequence, our cellular churn rate for the three months ended December 31, 2009 was 0.45%, the same level as an all time low of 0.44% for the same period of the prior year. Due to penetration of “Value Plan”, among others, aggregate average monthly revenue per unit (ARPU) of cellular (FOMA+mova) services for the three months ended December 31, 2009, decreased to ¥5,470 (down 4.5% compared to the same period of the prior year).
With respect to equipment sales, the number of handsets sold during the three months ended December 31, 2009, declined by 0.31 million from the same period of the prior year to 4.20 million units. Equipment sales revenues and cost of equipment sold posted a decrease from the same period of the prior year due to a reduction in the number of handsets sold to agent resellers and the procurement cost per unit.
As a result, operating revenues and operating income from mobile phone business for the three months ended December 31, 2009 were ¥1,067.0 billion and ¥220.6 billion, respectively. For the nine months ended December 31, 2009, operating revenues and operating income from mobile phone business were ¥3,156.1 billion and ¥710.1 billion, respectively.
Number of subscriptions by services, trend of ARPU and other operating data are as follows:
<Number of subscriptions by services>
                                 
    Thousand subscriptions  
                    Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Cellular services
    54,155       55,436       1,281       2.4 %
Cellular (FOMA) services
    47,494       52,045       4,551       9.6  
Including: i-channel services
    16,228       16,733       505       3.1  
Including: i-concier services
    296       3,101       2,805       947.8  
Including: flat-rate services for unlimited i-mode usage
    15,751       23,078       7,328       46.5  
Cellular (mova) services
    6,661       3,391       (3,270 )     (49.1 )
i-mode services
    48,150       48,688       539       1.1  
     
Notes: 1.  
Number of subscriptions to Cellular services and Cellular (FOMA) services includes Communication Module services subscriptions.
  2.  
Effective March 3, 2008, FOMA services subscription became mandatory for subscription to “2in1”* service. Such FOMA services subscriptions to “2in1” services are included in the above numbers of Cellular services subscriptions and Cellular (FOMA) services subscriptions.
  3.  
Number of subscriptions to flat-rate services for unlimited i-mode usage = “Pake-hodai double” subscriptions + “Pake-hodai simple” subscriptions + “Pake-hodai” subscriptions + “Pake-hodai full” subscriptions
  4.  
Number of i-mode subscriptions = Cellular (FOMA) i-mode subscriptions + Cellular (mova) i-mode subscriptions
     
*  
“2in1” refers to an optional network service which enables a subscriber to subscribe to an additional phone number and an e-mail address for a single compatible handset.

 

7


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
<Number of handsets sold and churn rate>
                                 
    Thousand units  
    Three months ended     Three months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Cellular services
    4,511       4,201       (310 )     (6.9 )%
Cellular (FOMA) services
                               
New FOMA subscription
    921       987       66       7.2  
Change of subscription from mova to FOMA
    716       450       (266 )     (37.2 )
FOMA handset upgrade by FOMA subscribers
    2,856       2,762       (94 )     (3.3 )
Cellular (mova) services
                               
New mova subscription
    11       1       (10 )     (89.1 )
mova handset upgrade by mova subscribers and change of subscription from FOMA to mova
    7       1       (6 )     (79.2 )
 
                     
Churn Rate
    0.44 %     0.45 %   0.01 point      
                                 
    Thousand units  
    Nine months ended     Nine months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Cellular services
    14,775       13,009       (1,766 )     (12.0 )%
Cellular (FOMA) services
                               
New FOMA subscription
    3,077       3,044       (34 )     (1.1 )
Change of subscription from mova to FOMA
    2,348       1,850       (498 )     (21.2 )
FOMA handset upgrade by FOMA subscribers
    9,258       8,101       (1,157 )     (12.5 )
Cellular (mova) services
                               
New mova subscription
    56       9       (47 )     (83.9 )
mova handset upgrade by mova subscribers and change of subscription from FOMA to mova
    36       6       (30 )     (84.3 )
 
                     
Churn Rate
    0.49 %     0.45 %   (0.04) point      

 

8


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
<Trend of ARPU and MOU>
                                 
    Yen/Minutes  
    Three months ended     Three months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Aggregate ARPU* (FOMA+mova)
  ¥ 5,730     ¥ 5,470     ¥ (260 )     (4.5 )%
Voice ARPU
    3,340       3,030       (310 )     (9.3 )
Packet ARPU
    2,390       2,440       50       2.1  
Aggregate ARPU (FOMA)
    6,000       5,600       (400 )     (6.7 )
Voice ARPU
    3,370       3,040       (330 )     (9.8 )
Packet ARPU
    2,630       2,560       (70 )     (2.7 )
Aggregate ARPU (mova)
    3,730       3,460       (270 )     (7.2 )
Voice ARPU
    3,070       2,880       (190 )     (6.2 )
i-mode ARPU
    660       580       (80 )     (12.1 )
 
                       
MOU* (FOMA+mova) (minutes)
    139       138       (1 )     (0.7 )%
                                 
    Yen/Minutes  
    Nine months ended     Nine months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Aggregate ARPU* (FOMA+mova)
  ¥ 5,820     ¥ 5,440     ¥ (380 )     (6.5 )%
Voice ARPU
    3,450       3,000       (450 )     (13.0 )
Packet ARPU
    2,370       2,440       70       3.0  
Aggregate ARPU (FOMA)
    6,150       5,590       (560 )     (9.1 )
Voice ARPU
    3,500       3,010       (490 )     (14.0 )
Packet ARPU
    2,650       2,580       (70 )     (2.6 )
Aggregate ARPU (mova)
    3,820       3,510       (310 )     (8.1 )
Voice ARPU
    3,140       2,910       (230 )     (7.3 )
i-mode ARPU
    680       600       (80 )     (11.8 )
 
                       
MOU* (FOMA+mova) (minutes)
    138       137       (1 )     (0.7 )%
     
*  
See “Definition and Calculation Methods of ARPU and MOU” on page 20 for details of definitions and calculation methods of ARPU and MOU.
<Results of operations>
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)                
    Three months ended     Three months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Operating revenues from mobile phone business
  ¥ 1,095.7     ¥ 1,067.0     ¥ (28.7 )     (2.6 )%
Operating income from mobile phone business
    175.3       220.6       45.3       25.8  
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Nine months ended     Nine months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Operating revenues from mobile phone business
  ¥ 3,332.2     ¥ 3,156.1     ¥ (176.1 )     (5.3 )%
Operating income from mobile phone business
    762.9       710.1       (52.8 )     (6.9 )

 

9


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
(2) Miscellaneous businesses
Operating revenues from miscellaneous businesses for the three months ended December 31, 2009 were ¥29.5 billion, which represented 2.7% of total operating revenues. The revenues derived mainly from home shopping services provided mainly through TV media, high-speed internet connection and video-clip casting services for hotel facilities, advertisement services, development, sales and maintenance of IT systems and credit services. Operating expenses and operating loss from miscellaneous businesses were ¥32.7 billion and ¥3.2 billion, respectively. Operating revenues, operating expenses and operating loss from miscellaneous businesses for the nine months ended December 31, 2009 were ¥86.3 billion, ¥93.8 billion and ¥7.5 billion, respectively.
<Results of operations>
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Three months ended     Three months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Operating revenues from miscellaneous businesses
  ¥ 15.3     ¥ 29.5     ¥ 14.3       93.5 %
Operating loss from miscellaneous businesses
    (5.5 )     (3.2 )     2.3       42.0  
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Nine months ended     Nine months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Operating revenues from miscellaneous businesses
  ¥ 46.5     ¥ 86.3     ¥ 39.7       85.4 %
Operating loss from miscellaneous businesses
    (16.1 )     (7.5 )     8.7       53.7  
3. Trend of Capital Expenditures
We continued to improve the quality of our FOMA service area and reinforced its network capacity to meet an increase in traffic demand, together with our efforts to make capital expenditures more efficient and less costly by saving on equipment purchase costs and improving our design and construction process. Total capital expenditures for the nine months ended December 31, 2009 were ¥484.5 billion (down 3.2% compared to the same period of prior year).
<Breakdown of capital expenditures>
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Three months ended     Three months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Mobile phone business
  ¥ 131.2     ¥ 142.0     ¥ 10.8       8.2 %
Other (including information systems)
    32.9       26.4       (6.5 )     (19.7 )
 
                       
Total capital expenditures
  ¥ 164.0     ¥ 168.4     ¥ 4.3       2.6 %
 
                       
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Nine months ended     Nine months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Mobile phone business
  ¥ 412.7     ¥ 399.9     ¥ (12.8 )     (3.1 )%
Other (including information systems)
    87.8       84.6       (3.2 )     (3.6 )
 
                       
Total capital expenditures
  ¥ 500.5     ¥ 484.5     ¥ (16.0 )     (3.2 )%
 
                       

 

10


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
<< 2. Financial Review >>
1. Financial Position
                                         
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)     Increase     (Reference)  
    December 31, 2008     December 31, 2009     (Decrease)     March 31, 2009  
Total assets
  ¥ 6,381.6     ¥ 6,494.6     ¥ 113.0       1.8 %   ¥ 6,488.2  
NTT DoCoMo, Inc. shareholders’ equity
    4,375.1       4,528.2       153.1       3.5       4,341.6  
Liabilities
    2,005.0       1,940.3       (64.7 )     (3.2 )     2,144.9  
Including: Interest bearing liabilities
    641.8       625.0       (16.8 )     (2.6 )     639.2  
 
                             
Equity ratio (1)
    68.6 %     69.7 %   1.1 point           66.9 %
Debt ratio (2)
    12.8 %     12.1 %   (0.7) point           12.8 %
         
Notes:    (1)  
Equity ratio = NTT DoCoMo, Inc. shareholders’ equity / Total assets
 
     (2)  
Debt ratio = Interest bearing liabilities / (NTT DoCoMo, Inc. shareholders’ equity + Interest bearing liabilities)
2. Cash Flow Conditions
For the nine months ended December 31, 2009, net cash provided by operating activities was ¥592.1 billion, a decrease of ¥36.0 billion (5.7%) compared to the same period of the prior year, mainly due to an increase in net payment for income taxes, a decrease in depreciation and amortization charges and a decrease in net income, which were partially offset by a decrease of changes in accounts receivables.
Net cash used in investing activities was ¥700.4 billion, an increase of ¥75.4 billion (12.1%) compared to the same period of the prior year. This was mainly due to a decrease of proceeds from redemption of long-term bailment for consumption to a related party and an increase in net purchases of short-term investments of more than three months for cash management purposes, which were partially offset by a decrease in purchases of property, plant and equipment and non-current investments.
Net cash used in financing activities was ¥246.0 billion, an increase of ¥100.8 billion (69.4%) compared to the same period of the prior year. This was mainly due to a decrease of proceeds from long term debt, which was partially offset by a decrease in payments to acquire treasury stock.
The balance of cash and cash equivalents was ¥245.4 billion as of December 31, 2009, a decrease of ¥354.2 billion (59.1%) from the prior fiscal year end.
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Nine months ended     Nine months ended     Increase  
    December 31, 2008     December 31, 2009     (Decrease)  
Net cash provided by operating activities
  ¥ 628.1     ¥ 592.1     ¥ (36.0 )     (5.7 )%
Net cash used in investing activities
    (625.0 )     (700.4 )     (75.4 )     (12.1 )
Net cash provided by (used in) financing activities
    (145.2 )     (246.0 )     (100.8 )     (69.4 )
Free cash flows (1)
    3.2       (108.3 )     (111.5 )      
Free cash flows excluding the effects of irregular factors (2) and changes in investments for cash management purposes (3)*
    167.3       178.1       10.7       6.4  
         
Notes:   (1)  
Free cash flows = Net cash provided by operating activities + Net cash used in investing activities
 
    (2)  
Irregular factors = Effects of uncollected revenues due to bank closures at the end of the fiscal period.
 
    (3)  
Changes in investments for cash management purposes = Changes by purchases, redemption at maturity and disposals of financial instruments held for cash management purposes with original maturities of longer than three months
     
*  
See “Reconciliations of the Disclosed Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures” on page 21.

 

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Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
<< 3. Prospects for the Fiscal Year Ending March 31, 2010 >>
As Japan’s mobile phone market has continued to mature in line with the rise in cellular penetration rate and the economic environment in Japan becomes severe, competition among carriers is expected to intensify even further in the future, due to competition among operators in such areas as customer acquisition and improvement of services as well as market entry by new competitors such as MVNOs.
Under these market conditions, operating revenues for the fiscal year ending March 31, 2010 are estimated to be ¥4,276.0 billion, a decrease of ¥172.0 billion from the prior fiscal year, mainly due to a decrease in voice revenues and equipment sales, though this is expected to be offset by an increase in the number of subscribers and an increase in subscribers’ packet communication revenues.
We project a decrease in operating expenses mainly due to the decrease in cost of equipment sold resulting from the reduction in the number of handsets to be sold, and improvement of cost efficiency in network-related costs. Accordingly, operating income is expected to be ¥830.0 billion, the same level as that of prior fiscal year.
As we are currently not aware of any factors that may have a material impact on our projected results of operations, we have not revised our projections announced on October 30, 2009.

 

12


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
<< 4. Others >>
1.  
Changes in significant subsidiaries for the nine months ended December 31, 2009 (which resulted in changes in scope of consolidation): None
2.  
Application of accounting which is simplified or exceptional for quarterly consolidated financial statements: None
3.  
Changes in significant accounting policies, procedures and presentation in quarterly consolidated financial statements:
Accounting Standards Codification
Effective July 1, 2009, DOCOMO adopted the accounting pronouncement issued by Financial Accounting Standards Board (“FASB”) in June 2009 relating to “FASB Accounting Standards Codification” (“ASC”). This pronouncement established ASC as the single source of authoritative accounting principles generally accepted in the United States of America (“U.S. GAAP”), and reorganized then-existing U.S. GAAP pronouncements into ASC. Upon the adoption of this pronouncement, the descriptions and references of accounting standards in DOCOMO’s financial statements are made in accordance with ASC. The adoption of this pronouncement did not have any impact on DOCOMO’s results of operations and financial position.
Business Combinations
Effective April 1, 2009, DOCOMO adopted the accounting pronouncement issued in December 2007 relating to business combinations. This pronouncement requires an acquirer in a business combination to generally recognize and measure all the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at their fair values as of the acquisition date. This pronouncement also requires the acquirer to recognize and measure as goodwill the excess of consideration transferred plus the fair value of any noncontrolling interest in the acquiree at the acquisition date over the fair value of the identifiable net assets acquired. The excess of the fair value of the identifiable net assets acquired over consideration transferred plus the fair value of any noncontrolling interest in the acquiree at the acquisition date is required to be recognized and measured as a gain from a bargain purchase. The adoption of this pronouncement did not have a material impact on DOCOMO’s results of operations and financial position.
Noncontrolling Interests in Consolidated Financial Statements
Effective April 1, 2009, DOCOMO adopted the accounting pronouncement issued in December 2007 relating to noncontrolling interests in consolidated financial statements. This pronouncement requires noncontrolling interests held by parties other than the parent be clearly identified, labeled and presented in the consolidated statement of financial position within equity, but separate from the parent’s equity. This pronouncement also requires changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary be accounted for as equity transactions. Upon the adoption of this pronouncement, “Noncontrolling interests”, which was previously referred to as “Minority interests” and classified between “Total liabilities” and “Shareholders’ equity” in the consolidated balance sheets, is now included as a separate component of “Equity”. In addition, “Net income” in the consolidated statements of income and comprehensive income now includes net income or loss attributable to noncontrolling interests, which was previously referred to as “Minority interests” and deducted. As a result, the adoption of this pronouncement changed the presentation and disclosure of noncontrolling interests in the consolidated financial statements retrospectively, but did not have a material impact on DOCOMO’s results of operations and financial position.

 

13


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
<< 5. Consolidated Financial Statements >>
1. Consolidated Balance Sheets
                 
    Millions of yen  
            (UNAUDITED)  
        March 31, 2009     December 31, 2009  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  ¥ 599,548     ¥ 245,378  
Short-term investments
    2,448       113,419  
Accounts receivable
    835,063       988,681  
Allowance for doubtful accounts
    (15,072 )     (17,445 )
Inventories
    123,206       175,117  
Deferred tax assets
    102,903       74,669  
Prepaid expenses and other current assets
    179,632       233,396  
 
           
Total current assets
    1,827,728       1,813,215  
 
           
Property, plant and equipment:
               
Wireless telecommunications equipment
    5,361,043       5,447,880  
Buildings and structures
    814,056       824,652  
Tools, furniture and fixtures
    519,213       515,323  
Land
    198,985       199,032  
Construction in progress
    99,232       111,033  
Accumulated depreciation and amortization
    (4,301,044 )     (4,472,793 )
 
           
Total property, plant and equipment, net
    2,691,485       2,625,127  
 
           
Non-current investments and other assets:
               
Investments in affiliates
    572,014       567,580  
Marketable securities and other investments
    141,544       136,549  
Intangible assets, net
    578,728       609,858  
Goodwill
    154,385       197,745  
Other assets
    273,440       263,073  
Deferred tax assets
    248,896       281,470  
 
           
Total non-current investments and other assets
    1,969,007       2,056,275  
 
           
Total assets  
  ¥ 6,488,220     ¥ 6,494,617  
 
           
 
               
LIABILITIES AND EQUITY
               
Current liabilities:
               
Current portion of long-term debt
  ¥ 29,000     ¥ 14,086  
Short-term borrowings
          12  
Accounts payable, trade
    668,525       554,462  
Accrued payroll
    58,627       39,276  
Accrued interest
    1,187       1,245  
Accrued income taxes
    238,742       96,361  
Other current liabilities
    152,354       141,754  
 
           
Total current liabilities
    1,148,435       847,196  
 
           
Long-term liabilities:
               
Long-term debt (exclusive of current portion)
    610,233       610,862  
Liability for employees’ retirement benefits
    146,326       154,460  
Other long-term liabilities
    239,918       327,766  
 
           
Total long-term liabilities
    996,477       1,093,088  
 
           
Total liabilities
    2,144,912       1,940,284  
 
           
Equity:  
               
NTT DoCoMo, Inc. shareholders’ equity
               
Common stock
    949,680       949,680  
Additional paid-in capital
    785,045       784,842  
Retained earnings
    3,061,848       3,272,395  
Accumulated other comprehensive income (loss)
    (65,689 )     (69,450 )
Treasury stock, at cost
    (389,299 )     (409,299 )
Total NTT DoCoMo, Inc. shareholders’ equity
    4,341,585       4,528,168  
Noncontrolling interests
    1,723       26,165  
 
           
Total equity
    4,343,308       4,554,333  
 
           
Total liabilities and equity
  ¥ 6,488,220     ¥ 6,494,617  
 
           

 

14


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
2. Consolidated Statements of Income and Comprehensive Income
                 
    Millions of yen  
    (UNAUDITED)     (UNAUDITED)  
    Nine months ended     Nine months ended  
      December 31, 2008     December 31, 2009  
Operating revenues:
               
Wireless services
  ¥ 2,911,115     ¥ 2,859,472  
Equipment sales
    467,645       382,892  
Total operating revenues
    3,378,760       3,242,364  
 
           
Operating expenses:
               
Cost of services (exclusive of items shown separately below)
    633,082       682,777  
Cost of equipment sold (exclusive of items shown separately below)
    621,201       510,168  
Depreciation and amortization
    582,300       511,529  
Selling, general and administrative
    795,392       835,237  
Total operating expenses
    2,631,975       2,539,711  
 
           
Operating income
    746,785       702,653  
 
           
Other income (expense):
               
Interest expense
    (3,566 )     (4,108 )
Interest income
    1,673       969  
Other, net
    (35,499 )     2,173  
Total other income (expense)
    (37,392 )     (966 )
 
           
Income before income taxes
    709,393       701,687  
 
           
Income taxes:
               
Current
    324,721       291,393  
Deferred
    (45,305 )     (7,586 )
Total income taxes
    279,416       283,807  
Equity in net income (losses) of affiliates, net of applicable taxes
    7,748       3,186  
 
           
Net income
    437,725       421,066  
 
           
Less: Net (income) loss attributable to noncontrolling interests
    (20 )     (1,720 )
 
           
Net income attributable to NTT DoCoMo, Inc.
  ¥ 437,705     ¥ 419,346  
 
           
 
               
Net income
  ¥ 437,725     ¥ 421,066  
Other comprehensive income (loss):
               
Unrealized holding gains (losses) on available-for-sale securities, net of applicable taxes
    (7,508 )     4,527  
Change in fair value of derivative instruments, net of applicable taxes
    (212 )     (72 )
Foreign currency translation adjustment, net of applicable taxes
    (25,269 )     (8,678 )
Pension liability adjustment, net of applicable taxes
    (475 )     446  
Total other comprehensive income (loss)
    (33,464 )     (3,777 )
 
           
Comprehensive income
    404,261       417,289  
 
           
Less: Comprehensive (income) loss attributable to noncontrolling interests
    (18 )     (1,704 )
 
           
Comprehensive income attributable to NTT DoCoMo, Inc.
  ¥ 404,243     ¥ 415,585  
 
           
 
               
PER SHARE DATA
               
Weighted average common shares outstanding – Basic and Diluted (shares)
    42,341,664       41,738,464  
 
           
Basic and Diluted earnings per share attributable to NTT DoCoMo, Inc. (yen)
  ¥ 10,337.45     ¥ 10,046.99  
 
           

 

15


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
                 
    Millions of yen  
    (UNAUDITED)     (UNAUDITED)  
    Three months ended     Three months ended  
      December 31, 2008     December 31, 2009  
Operating revenues:
               
Wireless services
  ¥ 962,575     ¥ 966,207  
Equipment sales
    148,401       130,349  
Total operating revenues
    1,110,976       1,096,556  
 
           
Operating expenses:
               
Cost of services (exclusive of items shown separately below)
    219,350       233,160  
Cost of equipment sold (exclusive of items shown separately below)
    213,174       169,291  
Depreciation and amortization
    233,913       173,720  
Selling, general and administrative
    274,700       302,956  
Total operating expenses
    941,137       879,127  
 
           
Operating income
    169,839       217,429  
 
           
Other income (expense):
               
Interest expense
    (1,168 )     (1,119 )
Interest income
    628       302  
Other, net
    (20,062 )     5,194  
Total other income (expense)
    (20,602 )     4,377  
 
           
Income before income taxes
    149,237       221,806  
 
           
Income taxes:
               
Current
    90,889       80,506  
Deferred
    (30,869 )     9,178  
Total income taxes
    60,020       89,684  
Equity in net income (losses) of affiliates, net of applicable taxes
    1,827       2,894  
 
           
Net income
    91,044       135,016  
 
           
Less: Net (income) loss attributable to noncontrolling interests
    2       (388 )
 
           
Net income attributable to NTT DoCoMo, Inc.
  ¥ 91,046     ¥ 134,628  
 
           
 
               
Net income
  ¥ 91,044     ¥ 135,016  
Other comprehensive income (loss):
               
Unrealized holding gains (losses) on available-for-sale securities, net of applicable taxes
    (1,563 )     (9,555 )
Change in fair value of derivative instruments, net of applicable taxes
    (53 )     (37 )
Foreign currency translation adjustment, net of applicable taxes
    (8,596 )     (20,369 )
Pension liability adjustment, net of applicable taxes
    (113 )     150  
Total other comprehensive income (loss)
    (10,325 )     (29,811 )
 
           
Comprehensive income
    80,719       105,205  
 
           
Less: Comprehensive (income) loss attributable to noncontrolling interests
    2       (358 )
 
           
Comprehensive income attributable to NTT DoCoMo, Inc.
  ¥ 80,721     ¥ 104,847  
 
           
 
               
PER SHARE DATA
               
Weighted average common shares outstanding – Basic and Diluted (shares)
    42,212,938       41,696,009  
 
           
Basic and Diluted earnings per share attributable to NTT DoCoMo, Inc. (yen)
  ¥ 2,156.83     ¥ 3,228.80  
 
           

 

16


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
3. Consolidated Statements of Cash Flows
                 
    Millions of yen  
    (UNAUDITED)     (UNAUDITED)  
    Nine months ended     Nine months ended  
    December 31, 2008     December 31, 2009  
Cash flows from operating activities:
               
Net income
  ¥ 437,725     ¥ 421,066  
Adjustments to reconcile net income to net cash provided by operating activities-
               
Depreciation and amortization
    582,300       511,529  
Deferred taxes
    (40,578 )     (5,335 )
Loss on sale or disposal of property, plant and equipment
    24,667       20,386  
Impairment loss on marketable securities and other investments
    28,648       3,960  
Equity in net (income) losses of affiliates
    (13,009 )     (5,150 )
Changes in assets and liabilities:
               
(Increase) / decrease in accounts receivable
    (301,659 )     (151,584 )
Increase / (decrease) in allowance for doubtful accounts
    (1,408 )     2,062  
(Increase) / decrease in inventories
    (20,963 )     (51,135 )
(Increase) / decrease in prepaid expenses and other current assets
    (18,307 )     (28,321 )
(Increase) / decrease in non-current installment receivable for handsets
    (51,091 )     5,212  
Increase / (decrease) in accounts payable, trade
    (31,163 )     (63,170 )
Increase / (decrease) in accrued income taxes
    (31,350 )     (143,278 )
Increase / (decrease) in other current liabilities
    (6,440 )     (13,857 )
Increase / (decrease) in liability for employees’ retirement benefits
    6,845       8,002  
Increase / (decrease) in other long-term liabilities
    51,969       85,617  
Other, net
    11,941       (3,908 )
 
           
Net cash provided by operating activities
    628,127       592,096  
 
           
Cash flows from investing activities:
               
Purchases of property, plant and equipment
    (415,247 )     (369,476 )
Purchases of intangible and other assets
    (176,659 )     (183,670 )
Purchases of non-current investments
    (50,212 )     (9,617 )
Proceeds from sale of non-current investments
    568       9,262  
Acquisitions of subsidiaries, net of cash acquired
    27       (29,209 )
Purchases of short-term investments
    (30,736 )     (136,656 )
Redemption of short-term investments
    4,593       38,310  
Proceeds from redemption of long-term bailment for consumption to a related party
    50,000        
Short-term bailment for consumption to a related party
          (10,000 )
Other, net
    (7,297 )     (9,335 )
 
           
Net cash used in investing activities
    (624,963 )     (700,391 )
 
           
Cash flows from financing activities:
               
Proceeds from long-term debt
    179,913        
Repayment of long-term debt
    (77,441 )     (15,000 )
Proceeds from short-term borrowings
    62,074       138,149  
Repayment of short-term borrowings
    (1,958 )     (138,149 )
Principal payments under capital lease obligations
    (2,098 )     (2,461 )
Payments to acquire treasury stock
    (101,846 )     (20,000 )
Dividends paid
    (203,839 )     (208,488 )
Other, net
    (3 )     (3 )
 
           
Net cash provided by (used in) financing activities
    (145,198 )     (245,952 )
 
           
Effect of exchange rate changes on cash and cash equivalents
    (3,740 )     77  
 
           
Net increase (decrease) in cash and cash equivalents
    (145,774 )     (354,170 )
Cash and cash equivalents at beginning of period
    646,905       599,548  
 
           
Cash and cash equivalents at end of period
  ¥ 501,131     ¥ 245,378  
 
           
Supplemental disclosures of cash flow information:
               
Cash received during the period for:
               
Income taxes
  ¥ 21,430     ¥ 679  
Cash paid during the period for:
               
Interest, net of amount capitalized
    3,035       4,050  
Income taxes
    380,352       436,076  
 
           

 

17


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Nine Months Ended December 31, 2009
4. Going Concern Assumption
None
5. Segment Reporting
Segment information is as follows:
                         
Three months ended   Millions of yen  
December 31, 2008   Mobile phone business     Miscellaneous businesses     Consolidated  
Operating revenues
  ¥ 1,095,723     ¥ 15,253     ¥ 1,110,976  
Operating expenses
    920,388       20,749       941,137  
 
                 
Operating income (loss)
  ¥ 175,335     ¥ (5,496 )   ¥ 169,839  
 
                 
                         
Three months ended   Millions of yen  
December 31, 2009   Mobile phone business     Miscellaneous businesses     Consolidated  
Operating revenues
  ¥ 1,067,046     ¥ 29,510     ¥ 1,096,556  
Operating expenses
    846,429       32,698       879,127  
 
                 
Operating income (loss)
  ¥ 220,617     ¥ (3,188 )   ¥ 217,429  
 
                 
                         
Nine months ended   Millions of yen  
December 31, 2008   Mobile phone business     Miscellaneous businesses     Consolidated  
Operating revenues
  ¥ 3,332,214     ¥ 46,546     ¥ 3,378,760  
Operating expenses
    2,569,306       62,669       2,631,975  
 
                 
Operating income (loss)
  ¥ 762,908     ¥ (16,123 )   ¥ 746,785  
 
                 
                         
Nine months ended   Millions of yen  
December 31, 2009   Mobile phone business     Miscellaneous businesses     Consolidated  
Operating revenues
  ¥ 3,156,079     ¥ 86,285     ¥ 3,242,364  
Operating expenses
    2,445,959       93,752       2,539,711  
 
                 
Operating income (loss)
  ¥ 710,120     ¥ (7,467 )   ¥ 702,653  
 
                 
DOCOMO does not disclose geographical segments, since the amounts of operating revenues generated outside Japan are immaterial.
6. Significant Changes in NTT DoCoMo, Inc. Shareholders’ Equity
None

 

18


Table of Contents

(APPENDIX 1)
Operating Data for 3rd Quarter of Fiscal Year Ending March 31, 2010
Full-year forecast: as revised at October 30, 2009
                                                         
                    Fiscal Year                             [Ref.]  
            [Ref.]     Ending Mar. 2010                             Fiscal Year  
            Fiscal Year     Nine Months     First Quarter     Second Quarter     Third Quarter     Ending Mar. 31, 2010  
            Ended Mar. 31, 2009     (Apr.-Dec. 2009)     (Apr.-Jun. 2009)     (Jul.-Sep. 2009)     (Oct.-Dec. 2009)     Full-year Forecast  
            Full-year Results     Results     Results     Results     Results     (Revised)  
Cellular
                                                       
Subscriptions
  thousands     54,601       55,436       54,864       55,186       55,436       55,800  
FOMA (1)
  thousands     49,040       52,045       50,246       51,258       52,045       53,030  
Communication Module Service (FOMA)
  thousands     858       996       897       952       996        
mova
  thousands     5,560       3,391       4,618       3,928       3,391       2,770  
Communication Module Service (DoPa)
  thousands     669       558       621       585       558        
Prepaid
  thousands     38       37       38       37       37        
Market Share (2) (3)
    %       50.8       50.1       50.6       50.3       50.1        
Net Increase from Previous Period (3)
  thousands     1,213       835       263       322       250       1,200  
FOMA (1)
  thousands     5,091       3,005       1,206       1,012       787       3,990  
mova
  thousands     (3,878 )     (2,169 )     (942 )     (690 )     (537 )     (2,790 )
Churn Rate (3)
    %       0.50       0.45       0.44       0.46       0.45        
Number of Handsets (FOMA+mova) Sold (4)
  thousands     20,129       13,009       4,344       4,464       4,201        
Aggregate ARPU (FOMA+mova) (5)
  yen/month/subscription     5,710       5,440       5,440       5,420       5,470       5,300  
Voice ARPU (6)
  yen/month/subscription     3,330       3,000       3,010       2,970       3,030       2,840  
Packet ARPU
  yen/month/subscription     2,380       2,440       2,430       2,450       2,440       2,460  
i-mode ARPU
  yen/month/subscription     2,340       2,380       2,380       2,390       2,370       2,390  
ARPU Generated from International
Services (7)
  yen/month/subscription     80       80       70       80       80       80  
ARPU Generated Purely from i-mode (FOMA+mova) (5)
  yen/month/subscription     2,550       2,620       2,610       2,630       2,610       2,630  
Aggregate ARPU (FOMA) (5)
  yen/month/subscription     6,010       5,590       5,610       5,560       5,600       5,420  
Voice ARPU (6)
  yen/month/subscription     3,360       3,010       3,010       2,970       3,040       2,840  
Packet ARPU
  yen/month/subscription     2,650       2,580       2,600       2,590       2,560       2,580  
i-mode ARPU
  yen/month/subscription     2,590       2,510       2,540       2,520       2,480       2,510  
ARPU Generated from International
Services (7)
  yen/month/subscription     90       80       80       90       80       80  
ARPU Generated Purely from i-mode (FOMA) (5)
  yen/month/subscription     2,760       2,720       2,740       2,730       2,700       2,730  
Aggregate ARPU (mova) (5)
  yen/month/subscription     3,750       3,510       3,550       3,500       3,460       3,440  
Voice ARPU (6)
  yen/month/subscription     3,090       2,910       2,940       2,890       2,880       2,850  
i-mode ARPU
  yen/month/subscription     660       600       610       610       580       590  
ARPU Generated from International
Services (7)
  yen/month/subscription     10       0       0       10       0       10  
ARPU Generated Purely from i-mode (mova) (5)
  yen/month/subscription     870       830       840       830       810       810  
MOU (FOMA+mova) (5)
  minute/month/subscription     137       137       135       137       138        
MOU (FOMA) (5)
  minute/month/subscription     148       143       143       143       144        
MOU (mova) (5)
  minute/month/subscription     63       52       54       52       51        
i-mode
                                                       
Subscriptions
  thousands     48,474       48,688       48,597       48,670       48,688       48,900  
FOMA
  thousands     44,853       46,667       45,682       46,261       46,667       47,310  
i-mode Subscription Rate (3)
    %       88.8       87.8       88.6       88.2       87.8       87.6  
Net Increase from Previous Period
  thousands     481       214       123       73       19       430  
i-mode Packet Flat-rate Services Subscriptions (8)
  thousands     17,610       23,078       19,578       21,519       23,078        
i-channel Subscriptions
  thousands     16,545       16,733       16,607       16,692       16,733        
i-concier Subscriptions
  thousands     929       3,101       1,558       2,337       3,101        
Others
                                                       
DCMX Subscriptions (9)
  thousands     8,980       10,730       9,630       10,210       10,730       11,460  
     
*  
Please refer to the appendix 2 for the definition of ARPU and MOU, and an explanation of the methods used to calculate ARPU and the number of active subscriptions.
 
(1)  
From March 3, 2008 onward, another FOMA subscription is a prerequisite for the application of 2in1 in principle, and those FOMA subscriptions are included in the number of FOMA subscribers.
 
(2)  
Source for other cellular telecommunications operators: Data announced by Telecommunications Carriers Association
 
(3)  
Data are calculated including communication module services subscriptions.
 
(4)  
Sum of new FOMA/mova subscriptions, change of subscription from mova to FOMA, FOMA handset upgrade by FOMA subscribers, mova handset upgrade by mova subscribers, and change of subscription from FOMA to mova
 
(5)  
Data are calculated excluding communication module services-related revenues and communication module services subscriptions.
 
(6)  
Inclusive of circuit-switched data communication
 
(7)  
Inclusive of voice communication and packet communication
 
(8)  
Sum of “Pake-hodai double” subscriptions, “Pake-hodai simple” subscriptions, “Pake-hodai” subscriptions and “Pake-hodai full” subscriptions
 
(9)  
Inclusive of DCMX mini subscriptions

 

19


Table of Contents

(APPENDIX 2)
Definition and Calculation Methods of ARPU and MOU
1.  
Definition of ARPU and MOU
  i)  
ARPU (Average monthly Revenue Per Unit)1:
 
     
Average monthly revenue per unit, or ARPU, is used to measure average monthly operating revenues attributable to designated services on a per subscription basis. ARPU is calculated by dividing various revenue items included in operating revenues from our wireless services, such as basic monthly charges, voice communication charges and packet communication charges, from designated services which are incurred consistently each month, by the number of active subscriptions to the relevant services. Accordingly, the calculation of ARPU excludes revenues that are not representative of monthly average usage such as activation fees. We believe that our ARPU figures provide useful information to analyze the average usage per subscription and the impacts of changes in our billing arrangements. The revenue items included in the numerators of our ARPU figures are based on our U.S. GAAP results of operations. This definition applies to all ARPU figures hereinafter.
 
  ii)  
MOU (Minutes of Use): Average monthly communication time per subscription.
2.  
ARPU Calculation Methods
  i)  
ARPU (FOMA+mova)
   
Aggregate ARPU (FOMA+mova) = Voice ARPU (FOMA+mova) + Packet ARPU (FOMA+mova)
 
   
Voice ARPU (FOMA+mova): Voice ARPU (FOMA+mova) Related Revenues (basic monthly charges, voice communication charges) / No. of active subscriptions (FOMA+mova)
 
   
Packet ARPU (FOMA+mova): {Packet ARPU (FOMA) Related Revenues (basic monthly charges, packet communication charges) + i-mode ARPU (mova) Related Revenues (basic monthly charges, packet communication charges)}/ No. of active subscriptions (FOMA+mova)
 
   
i-mode ARPU (FOMA+mova)2: i-mode ARPU (FOMA+mova) Related Revenues (basic monthly charges, packet communication charges) / No. of active subscriptions (FOMA+mova)
 
   
ARPU generated purely from i-mode (FOMA+mova)3: i-mode ARPU (FOMA+mova) Related Revenues (basic monthly charges, packet communication charges) / No. of active subscriptions (i-mode (FOMA+mova))
  ii)  
ARPU (FOMA)
   
Aggregate ARPU (FOMA) = Voice ARPU (FOMA) + Packet ARPU (FOMA)
 
   
Voice ARPU (FOMA): Voice ARPU (FOMA) Related Revenues (basic monthly charges, voice communication charges) / No. of active subscriptions (FOMA)
 
   
Packet ARPU (FOMA): Packet ARPU (FOMA) Related Revenues (basic monthly charges, packet communication charges) / No. of active subscriptions (FOMA)
 
   
i-mode ARPU (FOMA)2: i-mode ARPU (FOMA) Related Revenues (basic monthly charges, packet communication charges) / No. of active subscriptions (FOMA)
 
   
ARPU generated purely from i-mode (FOMA)3: i-mode ARPU (FOMA) Related Revenues (basic monthly charges, packet communication charges) / No. of active subscriptions (i-mode (FOMA))
  iii)  
ARPU (mova)
   
Aggregate ARPU (mova) = Voice ARPU (mova) + i-mode ARPU (mova)
 
   
Voice ARPU (mova): Voice ARPU (mova) Related Revenues (basic monthly charges, voice communication charges) / No. of active subscriptions (mova)
 
   
i-mode ARPU (mova)2: i-mode ARPU (mova) Related Revenues (basic monthly charges, packet communication charges) / No. of active subscriptions (mova)
 
   
ARPU generated purely from i-mode (mova)3: i-mode ARPU (mova) Related Revenues (basic monthly charges, packet communication charges) / No. of active subscriptions (i-mode (mova))
3.  
Active Subscriptions Calculation Methods
No. of active subscriptions used in ARPU/MOU/Churn Rate calculations is as follows:
No. of active subscriptions for each month:
(No. of subscriptions at the end of previous month + No. of subscriptions at the end of current month) / 2
No. of active subscriptions for full-year results/forecasts:
Sum of No. of active subscriptions for each month from April to March
 
     
1  
Communication module services subscriptions and the revenues thereof are not included in the ARPU and MOU calculations.
 
2  
The denominator used in calculating i-mode ARPU (FOMA+mova, FOMA, mova) is the aggregate number of subscriptions to each service (FOMA+mova, FOMA, mova, respectively), regardless of whether i-mode service is activated or not.
 
3  
ARPU generated purely from i-mode (FOMA+mova, FOMA, mova) is calculated using only the number of i-mode subscriptions as a denominator.

 

20


Table of Contents

(APPENDIX 3)
Reconciliations of the Disclosed Non-GAAP Financial Measures to
the Most Directly Comparable GAAP Financial Measures
1. EBITDA and EBITDA margin
                                 
    Billions of yen  
    Year ended     Nine months ended     Three months ended     Nine months ended  
    March 31, 2009     December 31, 2008     December 31, 2009     December 31, 2009  
a. EBITDA
  ¥ 1,678.4     ¥ 1,353.8     ¥ 398.6     ¥ 1,234.6  
 
                       
Depreciation and amortization
    (804.2 )     (582.3 )     (173.7 )     (511.5 )
Loss on sale or disposal of property, plant and equipment
    (43.3 )     (24.7 )     (7.4 )     (20.4 )
 
                       
Operating income
    831.0       746.8       217.4       702.7  
 
                       
Other income (expense)
    (50.5 )     (37.4 )     4.4       (1.0 )
Income taxes
    (308.4 )     (279.4 )     (89.7 )     (283.8 )
Equity in net income (losses) of affiliates
    (0.7 )     7.7       2.9       3.2  
Less: Net (income) loss attributable to noncontrolling interests
    0.5       (0.0 )     (0.4 )     (1.7 )
 
                       
b. Net income attributable to NTT DoCoMo, Inc.
    471.9       437.7       134.6       419.3  
 
                       
c. Operating revenues
    4,448.0       3,378.8       1,096.6       3,242.4  
 
                       
EBITDA margin (=a/c)
    37.7 %     40.1 %     36.3 %     38.1 %
Net income margin (=b/c)
    10.6 %     13.0 %     12.3 %     12.9 %
 
                       
     
Note:  
EBITDA and EBITDA margin, as we use them, are different from EBITDA as used in Item 10(e) of regulation S-K and may not be comparable to similarly titled measures used by other companies.
2. ROCE after tax effect
                                 
    Billions of yen  
    Year ended     Nine months ended     Three months ended     Nine months ended  
    March 31, 2009     December 31, 2008     December 31, 2009     December 31, 2009  
a. Operating income
  ¥ 831.0     ¥ 746.8     ¥ 217.4     ¥ 702.7  
b. Operating income after tax effect {=a*(1-effective tax rate)}
    491.9       441.4       128.7       416.0  
c. Capital employed
    4,867.9       4,885.9       5,164.9       5,067.0  
 
                       
ROCE before tax effect (=a/c)
    17.1 %     15.3 %     4.2 %     13.9 %
ROCE after tax effect (=b/c)
    10.1 %     9.0 %     2.5 %     8.2 %
 
                       
     
Notes:  
The effective tax rate is 40.9% for the nine months ended December 31, 2008 and 40.8% for the other periods.
 
   
Capital employed (for annual period) = The average of (NTT DoCoMo, Inc. shareholders’ equity + Interest bearing liabilities), each as of March 31, 2008 and 2009
 
   
Capital employed (for nine months) = The average of (NTT DoCoMo, Inc. shareholders’ equity + Interest bearing liabilities), each as of March 31, 2008 (or 2009) and December 31, 2008 (or 2009)
 
   
Capital employed (for three months) = The average of (NTT DoCoMo, Inc. shareholders’ equity + Interest bearing liabilities), each as of September 30, 2009 and December 31, 2009
 
   
Interest bearing liabilities = Current portion of long-term debt + Short-term borrowings + Long-term debt
3. Free cash flows excluding irregular factors and changes in investments for cash management purposes
                                 
    Billions of yen  
    Year ended     Nine months ended     Three months ended     Nine months ended  
    March 31, 2009     December 31, 2008     December 31, 2009     December 31, 2009  
Free cash flows excluding irregular factors and changes in investments for cash management purposes
  ¥ 93.4     ¥ 167.3     ¥ 83.6     ¥ 178.1  
 
                       
Irregular factors (1)
          (188.0 )     (178.0 )     (178.0 )
Changes in investments for cash management purposes (2)
    49.3       23.9       (81.3 )     (108.3 )
 
                       
Free cash flows
    142.7       3.2       (175.7 )     (108.3 )
 
                       
Net cash used in investing activities
    (1,031.0 )     (625.0 )     (259.3 )     (700.4 )
Net cash provided by operating activities
    1,173.7       628.1       83.6       592.1  
 
                       
       
Notes:   (1) 
Irregular factors represent the effects of uncollected revenues due to a bank closure at the end of the fiscal period.
 
    (2)
Changes in investments for cash management purposes were derived from purchases, redemption at maturity and disposals of financial instruments held for cash management purposes with original maturities of longer than three months.

 

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Special Note Regarding Forward-Looking Statements
This earnings release contains forward-looking statements such as forecasts of results of operations, management strategies, objectives and plans, forecasts of operational data such as the expected number of subscriptions, and the expected dividend payments. All forward-looking statements that are not historical facts are based on management’s current plans, expectations, assumptions and estimates based on the information currently available. Some of the projected numbers in this earnings release were derived using certain assumptions that are indispensable for making such projections in addition to historical facts. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from those contained in or suggested by any forward-looking statement. Potential risks and uncertainties include, without limitation, the following:
1.  
Changes in the business environment in the telecommunications industry, such as intensifying competition from other service providers or other technologies caused by Mobile Number Portability, new market entrants and other factors, could limit our acquisition of new subscriptions and retention of existing subscriptions, or may lead to diminishing ARPU or an increase in our costs and expenses.
2.  
Current and new services, usage patterns, and sales schemes introduced by our corporate group may not develop as planned, which could affect our financial condition and limit our growth.
3.  
The introduction or change of various laws or regulations or the application of such laws and regulations to our corporate group could restrict our business operations, which may adversely affect our financial condition and results of operations.
4.  
Limitations in the amount of frequency spectrum or facilities made available to us could negatively affect our ability to maintain and improve our service quality and level of customer satisfaction.
5.  
The W-CDMA technology that we use for our 3G system and/or mobile multimedia services may not be introduced by other overseas operators, which could limit our ability to offer international services to our subscribers.
6.  
Our domestic and international investments, alliances and collaborations may not produce the returns or provide the opportunities we expect.
7.  
As electronic payment capability and many other new features are built into our cellular phones, and services of parties other than those belonging to our corporate group are provided through our cellular handsets, potential problems resulting from malfunctions, defects or loss of handsets, or imperfection of services provided by such other parties may arise, which could have an adverse effect on our financial condition and results of operations.
8.  
Social problems that could be caused by misuse or misunderstanding of our products and services may adversely affect our credibility or corporate image.
9.  
Inadequate handling of confidential business information including personal information by our corporate group, contractors and other factors, may adversely affect our credibility or corporate image.
10.  
Owners of intellectual property rights that are essential for our business execution may not grant us the right to license or otherwise use such intellectual property rights on acceptable terms or at all, which may limit our ability to offer certain technologies, products and/or services, and we may also be held liable for damage compensation if we infringe the intellectual property rights of others.
11.  
Earthquakes, power shortages, malfunctioning of equipment, software bugs, computer viruses, cyber attacks, hacking, unauthorized access and other problems could cause systems failures in the networks required for the provision of service, disrupting our ability to offer services to our subscribers and may adversely affect our credibility or corporate image.
12.  
Concerns about wireless telecommunication health risks may adversely affect our financial condition and results of operations.
13.  
Our parent company, NIPPON TELEGRAPH AND TELEPHONE CORPORATION (NTT), could exercise influence that may not be in the interests of our other shareholders.
 
     
*  
Names of companies, products, etc., contained in this release are the trademarks or registered trademarks of their respective organizations.

 

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Copyright (C) 2010 NTT DOCOMO, INC. All rights reserved.^^^^ NTT DOCOMO, INC. RESULTS FOR THE NINE MONTHS OF THE FISCAL YEAR ENDING MAR. 31, 2010 January 29, 2010


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Forward-Looking Statements This presentation contains forward-looking statements such as forecasts of results of operations, management strategies, objectives and plans, forecasts of operational data such as the expected number of subscriptions, and the expected dividend payments. All forward-looking statements that are not historical facts are based on management's current plans, expectations, assumptions and estimates based on the information currently available. Some of the projected numbers in this presentation were derived using certain assumptions that are indispensable for making such projections in addition to historical facts. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from those contained in or suggested by any forward-looking statement. Potential risks and uncertainties include, without limitation, the following: 1. Changes in the business environment in the telecommunications industry, such as intensifying competition from other service providers or other technologies caused by Mobile Number Portability, new market entrants and other factors, could limit our acquisition of new subscriptions and retention of existing subscriptions, or may lead to diminishing ARPU or an increase in our costs and expenses. 2. Current and new services, usage patterns, and sales schemes introduced by our corporate group may not develop as planned, which could affect our financial condition and limit our growth. 3. The introduction or change of various laws or regulations or the application of such laws and regulations to our corporate group could restrict our business operations, which may adversely affect our financial condition and results of operations. 4. Limitations in the amount of frequency spectrum or facilities made available to us could negatively affect our ability to maintain and improve our service quality and level of customer satisfaction. 5. The W-CDMA technology that we use for our 3G system and/or mobile multimedia services may not be introduced by other overseas operators, which could limit our ability to offer international services to our subscribers. 6. Our domestic and international investments, alliances and collaborations may not produce the returns or provide the opportunities we expect. 7. As electronic payment capability and many other new features are built into our cellular phones, and services of parties other than those belonging to our corporate group are provided through our cellular handsets, potential problems resulting from malfunctions, defects or loss of handsets, or imperfection of services provided by such other parties may arise, which could have an adverse effect on our financial condition and results of operations. 8. Social problems that could be caused by misuse or misunderstanding of our products and services may adversely affect our credibility or corporate image. 9. Inadequate handling of confidential business information including personal information by our corporate group, contractors and other factors, may adversely affect our credibility or corporate image. 10.Owners of intellectual property rights that are essential for our business execution may not grant us the right to license or otherwise use such intellectual property rights on acceptable terms or at all, which may limit our ability to offer certain technologies, products and/or services, and we may also be held liable for damage compensation if we infringe the intellectual property rights of others. 11.Earthquakes, power shortages, malfunctioning of equipment, software bugs, computer viruses, cyber attacks, hacking, unauthorized access and other problems could cause systems failures in the networks required for the provision of service, disrupting our ability to offer services to our subscribers and may adversely affect our credibility or corporate image. 12.Concerns about wireless telecommunication health risks may adversely affect our financial condition and results of operations. 13.Our parent company, NIPPON TELEGRAPH AND TELEPHONE CORPORATION (NTT), could exercise influence that may not be in the interests of our other shareholders.


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US GAAP 2008/4-12 (1Q-3Q) (1) 2009/4-12 (1Q-3Q)(2) Changes (1) ^ (2) 2010/3 (full-year forecast) (3) (Announced 10/30/2009) Progress to forecast (2) / (3) Operating Revenues (Billions of yen) Operating Revenues (Billions of yen) 3,378.8 3,242.4 -4.0% 4,276.0 75.8% Cellular Services Revenues (Billions of yen) 2,791.0 2,662.7 -4.6% 3,461.0 76.9% Operating Expenses (Billions of yen) Operating Expenses (Billions of yen) 2,632.0 2,539.7 -3.5% 3,446.0 73.7% Operating Income (Billions of yen) Operating Income (Billions of yen) 746.8 702.7 -5.9% 830.0 84.7% Income Before Income Taxes (Billions of yen) Income Before Income Taxes (Billions of yen) 709.4 701.7 -1.1% 825.0 85.1% Net Income attributable to NTT DOCOMO, INC. (Billions of yen) Net Income attributable to NTT DOCOMO, INC. (Billions of yen) 437.7 419.3 -4.2% 493.0 85.1% EBITDA Margin (%) * EBITDA Margin (%) * 40.1 38.1 -2.0 points 36.6 - Adjusted Free Cash Flow (Billions of yen) * Adjusted Free Cash Flow (Billions of yen) * 167.3 178.1 +10.7 360.0 49.5% ^Consolidated financial statements in this document are unaudited. ^Adjusted free cash flow excludes the effects uncollected revenues due to bank holidays at the end of the period and changes in investment derived from purchases, redemption at maturity and disposals of financial instruments held for cash management purposes with original maturities of longer than three months. * For an explanation of the calculation processes for these numbers, please see the reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP on Slide 38 and the IR page of our website, www.nttdocomo.co.jp. FY2009/1Q-3Q (cumulative) Financial Results


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FY2009/1-3Q (cumulative) Results Highlights (1) *1: Sum of communication network charges, depreciation and amortization, and loss on disposal of property, plant and equipment *2: Equipment sales revenues net of cost of equipment sold and distributor commissions Cellular services revenues ^ Voice revenues declined due to expanded uptake of "Value Plan", etc., but packet revenues continued to post steadfast growth Cost reduction to cope with decline in aggregate ARPU ^ Profitability of equipment sales-related business*2 improved as a result of widespread adoption of new handset purchase methods ^ Reduced network-related costs*1 by improving efficiency of capital expenditures, etc. Other factors affecting results ^Customer satisfaction improvement initiatives: "Mobile Phone Protection & Delivery" service, etc. ^Increase in no. of consolidated subsidiaries: Oak Lawn Marketing, Inc., etc. Increase in revenues & expenses


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FY2009/1-3Q (cumulative) Results Highlights (2) FY2008/1-3Q (cumulative) FY2009/1-3Q (cumulative) Operating income \746.8 billion Operating income \702.7 billion Down \44.1 billion (5.9%) year-on-year Operating revenues: Down \136.4 billion Operating expenses: Down \92.3 billion Decrease in cost of equipment sold*1: Down \ 99.6 billion Decrease in voice revenues: Down \187.5 billion *1: Sum of cost of equipment sold and distributor commissions *2: Sum of communication network charges, depreciation and amortization, and loss on disposal of property, plant and equipment (2) Cost reduction to cope with decline in aggregate ARPU Key factors behind YOY changes in operating income Decrease in equipment sales revenues: Down \84.8 billion Decrease in network-related costs*2: Down \90.6 billion Increase in other revenues: Up \76.6 billion (3) Other factors behind YOY changes (1) Increase in packet revenues: Up \59.2 billion Increase in other expenses: Up \98.0 billion


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Analysis-1: Packet Revenues Growth Key factors behind YOY changes in packet revenues Impact of users' migration from "Pake- hodai", "Packet Pack", etc. to "Pake- hodai double", and downward revision of minimum monthly rate*: Impact of revision of monthly i-mode usage charge: Impact of subscriber growth and increased packet usage, etc.: Increase resulting from expanded uptake of smartphones/ PC-based mobile data communication devices: Down approx. \20.0 billion Up approx. \60.0 billion ^ Achieved an increase in packet revenues, our No. 1 priority, of \59.2 billion year-on-year by ^growing the packet usage of mobile phone users and expanding PC-based mobile data ^access services, etc.,^making up for the negative revenue impact resulting from subscribers' ^migration to "Pake-hodai double" service introduced in 2008 Up approx. \10.0 billion Up approx. \10.0 billion Revenue growth due to increased packet usage, etc : Approx. \70.0 billion Packet revenues Up \59.2 billion (5.3%) * Impact estimated internally based on users' usage status at the time of introduction of new billing rates.


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Continue cost-cutting efforts in FY09/4Q Analysis-2: Cost Reduction to Cope With Decline in Aggregate ARPU Decline in cellular services revenues: Down \128.3 billion Reduction of network-related costs*1: Up \90.6 billion Improved profitability of equipment sales-related business*2: Up \14.9 billion *1: Sum of communication network charges, depreciation/amortization, loss on disposal of property, plant and equipment *2: Equipment sales revenues net of cost of equipment sold and distributor commissions ^ Managed business with a focus on minimizing negative revenue impact by offsetting a large portion of the decline in cellular services revenues through reduction of network-related costs and improving profitability of equipment sales- related business


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Analysis-3: Other YOY Changes "Mobile Phone Protection & Delivery" service Independent business by subsidiaries Handset repair-related costs Both revenues and expenses grew by approx. \30.0 billion year-on-year (Impact on income: negligible) Due to expanded uptake, Revenues grew by approx. \35.0 billion and expenses increased by approx. \30.0 billion year-on-year Due to inclusion of Oak Lawn Marketing, Inc. in our consolidated accounts: (Impact on income: Up approx. \7.0 billion year-on-year) Repair-related costs grew by approx. \20.0 billion year-on-year Due to increase in no. of handsets submitted for repair resulting from extended average usage period:


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1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q(forecast) ^^^^ 2965 2805 1698 842 2518 2334 2174 296.5 280.5 169.8 251.8 84.2 FY2008 Operating income: \831.0 billion FY2009 Operating Income forecast: \830.0 billion (Billions of yen) ^ Achieved an operating income growth in line with forecast of 28.0% year-on-year in FY2009/3Q (Oct.-Dec. 2009) ^ Steadfast progress toward achievement of full-year income target Impact of income-boosting effect of new handset purchase methods Accelerated depreciation of mova-related assets, etc. ^FY2008 Irregular factors^ 300 0 233.4 217.4 Changes in Operating Income (FY2008/FY2009) FY2009/3Q (Oct.-Dec. 2009): Up 28.0% year-on-year


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07/9 07/12 08/3 08/6 08/9 08/12 09/3 09/6 09/9 09/12 10/3(^^) ^^ 1122 1756 22.09 25.86 28.46 30.43 32.72 34.25 34.75 34.61 3555 ^^ 4173 3559 3130 2777 2548 ^^^ 0.21 0.33 0.41 0.48 0.53 0.562 0.599 0.624 0.6296 0.6245 07/12 08/3 08/6 08/9 08/12 09/3 09/6 09/9 09/12 ^^^ 159 5.29 8.89 12.96 16.483 20.82 23.99 27.029 29.66 ?^^ 0.94 0.978 0.968 0.923 0.952 0.98 0.972 0.974 0.98 New Discount Services*1 New Purchase Methods ^ "Value Plan" subscriptions & "Value Course" selection rate*2 ^ No. of subscriptions *1: "Fami-wari MAX 50", "Hitoridemo Discount 50" and "Office-wari MAX 50" *2: Percentage of users who chose "Value Course" among total users who purchased a handset using new purchase methods (Million subs.) (Subscription rate) :"Value Course" selection rate (left axis) :No. of "Value Plan" subs (right axis) (Million subs.) (Selection rate) :Subscription rate (left axis) :No. of subscriptions (right axis) FY2007 FY2008 FY2009 FY2007 FY2008 FY2009 New Business Model "Value Plan" subscriptions: Topped 30.00 million (As of Jan. 10, 2010)


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Cellular(FOMA+mova)ARPU 05/4-6(1Q) 7-9(2Q) 10-12(3Q) 06/1-3(4Q) 06/4-6(1Q) 7-9(2Q) 10-12(3Q) 07/1-3(4Q) 4-6(1Q) 7-9(2Q) 10-12(3Q) 08/1-3(4Q) 4-6(1Q) 7-9(2Q) 10-12(3Q) 09/1-3(4Q) 4-6(1Q) 7-9(2Q) 10-12(3Q) 10/3 (full-year forecast) Packet ARPU 1820 1880 1880 1940 1970 1980 2010 2080 2120 2210 2200 2270 2330 2410 2390 2420 2430 2450 2440 2460 Voice ARPU 5120 5170 5040 4780 4930 4740 4660 4450 4440 4340 4090 3780 3560 3450 3340 2970 3010 2970 3030 2840 YOY changes in packet ARPU (%) 8.2 5.3 6.9 7.2 7.6 11.6 9.5 9.1 9.9 9.0 8.6 6.6 4.3 1.7 2.1 3.4 (Incl.) Int'l services ARPU 30 40 40 40 50 50 50 60 60 70 70 80 80 90 80 70 70 80 80 80 (Incl.) i-mode ARPU 1,810 1,870 1,860 1,920 1,950 1,960 1,990 2,060 2,090 2,180 2,170 2,230 2,290 2,360 2,350 2,370 2,380 2390 3270 2,390 (Yen) ^ For an explanation of ARPU, please see Slide 37 of this document, "Definition and Calculation Methods of MOU and ARPU". 6,560 6,550 6,290 ^ Aggregate ARPU for FY2009/1-3Q (cumulative) was \5,440 (down 6.5% year-on-year) ^Packet ARPU was \2,440 (up 3.0% year-on-year) ^ Voice ARPU for FY2009/1-3Q (cumulative) was positively affected (up \40) as a result of a review on "Nikagetsu Kurikoshi" (two-month carry over) allowances 6,050 2,120 2,210 2,200 2,270 2,330 2,410 2,390 2,420 5,890 5,860 5,730 5,390 5,440 2,430 2,450 2,460 5,300 5,420 Full-year aggregate ARPU: \6,360 (Down 5.1% year-on-year) Voice: \4,160 (down 11.3%) Packet: \2,200 (up 9.5%) Full-year aggregate ARPU: \5,710 (Down 10.2% year-on-year) Voice: \3,330 (down 20.0%) Packet: \2,380 (up 8.2%) FY08/1-3Q (cumulative) Aggregate ARPU: \5,820 (Down 10.0% year-on-year) Voice: \3,450 (down 19.6%) Packet: \2,370 (up 8.7%) FY07/1-3Q (cumulative) Aggregate ARPU: \6,470 (Down 4.3% year-on-year) Voice: \4,290 (down 10.3%) Packet: \2,180 (up 10.1%) FY09/1-3Q (cumulative) Aggregate ARPU: \5,440 (Down 6.5% year-on-year) Voice: \3,000 (down 13.0%) Packet: \2,440 (up 3.0%) 5,470 2,440 (Announced Oct. 30, 2009)


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^ Churn rate for FY2009/1Q-3Q (cumulative) was 0.45% 03/4-6(1Q) 7-9(2Q) 10-12(3Q) 04/1-3(4Q) 04/4-6(1Q) 7-9(2Q) 10-12(3Q) 05/1-3(4Q) 05/4-6(1Q) 7-9(2Q) 10-12(3Q) 06/1-3(4Q) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q ?^^ 1.17 1.19 1.11 1.36 1.06 1.08 0.95 0.96 0.8 0.81 0.72 0.75 0.64 0.6 0.93 0.97 0.85 0.94 0.74 0.68 0.51 0.52 0.44 0.52 0.44 0.46 0.45 (%) FY07 Full-year churn rate: 0.80% 0.52% 0.51% 0.44% FY08 Full-year churn rate: 0.50% 0.52% 0.45% FY09/1Q-3Q (cumulative) churn rate: 0.45% 0.44% Churn Rate ^ Cellular (FOMA+mova) Churn Rate New discount services (Aug. 07) New handset purchase method (Nov. 07) FY2007 FY2008 FY2009 0.46%


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1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q ^^ 9.89 11.55 11.98 12.33 10.6 11.45 13.29 14.55 12.1 13.31 12.56 13.58 9.6 10.23 8.86 10.67 8.86 9.32 ^^^ 5.58 6.32 6.64 6.48 5.7 6.12 6.86 7.36 6.24 6.56 6.52 6.42 4.947 5.318 4.511 5.353 4.343 4.489 4.02 ^Total no. of handsets sold in FY2009/1Q-3Q(cumulative): 13.01 million units (Down 12.0% year-on-year) FY2007 FY2008 6.56 FY2009 5.32 Full year : 25.74 mil units 1Q-3Q(cumulative) : 19.32 mil units Full year (forecast): 18.20 mil units ^^1Q-3Q(cumulative):13.01 mil units Full year : 20.13 mil units 1Q-3Q(cumulative) : 14.78 mil units Total Handset Sales (Million units) : Total handsets sold (DOCOMO + au +SOFTBANK) : Total handsets sold (DOCOMO) ^ Calculated based on financial results materials of each company ^ Handsets sold by TU-KA and EMOBILE are not included 4.46 6.24 6.52 6.42 4.95 4.51 5.35 4.34 4.20


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06/10 11 12 07/1 2 3 4 5 6 7 8 9 10 11 12 08/1 2 3 4 5 6 7 8 9 10 11 12 09/1 2 3 4 5 6 7 8 9 10 11 12 MNP+- -73228 -163929 -109300 -98489 -74164 -110667 -89357 -58275 -63397 -82668 -90193 -77701 -70460 -58058 -61515 -61403 -66371 -136960 -59228 -58262 -38576 -51074 -43673 -26102 -13339 -1100 1200 2480 -7053 -39060 -19333 -20007 -10465 -11183 -9847 -40953 -23320 -27658 -18862 ^ DOCOMO's market share of net additions for FY2009/1Q-3Q(cumulative): 26.7% 05/4-6(1Q) 7-9(2Q) 10-12(3Q) 06/1-3(4Q) 06/4-6(1Q) 7-9(2Q) 10-12(3Q) 07/1-3(4Q) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Softbank -7 2 12 6 3 7 17 23 39.76 47.89 47.1 44.22 56.88 44 37 38.1 32.3 31.5 35.6 KDDI 51 52 44 46 48 47 73 54 38.95 39.73 28.35 35.65 -3.7 12.4 9.9 17.6 15.3 20.7 16.3 DoCoMo 56 45 44 48 49 46 10 23 16.78 7.51 17.53 10.78 26.09 26 22 26.8 26.3 28.2 25.4 EMOBILE 4.5 4.86 7.02 9.35 20.74 17.6 31.1 17.5 26.2 19.7 22.7 KDDI 51 52 44 46 48 47 73 54 41 Softbank -7 2 12 6 3 7 17 23 42 SoftBank au EMOBILE docomo FY07 net adds share : 12.8% FY08 net adds share : 25.5% FY09/1Q-3Q(cumulative) net adds share :26.7% FY2007 FY2008 FY2009 (10,000 subs) (%) Market Share of Net Additions/MNP ^ Market Share of Net Additions ^ Monthly Net Acquisitions/Losses of MNP Subscribers FY2009 FY2008 FY2007 FY2006 General decline in no. of MNP outflows 10 12 6 3 9 12 6 3 9 12 6 3 9 12


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07/6 07/9 07/12 08/3 08/6 08/9 08/12 09/3 09/6 09/9 09/12 10/3(forecast) FOMA 37.854 40.0426 42.0775 43.9493 45.199 46.44 47.49 49.0403 50.246 51.258 52.05 52.98 mova 14.991 12.8991 11.073 9.4384 8.428 7.49 6.66 5.5604 4.618 3.928 3.39 2.78 mova 55.80 53.03 (95.0%) 49.04 (89.8%) 54.60 53.39 43.95 (82.3%) 9.44 5.56 2.77 52.94 53.94 12.90 7.49 40.04 (75.6%) 46.44 (86.1%) 51.26 (92.9%) 3.93 55.19 Numbers in parentheses indicate the percentage of FOMA subscriptions to total cellular subscriptions (Million subs.) ^Inclusive of Communication Module Services subscriptions FY2007 FY2008 FY2009 Subscriber Migration to FOMA ^ No. of subscribers who have migrated to FOMA in FY2009/1Q-3Q: 1.85 million 55.44 3.39 52.05 (93.9%) 54.86 54.16 53.63 53.15 52.85 4.62 6.66 8.43 11.07 14.99 50.25 (91.6%) 47.49 (87.7%) 45.20 (84.3%) 42.08 (79.2%) 37.85 (71.6%)


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Principal Actions and Results Copyright (C) 2010 NTT DOCOMO, INC. All rights reserved.^^^^


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^ For heavy users: ^^^^ Offer rich variety of attractive content ^ For medium/light users: ^^^^ Expand user base of packet flat-rate services ^^^^ Further improve "ease of use" ^^^^ Enrich portfolio of everyday life-oriented content ^^^^ Sell service with a focus on "boosting usage" ^ Prepare environment (e.g., content, billing plans, etc.) for expanding user base ^ Appeal DOCOMO's strengths: wide coverage, high data speeds i-mode PC-based data access Smartphone Expansion of Packet Usage


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09/6 09/9 09/12 BeeTV^^^ 44 77 86 Expansion of video usage Over 70% 0.44 0.77 (Million subs) New joint venture with DeNA Combine strengths of two companies To launch UGC* site for mobile phones in FY2010/1H (planned) User base Billing system Extensive know-how in operating UGC sites for broad user segments from youth to the elderly System/service development capability New joint venture 0.86 ^ "BeeTV" service ^ Lead users to video content with less no. of clicks ^ Video usage has been growing steadily. Plan to devise new ways (e.g., easier methods to for users to reach desired content, etc.) to further expand video usage ^ Established a new joint venture with DeNA Co. Ltd. with the aim of expanding packet usage of medium users * UGC: User Generated Content. i.e., content created by general users such as novels distributed over the Internet to mobile phones Percentage of subs who have joined paid service after free trial period: ^ Expansion of i-mode Packet Usage -Heavy/Medium Users Load video on top page Promotion


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"Boost usage" ^^^^^ Face-to-face recommendation Expansion of i-mode Packet Usage -Medium/Light Users (1) Improved ease of use & convenience Everyday life-oriented content Create scheme for support Encourage subscription to "Pake-hodai double" ^ Expand user base Basic strategy ^ Encourage subscription to "Pake-hodai double" to create an environment for users to try out content services ^ Then, implement various measures primarily in the area of "improved ease of use & convenience" and "everyday life-oriented content"


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Everyday life-oriented content Delivery of garbage collection day info. Compatible with "i-concier" Video shop guide Jump to video shop guide page Community-oriented content Hobby/practical info. Delivery of store bargain info. Today is the collection day of recyclable garbage (1/29 06:00) No. of participating stores: Over 20,000 PUSH delivery of flyers/bargain info. ^^ supermarket Expansion of i-mode Packet Usage -Medium/Light Users (2) No. of participating stores: Over 7,000


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Expansion of i-mode Packet Usage -Medium/Light Users (3) Deliver free "Deco-mail" animation materials through mail magazine Boost video usage through "i-channel" For users who find it cumbersome to fetch "Deco-mail" animation materials from network Improved ease of use & convenience New concept menu screen Trigger use of i-mode through mail Easy-to-read screen Practical content PUSH delivery Simple language Intuitive operation Shorten routes to reach desired site (Ex: For middle-aged and older) (Ex: For middle-aged and older) Effective for face-to-face recommendation Play with Deco-mail!


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05/3 05/6 05/9 05/12 06/3 06/6 06/9 06/12 07/3 07/6 07/9 07/12 08/3 08/6 08/9 08/12 09/3 09/06 09/09 09/12 10/3(?^^) ^^^^^^ 267.6689 327.0285 388.2829 444.9122 559.0038 691.949 782 856 956 1046 1126.6566 1194.5439 1274 1340 1395 1575 1760.9526 1958 2152 2307.8 2580 ^^^ 0.233 0.239 0.232 0.221 0.2382 0.263648809 0.2687 0.2666 28 Enrichment of i-mode Packet Flat-Rate Services *1: Inclusive of "Pake-hodai full", "Pake-hodai double" and "Pake-hodai simple". *2: Pake-hodai subscription rate= No. of Pake-hodai subscriptions/Total FOMA i-mode subscriptions. *3: Sum of basic monthly charge (\780) for subscribing to Mail Tsukai-hodai Type Simple (Value) plan together with "Fami-wari MAX 50", "Hitoridemo Discount 50" or other discount plans and monthly i-mode usage charge (\315). Use of mail service outside Japan or via mova connections based on "Dual Network Service" are not included covered by the flat-rate package. *4: Inclusive of "Pake-hodai simple". *5: For use at selected access points offering downlink speeds of up to 128kbps. Separate contract with service provider required. "Pake-hodai"* subscriptions*1 17.61 (million subs) 09/6 ^^ 13.40 08/12 15.75 09/3 19.58 13.95 08/9 08/6 10/3 (forecast) 09/9 ^^ 21.52 25.80 FY09 "Pake-hodai" subscription rate target: 55% "Mail Tsukai-hodai" service ("Pake-hodai simple") (Launched Dec. 1, 2009) (Launched Dec. 1, 2009) ^ Unlimited domestic i-mode mail for a fixed monthly fee of \1,095*3 ^ Allows users to use other packet services without concerns about their phone bills with the addition of "Pake-hodai simple" services, which starts from a minimum monthly rate of \0. Wireless LAN Connection cable Portable game console FOMA BTS FOMA data access Downlink: Up to 128kbps Uplink: Up to 64kbps 09/1 2 ^^ 23.08 Addition of a new menu for data access via external devices to "Pake-hodai double*4" service "Pake-hodai" subscription rate*2 49% (As of Dec. 31, 2009) Initial target (47%) was achieved ahead of plan (Sept. 2009) ^^Newly set a higher target ^ Initial "Pake-hodai" subscription rate target for FY09 (47% by Mar. 31, 2010) was achieved in September 2009. After setting a higher target (55%), no. of flat-rate subscriptions grew steadily as a result of active subscriber acquisition efforts ^ Allows unlimited access via portable game consoles and other external devices for a maximum monthly rate of \5,985*5


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PC Data Communications ^ Strategically strengthened sales viewing PC data communications market as a growth market ^ Achieved favorable growth both in number and market share of devices sold 08/6 08/9 08/12 09/3 09/06 09/09 09/12 ^?^^^^^^^^^ 36.1723 37.359 38.4471 37.8151 38.4154 39.1283 39.737 ^?^^^^^^^^^ 8.2 9.8 11.9 15.6 19.6 28.1574 40.3056 09/6 ^^ 08/12 09/3 08/9 08/6 09/9 ^^ Affordable prices/Reduced provider fee, etc. ^ Two-tier flat-rate data package (\1,000-\5,985/month*2) ^ "mopera U U Flat-Rate HIGH-SPEED" plan ^^^^^^^^^^^^^^^^Lowered monthly rate from \840^\525 *1: Total no. of subscriptions to usage-based data plans, "Flat-Rate Data Plan Standard" and "Flat-Rate Data Plan 64K" (including "Value" plans) *2: Rates applicable to users joining "Flat-Rate Data Plan Standard Value" together with "Flat-Rate Data Standard-Wari Discount". (1,000 subs) 200 400 600 :Usage-based data plans : Flat-rate data plans 4-6(1Q) 7-9(2Q) 10-12(3Q) 1-3(4Q) 4-6(1Q) 7-9(2Q) 10-12(3Q) ^^^^^^?^^ 4.1 4.5 5.1 6.4 7.6163 11.6509 15.3446 08/6 08/9 08/12 09/3 09/6 09/9 50 150 (1,000 units) 670 580 530 500 470 440 80 100 120 160 200 280 Enriched variety of data access devices Aggressive advertisement ^ TV commercials (Revised Nov. 1, 2009) 09/12 09/12 Awarded No. 1 customer satisfaction rating in "15th mobile phone "personal use" survey 2009- overall satisfaction rating" by Nikkei BP Consulting. < PC with built-in module> As of Jan. 2009: 10 models from 4 manufacturers As of Jan. 2010: 20 models from 5 manufacturers ^ HSUPA-enabled ^ ExpressCard (Released Nov. 11, 2009) <L-07A> 800 400 100 (Manufacturer brand) PC data communication devices sales Data plan*1 subscriptions Sales reinforcement actions (Launched Jul, 1, 2009)


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Smartphone ^ Aim to broaden the sphere of smartphone market through the introduction of state-of-the-art devices and improvement of billing plans and content/application usage environment Actions undertaken Future plans ^ Various handset Platforms ^ More affordable and easy-to-use billing plans BlackBer ry Bold HT-03A T-01A Products Improvement of usage environment ^ docomo Smartphone XperiaTM ^ Enrichment of packet flat-rate plans Integrate "Biz-hodai double" with "Pake-hodai double" Expand application of "Mail Tsukai-hodai" (former "Biz-hodai simple") ^ "docomo market" (Planned for launch in April 2010) (To start application from Apr. 1, 2010) Top page icon Easy access to attractive content/apps even for beginners Content recommendation DOCOMO original content Downward revision of "Biz-hodai double" flat-rate charge (From Aug. 1, 2009) (no. of packets) Monthly rate (Conceptual) Brand-new entertainment experience New style photo communication High-spec features ^ Xperia is a trademark or registered trademark of Sony Ericsson Mobile Communications AB. To go on sale in April 2010 (planned)


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Service Personalization - i-concier - "i-concier" ^ No. of content sites ^ No. of subscriptions (Million subs) 1 2 08/12 09/3 09/06 09/09 09/12 10/3 i^^^^^ 30 93 156 233.7 310.074 387 09/6 ^^ 08/12 09/3 09/9 ^^ 1.56 0.93 0.30 3 08/12 09/3 09/6 09/9 09/12 ^^^^^^ 191 244 332 423 493 ^)^^^^^^ ^)^^^ ^)^^^^^^^^^ ^)^^^^^ 200 400 600 08/12 09/3 09/6 09/9 191 244 332 423 2.34 Introduction of auto-GPS (Launched November 2009) (content sites) 10/3 (forecast)^^ 3.90 Delivery of new type of behavior support service You have arrived near the area you set with the "Auto GPS reminder" service. "The TV feature..." Auto GPS information Auto GPS reminder Last train alert Local "machi-chara" passport Auto GPS weather/earthquake info 3.10 09/1 2^^ 493 09/12 Expansion of local content ^ Kanagawa Shimbun newspaper (Ex). Extra editions, information on events/festivals held in Kanagawa Pref. (Launched Dec. 1, 2009) Aim to further enrich local content ^ No. of "i-concier" subscriptions topped 3.10 million as a result of active promotion upon sale of handset ^ Launched more advanced behavior support services with the introduction of auto-GPS feature ^ Steadily increased no. of "i-concier" content, adding variety of local content


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Social Support -Environment/Ecology Business- Bicycle sharing Environment sensor network business ^ Joint promotion of bike-sharing service with Docon Co., Ltd. ^ Launched commercial service using environment sensor network, and achieved steadfast progress ^ Capital investment in Weather Service Inc. to utilize pollen data analysis technology in business ^ Bicycle sharing business: In preparation for verification trial Make reservation Pay, use and return Locate current position & make reservation. Receive Felica key Authentication/key unlock based on Felica. Navigation to destination Reservation of drop-off spot. Locking at destination Reservation, payment and behavior support with a single handset Unlock Navigate Lock Preparation in progress to start verification trial in Sapporo in June 2010 Started trial operation (Dec. 21, 2009) Commercial service launched (Jan. 20, 2010) ^ Develop and provide pollen data analysis technology Plan to expand to 2,500 locations in FY2010, and eventually to 9,000 locations nationwide Pollen UV ray Temper- ature Thunder- shower CO2 sensor Base station To FOMA Network Capital alliance with Weather Service Inc. (Investment made on Jan. 6, 2010)


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Converged Services ^ Launched "MyArea", Japan's first Femto BTS-based home area service ^ Started sales of "Photo Panel 02" at shops on Jan. 15, 2010, toward full-fledged sales expansion "MyArea" "Otayori Photo" Private FOMA area in home Aim to acquire 1.00 million subs (cumulative) by FY2012 Constant access to (((high-speed communication))) ^ Launched a new value-added service, "MyArea" wireless coverage, to realize dedicated use of bandwidth and offer information service leveraging in/out of home area data Dedicated use of bandwidth In/out of home area info. Exclusive content for "MyArea" Compatible with long-form video "Imasuka" function Informs family member's departure from/return to home via e-mail Possible to check family members' presence/absence status from outside Message can be stored and delivered upon return to home High- performance Femto BTS ^ Started sales of new wireless photo frame "Photo Panel 02" ^ Added new feature to "Otayori Photo" service (Launched Nov. 18, 2009) (Sales via web site started on Dec. 22, 2009) Shop sales commenced on Jan. 15, 2010 Full-scale sales expansion to acquire more subscriptions Photo Panel 02 (Launched Dec. 22, 2009) Photo delivery Transmit reservation Delivery confirmation


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08/11 08/12 09/1 09/2 09/3 09/4 09/5 09/6 09/7 09/8 09/9 09/10 09/11 09/12 ^^^^^^??^^^ 0.314649 0.997636 1.816648 2.627094 3.883635 4.909111 5.615218 6.600177 7.695902 8.70751 9.580699 10.41 11.26 12.54 STYLE PRIME SMART PRO 60 28 9 3 Handset Lineup ^ Brisk sales reported after releasing 2009 winter/spring model handsets, which offer various "advancements" in design, functionality and services, etc. ^ Cumulative sales of new handset series topped 13.00 million (Million units) * Cumulative no. of units sold after release of 2008 winder models Topped 13.00 million* (As of Jan. 11, 2010) ^ Cumulative sales of new handset series ^ Sales breakdown by series (Oct.-Dec. 2009 cumulative)


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08/11 12 09/1 2 3 4 5 6 7 8 9 10 11 12 ^^^ 0.85 0.75 1.03 1.08 1.25 0.61 0.76 0.62 2.17 3.42 4.01 3.87 3.33 3.336 ^^^^^ 0.0825 0.0691 0.0667 0.08 0.0783 0.0508 0.0656 0.0519 0.157 0.227 0.267 0.232 0.189 0.1751 Establish and strengthen foundation for overseas platform business Acquired no. 1 share of net adds in India from Aug. to Dec. 2009 Global Expansion ^ TTSL/TTML steadily increased no. of net adds, acquiring No. 1 net adds share in India for 5 straight months ^ Launched mobile "manga" comics delivery service as a new value-added service (million subs) *1: Number of subscribers, net additions and market share are the total of GSM and CDMA services offered by TTSL/TTML. (Source: TRAI) *2: Converted into Japanese yen based on exchange rate of EUR 1 =\130.21 (Launched Jan. 8, 2009) (Announced Dec. 3, 2009) Service areas^ Value-added services 14 circles (out of India's total 22 circles) Launched mobile comics delivery service TTSL/TTML (India) ^ No. of net additions*1 ^ GSM roll-out status (Brand name: TATA DOCOMO) Total subscriptions: Over 57.00 million Market share: Topped 10%*1 (As of Dec. 31, 2009) (Launched Jun. 24, 2009) Launched "i-channel" service (As of Jan. 2010) Completion of TOB for net mobile AG (Germany) Operation of platform for distributing and billing mobile content, etc. Acquired 79.59% (approx. 6.00 million shares) of total issued share of net mobile for approx. EUR 39.00 million (approx. \5.0 billion*2) TOB Outcome Business


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Names of companies, products, etc., contained in this document are the trademarks or registered trademarks of their respective organizations


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Appendices Copyright (C) 2010 NTT DOCOMO, INC. All rights reserved.^^^^


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US GAAP 2008/4-12(1Q~3Q) 2009/4-12(1Q~3Q) 2010/3(full year forecast) Cellular services revenues (voice, packet) 2791 2662.7 3461 PHS^^ - Other revenues 120.1 196.8 274 Equipment sales revenues 467.6 382.9 541 4,276.0 Operating Revenues (Billions of yen) (Billions of yen) ^ "International services revenues" are included in "Cellular services revenues (voice, packet)". 3,242.4 -4.0% 3,378.8 (Announced 10/30/2009)


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US GAAP 2008/4-12(1Q~3Q) 2009/4-12(1Q~3Q) 2010/3(full year forecast) (Incl.) Other non-personnel expenses 564.1 617.8 877.0 (Incl.)Revenue-linked expenses* 981.3 925.0 1,226.0 Non-personnel expenses 1545.4 1542.8 2103 Communication network charges 249.1 234.3 295 Loss on disposal of property, plant and equipment and intangible assets 35.4 30.4 46 Depreciation and amortization 582.3 511.5 703 Taxes and public duties 29.2 29.2 39 Personnel expenses 190.5 191.5 260 3,446.0 Operating Expenses (Billions of yen) (Billions of yen) *Revenue-linked expenses: Cost of equipment sold + distributor commissions + cost of docomo point services (Announced 10/30/2009) 2,539.7 -3.5% 2,632.0


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2008/4-12(1Q~3Q) 2009/4-12(1Q~3Q) 2010/3(full year forecast) Mobile phone business (Other) 59 61.9 99 Mobile phone business (mova) 7.4 5.4 7 Mobile phone business (FOMA) 346.3 332.7 442 PHS^^ Other (information systems, etc.) 87.8 84.6 142 690.0 Capital Expenditures (Billions of yen) (Billions of yen) (Announced 10/30/2009) 484.5 -3.2% 500.5


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^ 2008/4-12 (1Q~3Q) (1) 2009/4-12 (1Q~3Q) (2) Changes (1) ^(2) 2010/3 (full year forecast) Announced 10/30/2009 Cellular Phone No. of Subscriptions (1,000)* No. of Subscriptions (1,000)* No. of Subscriptions (1,000)* No. of Subscriptions (1,000)* No. of Subscriptions (1,000)* 54,155 55,436 +2.4% 55,800 Cellular Phone mova mova mova mova 6,661 3,391 -49.1% 2,770 Cellular Phone FOMA FOMA FOMA FOMA 47,494 52,045 +9.6% 53,030 Cellular Phone i-mode i-mode i-mode i-mode 48,150 48,688 +1.1% 48,900 Cellular Phone Communication Module Service Communication Module Service Communication Module Service Communication Module Service 1,536 1,554 +1.2% 1,590 Cellular Phone Market share(%) Market share(%) Market share(%) Market share(%) Market share(%) 51.2 50.1 -1.1 points - Cellular Phone Handsets sold (1,000) (including handsets sold without involving sales by DOCOMO) Handsets sold (1,000) (including handsets sold without involving sales by DOCOMO) Total handsets sold Total handsets sold Total handsets sold 14,775 13,009 -12.0% - Cellular Phone Handsets sold (1,000) (including handsets sold without involving sales by DOCOMO) Handsets sold (1,000) (including handsets sold without involving sales by DOCOMO) Mova New New 56 9 -83.9% - Cellular Phone Handsets sold (1,000) (including handsets sold without involving sales by DOCOMO) Handsets sold (1,000) (including handsets sold without involving sales by DOCOMO) Mova Replacement Replacement 36 6 -84.3% - Cellular Phone Handsets sold (1,000) (including handsets sold without involving sales by DOCOMO) Handsets sold (1,000) (including handsets sold without involving sales by DOCOMO) FOMA New New 3,077 3,044 -1.1% - Cellular Phone Handsets sold (1,000) (including handsets sold without involving sales by DOCOMO) Handsets sold (1,000) (including handsets sold without involving sales by DOCOMO) FOMA Migration from mova Migration from mova 2,348 1,850 -21.2% - Cellular Phone Handsets sold (1,000) (including handsets sold without involving sales by DOCOMO) Handsets sold (1,000) (including handsets sold without involving sales by DOCOMO) FOMA Other** Other** 9,258 8,101 -12.5% - Cellular Phone Churn rate (%) Churn rate (%) Churn rate (%) Churn rate (%) Churn rate (%) 0.49 0.45 -0.04 points - Cellular Phone ARPU(FOMA+mova)(yen)*** ARPU(FOMA+mova)(yen)*** ARPU(FOMA+mova)(yen)*** ARPU(FOMA+mova)(yen)*** ARPU(FOMA+mova)(yen)*** 5,820 5,440 -6.5% 5,300 Cellular Phone MOU(FOMA+mova)(minutes)*** MOU(FOMA+mova)(minutes)*** MOU(FOMA+mova)(minutes)*** MOU(FOMA+mova)(minutes)*** MOU(FOMA+mova)(minutes)*** 138 137 -0.7% - Operational Results and Forecasts *Communication Module Service subscriptions are included in the number of cellular phone subscriptions in order to align the calculation method of subscriptions with that of other cellular phone carriers. (Market share, the number of handsets sold and churn rate are calculated inclusive of Communication Module Service subscriptions.) **Other includes purchases of additional handsets by existing FOMA subscribers. ***For an explanation of MOU and ARPU, please see Slide 37 of this document, "Definition and Calculation Methods of MOU and ARPU".


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US GAAP 2008/10-12 (3Q) (1) 2009/10-12 (3Q) (2) Changes (1) ^(2) Operating Revenues (Billions of yen) Operating Revenues (Billions of yen) 1,111.0 1,096.6 -1.3% Cellular Services Revenues (Billions of yen) 919.1 896.6 -2.5% Operating Expenses (Billions of yen) Operating Expenses (Billions of yen) 941.1 879.1 -6.6% Operating Income (Billions of yen) Operating Income (Billions of yen) 169.8 217.4 +28.0% Income Before Income Taxes (Billions of yen) Income Before Income Taxes (Billions of yen) 149.2 221.8 +48.6% Net Income attributable to NTT DOCOMO, INC. (Billions of yen) Net Income attributable to NTT DOCOMO, INC. (Billions of yen) 91.0 134.6 +47.9% EBITDA Margin (%) * EBITDA Margin (%) * 37.4 36.3 -1.1 points Adjusted Free Cash Flow (Billions of yen) ** Adjusted Free Cash Flow (Billions of yen) ** 231.9 83.6 -63.9% FY2009/3Q (Oct.-Dec. 2009) Financial Results ^Consolidated financial statements in this document are unaudited. ^Adjusted free cash flow excludes the effects uncollected revenues due to bank holidays at the end of the period and changes in investment derived from purchases, redemption at maturity and disposals of financial instruments held for cash management purposes with original maturities of longer than three months. * For an explanation of the calculation processes for these numbers, please see the reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP on Slide 38 and the IR page of our website, www.nttdocomo.co.jp.


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04/4-6(1Q) 7-9(2Q) 10-12(3Q) 05/1-3(4Q) 05/4-6(1Q) 7-9(2Q) 10-12(3Q) 06/1-3(4Q) 06/4-6(1Q) 7-9(2Q) 10-12(3Q) 07/1-3(4Q) 07/4-6(1Q) 7-9(2Q) 10-12(3Q) 08/1-3(4Q) 08/4-6(1Q) 7-9(2Q) 10-12(3Q) 09/1-3(4Q) 09/4-6(1Q) 7-9(2Q) 10-12(3Q) MOU (left axis) 152 155 153 145 149 152 151 146 145 146 146 139 140 140 139 135 137 138 139 133 135 137 138 YOY changes in MOU (right axis) -6.2 -3.7 -4.4 -5.8 -2 -1.9 -1.3 0.7 -2.7 -3.9 -3.3 -4.8 -3.4 -4.1 -4.8 -2.9 -2.1 -1.4 0 -1.5 -1.5 -0.7 -0.7 ^ FY2009/1-3Q (cumulative) MOU: 137 minutes (down 0.7% year-on-year) (%) (minutes) FY07 full-year MOU: 138 minutes (Down 4.2% year-on-year) FY07/1-3Q (cumulative) MOU: 140 minutes (Down 4.1% YOY) Cellular (FOMA+mova) MOU FY08/1-3Q (cumulative) MOU: 138 minutes (Down 1.4% YOY) FY09/1-3Q (cumulative) MOU: 137 minutes (Down 0.7% YOY) FY08 full-year MOU: 137 minutes (Down 0.7% year-on-year) ^ For an explanation of MOU, please see Slide 37 of this document, "Definition and Calculation Methods of MOU and ARPU".


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Definition and Calculation Methods of MOU and ARPU ^ MOU (Minutes of Use): Average monthly communication time per subscription. ^ ARPU (Average monthly Revenue Per Unit): Average monthly revenue per unit, or ARPU, is used to measure average monthly operating revenues attributable to designated services on a per subscription basis. ARPU is calculated by dividing various revenue items included in operating revenues from our wireless services, such as basic monthly charges, voice communication charges and packet communication charges, from designated services which are incurred consistently each month, by the number of active subscriptions to the relevant services. Accordingly, the calculation of ARPU excludes revenues that are not representative of monthly average usage such as activation fees. We believe that our ARPU figures provide useful information to analyze the average usage per subscription and the impacts of changes in our billing arrangements. The revenue items included in the numerators of our ARPU figures are based on our U.S. GAAP results of operations. ^ Aggregate ARPU (FOMA+mova): Voice ARPU (FOMA+mova) + Packet ARPU (FOMA+mova) ^^^ Voice ARPU (FOMA+mova): Voice ARPU (FOMA+mova) Related Revenues (basic monthly charges, voice communication charges) / No. of active subscriptions (FOMA+mova) ^^^ Packet ARPU (FOMA+mova): {Packet ARPU (FOMA) Related Revenues (basic monthly charges, packet communication charges) + i-mode ARPU (mova) Related Revenues (basic monthly charges, packet communication charges)} / No. of active subscriptions (FOMA+mova) ^ i-mode ARPU (FOMA+mova): i-mode ARPU (FOMA+mova) Related Revenues (basic monthly charges, packet communication charges) / No. of active subscriptions (i-mode (FOMA+mova)) ^ Aggregate ARPU (FOMA): Voice ARPU (FOMA) + Packet ARPU (FOMA) ^^^ Voice ARPU (FOMA): Voice ARPU (FOMA) Related Revenues (basic monthly charges, voice communication charges) / No. of active subscriptions (FOMA) ^^^ Packet ARPU (FOMA): Packet ARPU (FOMA) Related Revenues (basic monthly charges, packet communication charges) / No. of active subscriptions (FOMA) ^^^ i-mode ARPU (FOMA): i-mode ARPU (FOMA) Related Revenues (basic monthly charges, packet communication charges) / No. of active subscriptions (i-mode (FOMA)) ^ Aggregate ARPU (mova): Voice ARPU (mova) + i-mode ARPU (mova) ^^^ Voice ARPU (mova): Voice ARPU (mova) Related Revenues (basic monthly charges, voice communication charges) / No. of active subscriptions (mova) ^^^ i-mode ARPU (mova): i-mode ARPU (mova) Related Revenues (monthly charges, packet communication charges) / No. of active subscriptions (i-mode (mova)) ^ Number of active subscriptions used in ARPU and MOU calculations are as follows: ^^^ Quarterly data: sum of "No. of active subscriptions in each month"* of the current quarter ^^^ Half-year data: sum of "No. of active subscriptions in each month"* of the current half ^^^ Full-year data: sum of "No. of active subscriptions in each month"* of the current fiscal year ^^^* "No. of active subscriptions in each month": (No. of subs at end of previous month + No. of subs at end of current month)/2 ^The revenues and no. of subscriptions of Communication Module Services are not included in the above calculation of ARPU and MOU.


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Reconciliation of the Disclosed Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures


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Names of companies, products, etc., contained in this document are the trademarks or registered trademarks of their respective organizations