NTT DoCoMo, Inc. |
||||
Date: January 30, 2009 | By: | /S/ OSAMU HIROKADO | ||
Osamu Hirokado | ||||
Head of Investor Relations | ||||
Financial Statements | January 30,
2009 |
|
For the Nine Months Ended December 31, 2008 | [U.S.
GAAP] |
Name of registrant: |
NTT DoCoMo, Inc. (URL http://www.nttdocomo.co.jp/) | |
Code No.: |
9437 | |
Stock exchange on which the Companys shares are listed: |
Tokyo Stock Exchange-First Section | |
Representative: |
Ryuji Yamada, Representative Director, President and Chief Executive Officer | |
Contact: |
Shinya Hasegawa, Senior Manager, General Affairs Department / TEL +81-3-5156-1111 | |
Scheduled date for filing of quarterly report: |
February 4, 2009 |
(Millions of yen, except per share amount) | ||||||||||||||||||||||||||||||||
Income before | ||||||||||||||||||||||||||||||||
Operating Revenues | Operating Income | Income Taxes | Net Income | |||||||||||||||||||||||||||||
Nine months ended December 31, 2008 |
3,378,760 | | 746,785 | | 709,393 | | 437,705 | | ||||||||||||||||||||||||
Nine months ended December 31, 2007 |
3,522,034 | (2.1 | )% | 624,998 | (7.7 | )% | 628,720 | (7.6 | )% | 376,497 | (6.7 | )% |
Basic Earnings | Diluted Earnings | |||||||
per Share | per Share | |||||||
Nine months ended December 31,
2008 |
10,337.45 (yen | ) | | |||||
Nine months ended December 31,
2007 |
8,714.79 (yen | ) | |
(Millions of yen, except per share amount) | ||||||||||||||||
Equity Ratio | ||||||||||||||||
(Ratio of Shareholders | Shareholders Equity | |||||||||||||||
Total Assets | Shareholders Equity | Equity to Total Assets) | per Share | |||||||||||||
December 31, 2008 |
6,381,621 | 4,375,054 | 68.6 | % | 104,171.17 (yen | ) | ||||||||||
March 31, 2008 |
6,210,834 | 4,276,496 | 68.9 | % | 100,321.46 (yen | ) |
Cash dividends per share (yen) | ||||||||||||||||||||
End of the first | End of the second | End of the third | ||||||||||||||||||
Date of record | quarter | quarter | quarter | Year-end | Total | |||||||||||||||
Year ended March 31, 2008 |
| 2,400.00 | | 2,400.00 | 4,800.00 | |||||||||||||||
Year ending March 31, 2009 |
| 2,400.00 | | | | |||||||||||||||
Year ending March 31,
2009 (Forecasts) |
| | | 2,400.00 | 4,800.00 |
(Millions of yen, except per share amount) | ||||||||||||||||||||||||||||||||||||
Income before | ||||||||||||||||||||||||||||||||||||
Operating Revenues | Operating Income | Income Taxes | Net Income | Earnings per Share | ||||||||||||||||||||||||||||||||
Year ending March 31, 2009 |
4,597,000 | (2.4 | )% | 830,000 | 2.7 | % | 814,000 | 1.7 | % | 495,000 | 0.8 | % | 11,786.08 (yen | ) |
1
(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 10.) |
||||||
(4) Number of issued shares (common stock) |
||||||
(i) Number of issued shares (inclusive of treasury stock): |
As of December 31, 2008: | 44,870,000 shares | ||||
As of March 31, 2008: | 44,870,000 shares | |||||
(ii) Number of treasury stock: |
As of December 31, 2008: | 2,871,299 shares | ||||
As of March 31, 2008: | 2,242,073 shares | |||||
(iii) Number of weighted average common shares outstanding: |
For the nine months ended December 31, 2008: | 42,341,664 shares | ||||
For the nine months ended December 31, 2007: | 43,202,063 shares |
2
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
* | docomo STYLE series, docomo PRIME series, docomo SMART series and docomo PRO series |
Billions of yen | ||||||||||||
(Reference) | ||||||||||||
(UNAUDITED) | (UNAUDITED) | (UNAUDITED) | ||||||||||
Three months ended | Nine months ended | Nine months ended | ||||||||||
December 31, 2008 | December 31, 2008 | December 31, 2007 | ||||||||||
Operating revenues |
¥ | 1,111.0 | ¥ | 3,378.8 | ¥ | 3,522.0 | ||||||
Operating expenses |
941.1 | 2,632.0 | 2,897.0 | |||||||||
Operating income |
169.8 | 746.8 | 625.0 | |||||||||
Other income (expense) |
(20.6 | ) | (37.4 | ) | 3.7 | |||||||
Income before income taxes |
149.2 | 709.4 | 628.7 | |||||||||
Income taxes |
60.0 | 279.4 | 253.3 | |||||||||
Equity in net income of affiliates,
net of applicable taxes |
1.8 | 7.7 | 1.2 | |||||||||
Minority interests |
0.0 | (0.0 | ) | (0.1 | ) | |||||||
Net income |
¥ | 91.0 | ¥ | 437.7 | ¥ | 376.5 | ||||||
EBITDA margin* |
37.4 | % | 40.1 | % | 34.3 | % | ||||||
ROCE* |
3.4 | % | 15.3 | % | 13.2 | % | ||||||
ROCE after tax effect* |
2.0 | % | 9.0 | % | 7.8 | % | ||||||
* | EBITDA and EBITDA margin, as we refer to 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 20. |
Notes: |
||
1. | Consolidated financial statements as of and for the three months and nine months ended
December 31, 2008 in this release are unaudited. |
|
2. | Amounts in this release are rounded off. |
3
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
Billions of yen | ||||||||||||
(Reference) | ||||||||||||
(UNAUDITED) | (UNAUDITED) | (UNAUDITED) | ||||||||||
Three months ended | Nine months ended | Nine months ended | ||||||||||
December 31, 2008 | December 31, 2008 | December 31, 2007 | ||||||||||
Wireless services |
¥ | 962.6 | ¥ | 2,911.1 | ¥ | 3,158.7 | ||||||
Cellular services revenues |
919.1 | 2,791.0 | 3,060.5 | |||||||||
- Voice revenues |
539.6 | 1,665.0 | 2,041.6 | |||||||||
Including: FOMA services |
475.9 | 1,444.8 | 1,582.6 | |||||||||
- Packet communications revenues |
379.5 | 1,126.0 | 1,018.9 | |||||||||
Including: FOMA services |
365.0 | 1,075.9 | 921.1 | |||||||||
PHS services |
| | 9.4 | |||||||||
Other revenues |
43.4 | 120.1 | 88.9 | |||||||||
Equipment sales |
148.4 | 467.6 | 363.3 | |||||||||
Total operating revenues |
¥ | 1,111.0 | ¥ | 3,378.8 | ¥ | 3,522.0 | ||||||
Billions of yen | ||||||||||||
(Reference) | ||||||||||||
(UNAUDITED) | (UNAUDITED) | (UNAUDITED) | ||||||||||
Three months ended | Nine months ended | Nine months ended | ||||||||||
December 31, 2008 | December 31, 2008 | December 31, 2007 | ||||||||||
Personnel expenses |
¥ | 63.8 | ¥ | 190.5 | ¥ | 186.7 | ||||||
Non-personnel expenses |
534.1 | 1,545.4 | 1,815.6 | |||||||||
Depreciation and amortization |
233.9 | 582.3 | 558.0 | |||||||||
Loss on disposal of
property, plant and
equipment and intangible
assets |
16.7 | 35.4 | 43.5 | |||||||||
Communication network charges |
83.3 | 249.1 | 264.1 | |||||||||
Taxes and public dues |
9.2 | 29.2 | 29.2 | |||||||||
Total operating expenses |
¥ | 941.1 | ¥ | 2,632.0 | ¥ | 2,897.0 | ||||||
4
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
Thousand subscriptions | ||||||||
December 31, 2008 | September 30, 2008 | |||||||
Cellular services |
54,155 | 53,937 | ||||||
Cellular (FOMA) services |
47,494 | 46,444 | ||||||
Including: i-channel services |
16,228 | 16,044 | ||||||
Including: flat-rate services
for unlimited i-mode usage |
15,751 | 13,949 | ||||||
Cellular (mova) services |
6,661 | 7,493 | ||||||
i-mode services |
48,150 | 48,069 |
1. | Number of subscriptions of 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 subscriptions + Pake-hodai full subscriptions +
Pake-hodai double 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. |
5
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
Thousand units | ||||||||||||
Three months ended | Nine months ended | Nine months ended | ||||||||||
December 31, 2008 | December 31, 2008 | December 31, 2007 | ||||||||||
Cellular services |
4,511 | 14,775 | 19,320 | |||||||||
Cellular (FOMA) services |
||||||||||||
New FOMA subscription |
921 | 3,077 | 4,389 | |||||||||
Change of subscription from mova to FOMA |
716 | 2,348 | 5,137 | |||||||||
FOMA handset upgrade by FOMA subscribers |
2,856 | 9,258 | 9,414 | |||||||||
Cellular (mova) services |
||||||||||||
New mova subscription |
11 | 56 | 167 | |||||||||
mova handset upgrade by mova subscribers
and change of subscription from FOMA to mova |
7 | 36 | 213 | |||||||||
Churn Rate |
0.44 | % | 0.49 | % | 0.85 | % |
Yen/Minutes | ||||||||||||
Three months ended | Nine months ended | Nine months ended | ||||||||||
December 31, 2008 | December 31, 2008 | December 31, 2007 | ||||||||||
Aggregate ARPU* (FOMA+mova) |
¥ | 5,730 | ¥ | 5,820 | ¥ | 6,470 | ||||||
Voice ARPU |
3,340 | 3,450 | 4,290 | |||||||||
Packet ARPU |
2,390 | 2,370 | 2,180 | |||||||||
Aggregate ARPU (FOMA) |
6,000 | 6,150 | 7,160 | |||||||||
Voice ARPU |
3,370 | 3,500 | 4,510 | |||||||||
Packet ARPU |
2,630 | 2,650 | 2,650 | |||||||||
Aggregate ARPU (mova) |
3,730 | 3,820 | 4,440 | |||||||||
Voice ARPU |
3,070 | 3,140 | 3,670 | |||||||||
i-mode ARPU |
660 | 680 | 770 | |||||||||
MOU* (FOMA+mova) (minutes) |
139 | 138 | 140 |
* | See Definition and Calculation Methods of ARPU and MOU on page 19 for details of
definitions and calculation methods of ARPU and MOU. |
Billions of yen | ||||||||||||
(Reference) | ||||||||||||
(UNAUDITED) | (UNAUDITED) | (UNAUDITED) | ||||||||||
Three months ended | Nine months ended | Nine months ended | ||||||||||
December 31, 2008 | December 31, 2008 | December 31, 2007 | ||||||||||
Operating revenues from mobile phone business |
¥ | 1,095.7 | ¥ | 3,332.2 | ¥ | 3,476.8 | ||||||
Operating income from mobile phone business |
175.3 | 762.9 | 664.1 |
6
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
Billions of yen | ||||||||||||
(Reference) | ||||||||||||
(UNAUDITED) | (UNAUDITED) | (UNAUDITED) | ||||||||||
Three months ended | Nine months ended | Nine months ended | ||||||||||
December 31, 2008 | December 31, 2008 | December 31, 2007 | ||||||||||
Operating revenues from miscellaneous businesses |
¥ | 15.3 | ¥ | 46.5 | ¥ | 45.3 | ||||||
Operating loss from miscellaneous businesses |
(5.5 | ) | (16.1 | ) | (39.1 | ) |
Billions of yen | ||||||||||||
(Reference) | ||||||||||||
(UNAUDITED) | (UNAUDITED) | (UNAUDITED) | ||||||||||
Three months ended | Nine months ended | Nine months ended | ||||||||||
December 31, 2008 | December 31, 2008 | December 31, 2007 | ||||||||||
Mobile phone business |
¥ | 131.2 | ¥ | 412.7 | ¥ | 403.7 | ||||||
PHS business |
| | 0.3 | |||||||||
Other (including information systems) |
32.9 | 87.8 | 84.2 | |||||||||
Total capital expenditures |
¥ | 164.0 | ¥ | 500.5 | ¥ | 488.2 | ||||||
7
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
Billions of yen | ||||||||
(UNAUDITED) | ||||||||
December 31, 2008 | March 31, 2008 | |||||||
Total assets |
¥ | 6,381.6 | ¥ | 6,210.8 | ||||
Shareholders equity |
4,375.1 | 4,276.5 | ||||||
Liabilities |
2,005.0 | 1,933.1 | ||||||
Interest bearing liabilities |
641.8 | 478.5 | ||||||
Equity ratio (1) |
68.6 | % | 68.9 | % | ||||
Debt ratio (2) |
12.8 | % | 10.1 | % |
Notes: |
||
(1) | Equity ratio = Shareholders equity / Total assets |
|
(2) | Debt ratio = Interest bearing liabilities / (Shareholders equity + Interest bearing
liabilities) |
Billions of yen | ||||||||
(Reference) | ||||||||
(UNAUDITED) | (UNAUDITED) | |||||||
Nine months ended | Nine months ended | |||||||
December 31, 2008 | December 31, 2007 | |||||||
Net cash provided by operating activities |
¥ | 628.1 | ¥ | 1,027.4 | ||||
Net cash used in investing activities |
(625.0 | ) | (509.5 | ) | ||||
Net cash used in financing activities |
(145.2 | ) | (414.2 | ) | ||||
Free cash flows (1) |
3.2 | 517.9 | ||||||
Free cash flows excluding the effects of
irregular factors (2) and changes in
investments for cash
management purposes (3) * |
167.3 | 361.2 |
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 20. |
8
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
9
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
(1) | Changes in significant subsidiaries for the nine months ended December 31, 2008 (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 : |
10
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
Millions of yen | ||||||||
(UNAUDITED) | ||||||||
December 31, 2008 | March 31, 2008 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
¥ | 501,131 | ¥ | 646,905 | ||||
Short-term investments |
28,163 | 52,208 | ||||||
Accounts receivable |
988,364 | 686,673 | ||||||
Allowance for doubtful accounts |
(13,633 | ) | (15,037 | ) | ||||
Inventories |
167,625 | 146,584 | ||||||
Deferred tax assets |
84,559 | 108,037 | ||||||
Prepaid expenses and other current assets |
179,568 | 142,410 | ||||||
Total current assets |
1,935,777 | 1,767,780 | ||||||
Property, plant and equipment: |
||||||||
Wireless telecommunications equipment |
5,384,226 | 5,346,486 | ||||||
Buildings and structures |
807,713 | 797,904 | ||||||
Tools, furniture and fixtures |
529,000 | 536,718 | ||||||
Land |
199,141 | 198,958 | ||||||
Construction in progress |
116,336 | 128,042 | ||||||
Accumulated depreciation and amortization |
(4,302,350 | ) | (4,173,501 | ) | ||||
Total property, plant and equipment, net |
2,734,066 | 2,834,607 | ||||||
Non-current investments and other assets: |
||||||||
Investments in affiliates |
364,543 | 349,488 | ||||||
Marketable securities and other investments |
150,459 | 187,361 | ||||||
Intangible assets, net |
551,044 | 555,259 | ||||||
Goodwill |
157,176 | 158,889 | ||||||
Other assets |
283,355 | 234,047 | ||||||
Deferred tax assets |
205,201 | 123,403 | ||||||
Total non-current investments and other assets |
1,711,778 | 1,608,447 | ||||||
Total assets |
¥ | 6,381,621 | ¥ | 6,210,834 | ||||
LIABILITIES, MINORITY INTERESTS
AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt |
¥ | 15,000 | ¥ | 75,662 | ||||
Short-term borrowings |
61,898 | 1,712 | ||||||
Accounts payable, trade |
613,221 | 717,453 | ||||||
Accrued payroll |
40,187 | 53,538 | ||||||
Accrued interest |
1,241 | 710 | ||||||
Accrued income taxes |
172,295 | 203,645 | ||||||
Other current liabilities |
175,379 | 181,595 | ||||||
Total current liabilities |
1,079,221 | 1,234,315 | ||||||
Long-term liabilities: |
||||||||
Long-term debt (exclusive of current portion) |
564,895 | 401,090 | ||||||
Liability for employees retirement benefits |
123,733 | 116,888 | ||||||
Other long-term liabilities |
237,177 | 180,757 | ||||||
Total long-term liabilities |
925,805 | 698,735 | ||||||
Total liabilities |
2,005,026 | 1,933,050 | ||||||
Minority interests |
1,541 | 1,288 | ||||||
Shareholders equity: |
||||||||
Common stock |
949,680 | 949,680 | ||||||
Additional paid-in capital |
948,571 | 948,571 | ||||||
Retained earnings |
3,027,680 | 2,793,814 | ||||||
Accumulated other comprehensive income (loss) |
(33,052 | ) | 410 | |||||
Treasury stock, at cost |
(517,825 | ) | (415,979 | ) | ||||
Total shareholders equity |
4,375,054 | 4,276,496 | ||||||
Total liabilities, minority interests and shareholders equity |
¥ | 6,381,621 | ¥ | 6,210,834 | ||||
11
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
(2) | Consolidated Statements of Income and Comprehensive Income |
Millions of yen | ||||
(UNAUDITED) | ||||
Nine months ended | ||||
December 31, 2008 | ||||
Operating revenues: |
||||
Wireless services |
¥ | 2,911,115 | ||
Equipment sales |
467,645 | |||
Total operating revenues |
3,378,760 | |||
Operating expenses: |
||||
Cost of services (exclusive of items shown separately below) |
633,082 | |||
Cost of equipment sold (exclusive of items shown separately below) |
621,201 | |||
Depreciation and amortization |
582,300 | |||
Selling, general and administrative |
795,392 | |||
Total operating expenses |
2,631,975 | |||
Operating income |
746,785 | |||
Other income (expense): |
||||
Interest expense |
(3,566 | ) | ||
Interest income |
1,673 | |||
Other, net |
(35,499 | ) | ||
Total other income (expense) |
(37,392 | ) | ||
Income before income taxes |
709,393 | |||
Income taxes: |
||||
Current |
324,721 | |||
Deferred |
(45,305 | ) | ||
Total income taxes |
279,416 | |||
Equity in net income of affiliates, net of applicable taxes |
7,748 | |||
Minority interests |
(20 | ) | ||
Net income |
¥ | 437,705 | ||
Other comprehensive income (loss): |
||||
Unrealized holding losses on available-for-sale securities, net of applicable taxes |
(7,506 | ) | ||
Net revaluation of financial instruments, net of applicable taxes |
(212 | ) | ||
Foreign currency translation adjustment, net of applicable taxes |
(25,269 | ) | ||
Pension liability adjustment, net of applicable taxes |
(475 | ) | ||
Comprehensive income |
¥ | 404,243 | ||
PER SHARE DATA |
||||
Weighted
average common shares outstanding Basic and Diluted (shares) |
42,341,664 | |||
Basic and Diluted earnings per share (yen) |
¥ | 10,337.45 | ||
12
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
Millions of yen | ||||
(UNAUDITED) | ||||
Three months ended | ||||
December 31, 2008 | ||||
Operating revenues: |
||||
Wireless services |
¥ | 962,575 | ||
Equipment sales |
148,401 | |||
Total operating revenues |
1,110,976 | |||
Operating expenses: |
||||
Cost of services (exclusive of items shown separately below) |
219,350 | |||
Cost of equipment sold (exclusive of items shown separately below) |
213,174 | |||
Depreciation and amortization |
233,913 | |||
Selling, general and administrative |
274,700 | |||
Total operating expenses |
941,137 | |||
Operating income |
169,839 | |||
Other income (expense): |
||||
Interest expense |
(1,168 | ) | ||
Interest income |
628 | |||
Other, net |
(20,062 | ) | ||
Total other income (expense) |
(20,602 | ) | ||
Income before income taxes |
149,237 | |||
Income taxes: |
||||
Current |
90,889 | |||
Deferred |
(30,869 | ) | ||
Total income taxes |
60,020 | |||
Equity in net income of affiliates, net of applicable taxes |
1,827 | |||
Minority interests |
2 | |||
Net income |
¥ | 91,046 | ||
Other comprehensive income (loss): |
||||
Unrealized holding losses on available-for-sale securities, net of applicable taxes |
(1,560 | ) | ||
Net revaluation of financial instruments, net of applicable taxes |
(53 | ) | ||
Foreign currency translation adjustment, net of applicable taxes |
(8,599 | ) | ||
Pension liability adjustment, net of applicable taxes |
(113 | ) | ||
Comprehensive income |
¥ | 80,721 | ||
PER SHARE DATA |
||||
Weighted average common shares outstanding
Basic and Diluted (shares) |
42,212,938 | |||
Basic and Diluted earnings per share (yen) |
¥ | 2,156.83 | ||
13
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
(3) | Consolidated Statement of Cash Flows |
Millions of yen | ||||
(UNAUDITED) | ||||
Nine months ended | ||||
December 31, 2008 | ||||
Cash flows from operating activities: |
||||
Net income |
¥ | 437,705 | ||
Adjustments to reconcile net income to net cash provided by operating activities |
||||
Depreciation and amortization |
582,300 | |||
Deferred taxes |
(40,578 | ) | ||
Loss on sale or disposal of property, plant and equipment |
24,667 | |||
Other than temporary impairment of marketable securities and other investments |
28,648 | |||
Equity in net income of affiliates |
(13,009 | ) | ||
Minority interests |
20 | |||
Changes in assets and liabilities: |
||||
(Increase) in accounts receivable |
(301,659 | ) | ||
(Decrease) in allowance for doubtful accounts |
(1,408 | ) | ||
(Increase) in inventories |
(20,963 | ) | ||
(Increase) in prepaid expenses and other current assets |
(18,307 | ) | ||
(Increase) in installment receivables for handsets (non-current) |
(51,091 | ) | ||
(Decrease) in accounts payable, trade |
(31,163 | ) | ||
(Decrease) in accrued income taxes |
(31,350 | ) | ||
(Decrease) in other current liabilities |
(6,440 | ) | ||
Increase in liability for employees retirement benefits |
6,845 | |||
Increase in other long-term liabilities |
51,969 | |||
Other, net |
11,941 | |||
Net cash provided by operating activities |
628,127 | |||
Cash flows from investing activities: |
||||
Purchases of property, plant and equipment |
(415,247 | ) | ||
Purchases of intangible and other assets |
(176,659 | ) | ||
Purchases of non-current investments |
(50,212 | ) | ||
Proceeds from sale of non-current investments |
568 | |||
Purchases of short-term investments |
(30,736 | ) | ||
Redemption of short-term investments |
4,593 | |||
Proceeds from redemption of long-term bailment for consumption to a related party |
50,000 | |||
Other, net |
(7,270 | ) | ||
Net cash used in investing activities |
(624,963 | ) | ||
Cash flows from financing activities: |
||||
Proceeds from long-term debt |
179,913 | |||
Repayment of long-term debt |
(77,441 | ) | ||
Proceeds from short-term borrowings |
62,074 | |||
Repayment of short-term borrowings |
(1,958 | ) | ||
Principal payments under capital lease obligations |
(2,098 | ) | ||
Payments to acquire treasury stock |
(101,846 | ) | ||
Dividends paid |
(203,839 | ) | ||
Other, net |
(3 | ) | ||
Net cash used in financing activities |
(145,198 | ) | ||
Effect of exchange rate changes on cash and cash equivalents |
(3,740 | ) | ||
Net (decrease) in cash and cash equivalents |
(145,774 | ) | ||
Cash and cash equivalents at beginning of period |
646,905 | |||
Cash and cash equivalents at end of period |
¥ | 501,131 | ||
Supplemental disclosures of cash flow information: |
||||
Cash received during the period for: |
||||
Income taxes |
¥ | 21,430 | ||
Cash paid during the period for: |
||||
Interest, net of amount capitalized |
3,035 | |||
Income taxes |
380,352 |
14
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
(4) | Going Concern Assumption |
|
None |
||
(5) | Segment Reporting |
|
Segment information for the three months and nine months ended December 31, 2008 was 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 | |||||
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 | |||||
PHS services were terminated on January 7, 2008. |
||
DOCOMO does not disclose geographical segments since the amounts of operating revenues
generated outside Japan are immaterial. |
||
(6) | Significant Changes in Shareholders Equity |
|
None |
15
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
1. | Consolidated Statement of Income and Comprehensive Income |
Millions of yen | ||||
(UNAUDITED) | ||||
Nine months ended | ||||
December 31, 2007 | ||||
Operating revenues: |
||||
Wireless services |
¥ | 3,158,694 | ||
Equipment sales |
363,340 | |||
Total operating revenues |
3,522,034 | |||
Operating expenses: |
||||
Cost of services (exclusive of items shown separately below) |
586,032 | |||
Cost of equipment sold (exclusive of items shown separately below) |
870,534 | |||
Depreciation and amortization |
557,972 | |||
Selling, general and administrative |
882,498 | |||
Total operating expenses |
2,897,036 | |||
Operating income |
624,998 | |||
Other income (expense): |
||||
Interest expense |
(4,614 | ) | ||
Interest income |
1,691 | |||
Other, net |
6,645 | |||
Total other income (expense) |
3,722 | |||
Income before income taxes |
628,720 | |||
Income taxes |
253,264 | |||
Equity in net income of affiliates, net of applicable taxes |
1,165 | |||
Minority interests |
(124 | ) | ||
Net income |
¥ | 376,497 | ||
Other comprehensive income (loss): |
||||
Unrealized holding gains on available-for-sale securities, net of applicable taxes |
314 | |||
Net revaluation of financial instruments, net of applicable taxes |
(7 | ) | ||
Foreign currency translation adjustment, net of applicable taxes |
(1,522 | ) | ||
Pension liability adjustment, net of applicable taxes |
(546 | ) | ||
Comprehensive income |
¥ | 374,736 | ||
PER SHARE DATA |
||||
Weighted
average common shares outstanding Basic and Diluted (shares) |
43,202,063 | |||
Basic and diluted earnings per share (yen) |
¥ | 8,714.79 | ||
16
DOCOMO Earnings Release | Nine Months Ended December 31, 2008 |
2. | Consolidated Statement of Cash Flows |
Millions of yen | ||||
(UNAUDITED) | ||||
Nine months ended | ||||
December 31, 2007 | ||||
I Cash flows from operating activities: |
||||
1. Net income |
¥ | 376,497 | ||
2. Adjustments to reconcile net income to net cash provided by operating activities |
||||
(1) Depreciation and amortization |
557,972 | |||
(2) Deferred taxes |
8,168 | |||
(3) Loss on sale or disposal of property, plant and equipment |
23,949 | |||
(4) Equity in net income of affiliates |
(1,884 | ) | ||
(5) Minority interests |
124 | |||
(6) Changes in assets and liabilities: |
||||
Decrease in accounts receivable |
5,849 | |||
Increase in allowance for doubtful accounts |
1,287 | |||
Decrease in inventories |
14,738 | |||
Decrease in prepaid expenses and other current assets |
10,108 | |||
(Decrease) in accounts payable, trade |
(29,987 | ) | ||
Increase in accrued income taxes |
45,389 | |||
Increase in other current liabilities |
22,478 | |||
Increase in liability for employees retirement benefits |
6,329 | |||
Increase in other long-term liabilities |
2,983 | |||
Other, net |
(16,607 | ) | ||
Net cash provided by operating activities |
1,027,393 | |||
II Cash flows from investing activities: |
||||
1. Purchases of property, plant and equipment |
(389,900 | ) | ||
2. Purchases of intangible and other assets |
(170,859 | ) | ||
3. Purchases of non-current investments |
(93,822 | ) | ||
4. Proceeds from sale and redemption of non-current investments |
100,827 | |||
5. Purchases of short-term investments |
(5,490 | ) | ||
6. Redemption of short-term investments |
3,238 | |||
7. Proceeds from redemption of long-term bailment for consumption to a related party |
50,000 | |||
8. Other, net |
(3,451 | ) | ||
Net cash used in investing activities |
(509,457 | ) | ||
III Cash flows from financing activities: |
||||
1. Repayment of long-term debt |
(98,200 | ) | ||
2. Proceeds from short-term borrowings |
4,739 | |||
3. Repayment of short-term borrowings |
(4,733 | ) | ||
4. Principal payments under capital lease obligations |
(2,410 | ) | ||
5. Payments to acquire treasury stock |
(123,002 | ) | ||
6. Dividends paid |
(190,543 | ) | ||
7. Other, net |
(2 | ) | ||
Net cash used in financing activities |
(414,151 | ) | ||
IV Effect of exchange rate changes on cash and cash equivalents |
(216 | ) | ||
V Net increase in cash and cash equivalents |
103,569 | |||
VI Cash and cash equivalents at beginning of period |
343,062 | |||
VII Cash and cash equivalents at end of period |
¥ | 446,631 | ||
Supplemental disclosures of cash flow information: |
||||
Cash received during the period for: |
||||
Income taxes |
¥ | 20,346 | ||
Cash paid during the period for: |
||||
Interest, net of amount capitalized |
3,916 | |||
Income taxes |
199,864 |
17
Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | [Ref.] | ||||||||||||||||||||||
[Ref.] | Ending Mar. 2009 | Ending Mar. 2009 | Ending Mar. 2009 | Ending Mar. 2009 | Fiscal Year | |||||||||||||||||||||
Fiscal Year | Nine Months | First Quarter | Second Quarter | Third Quarter | Ending Mar. 31,2009 | |||||||||||||||||||||
Ended Mar. 31, 2008 | (Apr.-Dec. 2008) | (Apr.-Jun. 2008) | (Jul.-Sep. 2008) | (Oct.-Dec. 2008) | Full-year Forecast | |||||||||||||||||||||
Full-year Results | Results | Results | Results | Results | (Revised) | |||||||||||||||||||||
Cellular |
||||||||||||||||||||||||||
Subscriptions |
thousands | 53,388 | 54,155 | 53,629 | 53,937 | 54,155 | 54,470 | |||||||||||||||||||
FOMA (1) |
thousands | 43,949 | 47,494 | 45,200 | 46,444 | 47,494 | 49,190 | |||||||||||||||||||
mova |
thousands | 9,438 | 6,661 | 8,429 | 7,493 | 6,661 | 5,280 | |||||||||||||||||||
Market share
(2) (3) |
% | 52.0 | 51.2 | 51.7 | 51.5 | 51.2 | | |||||||||||||||||||
Net increase from previous period |
thousands | 767 | 767 | 241 | 308 | 218 | 1,080 | |||||||||||||||||||
FOMA (1) (3) |
thousands | 8,420 | 3,545 | 1,251 | 1,244 | 1,050 | 5,240 | |||||||||||||||||||
mova (3) |
thousands | (7,653 | ) | (2,778 | ) | (1,010 | ) | (936 | ) | (832 | ) | (4,160 | ) | |||||||||||||
Churn Rate
(3) |
% | 0.80 | 0.49 | 0.51 | 0.52 | 0.44 | | |||||||||||||||||||
Number of
handsets (FOMA+mova) sold (4) |
thousands | 25,739 | 14,775 | 4,946 | 5,318 | 4,511 | | |||||||||||||||||||
Aggregate ARPU (FOMA+mova) (5) |
yen/month/contract | 6,360 | 5,820 | 5,890 | 5,860 | 5,730 | 5,710 | |||||||||||||||||||
Voice ARPU (6) |
yen/month/contract | 4,160 | 3,450 | 3,560 | 3,450 | 3,340 | 3,360 | |||||||||||||||||||
Packet ARPU |
yen/month/contract | 2,200 | 2,370 | 2,330 | 2,410 | 2,390 | 2,350 | |||||||||||||||||||
i-mode ARPU |
yen/month/contract | 2,170 | 2,330 | 2,290 | 2,360 | 2,350 | 2,310 | |||||||||||||||||||
ARPU
generated from international
services (7) |
yen/month/contract | 70 | 80 | 80 | 90 | 80 | 90 | |||||||||||||||||||
ARPU generated purely from i-mode (FOMA+mova) (5) |
yen/month/contract | 2,350 | 2,540 | 2,480 | 2,570 | 2,560 | 2,510 | |||||||||||||||||||
Aggregate ARPU (FOMA) (5) |
yen/month/contract | 6,990 | 6,150 | 6,260 | 6,180 | 6,000 | 5,990 | |||||||||||||||||||
Voice ARPU (6) |
yen/month/contract | 4,340 | 3,500 | 3,630 | 3,500 | 3,370 | 3,400 | |||||||||||||||||||
Packet ARPU |
yen/month/contract | 2,650 | 2,650 | 2,630 | 2,680 | 2,630 | 2,590 | |||||||||||||||||||
i-mode ARPU |
yen/month/contract | 2,610 | 2,600 | 2,590 | 2,630 | 2,580 | 2,550 | |||||||||||||||||||
ARPU
generated from international
services (7) |
yen/month/contract | 90 | 100 | 90 | 100 | 90 | 100 | |||||||||||||||||||
ARPU generated purely from i-mode (FOMA) (5) |
yen/month/contract | 2,720 | 2,760 | 2,730 | 2,790 | 2,750 | 2,710 | |||||||||||||||||||
Aggregate ARPU (mova) (5) |
yen/month/contract | 4,340 | 3,820 | 3,890 | 3,820 | 3,730 | 3,760 | |||||||||||||||||||
Voice ARPU (6) |
yen/month/contract | 3,590 | 3,140 | 3,220 | 3,120 | 3,070 | 3,100 | |||||||||||||||||||
i-mode ARPU |
yen/month/contract | 750 | 680 | 670 | 700 | 660 | 660 | |||||||||||||||||||
ARPU
generated from international
services (7) |
yen/month/contract | 10 | 10 | 10 | 10 | 10 | 10 | |||||||||||||||||||
ARPU generated purely from i-mode (mova) (5) |
yen/month/contract | 930 | 880 | 860 | 910 | 870 | 870 | |||||||||||||||||||
MOU
(FOMA+mova)(5) |
minute/month/contract | 138 | 138 | 137 | 138 | 139 | | |||||||||||||||||||
MOU
(FOMA)(5) |
minute/month/contract | 156 | 150 | 150 | 150 | 150 | | |||||||||||||||||||
MOU
(mova)(5) |
minute/month/contract | 82 | 65 | 69 | 65 | 62 | | |||||||||||||||||||
2in1
Subscriptions(8) |
thousands | 240 | 461 | 304 | 454 | 461 | | |||||||||||||||||||
Communication Module Service Subscriptions (9) |
thousands | 1,433 | 1,536 | 1,466 | 1,509 | 1,536 | 1,540 | |||||||||||||||||||
FOMA
Ubiquitous plan (10) |
thousands | 698 | 822 | 741 | 785 | 822 | | |||||||||||||||||||
DoPa Single
Service (11) |
thousands | 735 | 714 | 726 | 723 | 714 | | |||||||||||||||||||
Prepaid
Subscriptions (11) |
thousands | 40 | 39 | 40 | 39 | 39 | | |||||||||||||||||||
i-mode |
||||||||||||||||||||||||||
Subscriptions |
thousands | 47,993 | 48,150 | 48,061 | 48,069 | 48,150 | 48,370 | |||||||||||||||||||
FOMA |
thousands | 41,213 | 43,671 | 42,118 | 42,911 | 43,671 | 45,000 | |||||||||||||||||||
i-mode Subscription Rate (3) |
% | 89.9 | 88.9 | 89.6 | 89.1 | 88.9 | 88.8 | |||||||||||||||||||
Net increase from previous period |
thousands | 419 | 157 | 68 | 8 | 81 | 380 | |||||||||||||||||||
i-mode
Flat-rate Packet Communication Plan subscription (12) |
thousands | 12,744 | 15,751 | 13,395 | 13,949 | 15,751 | | |||||||||||||||||||
i-channel
Subscriptions |
thousands | 15,649 | 16,228 | 15,823 | 16,044 | 16,228 | | |||||||||||||||||||
Others |
||||||||||||||||||||||||||
DCMX Subscriptions (13) |
thousands | 5,640 | 8,170 | 6,440 | 7,350 | 8,170 | 9,000 |
* | Please refer to the attached sheet (P.19) for the definition of ARPU and MOU, and an explanation
of the methods used to calculate ARPU and the number of active subscriptions used in calculating
ARPU, MOU and Churn Rate. |
|
(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 the
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 communications. |
|
(7) | Inclusive of Voice Communications and Packet Communications. |
|
(8) | Inclusive of users who applied for 2in1 after March 3, 2008. |
|
(9) | Included in total cellular subscriptions. |
|
(10) | Included in FOMA subscriptions. |
|
(11) | Included in mova subscriptions. |
|
(12) | Sum of Pake-hodai double subscriptions, Pake-hodai subscriptions and Pake-hodai full
subscriptions. |
|
(13) | Inclusive of DCMX mini subscriptions. |
18
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 Usage): 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 cellular phone 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 cellular phone 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 cellular phone
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
i-mode subscriptions (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 cellular phone subscriptions (FOMA) |
||
| Packet ARPU (FOMA): Packet ARPU (FOMA) Related Revenues (basic monthly charges,
packet communication charges) /
No. of active cellular phone subscriptions (FOMA) |
||
| i-mode ARPU (FOMA)2: i-mode ARPU (FOMA) Related Revenues (basic monthly
charges, packet communication charges) / No. of active cellular phone 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 i-mode
subscriptions (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 cellular phone subscriptions (mova) |
||
| i-mode ARPU (mova)2: i-mode ARPU (mova) Related Revenues (basic monthly
charges, packet communication charges) / No. of active cellular phone 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 i-mode
subscriptions (mova) |
3. | Active Subscriptions Calculation Methods |
1 | Communication Module service 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 cellular 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 active i-mode subscriptions as a denominator. |
19
Billions of yen | ||||||||||||||||
Year ended | Three months ended | Nine months ended | Nine months ended | |||||||||||||
March 31, 2008 | December 31, 2008 | December 31, 2008 | December 31, 2007 | |||||||||||||
a. EBITDA |
¥ | 1,639.1 | ¥ | 415.6 | ¥ | 1,353.8 | ¥ | 1,206.9 | ||||||||
Depreciation and amortization |
(776.4 | ) | (233.9 | ) | (582.3 | ) | (558.0 | ) | ||||||||
Loss on sale or disposal of property, plant and equipment |
(54.4 | ) | (11.8 | ) | (24.7 | ) | (23.9 | ) | ||||||||
Operating income |
808.3 | 169.8 | 746.8 | 625.0 | ||||||||||||
Other income (expense) |
(7.6 | ) | (20.6 | ) | (37.4 | ) | 3.7 | |||||||||
Income taxes |
(323.0 | ) | (60.0 | ) | (279.4 | ) | (253.3 | ) | ||||||||
Equity in net income of affiliates |
13.6 | 1.8 | 7.7 | 1.2 | ||||||||||||
Minority interests |
(0.1 | ) | 0.0 | (0.0 | ) | (0.1 | ) | |||||||||
b. Net income |
491.2 | 91.0 | 437.7 | 376.5 | ||||||||||||
c. Total operating revenues |
4,711.8 | 1,111.0 | 3,378.8 | 3,522.0 | ||||||||||||
EBITDA margin (=a/c) |
34.8 | % | 37.4 | % | 40.1 | % | 34.3 | % | ||||||||
Net income margin (=b/c) |
10.4 | % | 8.2 | % | 13.0 | % | 10.7 | % | ||||||||
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. |
Billions of yen | ||||||||||||||||
Year ended | Three months ended | Nine months ended | Nine months ended | |||||||||||||
March 31, 2008 | December 31, 2008 | December 31, 2008 | December 31, 2007 | |||||||||||||
a. Operating income |
¥ | 808.3 | ¥ | 169.8 | ¥ | 746.8 | ¥ | 625.0 | ||||||||
b. Operating income after
tax effect {=a*(1-effective
tax rate)} (effective tax
rate: 40.9%) |
477.7 | 100.4 | 441.4 | 369.4 | ||||||||||||
c. Capital employed |
4,759.6 | 4,994.5 | 4,885.9 | 4,746.5 | ||||||||||||
ROCE before tax effect (=a/c) |
17.0 | % | 3.4 | % | 15.3 | % | 13.2 | % | ||||||||
ROCE after tax effect (=b/c) |
10.0 | % | 2.0 | % | 9.0 | % | 7.8 | % | ||||||||
Notes: | Capital employed (for annual period) = The average of (Shareholders equity + Interest bearing liabilities), each as of March 31, 2007 and 2008 |
|
Capital employed (for three months) = The average of (Shareholders equity + Interest bearing liabilities), each as of September 30, 2008 and December 31, 2008 |
||
Capital employed (for nine months) = The average of (Shareholders equity + Interest bearing liabilities), each as of March 31, 2008 (or 2007) and December 31, 2008 (or 2007) |
||
Interest bearing liabilities = Current portion of long-term debt + Short-term borrowings + Long-term debt |
Billions of yen | ||||||||||||||||
Year ended | Three months ended | Nine months ended | Nine months ended | |||||||||||||
March 31, 2008 | December 31, 2008 | December 31, 2008 | December 31, 2007 | |||||||||||||
Free cash flows excluding irregular factors and
changes in investments for cash management purposes |
¥ | 442.4 | ¥ | 231.9 | ¥ | 167.3 | ¥ | 361.2 | ||||||||
Irregular factors (1) |
210.0 | (188.0 | ) | (188.0 | ) | 9.0 | ||||||||||
Changes in investments for cash management purposes (2) |
148.9 | (25.3 | ) | 23.9 | 147.7 | |||||||||||
Free cash flows |
801.3 | 18.6 | 3.2 | 517.9 | ||||||||||||
Net cash used in investing activities |
(758.8 | ) | (201.2 | ) | (625.0 | ) | (509.5 | ) | ||||||||
Net cash provided by operating activities |
1,560.1 | 219.8 | 628.1 | 1,027.4 | ||||||||||||
Notes: | ||
(1) | Irregular factors represent the effects of uncollected revenues due to a bank closure at the end of the fiscal period.
Irregular factors during the nine months ended December 31, 2007 was the net effect of bank closures as of March 31, 2007 and December 31, 2007. |
|
(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. Net cash used in investing activities for the nine months ended December 31, 2008 and 2007 and the year ended March 31, 2008
includes changes in investments for cash management purposes. |
20
1. | As competition in the market becomes more fierce due to changes in the business environment
caused by Mobile Number Portability, new market entrants, competition from other cellular
service providers or other technologies, and other factors could limit our acquisition of new
subscribers, retention of existing subscribers, 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 telecommunications 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 document are the trademarks or registered
trademarks of their respective organizations. |
21
Copyright (C) 2009 NTT DOCOMO, INC. All rights reserved. NTT DOCOMO, INC. RESULTS FOR THE NINE MONTHS OF THE FISCAL YEAR ENDING MAR. 31, 2009 January 30, 2009 |
SLIDE No. 1 RESULTS FOR 3Q OF FY2008 1 / 31 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 expected number of subscribers, and expected dividend payments. All forward-looking statements that are not historical facts are based on managements current plans, expectations, assumptions and estimates based on the information currently available. Some of the projected numbers in this report 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 forwardlooking statement. Potential risks and uncertainties include, without limitation, the following: 1. As competition in the market becomes more fierce due to changes in the business environment caused by Mobile Number Portability, new market entrants, competition from other cellular service providers or other technologies, and other factors could limit our acquisition of new subscribers retention of existing subscribers, or may lead to diminishing in 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 telecommunications 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. |
Copyright (C) 2009 NTT DOCOMO, INC. All rights reserved. FY2008 Third Quarter Results Highlights |
SLIDE No. 3 RESULTS FOR 3Q OF FY2008 3 / 31 FY2008/1Q-3Q (cumulative) Financial Results Summary ¦ FY2008/1Q-3Q (cumulative) Results Operating income: ¥746.8 billion (Up 19.5% year-on-year) Progress to full-year forecast: 90.0% #yHighlights#z NNeeww bbuussiinneessss mmooddeell TToottaall hhaannddsseettss ssoolldd DDeepprreecciiaattiioonn//aammoorrttiizzaattiioonn *2 Percentage of users who chose Value Course among total users who purchased a handset using new purchase methods *1 Fami-wari MAX 50, Hitoridemo Discount 50 and Office-wari MAX 50 New discount services*,P New handset purchase methods Combined subscriptions topped 30 million (As of Dec. 31, 2008) Value Course selection rate*2 maintained at over 90% 14.78 million units (down 4.54 million, or 23.5%, year-on-year) Accelerated depreciation of mova-related assets (¥46.8 billion) FY08/1-3Q (cumulative) churn rate: 0.49% (FY08/3Q churn rate: 0.44%) FY08/1-3Q (cumulative) churn rate: 0.49% (FY08/3Q churn rate: 0.44%) Lower distributor commissions |
SLIDE No. 4 RESULTS FOR 3Q OF FY2008 4 / 31 FY2008/1Q-3Q (cumulative) Financial Results U.S. GAAP 2007/4-12 (1Q-3Q) (1) 2008/4-12 (1Q-3Q) (2) Changes (1) ?(2) 2008/3 (Full-year forecast) (3) (As announced on Oct. 31, 2008) Progress to forecast (2)/(3) Operating Revenues (Billions of yen) 3,522.0 3,378.8 -4.1% 4,597.0 73.5% Cellular Services Revenues (Billions of yen) 3,060.5 2,791.0 -8.8% 3,649.0 76.5% Operating Expenses (Billions of yen) 2,897.0 2,632.0 -9.1% 3,767.0 69.9% Operating Income (Billions of yen) 625.0 746.8 +19.5% 830.0 90.0% Income Before Income Taxes #iBillions of yen#j 628.7 709.4 +12.8% 814.0 87.1% Net Income (Billions of yen) 376.5 437.7 +16.3% 495.0 88.4% EBITDA Margin (%) *1 34.3 40.1 +5.8 points 36.0 - Adjusted Free Cash Flow (Billions of yen) *1 361.2 167.3 -53.7% 130.0*2 - ?Consolidated financial statements in this document are unaudited. ?Adjusted free cash flow excludes the effects of uncollected revenues due to bank holidays at the end of the fiscal year and changes in investment for cash management purposes with original maturities of longer than three months. *1 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 31 and the IR page of our website, www.nttdocomo.co.jp. *2 Subsequent to the announcement of FY2008 full-year results forecasts on Oct. 31, 2008, we have decided to acquire 26% of common shares of Tata Teleservices Limited for approximately 130.7 billion Indian rupees (approximately ¥264 billion, calculated at exchange rate as of Oct. 31, 2008 of 1INR=¥2.02) . |
SLIDE No. 5 RESULTS FOR 3Q OF FY2008 5 / 31 0 4 8 12 16 07/12 08/3 08/6 08/9 08/12 0% 25% 50% 75% 100% 0 5 10 15 20 25 30 35 07/9 07/12 08/3 08/6 08/9 08/12 09/3#iForecast#j 0% 10% 20% 30% 40% 50% 60% 70% Topped 30 million subs ¦ Value Plan subscriptions & Value Course selection rate*2 ¦ No. of subscriptions NNeeww DDiissccoouunntt SSeerrvviicceess**11 NNeeww PPuurrcchhaassee MMeetthhooddss (Million subs.) (Selection rate) Maintained at over 90% #FValue Course selection rate (right axis) #FNo. of Value Plan subs (left axis) New Business Model (Million subs.) (Subscription rate) *2 Percentage of users who chose Value Course among total users who purchased a handset using new purchase methods *1 Fami-wari MAX 50, Hitoridemo Discount 50 and Office-wari MAX 50 |
SLIDE No. 6 RESULTS FOR 3Q OF FY2008 6 / 31 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Voice ARPU 4,930 4,740 4,660 4,450 4,440 4,340 4,090 3,780 3,560 3,450 3,340 (Incl.) Intl services ARPU 50 50 50 60 60 70 70 80 80 90 80 Packet ARPU 1,970 1,980 2,010 2,080 2,120 2,210 2,200 2,270 2,330 2,410 2,390 (Incl.) i-mode ARPU 1,950 1,960 1,990 2,060 2,090 2,180 2,170 2,230 2,290 2,360 2,350 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 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) 6,530 6,900* 6,720 6,670 6,560 6,550 6,290 #EAggregate ARPU for FY2008/1Q-3Q (cumulative) ARPU was 5,820 yen (Down 10.0# year-on-year) 6,050 1,970 1,980 2,010 2,080 2,120 2,210 2,200 2,270 2,330 5,890 2,410 5,860 FY08/1-3Q (cumulative) aggregate ARPU: ¥5,820 (Down 10.0% year-on-year) FY08/1-3Q (cumulative) aggregate ARPU: ¥5,820 (Down 10.0% year-on-year) Cellular (FOMA+mova) ARPU FY06 full-year aggregate ARPU: ¥6,700* #iDown 3.0% year-on-year#j FY06 full-year aggregate ARPU: ¥6,700* #iDown 3.0% year-on-year#j FY07 full-year aggregate ARPU: ¥6,360 #iDown 5.1% year-on-year#j FY07 full-year aggregate ARPU: ¥6,360 #iDown 5.1% year-on-year#j (Yen) ?International service-related revenues have been included in the ARPU data calculations as of the fiscal year ended Mar. 31, 2006, in view of their growing contribution to total revenues. ?For an explanation of ARPU, please see Slide 30 of this document, Definition and Calculation Methods of MOU and ARPU. *The ARPU data for FY2006/1Q and FY2006 full-year include the impact of incurring revenues for the portion of Nikagetsu Kurikoshi (two month carry over) allowances that are projected to expire, which are estimated as follows: ?FY2006/1Q (actual): 200 yen ?FY2006/full-year (actual): 50 yen 2,390 5,730 |
SLIDE No. 7 RESULTS FOR 3Q OF FY2008 7 / 31 -200,000 -150,000 -100,000 -50,000 0 06/10 12 07/2 4 6 8 10 12 08/2 4 6 8 10 12 #EFY2008/1Q-3Q (cumulative) churn rate was 0.49% #EMNP subscriber acquisition/loss performance has improved significantly (Net acquisition of MNP was 1200 in December 2008) 0.00 0.50 1.00 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY08/1-3Q (cumulative) churn rate: 0.49% 0.51# 0.52# 0.44# Churn Rate / MNP ¦ Cellular (FOMA+mova) Churn Rate (#) FY2007 FY2008 New handset purchase method (Nov. 07) New discount services (Aug. 07) FY07 full-year churn rate: 0.80% ¦ Monthly net acquisitions/losses of MNP subscribers (No. of subscriptions) |
SLIDE No. 8 RESULTS FOR 3Q OF FY2008 8 / 31 0 5 10 1Q 2Q 3Q 4Q 1Q 2Q 3Q #ETotal no. of handsets sold in FY08/1Q-3Q (cumulative) was 14.78 million (Down 23.5% year-on-year) FY07/1Q-3Q cumulative: 19.32 million units FY07/1Q-3Q cumulative: 19.32 million units FY08/1Q-3Q cumulative: 14.78 mil units (Down 23.5% year-on-year) FY08/1Q-3Q cumulative: 14.78 mil units Down 23.5% year-on-year) 6.52 4.51 Total Handset Sales (Million units) *Calculated based on financial results materials of each company FY2007 FY2008 #F Total handsets sold (DOCOMO + au +SOFTBANK)* #F Total handsets sold (DOCOMO) |
SLIDE No. 9 RESULTS FOR 3Q OF FY2008 9 / 31 0 10 20 30 40 50 60 06/12 07/3 07/6 07/9 07/12 08/3 08/6 08/9 08/12 09/3#iForecast#j Subscriber Migration to FOMA mova 54.47 49.19 #i90.3%#j 47.49 #i87.7%#j 53.15 54.16 42.08 #i79.2%#j 52.21 11.07 20.10 6.66 5.28 32.11 #i61.5%#j Numbers in parentheses indicate the percentage of FOMA subscriptions to total cellular subscriptions (Million subs.) ?Inclusive of Communication Module Service subscribers #EFOMA subscriptions reached 47.49 million (87.7% of DOCOMOs total subs) #Emova and DoPa services to be terminated in March 2012 (Planned) |
SLIDE No. 10 RESULTS FOR 3Q OF FY2008 10 / 31 FY2008/1Q-3Q (cumulative) Financial Results Key Factors ¦Key factors behind YOY operating income growth FY2007/1-3Q (cumulative) Operating income: ¥746.8 billion Up ¥121.8 billion (+19.5% year-on-year) FY2008/1-3Q (cumulative) Operating income: ¥625.0 billion Growth in packet ARPU Lower churn rate Growth in packet ARPU Lower churn rate Decline in voice ARPU Decline in voice ARPU Decrease in sales incentives, etc. resulting from expanded uptake of new handset purchase methods Decrease in sales incentives, etc. resulting from expanded uptake of new handset purchase methods Inclusive of impact of accelerated depreciation of mova-related assets (¥46.8 billion) Inclusive of impact of accelerated depreciation of mova-related assets (¥46.8 billion) Decline in cellular services revenues: Down ¥269.5 billion Increase in depreciation/amortization: Up 24.3 billion Increase in other expenses: Up 37.2 billion Decrease in total equipment sales cost: Down ¥326.6 billion Incl.) Equipment procurement cost: Down ¥249.3 billion Incl.) Distributor commissions: Down ¥77.3 billion Increase in other revenues: Up 21.9 billion Increase in equipment sales revenues: Up 104.3 billion Operating revenues: Down ¥143.3 billion Operating expenses: Down ¥265.1 billion |
Copyright (C) 2009 NTT DOCOMO, INC. All rights reserved. Principal Actions |
SLIDE No. 12 RESULTS FOR 3Q OF FY2008 12 / 31 Execution of Change #ESteadily implemented actions for change with the aim of improving customer satisfaction Billing plans HHaannddsseett SSeerrvviicceess NW coverage Front activities Aftersales support · Renewal of iMenu portal (Apr. 08) · Minna-no DOCOMO Lab program - joint product & services development activities involving customers*2(Apr. 08) · i-concier (lifestyle-assist service) (Nov. 08) ·Enhanced filtering functions (Jan. 09) · Renewal of iMenu portal (Apr. 08) · Minna-no DOCOMO Lab program - joint product & services development activities involving customers*2(Apr. 08) · i-concier (lifestyle-assist service) (Nov. 08) ·Enhanced filtering functions (Jan. 09) · Enhancement of HSDPA speed (7.2Mbps) (Apr. 08) · Visiting costomers within 48 hours for coverage improvement (Oct. 08) · 100% HSDPA pop. coverage (Dec. 08) · Enhancement of HSDPA speed (7.2Mbps) Apr. 08) · Visiting costomers within 48 hours for coverage improvement Oct. 08) · 100% HSDPA pop. coverage Dec. 08) · Overseas repair center (Hawaii) (Jul. 08) · Simplified IVR guidance (Sept. 08) · Renewal of DOCOMO online shop (Dec. 08) · Overseas repair center Hawaii) Jul. 08) · Simplified IVR guidance Sept. 08) · Renewal of DOCOMO online shop Dec. 08) · Expanded point accumulation rate of DOCOMO Point program (Apr. 08) · Delivery of repaired handset*3 (Jul. 08) · Provision of free battery pack after one-year use of handset*2 (Oct. 08) · Free provision of Omakase Lock, Keitai Osagashi services*3 (Oct. 08) · Expanded point accumulation rate of DOCOMO Point program Apr. 08) · Delivery of repaired handset*3 Jul. 08) · Provision of free battery pack after one-year use of handset*2 Oct. 08) · Free provision of Omakase Lock, Keitai Osagashi services*3 Oct. 08) *2 Privilege offered to Premier Stage members *3 Privilege offered to Premier Club members *1 Revised Pake-hodai double rates are planned to be applied from April 2009. · Free domestic voice calls between Fami-wari members (Apr. 08) · Revised discount rate of Hearty Discount plan (Jun. 08) · Launched Pake-hodai double (Oct. 08) · Revision of Pake-hodai double rates*1 · Free domestic voice calls between Fami-wari members Apr. 08) · Revised discount rate of Hearty Discount plan Jun. 08) · Launched Pake-hodai double (Oct. 08) · Revision of Pake-hodai double rates*1 · Touch panel handsets (Jun. and Nov. 08, Jan. 09) · New handset lineup (Nov. 08) · Add more variety to smart phone lineup · Touch panel handsets Jun. and Nov. 08, Jan. 09) · New handset lineup Nov. 08) · Add more variety to smart phone lineup Integration of regional subsidiaries 25 projects Renewal of corporate logo |
SLIDE No. 13 RESULTS FOR 3Q OF FY2008 13 / 31 ,q,#,,-,q,#,, ,o,,#,#,... #EShift from previous lineup divided by functionality into new series which allow customers to select a model that fits their own lifestyle New Handset Lineup -1- Full-feature mobile phones for the maximum enjoyment of video, games and other entertainment by people who love to explore the latest multimedia. The most advanced high-spec mobile phones for those who love cutting-edge digital tools and cant get enough of the newest, hottest technology. Sophisticated mobile phones for busy people who want to live productively and enhance the management of their professional and private lives. Distinctive mobile phones, designed like accessories and offered in a wide variety of fashionable designs and colors for individuals who want to project the latest look. Emotional/ Practical accessory For customers who frequently use various handset functions For users who uses mobile phones mainly for voice and mail communication |
SLIDE No. 14 RESULTS FOR 3Q OF FY2008 14 / 31 6 models 7 models 4 models 4 models New Handset Lineup -2- #EDOCOMOs new handset series which allow customers to make a selection based on their individual preferences and lifestyles Distinctive mobile phones, designed like accessories and offered in a wide variety of fashionable designs and colors for individuals who want to project the latest look. Full-feature mobile phones for the maximum enjoyment of video, games and other entertainment by people who love to explore the latest multimedia. Sophisticated mobile phones for busy people who want to live productively and enhance the management of their professional and private lives. The most advanced high-spec mobile phones for those who love cutting-edge digital tools and cant get enough of the newest, hottest technology. |
SLIDE No. 15 RESULTS FOR 3Q OF FY2008 15 / 31 Let me assist you! ¦ i-concier ¦ i-Widget ¦i-appli online (Nov. 08) Concierge-like assistance for timely, automatic provision and update of information according to the users individual preferences, pre-registered locations, etc. Automatic notification Scheduler Automatic coupon update Convenient phonebook functions Easy access to frequently used content (Widget Appli) with just a press of a button. For real-time communication, gaming, etc. with multiple users in remote locations (Nov. 08) (Nov. 08) Services ©Genki Mobile ©Arcadia ©2008 Konami Digital Entertainment ©Sony Computer Entertainment Inc. ©GENKI ©Genki Mobile ©SEGA ©CAPCOM 2008 #EContinual service evolution to meet diversifying needs of customers |
SLIDE No. 16 RESULTS FOR 3Q OF FY2008 16 / 31 0 2 4 6 8 10 12 14 16 06/12 07/3 07/6 07/9 07/12 08/3 08/6 08/9 08/12 11.95 15.75 ¦ No. of Pake-hodai"*1 subscriptions ¦ Revision of Pake-hodai double Up 3.8 million (Million subs.) Pake-hodai subscription rate*2 (As of Dec. 31, 2008) 36% ¥980 ¥4,200 ¥5,700 ¥13,000 Monthly charge*,S (Monthly charge after revision (conceptual)) Upper limit for data access via PCs /smart phones, etc. Upper limit for access via i-mode only Upper limit for access via i-mode full browser No. of packets used Flat-Rate Services #ENo. of Pake-hodai"*1 subscriptions grew to 15.75 million (Subscription rate*2: 36%) #ERevise Pake-hodai double to allow use with PCs, etc. (Planned for launch in Apr. 2009) All types of data communication services to be covered under flat-rate plan*,R *1 Inclusive of Pake-hodai full, Pake-hodai double subscriptions *2 Pake-hodai subscription rate= Combined Pake-hodai subscriptions/Total FOMA i-mode subscriptions *3 Pake-hodai double rates will not be applied to packet accesses (including i-mode access) during international roaming as they are outside the scope of the flat-rate package *4 Monthly charge do not include taxes |
SLIDE No. 17 RESULTS FOR 3Q OF FY2008 17 / 31 1 2 3 4 5 6 7 8 mova 20 40 60 80 100 FOMA 81 98 100 HSDPA ¦ Principal actions taken in FY2008 Network #EImplemented various measures to improve FOMA coverage and quality ¦ HSDPA coverage expansion Year of service launch No. of years after launch Service launch (nationwide) 2002/4 Service launch (Chuo) 2001/10 Service launch 1993/3 Service launch 2006/8 Pop. coverage (%) Seek higher customer satisfaction ¦ Customer visit within 48 hours Enhancement of HSDPA speed (7.2Mbps) pop. coverage: 100% Area quality improvement using compact BS (booster) (indoors) Visiting costomer within 48 hours Tokyo Metropolitan Expressway quality improvement Achieved 100% pop. coverage in 2 years and 4 months after service launch 2008/07 Trial service in some areas of Kanto Koshinetsu 2008/10 Full-scale launch in Kanto Koshinetsu, Hokuriku and Kyushu 2009/01 Expanded to nationwide scale Actions taken during customer visit: Area quality investigation, installation of FOMA repeater/indoor auxiliary antenna, explanation of area quality improvement plans, etc. |
SLIDE No. 18 RESULTS FOR 3Q OF FY2008 18 / 31 0 200 400 600 800 1,000 1,200 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 0 20 40 60 80 100 0 10 20 30 40 FY06/1Q-3Q FY07/1Q-3,p FY08/1Q-3Q 18.9 #{37# 14.6 12.0 12.5 33.5 24.5 #{19# 40.0 23.7 16.4 ,e,x,O,U ,e,x,O,V ,e,x,O,W International Services #EInternational services revenues increased 19% year-on-year ¦ Intl services revenues (Billions of yen) ¦ No. of Intl roaming users #FIntl roaming revenues #FIntl dialing revenues (Roaming service users: 1,000 subs.) (% of own-handset roamers to total roaming users) #FIntl roaming users (aggregate) #F% of own-handset roamers to total |
Copyright (C) 2009 NTT DOCOMO, INC. All rights reserved. |
Appendices Copyright (C) 2009 NTT DOCOMO, INC. All rights reserved. |
SLIDE No. 21 RESULTS FOR 3Q OF FY2008 21 / 31 U.S. GAAP 0 1,000 2,000 3,000 4,000 5,000 6,000 Equipment sales revenues 363.3 467.6 768.0 Other revenues 88.9 120.1 180.0 PHS revenues 9.4 - Cellular services revenues (voice, packet) 3,060.5 2,791.0 3,649.0 2007/4-12#i1Q-3Q#j 2008/4-12#i1Q-3Q#j 2009/3#ifull year forecast#j 3,522.0 3,378.8 -4.1% 4,597.0 ?International service revenues are included in Cellular service revenues (voice, packet). (Billions of yen) (Billions of yen) Operating Revenues |
SLIDE No. 22 RESULTS FOR 3Q OF FY2008 22 / 31 U.S. GAAP 0 1,000 2,000 3,000 4,000 5,000 Personnel expenses 186.7 190.5 252.0 Taxes and public duties 29.2 29.2 39.0 Depreciation and amortization 558.0 582.3 782.0 Loss on disposal of property, plant and equipment and intangible assets 43.5 35.4 62.0 Communication network charges 264.1 249.1 327.0 Non-personnel expenses 1,815.6 1,545.4 2,305.0 #iIncl.#jRevenue-linked expenses* 1,270.5 981.3 1,472.0 (Incl.) Other non-personnel expenses 545.1 564.1 833.0 2007/4-12#i1Q-3Q#j 2008/4-12#i1Q-3Q) 2009/3#ifull year forecast#j 2,897.0 2,632.0 -9.1% 3,767.0 Operating Expenses *Revenue-linked expenses: Cost of equipment sold + distributor commissions + cost of docomo point services (Billions of yen) (Billions of yen) |
SLIDE No. 23 RESULTS FOR 3Q OF FY2008 23 / 31 0 100 200 300 400 500 600 700 800 900 1,000 Other (information systems, etc.) 84.2 87.8 141.0 PHS business 0.3 - Mobile phone business (FOMA) 337.2 346.3 481.0 Mobile phone business #imova#j 10.4 7.4 10.0 Mobile phone business (Other) 56.1 59.0 87.0 2007/4-12#i1Q-3Q#j 2008/4-12#i1Q-3Q#j 2009/3(full year forecast) 488.2 500.5 +2.5% 719.0 Capital Expenditures (Billions of yen) (Billions of yen) |
SLIDE No. 24 RESULTS FOR 3Q OF FY2008 24 / 31 2007/4-12 (1Q-3Q) (1) 2008/4-12 (1Q-3Q) (2) Changes (1) ?(2) 2009/3 (Full year forecast) Cellular Phone No. of Subscriptions ( thousands)*1 53,151 54,155 + 1.9% 54,470 mova 11,073 6,661 -39.8% 5,280 FOMA 42,078 47,494 +12.9% 49,190 i-mode 47,831 48,150 +0.7% 48,370 Communication Module Services 1,360 1,536 +13.0% 1,540 Market share#i%#j 52.9 51.2 -1.7 points - Handsets sold (thousands) (including handsets sold without involving sales by DOCOMO) Total handsets sold 19,320 14,775 -23.5% - mova New 167 56 -66.4% - Replacement 213 36 -83.2% - FOMA New 4,389 3,077 -29.9% - Migration from mova 5,137 2,348 -54.3% - Other*2 9,414 9,258 -1.7% - Churn rate (%) 0.85 0.49 -0.36 points - ARPU#iFOMA+mova#j(yen)*3 6,470 5,820 -10.0% 5,710 MOU#iFOMA+mova#j(minutes)*3 140 138 -1.4% - *1 Communication Module Service subscriptions are included in the number of cellular phone subscriptions in order to align the calculation method of subscribers 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.) *2 Other includes purchases of additional handsets by existing FOMA subscribers. *3 For an explanation of MOU and ARPU, please see Slide 30 of this document, Definition and Calculation Methods of MOU and ARPU. Operational Results and Forecasts |
SLIDE No. 25 RESULTS FOR 3Q OF FY2008 25 / 31 FY2008/3Q Financial Results U.S. GAAP 2007/10-12 (3Q) (1) 2008/10-12 (3Q) (2) Changes (1) ?(2) Operating Revenues (Billions of yen) 1,196.9 1,111.0 -7.2% Cellular Services Revenues (Billions of yen) 993.9 919.1 -7.5% Operating Expenses (Billions of yen) 980.4 941.1 -4.0% Operating Income (Billions of yen) 216.5 169.8 -21.6% Income Before Income Taxes #iBillions of yen#j 217.9 149.2 -31.5% Net Income (Billions of yen) 130.0 91.0 -30.0% EBITDA Margin (%) * 35.1 37.4 +2.3 points Adjusted Free Cash Flow (Billions of yen) * 192.3 231.9 +20.6% ?Consolidated financial statements in this document are unaudited. ?Adjusted free cash flow excludes the effects of uncollected revenues due to bank holidays at the end of the fiscal year and changes in investment 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 31 and the IR page of our website, www.nttdocomo.co.jp. |
SLIDE No. 26 RESULTS FOR 3Q OF FY2008 26 / 31 -20 0 20 40 60 80 100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q #EDOCOMOs market share of net additions in FY2008/1Q-3Q (cumulative) was 24.7% SoftBank au EMOBILE 22.0# ,c,n,b,n,l,n FY08/1-3Q cumulative net adds share: 24.7# FY08/1-3Q cumulative net adds share: 24.7# Market Share of Net Additions FY2006 FY2007 FY2008 ?Source of data used in calculation: Telecommunications Carriers Association (TCA) (%) FFYY0066 ffuullllyyeeaarr nneett aaddddss sshhaarree :: 3300..00## FFYY0077 ffuullllyyeeaarr nneett aaddddss sshhaarree :: 1122..88## |
SLIDE No. 27 RESULTS FOR 3Q OF FY2008 27 / 31 0 20 40 60 80 100 120 140 160 180 200 -25 -20 -15 -10 -5 0 5 10 15 20 25 MOU#iLeft axis#j 145 146 146 139 140 140 139 135 137 138 139 Year-on-year changes in MOU (Right axis) -2.7 -3.9 -3.3 -4.8 -3.4 -4.1 -4.8 -2.9 -2.1 -1.4 0 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) #EMOU for FY2008/1Q-3Q (cumulative) was 138 minutes (Down 1.4% year-on-year) Cellular (FOMA+mova) MOU (Minutes) (%) ?For an explanation of MOU, please see Slide 30 of this document, Definition and Calculation Methods of MOU and ARPU. Full-year MOU: 144 minutes #iDown 3.4% year-on-year#j Full-year MOU: 144 minutes #iDown 3.4% year-on-year#j Full-year MOU: 138 minutes #iDown 4.2% year-on-year#j Full-year MOU: 138 minutes #iDown 4.2% year-on-year#j FY08/1-3Q MOU: 138 minutes (Down 1.4% year-on-year) FY08/1-3Q MOU: 138 minutes (Down 1.4% year-on-year) |
SLIDE No. 28 RESULTS FOR 3Q OF FY2008 28 / 31 0 2 4 6 8 10 07/12 08/3 08/6 08/9 08/12 09/3 (forecast#j PPrriinncciippaall aaccttiioonnss ¦ No. of iD subscriptions Topped 10 million (As of Dec. 31, 2008) ¦ DCMX DOCOMO Point Mall (Nov. 2008) Point accumulation at a rate higher than usual (1.5- 10%) No. of member stores: 53* stores (To be expanded further in the future) http://dcmx-mall.jp/ Credit Business ¦ DCMX membership (Million subs.) As of Dec. 31, 2008: 8.17 mil Mar. 31, 2009 (forecast): 9 mil As of Dec. 31, 2008: 390,000 units Mar. 31, 2009 (forecast): 400,000 units ¦ iD payment terminals installed *As of Jan. 30, 2009 |
SLIDE No. 29 RESULTS FOR 3Q OF FY2008 29 / 31 Return to Shareholders #EReturning profits to shareholders is considered one of the most important issues in our corporate policies For fiscal year ending Mar. 31, 2009 (Planned) Dividend per share: 4,800 yen Repurchase of own shares: Authorized to repurchase up to 900,000 shares for up to 150 billion yen (Treasury shares are planned to be limited to approx. 5% of total issued shares, and those shares exceeding 5% will be cancelled at the end of the fiscal year) #sRepurchase of Own Shares#t Budget (Billions of yen) No. of shares repurchased (Millions of shares) Max. authorized Actual amount spent Max. authorized Actual no. of shares repurchased Repurchase authorized at 16th ordinary general shareholder mtg 200 150 (75.0%) 1.00 0.93 (92.7%) Repurchase authorized at 17th ordinary general shareholder mtg 150 50 (33.3%) 0.90 0.31 (34.0%) |
SLIDE No. 30 RESULTS FOR 3Q OF FY2008 30 / 31 Definition and Calculation Methods of MOU and ARPU ? MOU (Minutes of usage): Average communication time per one month per one user. ? 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 our wireless services revenues, such as monthly charges, voice transmission charges and packet transmission 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 (monthly charges, voice transmission charges) / No. of active cellular phone subscriptions (FOMA+mova) ? Packet ARPU (FOMA+mova): {Packet ARPU (FOMA) Related Revenues (monthly charges, packet transmission charges) + i-mode ARPU (mova) Related Revenues (monthly charges, packet transmission charges)} / No. of active cellular phone subscriptions (FOMA+mova) ? i-mode ARPU (FOMA+mova): i-mode ARPU (FOMA+mova) Related Revenues (monthly charges, packet transmission charges) / No. of active cellular phone subscriptions (FOMA+mova) ? Aggregate ARPU (FOMA): Voice ARPU (FOMA) + Packet ARPU (FOMA) ? Voice ARPU (FOMA): Voice ARPU (FOMA) Related Revenues (monthly charges, voice transmission charges) / No. of active cellular phone subscriptions (FOMA) ? Packet ARPU (FOMA): Packet ARPU (FOMA) Related Revenues (monthly charges, packet transmission charges) / No. of active cellular phone subscriptions (FOMA) ? i-mode ARPU (FOMA): i-mode ARPU (FOMA) Related Revenues (monthly charges, packet transmission charges) / No. of active cellular phone subscriptions (FOMA) ? Aggregate ARPU (mova): Voice ARPU (mova) + i-mode ARPU (mova) ? Voice ARPU (mova): Voice ARPU (mova) Related Revenues (monthly charges, voice transmission charges) / No. of active cellular phone subscriptions (mova) ? i-mode ARPU (mova): i-mode ARPU (mova) Related Revenues (monthly charges, packet transmission charges) / No. of active cellular phone subscriptions (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 Service are not included in the above calculation of ARPU and MOU. |
SLIDE No. 31 RESULTS FOR 3Q OF FY2008 31 / 31 Reconciliation 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 March 31, 2008 Three months ended December 31, 2008 Nine months ended December 31, 2008 Nine months ended December 31, 2007 a. EBITDA ¥1,639.1 ¥415.6 ¥1,353.8 ¥1,206.9 (776.4) (233.9) (582.3) (558.0) (54.4) (11.8) (24.7) (23.9) 808.3 169.8 746.8 625.0 (7.6) (20.6) (37.4) 3.7 (323.0) (60.0) (279.4) (253.3) 13.6 1.8 7.7 1.2 (0.1) 0.0 (0.0) (0.1) 491.2 91.0 437.7 376.5 4,711.8 1,111.0 3,378.8 3,522.0 34.8% 37.4% 40.1% 34.3% 10.4% 8.2% 13.0% 10.7% Note: 2. Free cash flows excluding irregular factors and changes in investments for cash management purposes Billions of yen Year ended March 31, 2008 (Reference) Three months ended December 31, 2008 Nine months ended December 31, 2008 Nine months ended December 31, 2007 ¥442.4 ¥231.9 ¥167.3 ¥361.2 210.0 (188.0) (188.0) 9.0 148.9 (25.3) 23.9 147.7 801.3 18.6 3.2 517.9 (758.8) (201.2) (625.0) (509.5) 1,560.1 219.8 628.1 1,027.4 Depreciation and amortization Loss on sale or disposal of property, plant and equipment Operating income Other income (expense) Income taxes Equity in net income of affiliates Minority interests Free cash flows excluding irregular factors and changes in investments for cash management purposes Irregular factors (1) 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. b. Net income c. Total operating revenues EBITDA margin (=a/c) Net income margin (=b/c) Changes in investments for cash management purposes (2) Free cash flows Net cash used in investing activities Net cash provided by operating activities Notes: (1) Irregular factors represent the effects of uncollected revenues due to a bank closure at the end of the fiscal period. Irregular factors during the nine months ended December 31, 2007 was the net effect of bank closures as of March 31, 2007 and December 31, 2007. (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. Net cash used in investing activities for the nine months ended December 31, 2008 and 2007 and the year ended March 31, 2008 includes changes in investments for cash management purposes. |
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