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 October, 2009.
Commission File Number: 001-31221
Total number of pages: 66
 
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): o
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): o
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:
         
       
 
       
       
 
       

 

 


Table of Contents

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: October 30, 2009  By:   /s/ OSAMU HIROKADO    
    Osamu Hirokado   
    Head of Investor Relations   

 

 


Table of Contents

(NTT DOCOMO LOGO)   (FASF LOGO)
     
Financial Statements
  October 30, 2009
For the Six Months Ended September 30, 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:
  November 4, 2009
Scheduled date for dividend payment:
  November 20, 2009
1. Consolidated Financial Results for the Six Months Ended September 30, 2009 (April 1, 2009 — September 30, 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  
Six months ended September 30, 2009
    2,145,807       (5.4 )%     485,223       (15.9 )%     479,881       (14.3 )%
Six months ended September 30, 2008
    2,267,784             576,946             560,156        
(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  
September 30, 2009
    6,501,764       4,552,099       70.0 %   109,006.71 (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 September 30, 2009: None

 

1


Table of Contents

3. Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2010 (April 1, 2009 — March 31, 2010)
                         
    (Millions of yen)  
                    Income before  
    Operating 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 September 30, 2009: Yes
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 September 30, 2009:   43,950,000 shares    
 
      As of March 31, 2009:   43,950,000 shares    
 
               
 
  (ii) Number of treasury stock:   As of September 30, 2009:   2,190,193 shares    
 
      As of March 31, 2009:   2,190,193 shares    
 
               
 
  (iii) Number of weighted average common shares outstanding:   For the six months ended September 30, 2009:   41,759,807 shares    
 
      For the six months ended September 30, 2008:   42,406,379 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.

 

2


Table of Contents

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 Six Months Ended September 30, 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 Six Months Ended September 30, 2009 (April 1, 2009 — September 30, 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.  
Six months ended September 30, 2009
    284,718       (17.9 )%   6,817.99 (yen)      
Six months ended September 30, 2008
    346,659           8,174.69 (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 %   11,805.61 (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.

 

3


Table of Contents

(DOCOMO LOGO)

Earnings Release for the Six Months Ended September 30, 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 second quarter of this fiscal year, we strived to expand subscribers’ packet usage by revising the rate of our two-tier flat-rate services “Pake-hodai double” and “Biz-hodai double” while enriching our video content services such as “docomo-doga”. We also launched the “Mobile Phone Checking Service” to provide free basic after-care, including checkups, minor repairs and consulting, and reinforced our “Battery Pack Anshin Support” program by offering the option of receiving a free portable charger instead of receiving a free battery-pack in an effort to improve our after-sales support. Meanwhile, to offer greater convenience to our customers, we commenced “docomo Mobile Remittance” which enables individual users to make remittance simply by designating the payee’s mobile phone number without registering for the service or opening a new bank account. Furthermore, we started marketing seven new models of handsets, including Japan’s first “Android”* phone, HT-03A, and “Raku Raku Phone VI”, the first waterproof model in the “Raku Raku Phone” series featuring easy operability, to cater to the diverse needs of customers.
For the three months ended September 30, 2009, we recorded operating revenues and operating income of ¥1,061.1 billion (a decrease of ¥36.5 billion from the same period of the prior year) and ¥233.4 billion (a decrease of ¥47.1 billion from the same period of the prior year), respectively. Income before income taxes was ¥232.4 billion and net income attributable to NTT DoCoMo, Inc. was ¥137.3 billion. For the six months ended September 30, 2009, operating revenues and operating income were ¥2,145.8 billion (down ¥122.0 billion from the same period of the prior year) and ¥485.2 billion (down ¥91.7 billion from the same period of the prior year), respectively. Income before income taxes was ¥479.9 billion and net income attributable to NTT DoCoMo, Inc. was ¥284.7 billion.
     
*  
Android is a software stack which offers a free and open applications development environment.
     
Notes:  1. 
Consolidated financial statements as of September 30, 2008 and 2009, and for the three months and six months ended September 30, 2008 and 2009 in this release are unaudited.
 
  2. 
Amounts in this release are rounded off.

 

4


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Six Months Ended September 30, 2009
Consolidated results of operations for the three months and six months ended September 30, 2008 and 2009, respectively, were as follows:
<Results of operations>
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Three months ended     Three months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Operating revenues
  ¥ 1,097.5     ¥ 1,061.1     ¥ (36.5 )     (3.3 )%
Operating expenses
    817.1       827.6       10.6       1.3  
 
                       
Operating income
    280.5       233.4       (47.1 )     (16.8 )
Other income (expense)
    (8.7 )     (1.0 )     7.7       88.7  
 
                       
Income before income taxes
    271.7       232.4       (39.3 )     (14.5 )
Income taxes
    101.4       93.9       (7.5 )     (7.4 )
Equity in net income (losses) of affiliates
    2.8       (0.5 )     (3.3 )      
Net Income
    173.1       138.0       (35.1 )     (20.3 )
Less: Net (income) loss attributable to noncontrolling interests
    0.0       (0.7 )     (0.7 )      
 
                       
Net income attributable to NTT DoCoMo, Inc.
  ¥ 173.1     ¥ 137.3     ¥ (35.8 )     (20.7 )%
 
                       
EBITDA margin*
    42.7 %     38.6 %   (4.1) point       
 
                       
ROCE*
    5.7 %     4.5 %   (1.2) point       
 
                       
ROCE after tax effect*
    3.4 %     2.7 %   (0.7) point       
 
                       
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Six months ended     Six months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Operating revenues
  ¥ 2,267.8     ¥ 2,145.8     ¥ (122.0 )     (5.4 )%
Operating expenses
    1,690.8       1,660.6       (30.3 )     (1.8 )
 
                       
Operating income
    576.9       485.2       (91.7 )     (15.9 )
Other income (expense)
    (16.8 )     (5.3 )     11.4       68.2  
 
                       
Income before income taxes
    560.2       479.9       (80.3 )     (14.3 )
Income taxes
    219.4       194.1       (25.3 )     (11.5 )
Equity in net income (losses) of affiliates
    5.9       0.3       (5.6 )     (95.1 )
Net Income
    346.7       286.1       (60.6 )     (17.5 )
Less: Net (income) loss attributable to noncontrolling interests
    (0.0 )     (1.3 )     (1.3 )      
 
                       
Net income attributable to NTT DoCoMo, Inc.
  ¥ 346.7     ¥ 284.7     ¥ (61.9 )     (17.9 )%
 
                       
EBITDA margin*
    41.4 %     39.0 %   (2.4) point       
 
                       
ROCE*
    11.9 %     9.6 %   (2.3) point       
 
                       
ROCE after tax effect*
    7.0 %     5.7 %   (1.3) 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.

 

5


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Six Months Ended September 30, 2009
<Operating revenues>
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Three months ended     Three months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Wireless services
  ¥ 971.1     ¥ 951.5     ¥ (19.6 )     (2.0 )%
Cellular services revenues
    935.5       884.3       (51.2 )     (5.5 )
- Voice revenues
    555.1       487.6       (67.4 )     (12.1 )
Including: FOMA services
    482.2       453.8       (28.4 )     (5.9 )
- Packet communications revenues
    380.4       396.6       16.2       4.3  
Including: FOMA services
    363.2       388.4       25.2       6.9  
Other revenues
    35.6       67.2       31.6       88.7  
Equipment sales
    126.5       109.6       (16.9 )     (13.3 )
 
                       
Total operating revenues
  ¥ 1,097.5     ¥ 1,061.1     ¥ (36.5 )     (3.3 )%
 
                       
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Six months ended     Six months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Wireless services
  ¥ 1,948.5     ¥ 1,893.3     ¥ (55.3 )     (2.8 )%
Cellular services revenues
    1,871.9       1,766.2       (105.7 )     (5.6 )
- Voice revenues
    1,125.4       978.3       (147.1 )     (13.1 )
Including: FOMA services
    968.9       904.2       (64.7 )     (6.7 )
- Packet communications revenues
    746.5       787.9       41.4       5.5  
Including: FOMA services
    710.9       769.9       59.0       8.3  
Other revenues
    76.7       127.1       50.4       65.8  
Equipment sales
    319.2       252.5       (66.7 )     (20.9 )
 
                       
Total operating revenues
  ¥ 2,267.8     ¥ 2,145.8     ¥ (122.0 )     (5.4 )%
 
                       
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  
    September 30, 2008     September 30, 2009     (Decrease)  
Personnel expenses
  ¥ 63.4     ¥ 62.5     ¥ (1.0 )     (1.5 )%
Non-personnel expenses
    467.3       498.2       30.9       6.6  
Depreciation and amortization
    179.9       168.8       (11.1 )     (6.2 )
Loss on disposal of property, plant and equipment and intangible assets
    12.7       10.4       (2.3 )     (18.2 )
Communication network charges
    83.5       78.1       (5.4 )     (6.5 )
Taxes and public dues
    10.3       9.7       (0.6 )     (5.7 )
 
                       
Total operating expenses
  ¥ 817.1     ¥ 827.6     ¥ 10.6       1.3 %
 
                       
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Six months ended     Six months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Personnel expenses
  ¥ 126.7     ¥ 126.8     ¥ 0.2       0.1 %
Non-personnel expenses
    1,011.3       1,001.9       (9.4 )     (0.9 )
Depreciation and amortization
    348.4       337.8       (10.6 )     (3.0 )
Loss on disposal of property, plant and equipment and intangible assets
    18.7       18.6       (0.1 )     (0.5 )
Communication network charges
    165.8       155.8       (10.0 )     (6.0 )
Taxes and public dues
    20.0       19.6       (0.4 )     (2.0 )
 
                       
Total operating expenses
  ¥ 1,690.8     ¥ 1,660.6     ¥ (30.3 )     (1.8 )%
 
                       

 

6


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Six Months Ended September 30, 2009
2. Segment Information
(1) Mobile phone business
As of September 30, 2009, total number of our cellular services subscriptions reached 55.19 million, posting an increase of 1.25 million compared to the number as of September 30, 2008, of which FOMA subscriptions accounted for 92.9%, or 51.26 million. Our cellular churn rate for the three months ended September 30, 2009 improved significantly to 0.46%, compared to 0.52% for the same period of the prior year, as a result of the various measures that we implemented with the aim of enhancing customer satisfaction.
The number of subscribers to the new discount services including “Fami-wari MAX50” introduced in August 2007 totaled approximately 34.80 million, while the subscription count of “Value Plan” launched in November 2007 was approximately 27.00 million as of September 30, 2009. As a consequence, aggregate average monthly revenue per unit (ARPU) of cellular (FOMA+mova) services for the three months ended September 30, 2009, decreased to ¥5,420 (down 7.5% compared to the same period of the prior year).
With respect to equipment sales, the number of handsets sold during the three months ended September 30, 2009, declined by 0.85 million from the same period of the prior year to 4.46 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 September 30, 2009 were ¥1,031.1 billion and ¥234.3 billion, respectively. For the six months ended September 30, 2009, operating revenues and operating income from mobile phone business were ¥2,089.0 billion and ¥489.5 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  
    September 30, 2008     September 30, 2009     (Decrease)  
Cellular services
    53,937       55,186       1,250       2.3 %
Cellular (FOMA) services
    46,444       51,258       4,814       10.4  
Including: i-channel services
    16,044       16,692       648       4.0  
Including: i-concier services
          2,337              
Including: flat-rate services for unlimited i-mode usage
    13,949       21,519       7,570       54.3  
Cellular (mova) services
    7,493       3,928       (3,565 )     (47.6 )
i-mode services
    48,069       48,670       601       1.3  
     
Notes:   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.

 

7


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Six Months Ended September 30, 2009
<Number of handsets sold and churn rate>
                                 
    Thousand units  
    Three months ended     Three months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Cellular services
    5,318       4,464       (854 )     (16.1 )%
Cellular (FOMA) services
                               
New FOMA subscription
    1,118       1,071       (47 )     (4.2 )
Change of subscription from mova to FOMA
    796       587       (209 )     (26.2 )
FOMA handset upgrade by FOMA subscribers
    3,370       2,800       (569 )     (16.9 )
Cellular (mova) services
                               
New mova subscription
    23       4       (18 )     (82.1 )
mova handset upgrade by mova subscribers and change of subscription from FOMA to mova
    12       2       (10 )     (84.5 )
 
                       
Churn Rate
    0.52 %     0.46 %   (0.06) point        
                                 
    Thousand units  
    Six months ended     Six months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Cellular services
    10,265       8,808       (1,457 )     (14.2 )%
Cellular (FOMA) services
                               
New FOMA subscription
    2,157       2,057       (100 )     (4.6 )
Change of subscription from mova to FOMA
    1,632       1,400       (232 )     (14.2 )
FOMA handset upgrade by FOMA subscribers
    6,402       5,339       (1,063 )     (16.6 )
Cellular (mova) services
                               
New mova subscription
    45       8       (37 )     (82.6 )
mova handset upgrade by mova subscribers and change of subscription from FOMA to mova
    29       4       (25 )     (85.5 )
 
                       
Churn Rate
    0.51 %     0.45 %   (0.06) point        

 

8


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Six Months Ended September 30, 2009
<Trend of ARPU and MOU>
                                 
    Yen/Minutes  
    Three months ended     Three months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Aggregate ARPU* (FOMA+mova)
  ¥  5,860     ¥ 5,420     ¥ (440 )     (7.5 )%
Voice ARPU
    3,450       2,970       (480 )     (13.9 )
Packet ARPU
    2,410       2,450       40       1.7  
Aggregate ARPU (FOMA)
    6,180       5,560       (620 )     (10.0 )
Voice ARPU
    3,500       2,970       (530 )     (15.1 )
Packet ARPU
    2,680       2,590       (90 )     (3.4 )
Aggregate ARPU (mova)
    3,820       3,500       (320 )     (8.4 )
Voice ARPU
    3,120       2,890       (230 )     (7.4 )
i-mode ARPU
    700       610       (90 )     (12.9 )
 
                       
MOU* (FOMA+mova) (minutes)
    138       137       (1 )     (0.7 )%
                                 
    Yen/Minutes  
    Six months ended     Six months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Aggregate ARPU* (FOMA+mova)
  ¥ 5,870     ¥ 5,430     ¥ (440 )     (7.5 )%
Voice ARPU
    3,510       2,990       (520 )     (14.8 )
Packet ARPU
    2,360       2,440       80       3.4  
Aggregate ARPU (FOMA)
    6,220       5,590       (630 )     (10.1 )
Voice ARPU
    3,560       2,990       (570 )     (16.0 )
Packet ARPU
    2,660       2,600       (60 )     (2.3 )
Aggregate ARPU (mova)
    3,860       3,530       (330 )     (8.5 )
Voice ARPU
    3,170       2,920       (250 )     (7.9 )
i-mode ARPU
    690       610       (80 )     (11.6 )
 
                       
MOU* (FOMA+mova) (minutes)
    138       136       (2 )     (1.4 )%
     
*  
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  
    September 30, 2008     September 30, 2009     (Decrease)  
Operating revenues from mobile phone business
  ¥ 1,081.7     ¥ 1,031.1     ¥ (50.6 )     (4.7 )%
Operating income from mobile phone business
    286.6       234.3       (52.3 )     (18.2 )
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)                
    Six months ended     Six months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Operating revenues from mobile phone business
  ¥ 2,236.5     ¥ 2,089.0     ¥ (147.5 )     (6.6 )%
Operating income from mobile phone business
    587.6       489.5       (98.1 )     (16.7 )

 

9


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Six Months Ended September 30, 2009
(2) Miscellaneous businesses
Operating revenues from miscellaneous businesses for the three months ended September 30, 2009 were ¥29.9 billion, which represented 2.8% 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 ¥30.8 billion and ¥0.9 billion, respectively. Operating revenues, operating expenses and operating loss from miscellaneous businesses for the six months ended September 30, 2009 were ¥56.8 billion, ¥61.1 billion and ¥4.3 billion, respectively.
<Results of operations>
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Three months ended     Three months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Operating revenues from miscellaneous businesses
  ¥ 15.8     ¥ 29.9     ¥ 14.1       89.1 %
Operating loss from miscellaneous businesses
    (6.1 )     (0.9 )     5.2       85.8  
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Six months ended     Six months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Operating revenues from miscellaneous businesses
  ¥ 31.3     ¥ 56.8     ¥ 25.5       81.4 %
Operating loss from miscellaneous businesses
    (10.6 )     (4.3 )     6.3       59.7  
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 six months ended September 30, 2009 were ¥316.1 billion (down 6.0% compared to the same period of prior year).
<Breakdown of capital expenditures>
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Three months ended     Three months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Mobile phone business
  ¥ 143.0     ¥ 135.6     ¥ (7.4 )     (5.1 )%
Other (including information systems)
    29.7       27.4       (2.3 )     (7.7 )
 
                       
Total capital expenditures
  ¥ 172.7     ¥ 163.0     ¥ (9.6 )     (5.6 )%
 
                       
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Six months ended     Six months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Mobile phone business
  ¥ 281.6     ¥ 258.0     ¥ (23.6 )     (8.4 )%
Other (including information systems)
    54.9       58.2       3.3       6.0  
 
                       
Total capital expenditures
  ¥ 336.5     ¥ 316.1     ¥ (20.3 )     (6.0 )%
 
                       

 

10


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Six Months Ended September 30, 2009
<< 2. Financial Review >>
1. Financial Position
                                         
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)     Increase     (Reference)  
    September 30, 2008     September 30, 2009     (Decrease)     March 31, 2009  
Total assets
  ¥ 6,173.8     ¥ 6,501.8     ¥ 328.0       5.3 %   ¥ 6,488.2  
NTT DoCoMo, Inc. shareholders’ equity
    4,445.9       4,552.1       106.2       2.4       4,341.6  
Liabilities
    1,726.3       1,943.4       217.1       12.6       2,144.9  
Including: Interest bearing liabilities
    526.4       624.6       98.2       18.7       639.2  
 
                             
Equity ratio (1)
    72.0 %     70.0 %   (2.0) point           66.9 %
Debt ratio (2)
    10.6 %     12.1 %   1.5 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 six months ended September 30, 2009, net cash provided by operating activities was ¥508.5 billion, an increase of ¥100.2 billion (24.5%) compared to the same period of the prior year, mainly due to a decrease in accounts receivables.
Net cash used in investing activities was ¥441.1 billion, an increase of ¥17.4 billion (4.1%) 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 3 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 ¥116.9 billion, an increase of ¥11.3 billion (10.7%) 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 ¥550.6 billion as of September 30, 2009, a decrease of ¥48.9 billion (8.2%) from the prior fiscal year end.
                                 
    Billions of yen  
    (UNAUDITED)     (UNAUDITED)        
    Six months ended     Six months ended     Increase  
    September 30, 2008     September 30, 2009     (Decrease)  
Net cash provided by operating activities
  ¥ 408.4     ¥ 508.5     ¥ 100.2       24.5 %
Net cash used in investing activities
    (423.8 )     (441.1 )     (17.4 )     (4.1 )
Net cash provided by (used in) financing activities
    (105.6 )     (116.9 )     (11.3 )     (10.7 )
Free cash flows (1)
    (15.4 )     67.4       82.8        
Free cash flows excluding the effects of changes in investments for cash management purposes (2)*
    (64.6 )     94.5       159.0        
     
Notes: (1) 
Free cash flows = Net cash provided by operating activities + Net cash used in investing activities
 
  (2)
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.

 

11


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Six Months Ended September 30, 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, we have decided to revise our group’s full-year guidance for the fiscal year ending March 31, 2010 as described in the table below.
The operating revenues forecast has been revised downwards by ¥106.0 billion from the initial guidance to ¥4,276.0 billion, mainly due to a decrease in equipment sales, though this is offset by an increase in cellular services revenues resulting from an increase in the number of subscribers and our efforts to increase subscribers’ packet communication revenues.
On the other hand, we projected a decrease in operating expenses mainly due to the decrease in cost of equipment sold in line with our revised forecasts of number of handsets to be sold, and improvement of cost efficiency in network-related costs. Accordingly, our forecast of operating income remains unchanged from the original forecast of ¥830.0 billion.
                                         
    Billions of yen  
    Year ending     Year ending                     Year ended  
    March 31, 2010     March 31, 2010     Increase     March 31, 2009  
    (Original Forecasts)     (Revised Forecasts)     (Decrease)     (Actual Results)  
Operating revenues
  ¥ 4,382.0     ¥ 4,276.0     ¥ (106.0 )     (2.4 )%   ¥ 4,448.0  
Operating income
    830.0       830.0                   831.0  
Income before income taxes
    832.0       825.0       (7.0 )     (0.8 )%     780.5  
Net income attributable to NTT DoCoMo, Inc.
    493.0       493.0                   471.9  
Capital expenditures
    690.0       690.0                   737.6  
Adjusted free cash flows *
    380.0       360.0       (20.0 )     (5.3 )%     93.4  
EBITDA *
    1,569.0       1,563.0       (6.0 )     (0.4 )%     1,678.4  
EBITDA margin *
    35.8 %     36.6 %   0.8 point           37.7 %
ROCE *
    16.2 %     16.2 %                 17.1 %
ROCE after tax effect *
    9.6 %     9.6 %                 10.1 %
     
*  
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. For an explanation of our definition of free cash flows excluding changes in investments for cash management purposes, 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.
The financial forecasts for the fiscal year ending March 31, 2010 are based on the forecasts of the following operating data:
                                         
    Million subscriptions/Yen  
    March 31, 2010     March 31, 2010     Increase     March 31, 2009  
    (Original Forecasts)     (Revised Forecasts)     (Decrease)     (Actual Results)  
Cellular services
    55.76       55.80       0.04       0.1 %     54.60  
Cellular (FOMA) services
    52.98       53.03       0.05       0.1 %     49.04  
Cellular (mova) services
    2.78       2.77       (0.01 )     (0.4 )%     5.56  
i-mode services
    48.85       48.90       0.05       0.1 %     48.47  
Aggregate ARPU (FOMA + mova)
  ¥ 5,280     ¥ 5,300     ¥ 20       0.4 %   ¥ 5,710  
Voice ARPU
    2,860       2,840       (20 )     (0.7 )%     3,330  
Packet ARPU
    2,420       2,460       40       1.7 %     2,380  
Notes:
     
1.  
Number of i-mode subscriptions includes numbers of cellular (FOMA) and cellular (mova) i-mode subscriptions.
 
2.  
See “Definition and Calculation Methods of ARPU and MOU” on page 20 for details of definitions and calculation methods of ARPU.

 

12


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Six Months Ended September 30, 2009
<<4. Others >>
1.  
Changes in significant subsidiaries for the six months ended September 30, 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   Six Months Ended September 30, 2009
<< 5. Consolidated Financial Statements >>
1. Consolidated Balance Sheets
                 
    Millions of yen  
            (UNAUDITED)  
    March 31, 2009     September 30, 2009  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  ¥ 599,548     ¥ 550,642  
Short-term investments
    2,448       32,158  
Accounts receivable
    835,063       779,913  
Allowance for doubtful accounts
    (15,072 )     (17,105 )
Inventories
    123,206       178,787  
Deferred tax assets
    102,903       99,852  
Prepaid expenses and other current assets
    179,632       207,675  
 
           
Total current assets
    1,827,728       1,831,922  
 
           
Property, plant and equipment:
               
Wireless telecommunications equipment
    5,361,043       5,422,824  
Buildings and structures
    814,056       821,085  
Tools, furniture and fixtures
    519,213       526,140  
Land
    198,985       198,874  
Construction in progress
    99,232       112,674  
Accumulated depreciation and amortization
    (4,301,044 )     (4,439,012 )
 
           
Total property, plant and equipment, net
    2,691,485       2,642,585  
 
           
Non-current investments and other assets:
               
Investments in affiliates
    572,014       590,671  
Marketable securities and other investments
    141,544       151,126  
Intangible assets, net
    578,728       594,021  
Goodwill
    154,385       183,515  
Other assets
    273,440       253,570  
Deferred tax assets
    248,896       254,354  
 
           
Total non-current investments and other assets
    1,969,007       2,027,257  
 
           
Total assets
  ¥ 6,488,220     ¥ 6,501,764  
 
           
 
               
LIABILITIES AND EQUITY
               
Current liabilities:
               
Current portion of long-term debt
  ¥ 29,000     ¥ 14,000  
Accounts payable, trade
    668,525       475,995  
Accrued payroll
    58,627       51,233  
Accrued interest
    1,187       1,054  
Accrued income taxes
    238,742       207,743  
Other current liabilities
    152,354       152,223  
 
           
Total current liabilities
    1,148,435       902,248  
 
           
Long-term liabilities:
               
Long-term debt (exclusive of current portion)
    610,233       610,556  
Liability for employees’ retirement benefits
    146,326       151,413  
Other long-term liabilities
    239,918       279,204  
 
           
Total long-term liabilities
    996,477       1,041,173  
 
           
Total liabilities
    2,144,912       1,943,421  
 
           
Equity:
               
NTT DoCoMo, Inc. shareholders’ equity
               
Common stock
    949,680       949,680  
Additional paid-in capital
    785,045       785,045  
Retained earnings
    3,061,848       3,246,342  
Accumulated other comprehensive income (loss)
    (65,689 )     (39,669 )
Treasury stock, at cost
    (389,299 )     (389,299 )
Total NTT DoCoMo, Inc. shareholders’ equity
    4,341,585       4,552,099  
Noncontrolling interests
    1,723       6,244  
 
           
Total equity
    4,343,308       4,558,343  
 
           
Total liabilities and equity
  ¥ 6,488,220     ¥ 6,501,764  
 
           

 

14


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release   Six Months Ended September 30, 2009
2. Consolidated Statements of Income and Comprehensive Income
                 
    Millions of yen  
    (UNAUDITED)     (UNAUDITED)  
    Six months ended     Six months ended  
    September 30, 2008     September 30, 2009  
Operating revenues:
               
Wireless services
  ¥ 1,948,540     ¥ 1,893,265  
Equipment sales
    319,244       252,542  
Total operating revenues
    2,267,784       2,145,807  
 
           
Operating expenses:
               
Cost of services (exclusive of items shown separately below)
    413,731       449,617  
Cost of equipment sold (exclusive of items shown separately below)
    408,027       340,877  
Depreciation and amortization
    348,387       337,809  
Selling, general and administrative
    520,693       532,281  
Total operating expenses
    1,690,838       1,660,584  
 
           
Operating income
    576,946       485,223  
 
           
Other income (expense):
               
Interest expense
    (2,398 )     (2,989 )
Interest income
    1,045       668  
Other, net
    (15,437 )     (3,021 )
Total other income (expense)
    (16,790 )     (5,342 )
 
           
Income before income taxes
    560,156       479,881  
 
           
Income taxes:
               
Current
    233,831       210,887  
Deferred
    (14,434 )     (16,764 )
Total income taxes
    219,397       194,123  
Equity in net income (losses) of affiliates, net of applicable taxes
    5,921       292  
 
           
Net income
    346,680       286,050  
 
           
Less: Net (income) loss attributable to noncontrolling interests
    (21 )     (1,332 )
 
           
Net income attributable to NTT DoCoMo, Inc.
  ¥ 346,659     ¥ 284,718  
 
           
 
               
Net income
  ¥ 346,680     ¥ 286,050  
Other comprehensive income (loss):
               
Unrealized holding gains (losses) on available-for-sale securities, net of applicable taxes
    (5,945 )     14,082  
Change in fair value of derivative instruments, net of applicable taxes
    (159 )     (35 )
Foreign currency translation adjustment, net of applicable taxes
    (16,672 )     11,691  
Pension liability adjustment, net of applicable taxes
    (362 )     296  
Total other comprehensive income (loss)
    (23,138 )     26,034  
 
           
Comprehensive income
    323,542       312,084  
 
           
Less: Comprehensive (income) loss attributable to noncontrolling interests
    (20 )     (1,346 )
 
           
Comprehensive income attributable to NTT DoCoMo, Inc.
  ¥ 323,522     ¥ 310,738  
 
           
 
               
PER SHARE DATA
               
Weighted average common shares outstanding — Basic and Diluted (shares)
    42,406,379       41,759,807  
 
           
Basic and Diluted earnings per share attributable to NTT DoCoMo, Inc. (yen)
  ¥ 8,174.69     ¥ 6,817.99  
 
           

 

15


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release
  Six Months Ended September 30, 2009
                 
    Millions of yen  
    (UNAUDITED)     (UNAUDITED)  
    Three months ended     Three months ended  
    September 30, 2008     September 30, 2009  
Operating revenues:
               
Wireless services
  ¥ 971,077     ¥ 951,470  
Equipment sales
    126,461       109,583  
Total operating revenues
    1,097,538       1,061,053  
 
           
Operating expenses:
               
Cost of services (exclusive of items shown separately below)
    210,117       230,286  
Cost of equipment sold (exclusive of items shown separately below)
    165,979       150,051  
Depreciation and amortization
    179,907       168,804  
Selling, general and administrative
    261,078       278,508  
Total operating expenses
    817,081       827,649  
 
           
Operating income
    280,457       233,404  
 
           
Other income (expense):
               
Interest expense
    (1,258 )     (1,375 )
Interest income
    479       350  
Other, net
    (7,941 )     38  
Total other income (expense)
    (8,720 )     (987 )
 
           
Income before income taxes
    271,737       232,417  
 
           
Income taxes:
               
Current
    131,300       121,356  
Deferred
    (29,902 )     (27,476 )
Total income taxes
    101,398       93,880  
Equity in net income (losses) of affiliates, net of applicable taxes
    2,797       (529 )
 
           
Net income
    173,136       138,008  
 
           
Less: Net (income) loss attributable to noncontrolling interests
    13       (666 )
 
           
Net income attributable to NTT DoCoMo, Inc.
  ¥ 173,149     ¥ 137,342  
 
           
 
               
Net income
  ¥ 173,136     ¥ 138,008  
Other comprehensive income (loss):
               
Unrealized holding gains (losses) on available-for-sale securities, net of applicable taxes
    (4,997 )     3,620  
Change in fair value of derivative instruments, net of applicable taxes
    (141 )     (8 )
Foreign currency translation adjustment, net of applicable taxes
    1,849       2,805  
Pension liability adjustment, net of applicable taxes
    (112 )     147  
Total other comprehensive income (loss)
    (3,401 )     6,564  
 
           
Comprehensive income
    169,735       144,572  
 
           
Less: Comprehensive (income) loss attributable to noncontrolling interests
    17       (665 )
 
           
Comprehensive income attributable to NTT DoCoMo, Inc.
  ¥ 169,752     ¥ 143,907  
 
           
 
 
PER SHARE DATA
               
Weighted average common shares outstanding — Basic and Diluted (shares)
    42,309,587       41,759,807  
 
           
Basic and Diluted earnings per share attributable to NTT DoCoMo, Inc. (yen)
  ¥ 4,092.43     ¥ 3,288.86  
 
           

 

16


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release
  Six Months Ended September 30, 2009
3. Consolidated Statements of Cash Flows
                 
    Millions of yen  
    (UNAUDITED)     (UNAUDITED)  
    Six months ended     Six months ended  
    September 30, 2008     September 30, 2009  
Cash flows from operating activities:
               
Net income
  ¥ 346,680     ¥ 286,050  
Adjustments to reconcile net income to net cash provided by operating activities —
               
Depreciation and amortization
    348,387       337,809  
Deferred taxes
    (10,898 )     (16,439 )
Loss on sale or disposal of property, plant and equipment
    12,846       12,973  
Impairment loss on marketable securities and other investments
    19,855       917  
Equity in net (income) losses of affiliates
    (9,940 )     (366 )
Changes in assets and liabilities:
               
(Increase) / decrease in accounts receivable
    (38,453 )     55,730  
Increase / (decrease) in allowance for doubtful accounts
    (1,369 )     1,874  
(Increase) / decrease in inventories
    (38,833 )     (54,755 )
(Increase) / decrease in prepaid expenses and other current assets
    (19,259 )     (12,748 )
(Increase) / decrease in non-current installment receivable for handsets
    (40,010 )     13,982  
Increase / (decrease) in accounts payable, trade
    (184,322 )     (136,209 )
Increase / (decrease) in accrued income taxes
    (8,701 )     (31,927 )
Increase / (decrease) in other current liabilities
    (21,153 )     (3,022 )
Increase / (decrease) in liability for employees’ retirement benefits
    4,622       4,951  
Increase / (decrease) in other long-term liabilities
    32,445       37,196  
Other, net
    16,474       12,520  
 
           
Net cash provided by operating activities
    408,371       508,536  
 
           
Cash flows from investing activities:
               
Purchases of property, plant and equipment
    (302,124 )     (249,126 )
Purchases of intangible and other assets
    (115,158 )     (132,956 )
Purchases of non-current investments
    (46,913 )     (8,992 )
Proceeds from sale of non-current investments
    550       9,124  
Acquisitions of subsidiaries, net of cash acquired
    27       (24,904 )
Purchases of short-term investments
    (3,334 )     (33,758 )
Redemption of short-term investments
    2,494       6,718  
Proceeds from redemption of long-term bailment for consumption to a related party
    50,000        
Other, net
    (9,314 )     (7,231 )
 
           
Net cash used in investing activities
    (423,772 )     (441,125 )
 
           
Cash flows from financing activities:
               
Proceeds from long-term debt
    79,944        
Repayment of long-term debt
    (28,241 )     (15,000 )
Proceeds from short-term borrowings
    200       138,149  
Repayment of short-term borrowings
    (1,958 )     (138,149 )
Principal payments under capital lease obligations
    (1,385 )     (1,696 )
Payments to acquire treasury stock
    (51,848 )      
Dividends paid
    (102,307 )     (100,190 )
Other, net
    (4 )     (3 )
 
           
Net cash provided by (used in) financing activities
    (105,599 )     (116,889 )
 
           
Effect of exchange rate changes on cash and cash equivalents
    (2,071 )     572  
 
           
Net increase (decrease) in cash and cash equivalents
    (123,071 )     (48,906 )
Cash and cash equivalents at beginning of period
    646,905       599,548  
 
           
Cash and cash equivalents at end of period
  ¥ 523,834     ¥ 550,642  
 
           
Supplemental disclosures of cash flow information:
               
Cash received during the period for:
               
Income taxes
  ¥ 17,786     ¥ 675  
Cash paid during the period for:
               
Interest, net of amount capitalized
    2,008       3,122  
Income taxes
    266,295       242,683  
 
           

 

17


Table of Contents

(DOCOMO LOGO)
     
DOCOMO Earnings Release
  Six Months Ended September 30, 2009
4. Going Concern Assumption
None
5. Segment Reporting
Segment information is as follows:
                         
Three months ended   Millions of yen  
September 30, 2008   Mobile phone business     Miscellaneous businesses     Consolidated  
Operating revenues
  ¥ 1,081,720     ¥ 15,818     ¥ 1,097,538  
Operating expenses
    795,162       21,919       817,081  
                   
Operating income (loss)
  ¥ 286,558     ¥ (6,101 )   ¥ 280,457  
                   
                         
Three months ended   Millions of yen  
September 30, 2009   Mobile phone business     Miscellaneous businesses     Consolidated  
Operating revenues
  ¥ 1,031,139     ¥ 29,914     ¥ 1,061,053  
Operating expenses
    796,867       30,782       827,649  
                   
Operating income (loss)
  ¥ 234,272     ¥ (868 )   ¥ 233,404  
                   
                         
Six months ended   Millions of yen  
September 30, 2008   Mobile phone business     Miscellaneous businesses     Consolidated  
Operating revenues
  ¥ 2,236,491     ¥ 31,293     ¥ 2,267,784  
Operating expenses
    1,648,917       41,921       1,690,838  
                   
Operating income (loss)
  ¥ 587,574     ¥ (10,628 )   ¥ 576,946  
                   
                         
Six months ended   Millions of yen  
September 30, 2009   Mobile phone business     Miscellaneous businesses     Consolidated  
Operating revenues
  ¥ 2,089,032     ¥ 56,775     ¥ 2,145,807  
Operating expenses
    1,599,529       61,055       1,660,584  
                   
Operating income (loss)
  ¥ 489,503     ¥ (4,280 )   ¥ 485,223  
                   
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 2nd 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     Six Months     First Quarter     Second Quarter     Ending Mar. 31, 2010  
        Ended Mar. 31, 2009     (Apr.-Sep. 2009)     (Apr.-Jun. 2009)     (Jul.-Sep. 2009)     Full-year Forecast  
        Full-year Results     Results     Results     Results     (Revised)  
Cellular
                                           
Subscriptions
  thousands     54,601       55,186       54,864       55,186       55,800  
FOMA (1)
  thousands     49,040       51,258       50,246       51,258       53,030  
Communication Module Service (FOMA) (2)
  thousands     858       952       897       952        
mova
  thousands     5,560       3,928       4,618       3,928       2,770  
Communication Module Service (DoPa) (3)
  thousands     669       585       621       585        
Prepaid
  thousands     38       37       38       37        
Market Share (4) (5)
  %     50.8       50.3       50.6       50.3        
Net Increase from Previous Period (5)
  thousands     1,213       586       263       322       1,200  
FOMA (1)
  thousands     5,091       2,218       1,206       1,012       3,990  
Mova
  thousands     (3,878 )     (1,632 )     (942 )     (690 )     (2,790 )
Churn Rate (5)
  %     0.50       0.45       0.44       0.46        
Number of Handsets (FOMA+mova) Sold (6)
  thousands     20,129       8,808       4,344       4,464        
Aggregate ARPU (FOMA+mova) (7)
  yen/month/subscription     5,710       5,430       5,440       5,420       5,300  
Voice ARPU (8)
  yen/month/subscription     3,330       2,990       3,010       2,970       2,840  
Packet ARPU
  yen/month/subscription     2,380       2,440       2,430       2,450       2,460  
i-mode ARPU
  yen/month/subscription     2,340       2,390       2,380       2,390       2,390  
ARPU Generated from International Services (9)
  yen/month/subscription     80       80       70       80       80  
ARPU Generated Purely from i-mode (FOMA+mova) (7)
  yen/month/subscription     2,550       2,620       2,610       2,630       2,630  
Aggregate ARPU (FOMA) (7)
  yen/month/subscription     6,010       5,590       5,610       5,560       5,420  
Voice ARPU (8)
  yen/month/subscription     3,360       2,990       3,010       2,970       2,840  
Packet ARPU
  yen/month/subscription     2,650       2,600       2,600       2,590       2,580  
i-mode ARPU
  yen/month/subscription     2,590       2,530       2,540       2,520       2,510  
ARPU Generated from International Services (9)
  yen/month/subscription     90       80       80       90       80  
ARPU Generated Purely from i-mode (FOMA) (7)
  yen/month/subscription     2,760       2,740       2,740       2,730       2,730  
Aggregate ARPU (mova) (7)
  yen/month/subscription     3,750       3,530       3,550       3,500       3,440  
Voice ARPU (8)
  yen/month/subscription     3,090       2,920       2,940       2,890       2,850  
i-mode ARPU
  yen/month/subscription     660       610       610       610       590  
ARPU Generated from International Services (9)
  yen/month/subscription     10       0       0       10       10  
ARPU Generated Purely from i-mode (mova) (7)
  yen/month/subscription     870       830       840       830       810  
MOU (FOMA+mova) (7)
  minute/month/subscription     137       136       135       137        
MOU (FOMA) (7)
  minute/month/subscription     148       143       143       143        
MOU (mova) (7)
  minute/month/subscription     63       53       54       52        
i-mode
                                           
Subscriptions
  thousands     48,474       48,670       48,597       48,670       48,900  
FOMA
  thousands     44,853       46,261       45,682       46,261       47,310  
i-mode Subscription Rate (5)
  %     88.8       88.2       88.6       88.2       87.6  
Net Increase from Previous Period
  thousands     481       196       123       73       430  
i-mode Packet Flat-rate Services Subscriptions (10)
  thousands     17,610       21,519       19,578       21,519        
i-channel Subscriptions
  thousands     16,545       16,692       16,607       16,692        
i-concier Subscriptions
  thousands     929       2,337       1,558       2,337        
Others
                                           
DCMX Subscriptions (11)
  thousands     8,980       10,210       9,630       10,210       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)  
FOMA Ubiquitous plan subscriptions
 
(3)  
DoPa Single service subscriptions
 
(4)  
Source for other cellular telecommunications operators: Data announced by Telecommunications Carriers Association
 
(5)  
Data are calculated including communication module services subscriptions.
 
(6)  
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
 
(7)  
Data are calculated excluding communication module services-related revenues and communication module services subscriptions.
 
(8)  
Inclusive of circuit-switched data communication
 
(9)  
Inclusive of voice communication and packet communication
 
(10)  
Sum of “Pake-hodai double” subscriptions, “Pake-hodai full” subscriptions and “Pake-hodai” subscriptions
 
(11)  
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
The reconciliations for the year ending March 31, 2010 (Revised Forecasts) are provided to the extent available without unreasonable efforts.
1. EBITDA and EBITDA margin
                                         
    Billions of yen  
    Year ending                          
    March 31, 2010     Year ended     Six months ended     Three months ended     Six months ended  
    (Revised Forecasts)     March 31, 2009     September 30, 2008     September 30, 2009     September 30, 2009  
a. EBITDA
  ¥ 1,563.0     ¥ 1,678.4     ¥ 938.2     ¥ 409.6     ¥ 836.0  
 
                             
Depreciation and amortization
    (703.0 )     (804.2 )     (348.4 )     (168.8 )     (337.8 )
Loss on sale or disposal of property, plant and equipment
    (30.0 )     (43.3 )     (12.8 )     (7.4 )     (13.0 )
 
                             
Operating income
    830.0       831.0       576.9       233.4       485.2  
 
                             
Other income (expense)
    (5.0 )     (50.5 )     (16.8 )     (1.0 )     (5.3 )
Income taxes
    (332.0 )     (308.4 )     (219.4 )     (93.9 )     (194.1 )
Equity in net income (losses) of affiliates
    2.0       (0.7 )     5.9       (0.5 )     0.3  
Less: Net (income) loss attributable to noncontrolling interests
    (2.0 )     0.5       (0.0 )     (0.7 )     (1.3 )
 
                             
b. Net income attributable to NTT DoCoMo, Inc.
    493.0       471.9       346.7       137.3       284.7  
 
                             
c. Operating revenues
    4,276.0       4,448.0       2,267.8       1,061.1       2,145.8  
 
                             
EBITDA margin (=a/c)
    36.6 %     37.7 %     41.4 %     38.6 %     39.0 %
Net income margin (=b/c)
    11.5 %     10.6 %     15.3 %     12.9 %     13.3 %
 
                             
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 ending                          
    March 31, 2010     Year ended     Six months ended     Three months ended     Six months ended  
    (Revised Forecasts)     March 31, 2009     September 30, 2008     September 30, 2009     September 30, 2009  
a. Operating income
  ¥ 830.0     ¥ 831.0     ¥ 576.9     ¥ 233.4     ¥ 485.2  
b. Operating income after tax effect {=a*(1-effective tax rate)}
    491.4       491.9       341.0       138.2       287.3  
c. Capital employed
    5,108.9       4,867.9       4,863.6       5,173.7       5,078.7  
 
                             
ROCE before tax effect (=a/c)
    16.2 %     17.1 %     11.9 %     4.5 %     9.6 %
ROCE after tax effect (=b/c)
    9.6 %     10.1 %     7.0 %     2.7 %     5.7 %
 
                             
     
Notes:  
The effective tax rate is 40.9% for the six months ended September 30, 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, 2009 (or 2008) and 2010 (or 2009)
 
   
Capital employed (for six months) = The average of (NTT DoCoMo, Inc. shareholders’ equity + Interest bearing liabilities), each as of March 31, 2008 (or 2009) and September 30, 2008 (or 2009)
 
   
Capital employed (for three months) = The average of (NTT DoCoMo, Inc. shareholders’ equity + Interest bearing liabilities), each as of June 30, 2009 and September 31, 2009
 
   
Interest bearing liabilities = Current portion of long-term debt + Short-term borrowings + Long-term debt
3. Free cash flows excluding changes in investments for cash management purposes
                                         
    Billions of yen  
    Year ending                          
    March 31, 2010     Year ended     Six months ended     Three months ended     Six months ended  
    (Revised Forecasts)     March 31, 2009     September 30, 2008     September 30, 2009     September 30, 2009  
Free cash flows excluding changes in investments for cash management purposes
  ¥ 360.0     ¥ 93.4     ¥ ( 64.6 )   ¥ 185.3     ¥ 94.5  
 
                             
Changes in investments for cash management purposes (*)
          49.3       49.2       (30.2 )     (27.0 )
 
                             
Free cash flows
    360.0       142.7       (15.4 )     155.1       67.4  
 
                             
Net cash used in investing activities
    (731.0 )     (1,031.0 )     (423.8 )     (198.9 )     (441.1 )
Net cash provided by operating activities
    1,091.0       1,173.7       408.4       354.0       508.5  
 
                             
     
Notes:  
(*) 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 includes changes in investments for cash management purposes except for the year ending March 31, 2010. The effect of changes in investments for cash management purposes is not taken into account when we forecasted net cash used in investing activities for the year ending March 31, 2010 due to the difficulties in forecasting such effect.

 

21


Table of Contents

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 document are the trademarks or registered trademarks of their respective organizations.

 

22


Table of Contents

Copyright (C) 2009 NTT DOCOMO, INC. All rights reserved.^^^^ NTT DOCOMO, INC. RESULTS FOR THE SIX MONTHS OF THE FISCAL YEAR ENDING MAR. 31, 2010 October 30, 2009


Table of Contents

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. Forward-Looking Statements


Table of Contents

US GAAP 2008/4-9 (1H) (1) 2009/4-9 (1H) (2) Changes (1) ^ (2) 2010/3 (Full-year forecast) (3) Revised Progress to forecast (2) / (3) Operating Revenues (Billions of yen) Operating Revenues (Billions of yen) 2,267.8 2,145.8 -5.4% 4,276.0 50.2% Cellular Services Revenues (Billions of yen) 1,871.9 1,766.2 -5.6% 3,461.0 51.0% Operating Expenses (Billions of yen) Operating Expenses (Billions of yen) 1,690.8 1,660.6 -1.8% 3,446.0 48.2% Operating Income (Billions of yen) Operating Income (Billions of yen) 576.9 485.2 -15.9% 830.0 58.5% Income Before Income Taxes (Billions of yen) Income Before Income Taxes (Billions of yen) 560.2 479.9 -14.3% 825.0 58.2% Net Income attributable to NTT DOCOMO, INC. (Billions of yen) Net Income attributable to NTT DOCOMO, INC. (Billions of yen) 346.7 284.7 -17.9% 493.0 57.8% EBITDA Margin (%) * EBITDA Margin (%) * 41.4 39.0 -2.4 points 36.6 - Adjusted Free Cash Flow (Billions of yen) * Adjusted Free Cash Flow (Billions of yen) * -64.6 94.5 - 360.0 26.2% ^Consolidated financial statements in this document are unaudited. ^Adjusted free cash flow excludes the effects of changes in investment for cash management purposes 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 39 and the IR page of our website, www.nttdocomo.co.jp. FY2009/1H (1Q+2Q cumulative) Financial Results ^


Table of Contents

Subscriptions grew to approx. 50% of total subs FY2009/1H (1Q+2Q cumulative) Results Highlights (1) Decrease in voice revenues "Value Plan" 8.81 million units (Down 1.46 million year-on-year) Decrease in equipment sales revenues & costs "Pake-hodai" subscription rate* rose to 47% Increase in packet revenues ^* Pake-hodai subscription rate= No. of Pake-hodai subscriptions (inclusive of "Pake-hodai full" and "Pake-hodai double" subscriptions)/Total FOMA i-mode subscriptions "Pake-hodai" Total handset sales


Table of Contents

FY2009/1H (1Q+2Q cumulative) Results Highlights (2) Increase in other revenues: Up \50.4 billion FY2008/1H FY2009/1H Operating income \576.9 billion Operating income \485.2 billion Down \91.7 billion (15.9%) year-on-year Key factors behind YOY changes in operating income Operating revenues: Down \122.0 billion Operating expenses: Down \30.3 billion Increase in other expenses: Up \25.3 billion Increase in packet revenues: Up \41.4 billion Decrease in equipment sales revenues: Down \66.7 billion Decrease in cost of equipment sold: Down \55.6 billion Decrease in voice revenues: Down \147.1 billion


Table of Contents

1Q 2Q 3Q 4Q 1Q 2Q 3Q (forecast) 4Q (forecast) ^^^^ 2965 2805 1698 842 2518 2334 2255 2119 1425 296.5 280.5 169.8 251.8 84.2 FY2008 Operating income: \831.0 billion FY2009 Operating income: \830.0 billion (forecast) (Billions of yen) ^ In FY2008, large amount of income was generated in the first half, due to income-boosting effect resulting from the introduction of new handset purchase methods ^ FY2009/1H operating income was almost in line with forecast Impact of income-boosting effect of new handset purchase methods Accelerated depreciation of mova-related assets, etc. ^Irregular factors for FY2008^ 300 0 233.4 FY2009/1H (1Q+2Q cumulative) Results Highlights (3)


Table of Contents

07/9 07/12 08/3 08/6 08/9 08/12 09/3 09/6 09/9 10/3(^^) ^^ 1122 1756 22.09 25.86 28.46 30.43 32.72 34.25 34.75 3555 ^^ 4173 3559 3130 2777 2548 ^^^ 0.21 0.33 0.41 0.48 0.53 0.562 0.599 0.624 0.6296 07/12 08/3 08/6 08/9 08/12 09/3 09/6 09/9 ^^^ 159 5.29 8.89 12.96 16.483 20.82 23.99 27.029 ?^^ 0.94 0.978 0.968 0.923 0.952 0.98 0.972 0.974 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


Table of Contents

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) 10/3 (Initial) 10/3 (Revised) Packet ARPU 1820 1880 1880 1940 1970 1980 2010 2080 2120 2210 2200 2270 2330 2410 2390 2420 2430 2450 2420 2460 Voice ARPU 5120 5170 5040 4780 4930 4740 4660 4450 4440 4340 4090 3780 3560 3450 3340 2970 3010 2970 2860 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 1.7 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 2,360 2,390 (yen) 6,560 6,550 6,290 6,050 Full-year aggregate ARPU: \6,360 (Down 5.1% year-on-year) Voice: \4,160 (Down 11.3% year-on-year) Packet \2,200 (Up 9.5% year-on-year) Full-year aggregate ARPU: \5,710 (Down 10.2% year-on-year) Voice: \3,330 (Down 20.0% year-on-year) Packet: \2,380 (Up 8.2% year-on-year) 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 FY09/1H Aggregate ARPU: \5,430 (Down 7.5% YOY) Voice: \2,990 (Down 14.8% YOY) Packet: \2,440 (Up 3.4% YOY) 5,280 2,420 ^ Aggregate ARPU for FY2009/1H was 5,430 yen (Down 7.5% year-on-year) Packet ARPU was 2,440 yen (Up 3.4% year-on-year) Cellular (FOMA+mova) ARPU (Announced 4/28/2009) (Announced 10/30/2009) ^ For an explanation of ARPU, please see Slide 38 of this document, "Definition and Calculation Methods of MOU and ARPU". 2,450 2,460 5,300 5,420 FY08/1H Aggregate ARPU: \5,870 (Down 10.4% YOY) Voice: \3,510 (Down 20.0% YOY) Packet \2,360 (Up 9.3% YOY) FY07/1H Aggregate ARPU: \6,550 (Down 3.8% YOY) Voice: \4,390 (Down 9.1%YOY) Packet: \2,160 (Up 9.1% YOY) FY09 Full year forecasts


Table of Contents

^ Churn rate for FY2009/1H 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 ?^^ 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 (%) Full-year churn rate: 0.80% 0.52% 0.51% 0.44% Full-year churn rate: 0.50% 0.52% 0.46% First half 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


Table of Contents

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q ^^ 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 ^^^ 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 ^Total no. of handsets sold in FY2009/1H: 8.81 million units (Down 14.2% year-on-year) ^FY2009 full-year sales estimated to be 18.20 million units (Down 9.6% year-on-year) FY2007 FY2008 6.56 FY2009 5.32 Full year : 25.74 mil units First half : 12.80 mil units Full year (forecast): 18.20 mil units ^^First half: 8.81 mil units Full year : 20.13 mil units First half : 10.27 mil units Total Handset Sales (Millions 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


Table of Contents

^ DOCOMO's market share of net additions for FY2009/2Q was 28.2% 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 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 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 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 EMOBILE 4.5 4.86 7.02 9.35 20.74 17.6 31.1 17.5 26.2 19.7 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% FY09/1H net adds share : 27.3% FY2007 FY2008 FY2009 (10,000subs) General decline in no. of MNP outflows (%) Market Share of Net Additions/MNP ^ Market Share of Net Additions ^ Monthly Net Acquisitions/Losses of MNP Subscribers 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 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 06/10 12 6 07/3 9 12 08/3 6 9 12 09/3 6 9


Table of Contents

07/6 07/9 07/12 08/3 08/6 08/9 08/12 09/3 09/6 09/9 10/3(forecast) FOMA 37.854 40.0426 42.0775 43.9493 45.199 46.44 47.49 49.0403 50.246 51.258 52.98 mova 14.991 12.8991 11.073 9.4384 8.428 7.49 6.66 5.5604 4.618 3.928 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 FY2009/2Q: 590,000 ^ Aim to grow FOMA subscriptions to 95% of total by Mar. 31, 2010


Table of Contents

Revised FY2009 Full-Year Forecasts 2010/3 (full year) Initial Forecast (1) (Announced 4/28/2009) 2010/3 (full year) Revised Forecast (2) Changes (1) ^ (2) Operating Revenues (Billions of yen) Operating Revenues (Billions of yen) 4,382.0 4,276.0 -106.0 Cellular Services Revenues (Billions of yen) 3,449.0 3,461.0 +12.0 Operating Expenses (Billions of yen) Operating Expenses (Billions of yen) 3,552.0 3,446.0 -106.0 Operating Income (Billions of yen) Operating Income (Billions of yen) 830.0 830.0 +-0 Adjusted Free Cash Flow (Billions of yen) Adjusted Free Cash Flow (Billions of yen) 380.0 360.0 -20.0 ^^ Operating Revenues (Down \106.0 compared to initial forecast) ^^ Cellular services revenues forecast was revised upwards (up \12.0 billion) after reviewing projected full-year cellular ARPU, etc. ^^ Equipment sales revenues forecast was revised downwards (down \123.0 billion) after reviewing total handset sales forecast, etc. ^^ Operating Expenses (Down \106.0 billion compared to initial forecast) ^ Projected cost of equipment sold was decreased by \126.0 billion as a result of review of total handset sales forecast, etc. ^ Projected DOCOMO Point Service-related costs were raised by \19.0 billion due to growth in repair costs resulting from extended handset use period, etc.


Table of Contents

Revised FY2009 Full-Year Forecasts (Highlights) Decrease in voice revenues: Down \13.0 billion Initial full-year forecast (Announced 4/28/2009) Revised full-year forecast (Announced 10/30/2009) Operating income \830.0 billion Operating income \830.0 billion +/- \0 (0.0%) from initial forecast Further cost reduction: Down \7.0 billion Increase in packet revenues: Up 25.0 billion Decrease in distributor commissions due to reduced handset sales: Total handset sales: Initial forecast: 19.70 million Revised forecast: 18.20 million Down 24.0 billion Increase in distributor commissions due to reinforcement of sales: Up \19.0 billion Increase in repair costs, etc., due to extended handset use period: Up 24.0 billion (Before application of EITF 01- 9*) (Before application of EITF 01- 9*) Factors behind changes in operating income forecast (from FY09 initial forecast (announced 4/28/2009)) * Effective July 1, 2009, NTT DOCOMO adopted the accounting pronouncement issued by Financial Accounting Standards Board ("FASB") relating to "FASB Accounting Standards Codification" ("ASC"). This pronouncement established ASC as the single source of authoritative U.S. GAAP, and reorganized then-existing U.S. GAAP pronouncements into ASC. Although the references of accounting pronouncements are presented based on pre-Codification accounting pronouncements on this slide, the applicable standards remain effective under ASC.


Table of Contents

Progress of Medium-Term Vision and Future Actions Copyright (C) 2009 NTT DOCOMO, INC. All rights reserved.^^^^


Table of Contents

Visited 29,000 customers under 48-hour customer visit program for coverage improvement "Mobile Phone Checking Service" and "Battery Pack Anshin Support" both enjoy good reputation "i-concier" subscriptions topped 2.3 million Launched Mobile Remittance service Established AEON Marketing Co., Ltd. Churn rate: maintained at low levels FY09/1H: 0.45% (Down 0.06 point year-on-year) Packet ARPU: Rising FY09/1H: \2,440 (Up 3.4% year-on-year) Customer satisfaction improvement Personalization/ Social support No. of data plan subscriptions*3 grew to 670,000 Smartphone sales also recorded steadfast growth Net additions: Improving FY09/1H: 586,000 subs (Up 6.6% year-on-year) PC data card/ smartphone "BeeTV" subscriptions topped 800,000*2 Video service No. of "Pake-hodai*1" subscriptions grew to 21.52 million (subscription rate: 47%) Flat-rate service *1: Inclusive of "Pake-hodai full" and "Pake-hodai double" subscriptions *2: As of Oct. 12, 2009 *3: Total no. of subscriptions to volume-based data plans, "Flat-Rate Data Plan Standard" and "Flat-Rate Data Plan 64K" (including "Value" plans) (Cumulative no. of visits after service launch: Approx 42,000) Strategic Initiatives Implemented in FY2009/1H


Table of Contents

^ Our customer satisfaction improvement initiatives have steadily gained recognition Install FOMA repeater Install auxiliary indoor antenna Adjustment of antenna or other facilities Continuous study Appointment Customer inquiry Customer visit within 48 hours Visit & investigate Tester Free battery pack Free portable charger Or ^No. of visits^^29,000 (Cumulative no. of visits after service launch: Approx. 42,000) ^No. of subs who used service (FY09/2Q)^ ^No. of subs who used service (FY09/2Q)^ ^Percentage of cases resulting in immediate improvement^ ^78%* * Including some planned measures for improvement ^Percentage of customers who responded "satisfied" after visit^^97% Reinforced customer support structure to assure comfortable use all the time Expanded after-sales support FY2009/1H track record "Mobile Phone Checking Service" (Started July 1, 2009) Expanded "Battery Pack Anshin Support" (Started July 1, 2009) Improvement of Customer Satisfaction (1) 860,000 1.60 million


Table of Contents

Improvement of Customer Satisfaction (2) ^ Received No. 1 rating in enterprise customer satisfaction survey by J.D. Power Asia Pacific, Inc.^(Sept. 25, 2009) Source: J.D. Power Asia Pacific 2009 mobile phone/PHS service enterprise customer satisfaction index study for Japan. Study results compiled based on 3,309 responses on mobile phone/PHS services of Japanese carriers from 2,632 enterprises with an employee base of over 100 employees. (Up to 2 scores on mobile phone/PHS providers permitted per enterprise). See: www.jdpower.co..jp Established structure that ensures contact with every customer Proposal of attractive handsets/devices and solutions Expansion of B-to-B-to-C business Corporate marketing initiatives Overall rating Overall satisfaction score docomo Industry average 610 588 No. 1 Sales rep treatment Service offerings Service quality Cost


Table of Contents

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 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 2580 ^^^ 0.233 0.239 0.232 0.221 0.2382 0.263648809 0.2687 0.2666 28 09/05 06 07 08 09 BeeTV^^^ 33 44 56 70 77 ^ Packet usage continued to grow due to expanded uptake to flat-rate packet access plans and enrichment of video services 13.40 08/12 15.75 19.58 13.95 08/9 08/6 09/5 09/6 09/7 09/8 09/9 Topped 800,000 Total subs: Topped Over 70% Percentage of subs who have joined paid service after free trial period: 0.33 0.44 0.56 0.70 0.77 ^Expansion of Packet Usage (Million subs.) "Pake-hodai*1" subscriptions *1 Inclusive of "Pake-hodai full" and "Pake-hodai double" subsciptions *2 Pake-hodai subscription rate= No. of Pake-hodai subscriptions/Total FOMA i-mode subscriptions Video content (Million subs.) (As of Oct. 12, 2009) 21.52 25.80 22.40 17.61 09/6 ^^ 09/3 10/3 (forecast)^^^^^^^^^^^^^ FY09 Pake-hodai subscription rate target: 55% (Initial target (announced 4/28/2009):47%) 09/9 ^^ Pake-hodai subscription rate*2 47% (As of Sep. 30, 2009) (Announced 10/30/2009) 10/3 (forecast)^^^^^^^^^^^^^ (Announced 4/28/2009)


Table of Contents

Automatic delivery of information on your favorite restaurants Recommendation of time-sale information, etc. (Planned for Nov. 2009 ) ^ No. of "i-concier" subscriptions topped 2.3 million ^ Aim to provide personalized services at the right timing in an optimal manner through the introduction of GPS-linkage function Service Personalization - i-concier - "i-concier" ^ No. of content ^ No. of subscriptions 0.5 1.0 1.5 08/12 09/3 09/06 09/09 10/3 i^^^^^ 30 93 156 233.7 390 09/6 ^^ 08/12 09/3 09/9 ^^ 1.56 0.93 0.30 2.0 Topped 2.30 million (As of Sept. 30, 2009) 2.5 2.34 Introduction of GPS-linkage function Automatic reminder of last train information from your current location Automatic delivery of weather forecast, earthquake information, etc., of outdoor destinations Information "only available on the spot" to be delivered "at the right timing" (Million subs.) (content sites) 08/12 09/3 09/6 09/9 ^^^^^^ 191 244 332 423 ^)^^^^^^ ^)^^^ ^)^^^^^^^^^ ^)^^^^^ 200 400 600 08/12 09/3 09/6 09/9 191 244 332 423 3.90 10/3 (forecast) ^^


Table of Contents

Social Support Joint research with Univ. of Tokyo Hospital Atmospheric data sensing Improved convenience upon user's admission to medical institutions Emergency care support Enhance efficiency of medical practice ^ Establish environment sensor network utilizing base stations, etc. Start trial within FY09 Full-scale deployment in FY10 or beyond Research started from Sept. 2009 Solar battery panel ^^^^ (FOMA 1 2 Environment info. provider 3 FOMA sensor Data multiplexing equipment (Incl. FOMA module) Environment info. provider Environment info. provider Storage server Base station Environment sensor network Pollen UV ray Temper- ature Thunder- shower Felica gate (1) Personal health record database (linked with hospital database) (2) Convergence of behavior support features enabled by location/ personal authentication data derived by mobile phone Time reservation ID confirmation (Felica) Medical examination Payment/ prescription (Felica) Inform dispensing time Return home ^ Establish convenient patient support environment utilizing mobile communications Felica gate Felica Patient support system Prescription info. Treatment info. Authentication info. Location info. Membership management Payment Info. Observation & storage of atmospheric data Provision of data to meteorological information providers, etc. Respond to users' needs for environmental information 360 sensor installments are planned in 2009


Table of Contents

Converged Services - Femto BTS - Femto BTS Inter net DOCOMO network Content/service provider Broadband network Femto BTS Subscriber Registered phone Registered phone Stable communications environment Provision of return-to-home confirmations linked with in/out of home area information In/out of home area alert High-performance Femto BTS equipment Convergence with home appliances Comfortable access to video, music or other large-capacity content Remote control of home appliances and equipment FOMA base station Install high-performance Femto BTS in home Realizes dedicated FOMA area for your own home Future plans ^ Plan to introduce Japan's first home area service using Femto BTS in November 2009 To be launched in November 2009 (planned):


Table of Contents

08/11 08/12 09/1 09/2 09/3 09/4 09/5 09/6 09/7 09/8 09/9 ^^^^^^??^^^ 0.314649 0.997636 1.816648 2.627094 3.883635 4.909111 5.615218 6.600177 7.695902 8.70751 9.580699 STYLE PRIME SMART PRO 57 26 13 4 Handset Lineup ^ Lineup of handsets more suited to individual needs of customers ^ Cumulative sales of new handset series topped 10 million "Fashionable design" "Rich color variation" "Latest multimedia" "Full set of features for maximum enjoyment" "Sophisticated design" "Light & slim" "State-of-the-art technology" "Latest operability" (Million units) * Cumulative no. of units sold after release of 2008 winter models Over 10 million* (As of Oct. 17, 2009) ^ New series: cumulative sales ^ Sales breakdown by series (July 09- Sept. 09 cumulative)


Table of Contents

^ Sales has been growing steadily due to revision of flat-rate billing plans, etc. ^ Actions to strengthen sales of PC data communication devices ^ Data plan*1 subscriptions 08/6 08/9 08/12 09/3 09/06 09/09 ^?^^^^^^^^^ 36.1723 37.359 38.4471 37.8151 38.4154 39.1283 ^?^^^^^^^^^ 8.2 9.8 11.9 15.6 19.6 28.1574 09/6 ^^ 08/12 09/3 08/9 08/6 09/9 ^^ (1,000 subs) : Volume-based data plans : Flat-rate data plans ^ PC data communication device sales 4-6(1Q) 7-9(2Q) 10-12(3Q) 1-3(4Q) 4-6(1Q) 7-9(2Q) ^^^^^^?^^ 3.8 3.89 4.75 5.91 6.37 10.69 1Q 2Q 3Q 4Q 1Q 2Q 50 100 (1,000 units) FY2008 FY2009 670 580 530 500 470 440 80 100 120 160 200 280 Expansion of sales channels Started sales promotion of data cards linked with sales of PCs at some docomo Shops More affordable & easy-to-use billing plans Newly created "Flat-rate Data Plan Standard", a two-tier flat-rate service starting from \1,000 with monthly upper limit of \5,985*2 Reinforcement of existing sales channels Reinforce sales at mass retailers by holding effective events and further expanding floor space, etc. *1: Total no. of subscriptions to volume-based data plan, "Flat-rate Data Plan Standard" and "Flat-Rate Data Plan 64K (including "Value" plans) *2: Rates applicable to subscribers joining "Flat-rate Data Plan Standard Value" together with "Flat-Rate Data Standard-Wari Discount". 20 0 40 0 60 0 PC Data Communication Devices


Table of Contents

Browser functional enhancement Windows Marketplace for Mobile (Application distribution platform) Improved operability Plan to continue and expand program with the aim of offering more added value ver. 6.1 ver.6. 5 ver. 6.1 ver.6. 5 Conceptual Smartphone ^ Plan to enrich various services to allow users to use smartphones more conveniently Application distribution platform for open OS devices (To be started in December 2009) T-01A: Distribute "Windows Mobile (r) 6.5" update software Aim to create within FY09 Open OS devices Provision of OS updates Various content/ applications Develop DOCOMO's application distribution platform in tandem with global market ^ Localization for Japanese users ^ Package principal content and applications and deliver them in immediately usable format Develop and expand open platform market Global market Global market "DOCOMO Market" (tentative) Lineup BlackBerr y Bold HT-03A T-01A Plan to add more variety to smartphone lineup HT-03A: Distribute "Android 1.6" update software (Started from Oct. 23, 2009)


Table of Contents

LTE ^ Achieving favorable progress toward scheduled launch in Dec. 2010 3G areas LTE areas ^ LTE coverage to be expanded progressively from high-demand areas Start LTE deployment using 2GHz band and then expand to 1.5GHz band Joint development of LTE communications platform by DOCOMO, NEC, Panasonic Mobile and Fujitsu Coverage Handset/Devices Spectrum ^By FY2014/end: Plan to complete deployment of approx. 20,000 base stations to achieve POP coverage of approx. 50% ^^^^^^ CAPEX Plan Total CAPEX for next 5 years (FY2010-2014) estimated to be \300-400 billion ^ LTE communications platform Supports high transmission rates of 100Mbps (downlink) / 50Mbps (uplink) Realizes smooth handover with W-CDMA and GSM areas even on the move Characteristics: Reduced handset development costs and shortened development period Study possibility of licensing ( announced on Oct. 1, 2009 )


Table of Contents

Global Expansion (1) 08/11 12 09/1 2 3 4 5 6 7 8 9 ^^^ 0.85 0.75 1.03 1.08 1.25 0.61 0.76 0.62 2.17 3.42 4.01 ^^^^^ 0.0825 0.0691 0.0667 0.08 0.0783 0.0508 0.0656 0.0519 0.157 0.227 ^ TTSL achieves favorable growth in subscriber count, acquiring No. 1 net adds market share in India in August 2009 ^ GSM coverage being expanded on a continual basis GSM service launched in 10 circles among India's total 22 circles (As of Oct. 19, 2009) TTSL acquired No. 1 net adds share in India in Aug. 09 (No. of net adds: 3.42 million) Punjab Gujarat Karnataka Tamil Nadu Haryana Maharashtra Andhra Pradesh Rajasthan Madhya Pradesh UP(E) UP(W) Orissa Bihar W est Bengal H imachal Pradesh Kerala Mumbai Kolkata Chennai Jammu & Kashmir Assam, North East Delhi Plan to expand coverage to nearly nationwide scale by end of 2009 :Market share of net adds (left axis) :No. of net adds (right axis) TTSL (India) (Millions subs) (Market share:%) * Number and market share of net additions are the total of GSM and CDMA services offered by TTSL and TTML (Source: TRAI) ^ Number & Market Share of Net Adds * ^ GSM Deployment Status


Table of Contents

Global Expansion (2) ^ Promote actions aimed at expanding higher-layer businesses, e.g., content, platform, etc. ^ Further enrich services for overseas travelers to expand revenues Content/ services Platform ^Network Content distributed centrally from DOCOMO Netherlands B.V. to other overseas markets Delivery of content/services through networks of carriers in Europe, Asia, etc. (Launched Jun. 11, 2009) India: Provided by TTSL (Launched Jun. 24, 2009) Distribution of Japanese "Manga" comics through Bouygues Telecom (France) (Planned for launch on Nov. 2, 2009) Present TOB for net mobile AG in progress Further strengthen platform for overseas content distribution Higher-layer businesses "MANGA MODE" "i-channel" Enrich services for overseas travelers ^ GPS service at overseas destinations Fast, high-precision GPS positioning enabled by "learning database" which stores past successful positioning data "Learning database" Assist data Learns from successful longitude/latitude positioning Successful positioning Current location Navigation Route search Peripheral information ^ Overseas Support Desk Plan to add more "Support Desks" to offer enhanced convenience (Patent application in progress) UK: Plan to launch i-channel for Japanese nationals living in UK (Oct. 29, 2009) Opened new service counter in Shanghai, in addition to existing ones in Hawaii, London and New York


Table of Contents

^Results achieved in 1 year after announcement of medium-term vision were on the whole favorable ^Packet ARPU: Faster-than-expected growth, due to expanded uptake of flat-rate plans and enriched video services FY09 (revised forecast) FY12 (target) FY08 ^Pake-hodai subscription rate*^ 70% 39% Growth of packet revenues 47% FY09 (initial forecast) Packet ARPU Voice ARPU Aggregate ARPU Halt decline in aggregate ARPU Reversal of voice and packet ARPU ^Medium-term ARPU outlook (conceptual)^ 55% Introduction and rate revisions of "Pake-hodai double" and "Biz-hodai double" "Mail Tsukai-hodai" (unlimited domestic i-mode mail) service Promotion of flat-rate subscription Launched "BeeTV" service Evolution of video services (To be launched Dec. 1, 2009) Introduced; Dec. 1, 2008 Rate revisions: ^May 1, 2009 / Aug. 1, 2009 (May 1, 2009) ^*: Pake-hodai subscription rate= No. of "Pake-hodai" subscriptions (including "Pake-hodai full" and "Pake-hodai double" subs) / Total FOMA i-mode subs % of "Pake-hodai double" subs with usage reaching monthly upper limit: 50% Progress of Priority Items of Medium-Term Vision (1)


Table of Contents

Reduction of network costs ^New revenue sources: Aim to steadily generate revenues from the "projects in the pipeline" ^ Cost efficiency improvement: Expect to achieve cost reduction of \130.0 billion in FY09 (forecast) and continue steadfast cost-cutting efforts toward the future Reduction of general expenses \130.0 billion Further cost-cutting \200.0 billion FY12 (target) FY09 (forecast) ^Projected cost reduction (compared to FY07) ^ Creation of new revenue sources FY09 (forecast) 3.90 million 12.00 million FY12 (target) FY12 (target) 1.00 million units Cost efficiency improvement Service personalization Social support Converged services ^ "i-concier" subscriptions^ ^Femto BTS sales ^ Launch in November 2009 (planned) ^No. of atmospheric sensors installed^ Start trial within FY09 Full-scale deployment in FY10 or beyond Plan to increase installations to 10,000 in the future Progress of Priority Items of Medium-Term Vision (2) FY12 (target) : \300 billion


Table of Contents

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


Table of Contents

Appendices Copyright (C) 2009 NTT DOCOMO, INC. All rights reserved.^^^^


Table of Contents

US GAAP 2008/4-9(1H) 2009/4-9(1H) 2010/3(full year forecast) 2010/3(full year forecast) Cellular services revenues (voice, packet) 1871.9 1766.2 3461 3449 PHS^^ Other revenues 76.7 127.1 274 269 Equipment sales revenues 319.2 252.5 541 664 2,267.8 2,145.8 4,276.0 -5.4% 4,382.0 Operating Revenues (Billions of yen) (Billions of yen) ^ "International services revenues" are included in "Cellular services revenues (voice, packet)". (Announced 4/28/2009) (Announced 10/30/2009)


Table of Contents

US GAAP 2008/4-9(1H) 2009/4-9(1H) 2010/3(full year forecast) 2010/3(full year forecast) (Incl.) Other non-personnel expenses 371.3 404.7 877.0 867.0 (Incl.)Revenue-linked expenses* 640.0 597.2 1,226.0 1,326.0 Non-personnel expenses 1011.3 1001.9 2103 2193 Communication network charges 165.8 155.8 295 302 Loss on disposal of property, plant and equipment and intangible assets 18.7 18.6 46 45 Depreciation and amortization 348.4 337.8 703 710 Taxes and public duties 20 19.6 39 39 Personnel expenses 126.7 126.8 260 263 1,690.8 1,660.6 3,446.0 -1.8% 3,552.0 Operating Expenses (Billions of yen) (Billions of yen) *Revenue-linked expenses: Cost of equipment sold + distributor commissions + cost of docomo Point service (Announced 4/28/2009) (Announced 10/30/2009)


Table of Contents

2008/4-9(1H) 2009/4-9(1H) 2010/3(full year forecast) 2010/3(full year forecast) Mobile phone business (Other) 42.3 39.4 99 90 Mobile phone business (mova) 4.1 3.1 7 5 Mobile phone business (FOMA) 235.2 215.5 442 454 PHS^^ Other (information systems, etc.) 54.9 58.2 142 140 336.5 316.1 690.0 -6.0% 690.0 Capital Expenditures (Billions of yen) (Billions of yen) (Announced 4/28/2009) (Announced 10/30/2009)


Table of Contents

^ 2008/4-9 (1H) (1) 2009/4-9 (1H) (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)* 53,937 55,186 +2.3% 55,800 Cellular Phone mova mova mova mova 7,493 3,928 -47.6% 2,770 Cellular Phone FOMA FOMA FOMA FOMA 46,444 51,258 +10.4% 53,030 Cellular Phone i-mode i-mode i-mode i-mode 48,069 48,670 +1.3% 48,900 Cellular Phone Communication Module Service Communication Module Service Communication Module Service Communication Module Service 1,509 1,536 +1.8% 1,590 Cellular Phone Market share(%) Market share(%) Market share(%) Market share(%) Market share(%) 51.5 50.3 -1.2 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 10,265 8,808 -14.2% - 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) Mova New New 45 8 -82.6% - 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 29 4 -85.5% - 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 2,157 2,057 -4.6% - 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 1,632 1,400 -14.2% - 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** 6,402 5,339 -16.6% - Cellular Phone Churn rate (%) Churn rate (%) Churn rate (%) Churn rate (%) Churn rate (%) 0.51 0.45 -0.06 points - Cellular Phone ARPU(FOMA+mova)(yen)*** ARPU(FOMA+mova)(yen)*** ARPU(FOMA+mova)(yen)*** ARPU(FOMA+mova)(yen)*** ARPU(FOMA+mova)(yen)*** 5,870 5,430 -7.5% 5,300 Cellular Phone MOU(FOMA+mova)(minutes)*** MOU(FOMA+mova)(minutes)*** MOU(FOMA+mova)(minutes)*** MOU(FOMA+mova)(minutes)*** MOU(FOMA+mova)(minutes)*** 138 136 -1.4% - 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 38 of this document, "Definition and Calculation Methods of MOU and ARPU".


Table of Contents

US GAAP 2008/7-9 (2Q) (1) 2009/7-9 (2Q) (2) Changes (1) ^(2) Operating Revenues (Billions of yen) Operating Revenues (Billions of yen) 1,097.5 1,061.1 -3.3% Cellular Services Revenues (Billions of yen) 935.5 884.3 -5.5% Operating Expenses (Billions of yen) Operating Expenses (Billions of yen) 817.1 827.6 +1.3% Operating Income (Billions of yen) Operating Income (Billions of yen) 280.5 233.4 -16.8% Income Before Income Taxes (Billions of yen) Income Before Income Taxes (Billions of yen) 271.7 232.4 -14.5% Net Income attributable to NTT DOCOMO, INC. (Billions of yen) Net Income attributable to NTT DOCOMO, INC. (Billions of yen) 173.1 137.3 -20.7% EBITDA Margin (%) * EBITDA Margin (%) * 42.7 38.6 -4.1 points Adjusted Free Cash Flow (Billions of yen) ** Adjusted Free Cash Flow (Billions of yen) ** 41.0 185.3 +351.9% FY2009/2Q Financial Results ^Consolidated financial statements in this document are unaudited. ^Adjusted free cash flow excludes the effects of changes in investment for cash management purposes 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 39 and the IR page of our website, www.nttdocomo.co.jp.


Table of Contents

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) 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 Year-on-year 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 ^ MOU for FY2009/2Q was 137 minutes (Down 0.7% year-on-year) Full-year MOU: 138 minutes (Down 4.2% year-on-year) Full-year MOU: 137 minutes (Down 0.7% year-on-year) First half MOU: 136 minutes (Down 1.4% year-on-year) Cellular (FOMA+mova) MOU (%) (minutes) ^ For an explanation of MOU, please see Slide 38 of this document, "Definition and Calculation Methods of MOU and ARPU".


Table of Contents

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.


Table of Contents

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


Table of Contents

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