NTT DOCOMO's CEO Discusses Full Year 2012 Presentation - Earnings Call Transcript


Full Year 2012 Earnings Presentation Call

April 27, 2012 04:00 am ET


Osamu Hirokado - IR

Ryuji Yamada - President & CEO

Kiyoyuki Tsujimura - Senior EVP

Masatoshi Suzuki - Senior EVP

Kazuto Tsubouchi - EVP & CFO

Kaoru Kato - EVP and Managing Director, Corporate Planning & Strategy Department

Fumio Iwasaki - EVP and Managing Director, Network Division

Mr. Takashi Tanaka - SVP, Consumer and Marketing.


Daisaku Masuno - The Nomura Securities

Atsuo Takahashi - Mizuho Securities

Shinji Moriyuki - SMBC Nikko



Good afternoon, ladies and gentlemen. Thank you very much for sparing your precious time for attending this Analyst Meeting announcing the results for the fiscal year ended March 2012.

I am Hirokado from IR department and I'll be presiding this meeting. Now please be advised that this meeting is broadcast live on our cellular phone service as well as on the Internet. And a recorded video of this meeting will be distributed through the DOCOMO's IR website later on.

Now, we would like to introduce the representatives from NTT DOCOMO. First we have the President and CEO Mr. Ryuji Yamada, good afternoon to you. We also have Senior Executive Vice President, Mr. Kiyoyuki Tsujimura; Senior Executive Vice President, Mr. Masatoshi Suzuki; Executive Vice President and CFO, Mr. Kazuto Tsubouchi; Executive Vice President and Managing Director of Corporate Planning & Strategy Department, Mr. Kaoru Kato; Executive Vice President and Managing Director of Network Division, Mr. Fumio Iwasaki; and also Senior Vice President, Responsible for Consumer and Marketing Mr. Takashi Tanaka.

For today's meeting, we will be using two sets of documents; one is the earnings release and the other one is the presentation slides for the fiscal year ended March 2012.

For today we will begin with the presentation from Mr. Yamada, followed by a Q&A session. We intend to finish this meeting at 6 o'clock sharp. Please also be advised that statements made during this presentation may contain forward-looking statements. For potential risks please look at the slides and also Form 20-F filed with the US SEC.

Now without further ado, we would like to move on to the presentation. Mr. Yamada please.

Ryuji Yamada

I am Yamada of NTT DOCOMO. I will like to take this opportunity to express my gratitude and appreciation to your continued patronage to the company. Thank you also for attending this meeting despite your busy schedule and the bad weather. Now without further ado I would like to start the presentation announcing the results for the fiscal year ended March 2012 and the principal action plan for fiscal year ending March 2013.

We go straight to page number three which is a slide for the results highlights for fiscal 2011 and a forecast for our fiscal 2012. In the fiscal year ended March 2012, we received an increase in both revenues and income for the first time in eight years. So this is the first time achieving an increase in both revenues and income since 2003. Operating revenues increased by 0.4% or ¥15.73 billion year-on-year and reached ¥4,240 billion and operating income increased by 3.5% to ¥874.5 billion.

For the forecast of fiscal 2012 we are expecting a 5% increase in operating revenues to ¥4,450 billion. Operating income is expected to increase 2.9% year-on-year to ¥900 billion. So we are expecting an increase in both revenues and income for two straight years.

Slide number four. This is the highlights for the 2011 results. As I said at the outset, for the first time in eight years we achieved an increase in both revenues and income in fiscal 2011. In the second, as we announced at the end of the first half, we made an upward revision to the full-year forecast of ¥870 billion. But as it turned out we even beat it, beat the forecast at ¥874.5 billion. Packet revenues reached ¥1843.9 billion, up 8.8% year-on-year.

The total number of smartphone sold increased 3.5-fold year-on-year and reached 8.82 million units. Xi devices sales increased by 87-fold year-on-year and reached 2.3 million. And also the total number of net additions reached 2.12 million. As you know although we have terminated 160,000 PDC subscribers as of the end of the fiscal year, still we were able to achieve 2.12 million units. The total number of cell subscriptions exceeded 60 million as of 11 th of March.

Slide number five, which is the results highlights. We have worked for the recovery from the damages of Great East Japan Earthquake, and of course we have also steadily implemented a new disaster preparedness measures and completed the implementation by the end of February by spending approximately ¥20 billion.

Second item, customer satisfaction improvement, both in the consumer and enterprise sector. We achieved the number one ranking in the consumer sector for two straight years and also in the enterprise sector for the third straight year. Also on 23rd of April this year, we were awarded the number one ranking in Nikkei BP Consulting's Mobile Data Devices User Satisfaction Survey for the fourth straight year.

We are very happy that our customers are continually using our services. I would like to show, express my appreciation. Number three smartphone promotion, we saw it as I said 8.82 million units of smartphones for the full-year. And in the month of March alone we sold more than 1.6 million units of smartphones. Of course this was attributable to the expanded lineup and also the introduction of new billing plans and the new services launched for smartphones. Number four, transformation into an integrated service company. We started our collaboration with Radishbo-ya and introduced NOTTV service. And number five, we are sorry about the service interruptions that we have caused. I would like to once again express my apologies for inconveniencing customers.

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